Directive 2006/66/EC is amended as follows:

1. (1)

   in Article 10, paragraph 3 is replaced by the following:

   3.

   Member States shall monitor collection rates on a yearly basis according to the scheme set out in Annex I to this Directive. Without prejudice to Regulation (EC) No 2150/2002 of the European Parliament and of the Council14, Member States shall electronically transmit reports to the Commission within 18 months of the end of the reporting year for which the data are collected. Reports shall indicate how the data necessary to calculate the collection rate was obtained.

2. (2)

   in Article 12, paragraph 5 is replaced by the following:

   5.

   Member States shall report on the levels of recycling achieved in each calendar year concerned and whether the recycling efficiencies referred to in Annex III, Part B have been met. They shall electronically submit the data to the Commission within 18 months of the end of the reporting year for which the data are collected.

3. (3)

   Article 22 is deleted;

4. (4)

   the following article is inserted:

   Article 22aIncentives for the application of the waste hierarchy

   In order to contribute to the objectives laid down in this Directive, Member States may make use of economic instruments and other measures to provide incentives for the application of the waste hierarchy, such as those indicated in Annex IVa to Directive 2008/98/EC or other appropriate instruments and measures.

5. (5)

   Article 23 is amended as follows:

   1. (a)

      paragraph 1 is replaced by the following:

      1.

      By 31 December 2018, the Commission shall draw up a report on the implementation of this Directive and its impact on the environment and the functioning of the internal market.

   2. (b)

      in paragraph 2, the introductory part is replaced by the following:

      2.

      In its report, the Commission shall include an evaluation on the following aspects of this Directive: