Extended Producer Responsibility realized by privately organized schemes

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Extended Producer Responsibility realized by privately organized schemes Presentation for by Sascha Schuh Managing Director 11 February 2016 at bvse, Bonn/Germany

ASCON Resource Management Holding GmbH The Company s Concept ASCON Holding, a group of companies within the closed cycle economy, offers environmental and waste management services to close the loop in an economic and ecological balance The business areas of the Holding, which operates internationally, are: packaging licensing with an own dual system strategic and sustainable material flow management production, processing and trade of valuable secondary raw materials consulting about the implementation of waste management systems worldwide audits and certifications according to packaging legislation and EuCertPlast innovative, sustainable investment products 2

ASCON Resource Management Holding GmbH Strategic Partnership with an international acting Investor In March 2015, ASCON Holding won the Mountain Cleantech AG as strategic investor; a main financier is IKEA GreenTech Mountain Cleantech is a holding company with focus on companies with sustainable business models, especially in the German-speaking and Nordic area Through the capital increase, Mountain Cleantech has become minority shareholder of the ASCON Holding With this cooperation, ASCON Holding will further expand its market position in Germany, Europe and North America promote the strategic development of new business fields worldwide projected formations: ELS Romania (dual system), ASCON U.S. and Canada, South America 3

ASCON Resource Management Holding GmbH Companies within the Holding ELS Europäische LizenzierungsSysteme GmbH ELS Austria GmbH ASCON Gesellschaft für Abfall und Sekundärrohstoff Consulting mbh EUPVcycle Europäische Prüfgesellschaft für Verpackungsrecycling mbh SORTcycle GmbH 4

ASCON Resource Management Holding GmbH Company s Turnover 2014: 4,6 Mio. Euro 2015: 49 Mio. Euro 2016: 82 Mio. Euro (expected) ELS Market Shares Paper/Paperbord/Carton: 11,11 % Glas: 10,42 % Lightweight Packaging: 6,18 % 5

The Concept of EPR Extended Producer Responsibility (EPR) in Germany, Europe and worldwide ecological effects: climate change carbon footprint protection of natural resources CO 2 minimization business case: new business opportunities new markets competition creates innovation innovation creates new future markets 6

Background from the 90s to today Europe's waste problems are still growing. After all, each inhabitant of the EU Member States produces between 280 and 670 kilograms of household waste per year. About 25 to 30 per cent of this is packaging waste. Solutions were needed to reduce waste and to stop landfilling Environmental damage such as groundwater contamination by landfills etc. Implementation of the terms: closed cycle economy which is reached by producer responsibility EPR is absolutely necessary for the climate change (see Kyoto Protocol: first time internationally binding targets for greenhouse gas emissions in industrialized countries) 7

European Waste Generation Source: Eurostat Waste generation by economic activity and households, EU-28, 2012 8

Recycling reduces CO 2 emissions Positive impact of collecting and recycling of packaging waste Already today, the collection and recycling of packaging material by privately organized schemes contributes to more than 20 percent of the Kyoto Protocol Privately organized systems will recycle more than a half million tons of packaging in the year 2016 Contribution to more than 2 percent of the German share of CO 2 reduction according to the Kyoto Protocol 9

Key instrument: Producer Responsibility Producer responsibility is at the heart of waste management policy in Europe Strategy: a waste hierarchy with the principles avoidance, recovery, disposal of waste Producers and distributors have to think of the end of life of their products already at the point of production Products have to be designed in such a way as to reduce waste occurrence and allow environmental friendly recovery and recycling In Germany the legal framework is the Closed Substance Cycle Waste Management Act 10

Closed Substance Cycle Waste Management Act This act is the German superordinate legislation which is divided into special directives to handle different material streams as e. g. the German Packaging Ordinance Electrical and Electronic Equipment Act ElektroG German Ordinance on the Transfer, Collection and Environmentally Sound Disposal of End-of-life Vehicles (End-of-life Vehicle Ordinance) etc. The German legislation has become a standard not only in Europe but also in several countries worldwide. 11

Take-back obligation Key element of producer responsibility: obligation for manufacturers and distributors to take back, to sort and to recycle their products brought into the markets As industry and distributors are not able to fulfil these demands by themselves they give over their obligation to privately organized and owned take-back and recycling schemes such as e. g. ELS Dual 12

History of the Packaging Directive Germany as an example for Europe 1991: Commencement of the German Packaging Directive 1994: EU Packaging directive came into effect - by the year 2001, all Member States had to introduce systems for the collection and recovery of packaging 20/12/1995: Draft of an amendment, required to implement the EU Directive on the bases of the Closed Substance Cycle Waste Management Act 1996-2008: several amendments 01/01/2009: 5 th amendment 01/01/2014: 6 th and 7 th amendment which are still in force 13

ASCON Resource Management Holding Success ǀ Future ǀ Visions Our goal is to close cycles together with our customers and live cycle economy in Germany, in Europe and worldwide With ASCON and ELS packaging become valuable raw materials We have own take-back and recycling solutions and therefore a highly efficient overall concept for the collection, sorting and recycling of recyclable materials in Europe and worldwide In addition, ASCON and ELS are operationally active in the direct marketing of secondary raw materials The group around the Holding provides a sustainable, integrated materials flow management, nationally and internationally 14

ASCON Resource Management Holding Success ǀ Future ǀ Visions ǀ Partner ASCON would be pleased to support FinDera in any question of expert consulting implementation and operating a privately operated system for packaging recycling or to discuss any item of interest and to become FinDera s international partner 15

Please do not hesitate to contact us in case of any further question! Sascha Schuh ǀ Managing Director ASCON Resource Management Holding GmbH Margaretenstrasse 1 53175 Bonn Germany T: +49 228 299714-00 F: +49 228 299714-88 s.schuh@ascon-holding.com www.ascon-net.de