Norway requires financial security for waste companies
The Norwegian Environmental Directorate has recently confronted a problem that we, unfortunately, know all too well in Denmark. Waste companies that go bankrupt and leave a large bill for waste producers or municipalities and municipal companies.
Norway is now introducing requirements for financial security for waste companies and is therefore leading the way as a model for the other Scandinavian countries.
“Facilities for receiving, temporarily storing and processing hazardous waste must have the financial security to cover the costs of handling all hazardous waste in case of the companies' closure, decommissioning or payment problems”, writes the Norwegian Environment Directorate on their website.
RGS provides financial security for all contaminated waste
From time to time, our industry, unfortunately, experiences bankruptcies where a sizeable bill is left for cleaning up and concluding the waste treatment. The responsibility and the costs thus fall back on the waste producer or the property owner.
This uncertainty for property owners or waste producers when delivering contaminated soil or waste has been eliminated, due to the restrictive recognition of accounting provisions in RGS Nordic. Thus, there is a financial guarantee for the proper cleaning and treatment of waste.
RGS Nordic makes financial provision for the full treatment costs of the contaminated waste, soil and wastewater received. Furthermore, we gradually calculate the income from ongoing treatment of soil and wastewater in step with the degree of treatment. RGS Nordic follows all the accounting rules for revenue recognition and, not least, good accounting practice. Our accounts are audited and endorsed by Ernst & Young.
Legally, a waste producer/contractor still carries the official responsibility for the waste, even after
handing it over to the waste manager. The waste producer/contractor is first released from this responsibility when the waste has been processed, for example, by biological or thermal cleaning. In this context, sorting is not considered a treatment and thus does not entail the release of responsibility.
Compliance is a foundation, and the market must be structured so that competition can take place on equal terms
For us, it is natural that we, as the big, responsible player on the market, place compliance as the highest priority. We focus on adhering to the existing set of rules and norms, which is the basic foundation on which our business is operated.
However, we also want to set a high standard for the industry by working in-depth with responsible business operations. In doing so, we will contribute to better legislation, structuring the industry and equal conditions of competition. We think that Denmark should follow the same path as Norway.
Read more about how we think business should be responsible in our sustainability report here