After the cancellation of incentives for recyclers in Serbia, a market model of auctions is being prepared - Will the industry survive the transition phase?

- This kind of approach can represent a step towards a more efficient and transparent system, but provided that the rules, obligations and mechanisms of functioning are clearly defined, in order for all participants to have a predictable and stable framework for business. Recyclers and operators indicate certain doubts regarding the sustainability of the system in such conditions, especially considering that the previous model was based on pre-collected fees for products that become a separate waste stream, precisely with the aim of financing their collection and treatment at no additional cost to end users. In that sense, a sudden change of model without a transitional period creates operational challenges - says the head of the Environment Unit at NALED.

In this sense, as she adds, the key challenge in the coming period will be to ensure the continuity of the system in the transition phase, in order to avoid a further decrease in the utilization of existing capacities and preserve the functionality of the entire waste management system.

- At the end of the chain, treatment and recycling facilities operate with reduced input quantities, which affects their efficiency and economic sustainability - she points out, warning that in such circumstances the system slows down and "bottlenecks" are created.

When it comes to risks, she adds that "increasing costs of proper disposal and limited logistical capacities increase the likelihood that part of the waste will be directed outside of formal flows", which is why it is crucial to ensure a stable and clearly defined framework in the transitional period.

- In current conditions, the sudden transition to a completely market model represents a significant challenge for the recycling sector, especially for more complex waste streams such as electrical and electronic waste or tires - she points out.

Nevertheless, she adds that the long-term introduction of the principle of extended responsibility of producers and market mechanisms, like auctions, can contribute to greater system efficiency and transparency, but only with carefully managed transition.

- The minimum framework of support at this time would imply transitional mechanisms which ensure the continuity of financing of critical waste flows in accordance with the "polluter pays" principle. If these elements are ensured through the new regulation, which the Working Group is currently working on, there is a realistic basis for the sector to gradually transition to a more sustainable, market-oriented model, without jeopardizing existing capacities and preserving the functionality of the system as a whole - our interlocutor concludes.