Slide 2. According to official figures annually in Russia more than 3.5 billion tons of waste including 35-40 million tons of municipal (solid) waste (MSW) is produced. Currently, in the territory of the Russian Federation in waste dumps and stockpiles are accumulated more than 94 billion tons of solid waste. Over the past 5 years the total amount of waste produced in Russia increased by 1.5 times. More than half of waste (54%) is produced during the extraction of fuel and energy minerals (mostly in coal mining industry), 17% due to non-ferrous metals, 16% due to ferrous metal and 12% due to other waste, including utilities. Slide 3. According to average data for each inhabitant of Russia is produced from 1 to 1.4 cubic meters of solid waste per year. The municipal sector is characterized by enhanced growth of waste production, which is connected primarily with the active use of packaging and packaging materials. The share of waste disposal facilities is more than 50% of all waste disposal facilities in the country, of which no more than 8% conform to the requirements. In particular, in Moscow annually 10 million tons of industrial and household waste is produced that are removed to special landfills. There are more than 80 of such dumps in the suburbs, each ranging from 3 to 10 hectares. Slide 4. According to the Federal Service for Supervision of Natural Resources Use at the beginning of 2010 in Russia are recorded 7518 waste disposal facilities, including: - 1699 of solid waste; - 576 industrial waste disposal facilities; - 5243 illegal dumps. In this case, work only 7 incinerators, 5 trash recycling plants and 39 waste sorting complexes, which indicate a low percentage of recycling and waste processing plants. The country average amount of waste recycling does not exceed 35%, which is only due to use of the most tonnage of waste to fill the goaf in the extraction of natural resources, as well as for mined-land reclamation. The level of recycling in manufacturing sectors does not exceed 30-40% for household waste, which does not exceed 5%. As it is shown by international experience with rational organization of recycling of solid waste, these figures may reach values even in 90%. Slide 5. Organization of modern production and consumption waste systems is one of the most important challenges facing the modern post-industrial society. In world practice there are several ways of storing and processing of solid household and industrial waste. Currently the most widely used are as follows: 1. pre-sorting; 2. sanitary dirt fill; 3. incineration; 4. and others Slide 6. The main economic benefits of pre-sorting are as follows: 1. Return of recycled materials in processing due to what saving of natural resources of oil, ferrous and nonferrous metals is made, which are irreplaceable natural resources, and also due to sorting it is possible to reduce the need of cellulose industry in wood raw material that has a direct environmental effect on conservation of forest lands. 1. As a result of the solid waste sorting and reuse of sorting products the volume of solid waste reaching the disposal of waste at landfills decreases, as the major sorted products are waste with long expansions (PE, HPP and other plastics), decrease of landfill reclamation and return of lands allocated for it to the utility take place. 2. Not a few important effect of reducing the volume of solid waste to be disposed of is to reduce the land needed for landfills for disposal of solid waste and allocation of these areas for agricultural use. Slide 7. Sanitary dirt fills. Such a technological approach to the disposal of solid waste is connected with biogas production and then it’s using as a fuel. To this end, household waste is filled up by a layer of soil in thickness 0.6 – 0.8 m according to a specific technology in a compacted form. Biogas landfills are equipped with ventilation pipes, blowers and bottles for collection of biogas. Thus, the landfills are the largest system of biogas production from all modern. For example, 1 ton of waste evolves no less than 100 m3 of biogas. Given that the use of biogas is possible at list 5-10 years after the establishment of the landfill and its profitability appears when the volume of waste is more than 1 million tons, it is possible to identify potential landfills as a tremendous source of energy. Slide 8. The present level of municipal solid waste incineration in some countries is different. Thus, of the total volume of household waste incineration percentage varies in countries such as Austria, Italy, France, Germany from 20 to 40%, Belgium, Sweden from 48 to 50%, Japan - 70%, Denmark, Switzerland - 80%, England and USA - 10%. In our country, only about 2% of household waste is incinerated and in Moscow - about 10%. Incineration provides the minimum content in the slag and ash of decomposable substances, however, is the source of emissions. It should be noted that incineration is the most complex, «high tech» and expensive option for waste processing. For example, the time required to design and build waste incinerator in USA on average takes 5-8 years. For installations of mass incineration with capacity of 100 to 3000 tons per day the capital costs shall range from 80 to 100 thousand dollars per ton of waste incinerated per day. This price does not include the price of devices for preparation of waste. Operating costs are about 20 dollars per ton of MSW. Technology of incineration of MSW was developed at a time when there were less stringent emission standards of a component of gas. Today, in developed countries there is a legal restriction on the content of 1 m3 of flue gas emitted to the atmosphere, which is not more than 0.1 x 10-9 g of nitrogen dioxide and furans from waste incineration. In this regard, all incinerators enterprises are unprofitable because the cost of purification of gas on waste incineration plants is high enough. In addition, operation experience of waste incineration plants in the European Union led to the conclusion that the practice of incineration of waste stream is extremely dangerous. Currently, the European Union banned the construction of new incinerators, and the existing are preparing to closure. Slide 9. To date, in the entities of the Russian Federation the main type of waste is sorted with allocation of recycled materials. Average productivity of waste sorting complexes located in the territory of Russia is approximately 180 thousand tons per year, which is comparable to the amount of waste of small towns. These types of waste sorting systems are used in the following cities: Togliatti, Belgorod, Moscow, St. Petersburg, Voronezh, Ufa, Arkhangelsk, Maloyaroslavets, Almetyevsk, Barnaul, etc. While in the world the biotechnological methods both to produce biogas and to produce fertilizer or bio-fuels and different energy sources have been applied for a long time. Slide 10. To date, the level of involvement of waste into the economy cannot be assessed as satisfactory. The average volume of waste in the Russian Federation does not exceed 35%, which leads not only to the sustainable growth of accumulated and subsequently disposed waste, but also to the irretrievable loss of up to 90% of usable products that have a real demand at the market. While disposing scrap fractions 9 million tons of waste paper is lost annually, 1.5 million tons of ferrous and nonferrous metals, 2 million tons of polymer materials, 0.5 million tons of glass. Slide 11. Collection and disposal as secondary raw materials is mainly made for the waste, which is characterized by high liquidity under the current market conditions: scrap, glass and waste of ferrous and nonferrous metals, plastic, paper, cardboard and aluminum cans that according to experts make more than 40% of household waste which appear in landfills, polluting the environment. The use of recycled materials allows companies that produce packaging reducing costs seriously. For example, the savings from using recycled materials in packaging production on average makes 20% of prime cost. Reduction of cost when using crushed glass for manufacturing may make up to 50%. Slide 12. In the Russian legislation there are legal provisions of restrictive and prohibitive nature to ensure environmental safety in waste treatment. The main problem in creating systems for processing and disposal is the low level of rates for the delivery of waste to disposal and recycling, as from the public and from enterprises. This question is most difficult in the negotiations of economic entities with local administrations as the increase in rates, especially for the population, is regarded as a socio-political issue. As law enforcement practice has shown the local governments were not able to provide full performance of delegated functions even for the treatment of municipal (household) waste, which caused a spontaneous increase in illegal dumping in almost every settlement, and issues of disposal of industrial waste, in general, cannot be solved by them properly including due to the fact that the owners of solid waste are legal entities and individual entrepreneurs, whose economic activity produces waste. Objective reasons for these conclusions are: lack of financial resources in local budgets, limited opportunities to attract investment, as well as inter-municipal character of solutions of choice of ways to remove the waste. Slide 13. Comprehensive programs of procession and disposal of solid and industrial waste. Pilot projects of Rosprirodnadzor in Kemerovo, Belgorod, Kirov and Kaluga Regions. The problem of waste treatment is proclaimed at the meeting of the Presidium of the State Council held on 27 May 2010, chaired by the Russian President Dmitry Medvedev, as one of the main problems of ecological safety of Russia. Having analyzed the situation in treatment of solid household and industrial wastes in the Russia, the Government of the Russian Federation is currently developing a targeted investment program for treatment of solid and industrial waste with specific morphology of waste not only the central part of Russia, but oil and coal mining regions of Siberia. This Government program shall solve the problem of testing the best available domestic and foreign