Packaging Recycling Drivers, Challenges and Opportunities
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1 Copyright 2009 by All Rights Reserved. Florida Retail Federation Meeting Oct 2010 Packaging Recycling Drivers, Challenges and Opportunities Betsy Dorn
2 Why the Push for More Recycling and Producer Responsibility? Climate change Growing scarcity of resources Quantity of waste and increasing management costs Limitations of local government Growing diversity of packaging entering waste stream 2
3 Climate Change Source: Climatic Research Unit, Univ. of East Anglia, Norwich, UK
4 Past Decade Hottest on Record Source: NASA/ GISS 4
5 Global Warming Surface Temps 1900s Surface Temps 1950s Surface Temps 2000s Source: NOAA Climate Program Office
6 Florida A New Coastline in the Making Scientists predict that the sea levels affecting Florida will rise over 2 feet by 2060 Under that scenario, Florida stands to lose almost 10% of its land area and the homes of 1.5 million people Miami will be under water 6
7 GHG Emission Reduction Benefits of Recycling Upstream Benefits: Reduced CO 2 emissions from energy use in material acquisition and manufacturing stages Increased carbon storage in soils when organics are composted and applied to the soil Downstream Benefits: Avoided landfill methane emissions Avoided CO 2 emissions from combustion Source: EPA Region 4
8 Oil Supply and Use Trends Discovery of Oil Reserves Oil Consumption versus Production Source: IDES Inc. Plastic Web 8
9 Energy Conservation Benefits of Recycling Decreased demand for raw materials Less energy consumed from raw materials extraction Less energy needed for manufacturing and transportation
10 Increasing Fiber Demand and Diminishing Forest Reserves The world demand for paper is expected to rise 25% from 2009 levels by the year Confederation of European Paper Industries 10
11 U.S. MSW Generation Trends Pounds per Person per Day Source: U.S EPA, 2008
12 Packaging Waste Nearly 1/3 of MSW Total U.S. MSW Generation Before Recycling (by category) Other Wastes, 1.5% Nondurable Goods, 23.5% Durable Goods, 18.3% Containers & Packaging, 30.8% Yard Trimmings, 13.2% Food Scraps, 12.7% Source: U.S. EPA 2009
13 70% 60% 50% 40% 30% 20% 10% 27.2% 29.3% 28.0% 48.2% 62.8% 65.5% 0% 13
14 Generation Landfilling Recycling Source: MSW Management Magazine & WIH Resource Group 14
15 Status of U.S. Recycling Systems About 1/3 of U.S. population nearly 2/3 of all communities - do not have curbside recycling Primarily a local government responsibility residential focus; programs vary by jurisdiction Many programs still funded by landfill tipping fee revenue Fee revenues are declining due to drop in waste tonnage 15
16 Status of U.S. Recycling Systems Local government budget crisis paired with less tipping fee revenue puts pressure on local recycling program budgets Poor program performance Low participation and capture rates Deteriorating recovered materials quality Florida municipal solid waste recycling rate for 2008 was 29% 16
17 Packaging Trends Create Additional Challenges More composite & mixed material packaging = less recyclable packaging and more contaminants Greater variability in packaging shapes, sizes, and colors = problems for sorting systems and more cross contamination Biodegradable plastics = contaminants for traditional plastics recycling systems 17
18 Recycling System Implications Substantial pressure to find recycling solutions for new packaging materials Municipal programs beginning to add film and all rigid plastics (pill bottles, tubs, trays, caps & lids, etc.) Need more sophisticated processing systems to handle wider array of materials Need more storage space for wider variety of end products going to market 18
19 Recycling Implications Need for more recycling market development in addition to collection and processing infrastructure development 19
20 Consumer Response: Frustration Consumers think first of the negative aspects of packaging until reminded of the convenience, hygiene and safety benefits 66% of consumers say products are over-packaged Consumers assume packaging is bad for the environment Consumers demand exists for green products that protect the environment but also demand value (Source: INCPEN Consumer Attitudes to Packaging Survey) 20
21 Government Response: Growing Use of Policy Mechanisms Disposal bans Mandatory recycling Product bans Mandatory service provision Building codes and permitting requirements Policy initiatives - low cost to government
22 Government Response: Growing Use of Policy Mechanisms Federal Trade Commission is more closely scrutinizing labeling and recycling claims Movement towards Extended Producer Responsibility and involvement of entire value chain (e.g., Wal-Mart, Coke, Starbucks, others) 22
23 Change is Needed Shift from waste management mindset a to resource stewardship mindset Partnership approach to solutions Product stewardship Consumer action 23
24 Retailer Response: Increasingly Engaged in Providing Solutions Sustainability score cards for suppliers Retail take back programs Reusable bag sales and incentives Zero Waste strategies Custom brands labeling Consumer education Partnerships with supply chain players Monitoring performance 24
25 Contact Information Betsy Dorn, Senior Consultant R.W. Beck, Inc. West Palm Beach, FL Telephone:
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