THE ROADMAP PAPER & PACKAGING INDUSTRY WASTE MANAGEMENT PLAN 4 JUNE 2015 CHARLES MULLER EXECUTIVE DIRECTOR PACKAGING SA
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1 THE ROADMAP PAPER & PACKAGING INDUSTRY WASTE MANAGEMENT PLAN 4 JUNE 2015 CHARLES MULLER EXECUTIVE DIRECTOR PACKAGING SA
2 PACKAGING IN PERSPECTIVE
3 PACKAGING IN PERSPECTIVE Biggest pollution issue is Greenhouse emissions! How much do we create? Statistics vary but estimates range between 35 & 40 billion tonnes annually. How much is a billion? About 1m tonnes in next 15 minutes! Heading for a climate catastrophe which will threaten the very existence of mankind!
4 PACKAGING IN PERSPECTIVE The 2011 CSIR baseline report suggested that SA creates around 108m tonnes of solid waste annually this excludes mining waste. Around 90% of this is landfilled. Municipalities collect between 20 & 25m tonnes.
5 PACKAGING IN PERSPECTIVE Approximately 51% of all packaging placed on the market is recycled with <2m tonnes ending up as unrecovered waste. Compare this to food where an estimated 10m tonnes is wasted annually at a cost of >R61 billion! Globally around 35% of food ends up in landfills bigger problem than packaging! Packaging plays a significant role in preventing this waste Source - CSIR
6 PACKAGING IN PERSPECTIVE In addition to Greenhouse emissions & organic waste there are also very significant challenges with. Mining waste Residual ash from power stations Building rubble Whilst the volumes are relatively small packaging waste is unfortunately very visible!
7
8 PACKAGING IN PERSPECTIVE 2011 Solid waste generated 108 Solid waste landfilled 98 General waste 58 Municipal waste 20 Net paper & packaging 2 ( million tonnes )
9 SOUTH AFRICA S PERFORMANCE BY SUBSTRATE
10 OUR PACKAGING PERFORMANCE CONSUMPTION RECYCLED % PAPER PACKAGING & PRINT METAL GLASS PLASTICS TOTALS ( 1000 tonnes ) Source - BMI
11 Whilst our numbers compare favourably with many developed countries around the world it is simply still NOT good enough!!!!
12 WHAT DOES THE PAPER & PACKAGING SECTOR PLAN TO DO?
13 INDUSTRY PLAN Original Plan was presented to the DEA in August 2011 Document was updated & submitted as a Draft Proposal for Discussion in September 2014 Various International experts were consulted Compiled with extensive input from Aerosol Manufacturers Association of SA Collect-a-Can The Glass Recycling Company Multilayer Packaging Forum Paper Manufacturers Association of SA Paper Recycling Association of SA PETCO Plastics SA POLYCO Polystyrene Packaging Council Printing SA S A Plastics Recycling Organisation Southern African Vinyls Association
14 Cornerstone of the Plan Industry managed system Primary objectives. Maximise diversion from landfill Provide industry with a steady stream of good quality recyclables Reduce resource consumption Job creation, 2 nd resources economy & better working conditions Clean up the environment. INDUSTRY PLAN
15 INDUSTRY PLAN Non-profit & as cost-effective as possible. Develop new collection systems. Important to support Municipalities. Develop labour intensive models to handle & sort recyclable materials specifically through MRF s. Develop markets to absorb the various recyclables collected.
16 Encourage entrepreneurship INDUSTRY PLAN NO free riders - obligatory membership of a Product Responsibility Organisation Costs to implement will be collected from obligated industries.
17 INDUSTRY PLAN The industry is of the opinion that it should be a priority to finalise & implement a Plan & once in operation consider what economic instruments would best address any shortcomings that might emerge.
18 PRICING STRATEGY The recently Gazetted Pricing Strategy discussion document proposes. That the EPR Scheme becomes Government Managed EPR schemes will have 2 years to align their funding models to the Pricing Strategy & the ACT Implies there will be a SARS collected tax We have formally responded to the Gazette & await feedback from the DEA.
19 INDUSTRY CONCERNS Industry have some concerns that with increased Government intervention & regulation including the imposition of SARS collected waste management charges or taxes the following will inevitably occur.
20 INDUSTRY PLAN CONCERNS The paper & packaging industry may abdicate responsibility. Industry unlikely to pay twice ie. both a voluntary levy & a mandatory tax With some exceptions the packaging manufacturers in South Africa are not in good economic shape careful that undue taxation & interference does not negatively impact the sector.
21 INDUSTRY CONCERNS The many voluntary & successful initiatives, particularly those of the 7 main stream Material Organisations, may collapse. These organisations are all funded through voluntary contributions Current funding models generally collect upfront delays in funding will see the disintegration of projects etc! Collective budgets are >R300 million Responsible for tens of thousands of jobs Destroy the passion!
22 INDUSTRY CONCERNS There will be a regression of recycling rates. There is ample international evidence to suggest that recycling rates will regress such as what occurred in Hungary in 2012 where the state assumed control from privately run PRO s The recycling rates there fell from 59% to 49% within a year!
23 INDUSTRY CONCERNS Packaging costs effect all the LSM s. Packaging is an integral part of protecting, preserving & containing food Poor cannot afford further taxes Careful of inflationary affect.
24 INDUSTRY CONCERNS Revenue collected will be swallowed up in the Fiscus. Government have advised that there will be NO soft or hard earmarking (ring-fencing) of revenue generated & collected State expenditure such as housing, water provision, unemployment etc. may take preference particularly if there is a significant budget deficit There could be another & the money required to achieve our objectives may not be forthcoming!
25 QUO VADIS?
26 INDUSTRY PLAN However..with the imminent introduction of the Waste Management Bureau & the Pricing Strategy it is however accepted that there has to be a greater collaborative effort to achieve the aspirations of all.
27 THE ROAD FORWARD? PACSA has been collapsed & replaced by a new & more encompassing PRO body called Packaging SA. Industry recognizes that Government must be an integral part of the solution but cannot be THE solution The need for better data & harmonisation of recycling statistics is required Preserve the successes & good work done at all costs.
28 INDUSTRY PLAN - ROAD FORWARD? In preparation for the Minister calling for updated industry plans (Section 28 of NEMWA) the new Packaging SA has already started work on revising the most recent draft so as to ensure that it becomes a more comprehensive document detailing a proper. Operational Marketing And Financial
29 INDUSTRY PLAN - ROAD FORWARD? Many issues will need to be addressed including. Single or multiple EPR schemes? Which part of the value chain ( obligated industry ) will pay? How will the tax or levy be calculated? Application of the levy or tax to drive kerbside collection, help recyclers, support under-valued recyclables etc? What financial & operational support will be provided to Municipalities? Education.
30 INDUSTRY PLAN - ROAD FORWARD? We cannot fail - there is no option but to ensure that South Africa becomes a better place for current & future generations.
31 Charles Muller Tel : Mobile : Thank you
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