History of Recycling Market Development

Transcription

1 History of Recycling Market Development Betsy Dorn - Director, RSE USA NERC Spring Workshop April 3, 2018 Baltimore, MD

2 What is Recycling Market Development? Defined actions to enhance the economic vitality of the reuse/recycling industries Supply Increase volume Improve dependability Enhance quality Improve affordability Demand Grow demand for recyclable materials and recycled content products Innovation Increase recycling efficiencies & opportunities

3 Increasing Demand Retention of existing end markets and intermediate processors feeding these markets Market enhancement/expansion Feedstock conversion New business attraction stimulating development of new businesses that use secondary feedstocks

4 History of Recycling Market Development in USA U.S. EPA 1994 Launched 3-year effort: Recycling Means Business: EPA s Recycling Market Development Strategy Primary initiative: Jobs through Recycling Program (JTR) > $5 million for state Recycling/Reuse Business Assistance Centers (RBACs) and Recycling Economic Development Advocates (REDAs) Funding of Recycling Technology Assistance Partnership (ReTAP) operated by Clean Washington Center and the National Recycling Coalition Support for the Chicago Board of Trade for development of a recyclable commodities trading system through Recycling Means Business

5 History of Recycling Market Development in USA States Some state efforts as early as 1990/91 e.g., NC, WA, NY Over 18 states with recycling market development offices/programs Often environmental and economic agency involvement Recycling Means Jobs!

6 States that Still have Recycling Market Development Staff and Programs California Michigan Minnesota North Carolina Pennsylvania South Carolina Others?? There is much to be learned from existing recycling market development programs.

7 Nonprofit Recycling Market Development Organizations Clean Washington Center Chelsea Center for Recycling and Economic Development (Massachusetts) Materials for the Future Foundation (California) Pennsylvania Recycling Markets Center Southeast Recycling Market Development Council

8 NERC Recycling Market Development Activities Recycling Economic Impact Study Recycling Investment Forums 4 consecutive years with David Kirkpatrick and JTR funds (30% of participating businesses found financing) Research on financing barriers and opportunities, training for economic developers and financiers, training for businesses on how to access funding Work with Yellow Pages Publishing Companies to use recycled content Work with Newspaper Association and NY State to get regional newspapers to use recycled content Recycling markets database for NY Compost marketing assistance for farms in four states Current work is specific to glass glass committee to address glass barriers and opportunities

9 RSE USA Team Projects Pennsylvania Supply and Demand Analysis, Recycling Market Development Strategic Plan, Recycling Markets Center Business Plan Texas Supply and Demand Analysis, Recycling Market Development Strategic Plan, Environmentally Preferable Purchasing Guidelines Massachusetts Supply and Demand Analysis, Identification of Potential Market Development Opportunities and Barriers, Recycling Market Development Strategic Plan California Waste Tire Market Studies and Tire-Derived Business Assistance Program Support New York Strategy to Market Scrap Tires

10 RSE USA Team Projects, Cont d South Carolina Stakeholder Session for Residential Mixed Paper Markets North Carolina Supply and Demand Analysis, Recycling Market Development Strategic Plan Arizona Evaluation of Recycling Market Development Program 12 states Recycling Economic Impact Studies U.S. EPA Evaluation of Recycled Plastic Lumber for Marine Structural Applications U.S. EPA Assessments of Needs and Opportunities for Jobs Through Recycling Program, JTR Program Evaluation

11 Pennsylvania Recycling Market Center Project Phase I Processor Assessment Materials Supply and Demand Analysis Stakeholder Summit Market Strengths, Weaknesses, Barriers, Opportunities Assessment Organizational Review of Capabilities Phase II Strategic Plan 3-Year Business Plan Recycling Markets Center Implementation Plan RMC Evaluation Plan Pennsylvania Recycling Market Center Study P h a s e I P h a s e II Industry Research & Interviews Center Evaluation Plan (Task 11) Develop Implementation Tools & Materials (Task A) Processor Assessment (Task 3) Phase I Work Plan (Task 1) Review Existing Studies/Reports (Task 2) Stakeholder Summit (Task 5) Summit Findings (Task 5) Market Strengths, Weaknesses, Barriers, Opportunities (Task 5) Organizational Review Of Capabilities (Task 6) Phase I Report Phase II Work Plan (Task 7) Develop Strategic Planning Principals of Approach (Task 8) Develop Strategic Plan (Task 8) Develop 3-Year Business Plan (Task 9) Center Implementation Plan (Task 10) Phase II Report Management & Advisory Support Services (Task B) Material Supply/Demand Analysis (Task 4) Industry Research & Interviews Organizational Interviews Stakeholder Meeting to Obtain Input on Draft 3-year Business Plan Assist in Preparing Other Deliverables as Needed (Task C) Phase III Services

12 Overcoming Market Inefficiencies/Barriers The Focus of RMD Efforts Imperfect flow of information Uncertainty about future markets Mispricing due to undervaluing public benefits and costs High transaction costs Difficulty reaching economies of scale Aversion to risk Unrestricted nature of Information Onerous regulations

13 Tools for Recycling Market Development Information dissemination Technical and facilitation assistance Research and demonstration projects Buy-recycled promotional programs/policies Financial assistance Loans, loan guarantees, grants, tax incentives Policies/regulations (and/or relief from polices/regulations)

14 Examples of Policy Tools Minimum content laws (or voluntary agreements) Streamlining of permitting requirements Procurement laws and executive orders intended to expand government purchase of recycled content products Fee mechanisms such as EPR or retail fees to fund state programs Tax breaks/incentives e.g., for recycling equipment purchases

15 Key Principles of RMD Strategies Needs Based Integrated Approach Appropriate Scale Right Tool for the Job Strategies Can Be Material-Specific or Cross-Material

16 State Recycling Market Development System Market Information System Resources Staff, Funding & Tools Ongoing Strategic Planning Ongoing Communication & Coordination Means to Evaluate Impacts

17 Potential Role of Local Governments Work to improve availability/cost/quality of supply Provide favorable contract terms Provide zoning/tax incentives Provide permitting assistance/regulatory relief Buy recycled content products Take steps to mitigate financial uncertainty Help businesses identify sources of feedstock Assist with development of business plans Assist with developing local resource partnerships

18 Potential Role of Private Sector Partner with gov t. entities and NGOs to identify and address priority opportunities Partner on investment in processing/reclamation capability (cost/risk sharing) Fund recycling market development programs and initiatives Support selected policy mechanisms such as minimum content legislation Promote and buy recycled content feedstocks and products Design for recyclability Address global opportunities

19 Questions? Betsy Dorn, Director RSE USA