Esquemas Inclusivos de Responsabilidad Extendida del Productor (REP): Aprendizajes, Desafíos y Oportunidades. February 5, 2015 Bogotá, Colombia
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1 Esquemas Inclusivos de Responsabilidad Extendida del Productor (REP): Aprendizajes, Desafíos y Oportunidades February 5, 2015 Bogotá, Colombia
2 What this presentation will cover Brief introduction The underlying drivers of EPR Examples of different EPR approaches Role of waste pickers Some lessons learned 2
3 Strategy Matters Inc. My background: Research Director Is Five Foundation (1972 Canada) Founder & President RIS (1974 Canada, USA, Europe) Founder & Managing Director Enviros-RIS (1998 UK) Founder & President Strategy Matters Inc. (2001 Canada) Senior Vice-President Corporations Support Recycling (2004 Canada) Founder & President StewardEdge Inc.(2008 Canada, USA & international) Director Global Solutions, the Reclay Group (2013 Germany) Expertise: Design and implementation of materials recycling programs from facility level to national scale Developing public policy, legislation and corporate strategies Design and implementation of product stewardship & EPR programs 3
4 3 billion more middle-class consumers will fuel future demand & waste generation Global middle class 1 Billions of people billion ROW Latin America North America Europe 1.74 Asia-Pacific Based on daily consumption per capita ranging from $10 to $100 (in purchasing power parity terms) Source: OECD (2011), Perspectives on Global Development: Social Cohesion in a Shifting World
5 2 billion New Urban Residents by 2030, 3 Billion by 2050 Reference: World Urbanization Prospects, 2011 Revision (United Nations, 2012) 5
6 Cities are adding 1,500,000 Residents each Week Shenzen in 1987 Shenzen today Reference: WHAT A WASTE: A GLOBAL REVIEW OF SOLID WASTE MANAGEMENT, World Bank,
7 Enormous Growth coming: Global Peak Waste unlikely Before 2100 Reference: WHAT A WASTE: A GLOBAL REVIEW OF SOLID WASTE MANAGEMENT, World Bank,
8 Global Waste Market 310 billion/yr: The global municipal waste market including collection and recycling equals the GDP of Denmark Not including the sizeable informal sector In developed countries waste management ~ 2% of GDP 4 billion tpy waste of which 1.9 billion from households 40 million people work in waste management sector worldwide 50% are informal Source: ISWA estimates,
9 Search for Global Solutions is on Six big ideas for accelerating reduction, reuse & recycling 1. Enable and empower people locally to adopt best practices 2. Green taxes to expand services and change consumer behavior 3. Tradable credits (incent existing recycling industry to do more) 4. Make the producer responsible through EPR (fully or shared ) 5. Collaborative consumption 6. Circular economy (rethink fundamental economic paradigm) Common objective to scale up perceived best practices 9
10 What is EPR? What is Product Stewardship? EPR An environmental policy approach in which a producer's responsibility for a product, physical and/or financial, is extended to the post-consumer stage of a product's life cycle. A wide range of EPR models have been implemented by legislation globally. (OECD (2001)) Product Stewardship Encompasses EPR and a wider range of public policies and corporate activities This concept allows for greater flexibility and opportunity to find effective solutions most appropriate to specific market conditions Includes both voluntary and regulated initiatives. 10 OECD, 2001
11 Core recommendations of the OECD OECD recommends the implementation of EPR, leading to: o Increased collection and recycling rates o Reduction of public spending on waste management o Reduction in overall waste management costs o Design for environment (DfE) innovations OECD guidelines now under revision and changes will likely include: o Full costs of managing used products should be allocated to producers o Realities of informal waste collection in developing countries must be considered in EPR program design 11
12 Product groups Packaging Products with potentially hazardous chemicals: Paints, solvents, cleaners, pharmaceuticals, pesticides, fertilizers, etc. Lubricating oil Tires Waste Electric and Electronic Equipment (WEEE) End of Life Vehicles Batteries Bulky wastes 12
13 ???? Overview of EPR landscape worldwide Proposed/Expected EPR or Product Stewardship in Place V
14 What are the Key Drivers of EPR? EPR a reflection of broader transition underway Quantifying environmental impacts Internalizing these costs to producers & users Driven by converging forces Government systemic financial stress Commercial pressures for greater transparency along the supply chain Securing supplies of key strategic materials Policy innovation & adoption across the OECD Recognition that cradle-to-cradle management essential to sustainability 14
15 Some EPR Examples
16 Classic European EPR Model Obligated Companies Fees Exemption from obligations Take back + recycling obligations Approval Authorized System Government Institutions Proof of recycled amounts to be delivered Agreement on the design of the local system Recycling Companies Call for tender Call for tender Local Authorities Sorting Companies Collection Companies Awareness raising / education Public/ Consumer
17 After 20+ years experience in Europe No two national programs are exactly the same Markets with a single producer controlled shared responsibility scheme Markets with a single producer controlled full responsibility scheme Markets with competing compliance services France Spain Cyprus Greece Italy Belgium Netherlands Ireland Finland Denmark Norway Sweden Luxemburg Czech Republic Portugal Germany Great Britain Poland Turkey Estonia Romania Lithuania Latvia Slovakia Slovenia Bulgaria Malta Austria
18 Typical Recycling Model Operated in Europe 18
19 EPR is becoming an integral part of national Resource Efficiency Strategies throughout Europe Packaging directive in Germany EU directive on WEEE Resource efficiency program in Germany covering waste reduction and secondary raw materials Evolving national resource strategies Waste reduction EU packaging and packaging waste ordinance EU packaging directive Resource efficiency strategy 19
20 Example of Canada No national waste management or single market legislation Provinces & states take their own unique approach to EPR Performance goals Designated materials Financial responsibility Framework EPR legislation vs. material specific Industry driving harmonization 20
21 EPR Programs in Canada see inset full-colour symbols = program in place or pending white-washed symbols = program proposed or under consideration 2012 Status 21
22 Current Approach in USA to EPR Limited federal government role: waste management regulated at state level Municipal recycling programs financed primarily by local government state grants property taxes, assessments, disposal levies EPR being applied to difficult to manage products paint, WEEE, mattresses, etc. No national or state legislation on printed paper & packaging 22
23 Broad Application of EPR in the U.S. Source: Product Stewardship Institute 23
24 Chile Draft Law in Congress Make value recovery from waste a priority in Chile s waste management strategy Introduce EPR as an economic mechanism to increase the recycling rate of packaging and products for at least 9 categories of goods set by the Ministry of Environment (article 9): 1. Packaging 2. Lubricating oils 3. Tires 4. WEEE/light bulbs 5. Batteries 6. Vehicles 7. Newspapers and magazines 8. Expired medicines 9. Pesticides 24
25 Industry responsibilities Register the quantity of obligated products supplied into Chile in national database Organize and finance the collection of priority products waste in all the national territory o individually (self-compliance) o through an authorised collective management system Deliver their waste to a manager authorised to process it unless the producer handles the waste itself Solid household or comparable waste shall be delivered to the relevant municipality or an authorised manager The penalties for infringements of the law range from significant fines (up to 10 times the waste management costs) to temporary prohibition of sale of the priority product 25
26 A blend of global experience Chile s approach to formulating a general framework EPR law followed by product specific regulations reflects international best practices Recognizes the need to involve the informal recycling sector Introduces other supporting mechanisms that will make EPR more effective and efficient List of priority products noted in the legislation would make Chile one of the leading EPR jurisdictions in the world Agreeing on general framework for EPR is not easy. Working out product specific regulation through decrees is even more difficult 26
27 Chile study tour Spain
28 Chile study tour Germany
29 Household collection Santiago
30 Santiago sorting
31 Santiago sorting
32 Brazil cooperative
33 The Essential Role of Waste Pickers Worldwide, millions of waste pickers manually remove recyclable items from landfills and urban areas (including in all developed countries): India: 1.5 million (2010), mostly women and marginalized groups Colombia: 18,000 recicladores Uruguay: 15,000 clasificadores Argentina: 42,000 cartoneros Brazil: 229,000 catadores Provide essential separation of valuable recyclable materials sold into global markets Often working under hazardous conditions 33
