Global Forum on Environment: Promoting Sustainable Materials Management through Extended Producer Responsibility (EPR)

Transcription

1 Global Forum on Environment: Promoting Sustainable Materials Management through Extended Producer Responsibility (EPR) Key learnings of 20 years experience advising public and private sector in the design, implementation and optimisation of EPR regulations and models across the world. Christoph Vanderstricht Global EPR leader Partner EY

2 Agenda 1. Introduction 2. Misconceptions 3. Differences 4. Similarities 5. Conclusions Page 2 Presentation title

3 1. Introduction: Our EPR experience (See countries in yellow for geographical experience) Since 1994, the current EY team has been involved in more than 40 countries in the design, development, implementation and optimisation of EPR and other solid waste management regulations and operational solutions for the public as private sector in a vast waiver of product categories: household and industrial packaging; batteries; electronic waste; tyres; nonwoven cotton; solar panels, lamps, etc. Page 3

4 1. Introduction: The future of resource management There is wide recognition that, at a global level, current waste growth and resource management practices are unsustainable. Key to develop a circular economy rather than a linear economy which involves simply digging materials out of the ground produce products, and send the waste to landfills. Demographic growth Consumption patterns Urbanisation Economic growth Low waste management infrastructure Public health Energy demand Public financing Central government Municipal authorities Producers Waste management technologies Product innovation How to react to the pressures of change Government must create the economic and legislative conditions for change Integrated waste management strategy and system design to reinforce the waste hierarchy Implementation of capacity building at municipal/city authority level EPR principles to place the cost burden on the producers and drive market development. Creating circular economies Increasing use of outsourcing, performance based contracting and PPP/BOT commercial structures to manage the municipal financial burden, drive change and manage technology risks Increasing use of multi-stream collection systems to manage public health risks and provide material to the treatment system Investment in engineered landfills, waste to energy/gasification and anaerobic digestion as well as intangible factors such as education and awareness Economies of scale, increasing capital intensity, technology focus drive joint ventures and M&A activity in the supply chain Page 4

5 1. Introduction: Drivers for a government to implement EPR regulations Extended Producer Responsibility Page 5

6 2. Misconceptions about EPR EPR is an instrument to better organise waste management operations and induce product stewardship: collection points; transportation models and the use of valorisation technologies EPR is only possible if there is recycling or valorisation capacity present in the country EPR only concerns the Ministry of Environment EPR laws can be easily copied from one country to the other Small and medium enterprises should not be bothered by EPR The phantom of the monopoly Inefficiencies and fraud with collective schemes show that the model is not working. Page 6 Presentation title

7 2. The phantom of the monopoly in a reversed market Buyer Market versus Seller Market High supplier power High buyer power The most important component of the cost is the cost of collection of the waste, followed by the cost of recycling (depending on the product). In makets with high bying power the prices are 3 times lower than in markets with low buying power (ie where more collective schemes are competing ) Page 7

8 3. Differences: Governance models for EPR development The cooperation between the private and public sector is key to design and implement a sustainable EPR regulation. There are different partnership models for public-private cooperation: Voluntary agreements established by industry Voluntary agreements as a partnership between industry and government (participation of individual firms not obligatory) Industry-government co-regulation (of industry self regulation combination and government regulation, with government having the authority to enforce) Regulation established and enforced by government Voluntary Mandatory Experience shows that in most case close cooperation between government and private sector is necessary to realise the objectives and avoid dramatic risks in the market. Page 8 8

9 3. Differences for EPR: Why countries are different Strength of government (enforcement) Prioritised Product Culture Regulatory and constitutional context Financing capability Social economic environment Available collection and transportation Infrastructure the product market Page 9 Presentation title

10 3. Differences for EPR: Products are different Durable goods Fast moving consumer goods BRING SYSTEMS DOOR-TO-DOOR Central collection site Low-density collection points High-density collection points (close-to-home drop-off) Street-side Containers Kerbside or Door-to- Door Collection Transport by residents / corporations Collection System Transport Collection models depend on the product, the economic activity and the demographic specifications. Page 10 10

11 4. Similarities for EPR: Why countries do have similarities Improper EPR and solid waste management are a threat to public health and the environment Effective EPR models create value and opportunities for social inclusion, jobs and better environment Human action & Change of behaviour Expectations of the key stakeholders Strong enforcement and control from government is key Seller markets lead to higher prices and buyer markets to lower prices EPR is increasingly becoming the Wild West creating risks for countries and producers The devil is in the detail Wrong or sub-optimal EPR models lead to higher costs for society, governments and has strong negative impacts in terms of level playing field in the product markets. Page 11 Presentation title

12 5. Conclusions EPR is an economic instrument impacting the whole market: the product market as well as the waste market EPR is not only about the environment and therefore requires attention from different ministries (Finance / Trade / Customs / Economy) EPR risks should not be underestimated EPR requires proper consideration and careful implementation by governments and private sector EPR requires strong government enforcement and control EPR can contribute considerably in the development of an inclusive and greener sustainable market in big number of countries EPR should be implemented as part of an integrated strategic approach by governments, taking into account other challenges (eg energy needs / resource management) Page 12 Presentation title

13 More information Christoph Vanderstricht, Tel: (Chile) Tel: (Belgium) Page 13

14 Thank you