CIRCULAR ECONOMY IN THE REFORM PLAN OF THE MINISTRY OF FINANCE OF SR – A MODERN AND SUCCESSFUL SLOVAKIA

CIRCULAR ECONOMY IN THE REFORM PLAN OF THE MINISTRY OF FINANCE OF SR – A MODERN AND SUCCESSFUL SLOVAKIA

7. 10. 2020

On Monday, October 5, 2020 the Ministry of Finance of SR disclosed a National Integrated Reform Plan called “A Modern and Successful Slovakia” in which the green economy is also represented.

As stated in its document, MoF SR plans to increase the recycling rate by 11% by 2024 and by 16% by 2026, while 60% of municipal waste is expected to be recycled in 2030. According to the Environmental Policy Institute, in 2019 the recycling rate in Slovakia was 39%. Since we send more than 50% of municipal waste to landfills, while the EU average is 25%, minimizing waste in landfills is expected to be the main contribution of the Reform Plan. In spite of that, the goals determined by MoF SR are still not ambitious enough since they are precisely in accordance with the goals we have undertaken to meet by implementing the Amendment to the Waste Act which was a part of the so-called Circular Economy Package.

The Plan foresees approval of a reform acts package in 2022. It will include a new Packaging Act – although it has not been stated in what form the new Packaging Act will be drafted, nor what the intention for separated collection is – introduction of mandatory quantity collection and a gradual increase in landfill fees.

The Plan could contain the support of local governments and the reuse of waste as part of addressing bio-degradable waste. It also lacks support for introducing innovation and new technology which will make it possible to increase the waste recycling ratio thereby increasing the level of circularity of the economy and to reduce reliance on the importing of strategic raw materials, etc.

As for the green economy, the document focuses on combating water insufficiency, environmental criminality and on eliminating environmental burdens, the number of which reaches 1,817 in Slovakia.

Out of the total package of finances for the green economy, estimated at over EUR 1.5 billion for 2021 – 2026, EUR 216 million is supposedly earmarked for the transition to a circular economy.

In addition to the green economy, the Plan addresses issues in several other areas, e.g. digitalization, health, the labour market and social sustainability.