34 How are some CPG companies responding?
35 Puede sentirse orgulloso de esta cadena de valor? Is This A Supply Chain to be Proud of? 35
36 Key issues for industry 1. Scale up projects at a quicker rate 2. Waste picker well-being 3. Operational efficiency 4. Procurement & quality of material 5. Design of packaging & products 6. Promote multi-material approaches to recovery & recycling 7. Ground recovery and recycling projects within broader sustainability thinking 8. Institutional development 9. Legislation 10.Regional/cultural issues 36
37 Broad Waste Recovery Goals Company Goal(s) Recover 50% of equivalent cans and bottles by Aiming for 75 percent recovery of the Coca-Cola bottles and cans introduced into developed markets by 2020 Double the global recycling rate of its used beverage cartons by 2020 Contribute to the collection of materials used in the packaging of Danone products, and when this is not yet in place, try out new collection systems Zero manufacturing waste going to landfills: Working to eliminate or reduce solid waste from production processes; identifying ways to repurpose waste as useful raw materials ( Waste-to-Worth ); designing more material-efficient delivery systems a 10 percent absolute reduction in total waste disposed off-site using 2010 total offsite waste disposal as a baseline 2020 goal: pilot studies in both developed and developing markets Increase recycling and recovery rates on average by 5% by 2015, and by 15% by 2020 in our top 14 countries. Double the amount of aerosols that gets recycled around the world by Committed to increasing the recyclability of our packaging, increasing recycling of post-industrial packaging related to our products and making sure our containers utilize materials that are compatible with accessible recycling systems
38 How does this relate to EPR? Before After 38
39 Post Consumer Waste Management Systems Full Public Sector Responsibility Shared Responsibility Full Private Sector Responsibility Managed by the state or municipalities Financed through taxes Public service Shared management Public-Private Financing Mutual initiative: Government & private sector Private management Financed through producers contributions (fees) Independent system
40 Post Consumer Waste Management Systems Full public sector responsibility Shared responsibility Full private sector responsibility Consumer pays and the government manages the system There are no direct financial incentives to improve the type of packaging or product supplied by the producer. The producer pays for part of the total system cost and responsibility is shared with local governments Both producer and the consumer/local government have an incentive to improve the efficiency of recycling programs The producer has full financial and operational responsibility for the operation of the recycling system The producer has a direct financial incentive to improve the recyclability of the packaging to reduce end of life management costs
41 Choosing the right approach You cannot simply copy and paste an EPR model from another country Need a solid fact base to ensure that the objectives of the law are achievable Test many different program elements to learn what works best Ensure that the regulations and financing systems encourage recycling program effectiveness and efficiency Regional programs provide economies of scale Training and motivating citizens to properly sort priority products for separate collection is the key to success Most successful national programs build a common recycling brand 41
42 Keys to Successful EPR 42
43 Producer Responsibility Legal Frameworks Demonstrate Clear Benefits If combined with other policies: comprehensive solid waste management legislation; charging generators for waste collection services, mandatory recycling; bans from disposal Drives establishment and enhancement of collection infrastructure, sorting technology, and recycling capacities Fosters investment in modern technology for sorting and recycling Enables competition, and therefore system efficiencies Thinking about how to link producer responsibility/product stewardship legislation and the informal recycling sectors is just beginning 43
44 Contact information Derek Stephenson Strategy Matters Inc. Phone:
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