Recycling certificates: realistic or a dream? Jan Vermoesen COBEREC-FEBEM event B&D 9 september 2010 1
System 1. Authorities define a group responsible for reaching the objectives : 2. This responsible : - may reach them himself; - or may buy certificates at someone who ll reach the objectives 3. Individual or collective 4. The market of supply and demand determines the price of the certificates 2
Politically, we re in good books Less energy and fewer CO2 emissions than ores : worldwide reduction of 500 MT CO2 (1,7%) Recycling Society : recycling = source of raw materials for sustainable development Waste Policy => Materials Policy Producers responsibility Authorities haven t any financial means Policy problem : Stimuli for the production of sustainable energy based on renewable fuels take materials away from recycling: - Wood: higher value as fuel than as material -Cardboard stays in mixed streams (green certificates) 3
Experiences in the UK Packaging Waste Recovery Notes (PRNs) and Packaging Waste Export Recovery Notes (PERNs) Co-responsibility: producers packaging material (6%), prod pack (6%), fillers (37%), distribution (45%): PRN s for each kg put on the market X Rec-% X respons-% Different compliance schemes take over individual responsibilities PRO s - System proves to work - Market driven at minimal cost CON s - Recycling rate paper 78% versus 60% objective => low value 1-3 pound/ton, for 6 million pound in UK - Problem PERN s for non-packaging paper - speculation 4
Characteristics of all possible directions: Stimulates recycling, energy and CO2 The market principle is to achieve objectives at the lowest cost Issuers of certificates : recoverer = person who produces the secondary raw materials - In line with the new Framework Directive : recycling = US!! - Recoverer = local < > user/producer is everywhere in the world Challenges: - Control of abuses - Administrative burden 5
Different possible levels Producers of materials : on the basis of ores < > recyclates Converters/Users of materials : on the basis of raw materials < > secondary raw materials Energy producers : green certificates for the production of secondary raw materials (prevention of energy consumption) CO2 producers :certificates for the CO2-reducing effect of secondary raw materials Mono versus multi-stream ; national versus European 6
1. Producer of raw materials Responsible : producer of raw materials for the use of virgin resources Certificate : for each produced ton, return X% recycled Exemption : raw materials produced on the basis of recycled materials Positive: - it creates a market for recyclates - choice between own achievement or buying Challenge: - the use of recyclates in raw materials is only identifiable in the fabrication process - > European level necessary - > importation in EU gives protectionist opportunities 7
2.User/converter of materials Responsible : the producer of consumption goods/use goods for his use of materials Certificate : for each used material, return X% recycled Exemption : for recycled materials, if the consumption item is made of recyclates Difficulty: + it creates a market for recyclates + choice between own achievement or buying - how to control the use of recyclates in goods? - Administration: Amount producers, consumption goods, recycled materials 8
3. Energy Responsible : energy producer groene stroom Certificate : energy prevention (recycling) and energy production based on renewable resources In proportion to the energy saved by recycling compared to the production on the basis of virgin resources Positive : - Extension of a system which has already worked in Belgium - Recycling is stimulated at the same level as «green energy» Challenge : - Either the energy producers pay less because of the inflation of green certificates, or they pay more to achieve recycling and renewable resources - everybody could claim energy prevention 9
4. CO2 Responsible : the CO2 emitters defined in the European legislation Certificate : the secondary raw materials give right to tradable emission rights as far as there is CO2 reduction by the production based on recycled materials Positive : - Extension of a system which has already worked (decision to extend to the Belgian or European level?) - CO2 is a common criterion for all substances Challenge : - Extension doesn t directly result in a CO2 reduction. - Extension (rights inflation) could be compensated with more ambitious reduction objectives 10
Conclusions RC are a possible lever for Recycling Society Political debates insist on energy. With our focus on RC, we emphasize our positive contribution to these discussions Minister Crevits requests OVAM to examine this instrument Most chances of success in a European context Belgian authorities are favourably disposed. Under Belgian Presidency: - The idea is included in the Draft Report of the unofficial Environment Committee - The idea is included in the Draft recommendations of the Interparliamentary Environment Conference 11