Scavenging of Packaging Waste

in Greece

HERRCO’s Mission“Extended Producer’s Responsibility Organization”

• Fulfilling the legal obligations on behalf of the affiliated packaging operators.

• Meeting the National Objectives according to the System’s Financial and Technical programming

HERRCO operates at a non-profit basis

19 Shareholders 325

Municipalities

AYS SA

(65%)

Central Union of Greek Municipalities

(35%)

HERRCO SA

(EPR ORGANIZATION)

1.780 CONTRACTED

MEMBERS

The System’s Structure

• Producers and importers of products• Packaging producers

HERRCO’s Activities

• Blue Bin (Municipality) recycling

projects(commingled recyclables – in some areas multiple streams)

• Glass collection Glass collection from professional venues (hotels, restaurants etc.)

• ICPW and other activities Recording and certifying recycling from Industrial and Commercial Packaging Waste

(ICPW). Other recycling sources (delivery from 3rd parties directly to industry, energy recovery, etc.)

Blue Bin projects at a glance (October 2014)

• 87% population coverage

• 135 thousand Blue Bins in use

• 415 vehicles to the participating municipalities

• 29 Sorting Centers

• 2.200 jobs

• 442 kt of materials were recycled 2013 (1) (+5% increase for 2014)

• €260 mil. for investments and operating costs up to date

• National Targets have been met, except for glass

(1): packaging and printed paper

“Unofficial Recycling”

Is it a problem? Yes!

Þ Illegal activities

Þ Environmental concerns

Þ Negative impacts to the official (municipal) packaging waste recovery projects

“Unofficial Recycling”

What is the driving force of the problem? It’s the economy, my friend!

A profitable activity based on:

Þ “Getting” the material for freeÞ No environmental or safety standards are metÞ Usually a “tax free” activity

“Unofficial Recycling”

Are there any solutions? Well, yes!

Þ Set up an effective immigration policy, (in Greece scavengers are mainly immigrants)

Þ Raise the social and economic status of the groups involved

Þ Decrease the secondary materials prices Þ Provide “decent” jobs for the scavengers

None of the above lies within the EPR organization boundaries!

“Unofficial Recycling”

What else?

Þ Secure the collected material or even collect it before they do it

Þ Prosecute some hundreds (or thousands?) of people

Þ Close down the illegal scrap yards

Not easy solutions, if any not for the EPR schemes alone.

The authorities should take the proper decisions!

What can the EPR schemes do?

Calculate and/or record the “missing” quantities at the lowest possible cost.

Then report the findings to the authorities. The above ideally should be done in agreement with (…

and on behalf of…) the authorities (procedures etc.) Put the issue on the table as a problem which cannot be

tackled by the EPR schemes alone. Communicate the problem with the citizens.

Scavenging of packaging in Greece

Especially after the start of heavy financial crisis since 2010, it happens on a massive scale

Potential source of income for unemployed people (mainly Roma and immigrants)

Acute problem in high density populated areas

Targeted materials

Cardboard-newsprint paper (mainly) Easy to be removed from the bins High priced material Possible “heavy” loads with small trucks

Metals-Plastics (small scale) Scavenging not at that large scale as in cardboard Light weighted materials → inefficient transportation Metals → mainly non-packaging equipment (steel, bronze, copper,

aluminum etc.) Plastics → very small scale

Packaging scavenging – Blue bins

Common picture in the streets of Athens

Packaging scavenging – Blue bins

Impacts

Negative effects to the municipal packaging recycling results

Decreases the quality of the collected stream

Increases operating costs of the Sorting Centers (less incoming valuable materials)

Negative impact to participating citizens

Strong negative impacts to cities functionality and environmental image

Cardboard recovery from MSW project (Blue Bins)

2010 20130

2

4

6

8

10

12

14

16

13.5

8

Kg/capita/year

-40%

Estimation of Market size reduction 2010-2013

Based on declared quantities at HERRCO: -20%

(-35% since 2008)

GDP per capita PPS (purchasing power standard) Index*: -16% (-19,5% since 2008)

GDP growth rate*: -17%

(-23,5% since 2008)

So you would expect a 16-20% decrease in PW*source: Eurostat

Quantifying the annual losses(Per capita cardboard recovery rate 2010/2013)

*Based on declared quantities to HERRCo

But you get:

- 40%

Market size reduction* 2010-2013: 20%

Because ofScavenging: 20%

Scavenging quantities estimation: 20,000t – 25,000t per year

Scavenging materials trade route

BLUE BINS

Scavengers

Small scale stockyards

Big scrap traders

Exports Domestic Recycling Plants

------------------------------- Recorded at ICWP results

The materials end up to the same scrap traders which trade the ICWP and eventually are recorded by HERRCo

Scavenging materials trade routeverified by HERRCo results

Category

2012 - 2013 Results Rate (%) Share

Total 2012 - 2013 Results Rate (%)

2012 - 2013Market size rate

(%)Blue Bin (MSW) -10% 30%

-2,5% -3%Industrial and Commercial +0,5% 70%

Total recorded quantities follow the market rate which means that the quantities missed in the official (blue bin) recycling reappear at the scrap traders.

Conclusions 1

Negative financial impact on the Sorting Centres (blue bin projects),

Financial impacts (revenue losses) caused by the yearly loss of 25,000 t

Þ Material sales: €2.4 mil.Þ HERRCo funding: €0.25 mil. €3,5 mil./yearÞ Additional operating cost: €0.8 mil.

Conclusions 2

Negative effects to the municipal packaging recycling results

Disruption of the blue bin system

However, quantities from scavengers are being recorded by HERRCO, not via Municipal Solid Waste, but via Commercial and Industrial Projects (Scrap Traders activities)

Thank you!