recycling technologies for solid and industrial waste and also with its help the subjects of the Russian Federation will attract the necessary investment. Slide 14. Project purpose - improvement of slum populated areas of municipalities of the Kemerovo, Belgorod, Kirov and Kaluga Regions; - creation of a modern system of treatment of consumption waste, including transportation, sorting and disposal; - involvement in recycling of useful components contained in the consumption waste. Slide 15. Project task - modernization of appropriate enterprises of utilities complex in view of the developed complex system of treatment of consumption waste in population; - organization of design and construction of efficient waste sorting complex providing deep recycling of consumption waste; - establishment of sanitary epidemiological service meeting the current requirements of the order of operation of landfills for disposal of consumption waste and working conditions of staff. Slide 16. Source of incomes Sources of income of the regional companies that operate facilities for processing and disposal of solid household and industrial waste are: - payment by municipal enterprises of housing and utilities services for acceptance and disposal of solid waste; - payment by business enterprises for acceptance and disposal of solid waste; - income from sale of sorted secondary raw materials (waste paper, glass, ferrous and nonferrous metals, polyethylene, plastics, textiles, etc.), as well as from processed municipal solid waste into useful products. Pilot projects have no restrictions on sources of raw materials as the volume of receipt of MSW for each region is determined based on average data per capita. Development strategy provides for the conclusion of agreements with local municipal enterprises to export and recycling of urban solid waste. Slide 17. Project risks Risk assessment of pilot projects can be carried out in the following areas. Marketing. (Risk of not receiving the expected amount of income). 1. Possible lack of regional municipal rates for acceptance and disposal of solid waste without the appropriate cost-based rates, which may affect the value of sales revenue; 2. Less than taken in the project percentage of recycled output, which may be related to morphological composition of MSW of the specific regional project. The level of marketing risks can be taken as an average, but this is the highest level of all possible risks. Technological. Connected with possibility of increasing expenses and estimated cost of the project relating to implementation of regional projects. At this stage, the risk can be defined as the average because it mainly depends on the expenses connected with the preparatory work and arrangement of land. Legal. Connected with possibility of non-license or permit under the competence of regional authorities. This kind of risk can be estimated as low, cause in all pilot regions there are letters of the governors about the readiness of territories to participate in pilot projects. Other types of risks. Financial, construction and other are not crucial for the proposed pilot projects. Slide 18. Effectiveness. Inclusion of the proposed investment projects into the target program of the Government of the Russian Federation shall allow the entities of the Russian Federation to attract necessary investments, and Rosprirodnadzor not only solve the problem of testing the best available domestic and foreign technologies for utilization of production and consumption waste, but also: - optimize the competences and powers under the legislation of the Russian Federation for the entities of the Russian Federation and local government, namely, for organization of use (recycling) of solid municipal (household) waste in the appropriate entity of the Russian Federation and establishment of the order of separate collection of solid municipal (household) waste in the appropriate entity of the Russian Federation; - determine conditions for ensuring financial sustainability of the industry of waste treatment, which includes collection, accumulation, dispatch, use (recycling), disposal, transportation and allocation of waste; - determine the scale of financial responsibility for recycling, clearance and disposal of products that have lost their consumer properties; - establish a mechanism to create unified system of normative legal and technological treatment of waste throughout the entire lifecycle of products from conception to disposal, decontamination and burying with the aim of quality management of wastes as raw materials; - develop effective measures of prevention, recovery, elimination of pollution and damage to the environment and human health as a result of waste treatment; - establish a mechanism to encourage use of recycled and renewable resources, ensure conditions for the provision of quality services for the disposal of production and consumption waste; - work out a system of environmentally safe transport and transboundary movement of waste; - establish a mechanism to create additional incentives for enterprises, offering low-cost-effective waste disposal