1. 1 © Hermann Koller Sustainable and efficient Packaging Waste Management - Experiences from Austria Budapest, 24 February 2009

2. 2 © Hermann Koller Contents 1.Legal Requirements 2.Political Considerations 3.Operation of the System 4.Results and Experiences Confidentiality Clause: This document including an oral presentation is exclusively intended for a certain addressee. Underlying analytical data and oral explanations may have to be added to the document in order for the latter to be regarded as complete. Any disclosure of the information it contains to third parties, in any form whatsoever, even in an extracted form, shall only be permissible upon prior written consent of the author. The author assumes liability for the correctness and completeness of information only in compliance with a relevant contractual relationship.

3. 3 © Hermann Koller Austria: Facts & Figures Capital:Vienna Area:84,000 km² Population:8.2 mio. GNP 2006 1) :257.9 billion € GNP per inhabitant 1) :31,140 € Household waste (MSW) 2) :3.4 mio. tons27.5 mio. m³ Packaging waste 3) :1.1 mio. tonsapp. 135 kg/cap*a 1) per July 2007; Statistics Austria 2) Federal Environment Agency, 2006 3) Federal Ministry of Environment, 2006

4. 4 © Hermann Koller Different Targets and Quotas are set –Minimum recycling quotas for companies not participating in an authorized collection and recyovery scheme (set in the Packaging Ordinance) –National recycling quotas (set in the Packaging Ordinance) –Recycling quotas for authorized collection and recovery schemes (set by the Ministry of Environment) 1. Legal Requirements

5. 5 © Hermann Koller Collection/Material Recycling 2007 * Goal for material recycling quota for plastics, compounds, wood, textiles and ceramics, packaging on a biological basis and metals: > 35 % Household system: quota set/reached, in % 1. Legal Requirements

6. 6 © Hermann Koller Collection/Material Recycling 2007 * Goal for material recycling quota for plastics, compounds, wood, textiles, ceramics and metals: > 40 % Industrial/commercial system: quota set/reached, in % 1. Legal Requirements

7. 7 © Hermann Koller No ecological reasons to implement deposit system in Austria ● EU directive and the national packaging ordinance have been implemented successfully ● Only 5.8% of littering are packaging, and only 0.45% of littering are beverage packaging ● Vienna has Europe-wide the most insignificant share of littering waste ● Return rate in Austria is nearly 90% without deposit (this is more than in countries with deposit) ● Existence of enough and appropriate capacities for recycling of metals and plastics The situation in Austria 2. Political Considerations

8. 8 © Hermann Koller No reasons to implement a deposit system in Austria from economic point of view A deposit system established parallel to an existing dual system,  causes high cost for establishing and running the system  leads to an additional separate mass stream via supply chains without any cost saving on the dual system  causes confusion among consumers and leads to complicated separate collection  some cans and bottles may disappear from the landscape, but measures against littering have to be taken anyway. 2. Political Considerations

9. 9 © Hermann Koller The Sustainability Agenda as the Austrian Approach The Austrian Industry and Politics have agreed to reach the following goals: –Recycling of PET beverage packaging at an amount of minimum 50% –Bottle-to-Bottle recycling for PET (2007: 6,000 tons) –30% share of recycling materials in cycle PET bottles –Beer mainly in refillable bottles –80% quota for refill or recycling of beverage packaging –Continuos consumer information concerning refillable products –Support the use of returnable systems at big events –Preparation of annual implementation report 2. Political Considerations

10. 10 © Hermann Koller Comprehensive range of bins for separate collection are available for households 3. Operation of the System

11. 11 © Hermann Koller Sorting Plants for lightweight packaging and metal packaging Al packetised MSW Fe packetised Metal sorting MSW Fe shredderedAl shreddered Shredder Legend: Magnet Eddy current separator Shredder Mixed plastic fraction Fe -> Shredder LDPE foils HDPE buckets MSW Lightweight Packaging PET HDPE PS/PP Metal packaging only Lightweight packaging output fractions in bales Metal output fractions Input Collection 3. Operation of the System

12. 12 © Hermann Koller New fractions for the separate collection Lightweight packaging Metal packaging Plastic bottles and metal packaging Plastic bottles Option 1 Option 2 (mixed collection) 3. Operation of the System

13. 13 © Hermann Koller New plastic-sorting-plant in Vienna: fully automated sorting of plastic-bottles Sorting capacity: up to 4 tons per hour Fully automated sorting via near infrared sensors and compressed air valves 3. Operation of the System

14. 14 © Hermann Koller New Bottle to Bottle Recycling Plant 3. Operation of the System

15. 15 © Hermann Koller Marketable Products 3. Operation of the System

16. 16 © Hermann Koller Landfilled packaging waste quantities dropped down: 1990/91, 1994, 1998, 2001, 2004 1) “Ordinance on targets“: Ordinance establishing targets for the prevention and recycling of waste from drinks packaging and other packaging materials Note: I = Range for actual landfilled volumes Sources:Prognos AG, 1995; Austrian Ministry of Environment, 1998; Amendment of “ordinance on targets”, 2000; FHAnalytik GmbH, 2002; FHAnalytik and TB Hauer, 2006 4. Results and Experiences

17. 17 © Hermann Koller Separate collection reduces CO 2 emissions No separate packaging collection: Collection, transport, waste treatment (scenario Austria 1998: mainly landfilling), energy production (substitution of energy recovery of packaging), primary production of raw materials Separate packaging collection via ARA System: Collection, sorting, transport, recycling, recovery, energy production (substitution of energy recovery of MSW) 0 1,000 2,000 3,000 4,000 5,000 6,000 WoodGlassPaperPlasticsCompoundsMetals Total [kg CO 2 equivalents / t packaging] Savings: 1,659 Savings: 297 Savings: 1,158 Savings: 980 Increase: 30 Savings: 1.239 Total Savings: 894 kg CO 2 equiv / t or 607,177 t CO 2 equiv / a Total CO 2 emissions Austria 2005: 93.3 Million t Savings of greenhouse gas emissions 4. Results and Experiences

18. 18 © Hermann Koller Official Packaging Waste Data for Austria Source: Eurostat, Environmental Data Centre on Waste (http://epp.eurostat.ec.europa.eu/portal/page?_pageid=3155,70491033,3155_70521316&_dad=portal&_schema=PORTAL#end) 4. Results and Experiences

19. 19 © Hermann Koller Comparison Recovery Targets in EU Countries Austria Source: Eurostat, Environmental Data Centre on Waste 4. Results and Experiences

20. 20 © Hermann Koller Efficient Recovery Schemes Show Best Results Source: Eurostat, Environmental Data Centre on Waste

21. 21 © Hermann Koller Since 1993... Collection and recovery of approx. 10 million tons of packaging – that corresponds to approx. 36 medium-sized landfills All quotas set by the Austrian Packaging Ordinance, the EU Directive and the Ministry of Environment have been reached 90 % of the Austrians are convinced of separate waste collection and try to collect packaging separately. 4. Results and Experiences