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Waste Draft Law: Between Limited Transparency and Risk to Private Interests

Graphic illustration of an electronic device collection point/Citizens.al

Draft law on “Extended producer responsibilities” aims to bring Albania closer to European standards for waste management, but an analysis by civil society organizations has raised doubts about its transparency and content.

The law, which is expected to determine how much and how businesses will pay for the pollution they cause, is said to contain legal loopholes and contradictions that could favor private interests.

Experts urge the Assembly to thoroughly review the draft to avoid risks of corruption and economic consequences for citizens.

A necessary but unclear law

Draft law on “Extended responsibilities of entities producing products that generate waste” was introduced at the beginning of this year as a step towards the circular economy and alignment with European directives.

But an analysis compiled by the Albanian Center for Economic Research (ACER) and the Albanian Institute of Sciences (AIS) has highlighted obvious gaps in transparency, ambiguities in wording, and shortcomings in financial calculations, which could directly affect citizens.

The analysis, compiled with support from the Westminster Foundation for Democracy, warns that the draft law in its current form could legitimize private structures, without providing public guarantees over costs and control of funds.

The draft is based on the EU framework directive (2008 / 98 / EC), aiming to make producers responsible for the waste of their products after use. It foresees the establishment of Extended Producer Responsibility Companies (EPRCs) – entities that will manage the financing and organization of waste collection, recycling and treatment.

The wording of point 8 in Article 3 of the draft law/Citizens.al

But while in EU countries these structures are regulated as non-profit entities, the Albanian draft treats them as commercial companies, paving the way for economic benefits from a mechanism that was supposed to function according to the principle of "Polluter pays".

During the presentation of the alternative opinion, held in Tirana on October 29, with the presence of deputies of the parliamentary committees for the environment and economy, legal expert Viktor Gumi highlighted several critical points.

Thus, according to the analysis conducted by ACER, AIS and groups of other organizations convened by them, the draft law was accompanied by limited transparency in its drafting and consultation.

It was published for consultation for only 40 days and received only four comments, although it directly affects businesses, consumers, and municipalities, while the latter appear not to have been consulted, thus violating the law on local self-government.

The preliminary draft has uncertainties in terminology and legal references. The text appears to refer to laws that have already been repealed and uses undefined terms such as "treatment", "processing" apo "waste streams", increasing the risk of broad administrative interpretation.

The group of experts from non-governmental organizations involved in the ACER and AIS analysis has found a contradiction between public and private interest.

Specifically, the problem is seen in SHPZPs, which are envisaged as for-profit companies, although the accompanying document (RIA) defines them as organizations that should not generate profits.

This discrepancy creates a risk of potential misuse of funds that will be collected in the name of environmental protection.

In addition to these issues, the draft law appears to leave room for risks in inspection procedures. Article 23 provides that the implementation of the law will be controlled by several different inspection structures, thus increasing the possibility of corruption.

The wording of Article 23 of the draft law/Citizens.al

The recycling bill falls on the consumer.

The law provides that producers pay financial contributions to the Waste Management Centers for waste collection, costs that are expected to be reflected in increased prices for consumers.

Meanwhile, businesses that already pay taxes on plastic and glass packaging will be exempt from the new contribution – without any compensation mechanism or transparency over the existing amounts paid into the budget.

In the RIA analysis, the government itself admits that consumers "may face higher prices for products", while low-income families may have difficulty affording the new costs of waste management.

However, the draft law does not contain any calculation of the financial impact, a gap that the experts of the ACER and AIS group consider a violation of the principle of legal certainty.

At the roundtable discussion, the MPs present, such as Zamira Sinaj, Klodiana Çapja, Gjin Gjoni, and Redi Muçi, acknowledged that the draft law had been passed without broad consultation and invited experts and non-governmental organizations to express their findings to the Assembly.

Meanwhile, Gjergj Buxhuku from Konfindustria expressed reservations about the work done so far, criticizing the tendency to draft laws without sub-legal acts.

The draft charges the government with "within 2 years to issue the bylaws", while at the end of it he says that "enters into force 15 days after publication in the Official Gazette" and "It takes effect after June 1st".

Buxhuku said that in this way unenforceable laws are made and therefore asked the deputies to be more civil regarding this law, away from lobbying and political divisions.

Valuative opinion drafted by ACER and AIS proposes that hearings be organized with affected municipalities and businesses, while the draft's legal language be improved and the financial effects for the consumer and the state budget be clearly calculated.

The Extended Producer Responsibility Law is seen as a necessary step towards implementing EU environmental standards, but according to ACER and AIS, in its current form it carries serious risks of abuse.

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