The EPEE Circular Economy Seminar 15 September 2016

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The EPEE Circular Economy Seminar 15 September 2016 EPEE, The European Partnership for Energy and the Environment www.epeeglobal.org Heating and cooling is your life and our mission

Agenda Welcome & Introduction by the Secretariat 9:35 9:55 Presentation of the Circular Economy Package Hugo-Maria Schally, Head of Unit - Sustainable Products - DG Environment, European Commission 9:55 10:30 The circular economy package and the link with LCA, EPD and PEF entering the built environment in Europe Carolin Spirinckx, Project Manager Sustainable Built Environment VITO EnergyVille 10:30 11:10 The Extended Producer Responsibility aspects of the Circular Economy Package Stéphane Arditi, Policy Manager: Products & Waste, European Environmental Bureau 11:25 12:10 The Ecodesign aspects of the Circular Economy Package Ferenc Pekar, Policy Officer - Sustainable Products - DG Environment, European Commission 12:10 12:55 EPEE members Discussion: Priorities & next steps 12:55-13:00 Wrap up by the Secretariat 1

Presentation of the Circular Economy Package Hugo-Maria Schally, Head of Unit - Sustainable Products - DG Environment, European Commission

Q&A session

The circular economy package and the link with LCA, EPD and PEF entering the built environment in Europe Carolin Spirinckx, Project Manager Sustainable Built Environment VITO EnergyVille

The circular economy package & link with LCA, EPD and PEF entering the built environment in Europe EPEE Seminar Carolin Spirinckx Project Manager VITO/EnergyVille 15 th of September 2016 EPEE Office Brussels, Belgium

Agenda 1. General introduction 2. What is LCA / EPD? 3. European harmonisation & PEF 4. Questions Confidential 2009, VITO NV All rights reserved

Agenda 1. General introduction 2. What is LCA / EPD? 3. European harmonisation & PEF 4. Questions Confidential 2009, VITO NV All rights reserved

The Circular Economy Package Action plan» Production» Consumption» Waste management» Market for secondary raw materials» Sectorial actions:» Plastics» Food waste» Critical raw materials» Construction and demolition» Biomass and bio-based materials» Innovation and investments» Monitoring Confidential 2009, VITO NV All rights reserved

The Circular Economy Package Action plan» Production» Consumption» Waste management» Market for secondary raw materials» Sectorial actions:» Plastics» Food waste» Critical raw materials» Construction and demolition» Biomass and bio-based materials» Innovation and investments» Monitoring Action on false green claims, including updated guidance on unfair commercial practices Evaluation of the current ongoing pilots, explore the possible uses of the PEF to measure and communicate environmental information Confidential 2009, VITO NV All rights reserved

The Circular Economy Package Action plan» Production» Consumption» Waste management» Market for secondary raw materials» Sectorial actions:» Plastics» Food waste» Critical raw materials» Construction and demolition» Biomass and bio-based materials» Innovation and investments» Monitoring Core indicators for the assessment of the lifecycle environmental performance of a building, and incentives for their use Confidential 2009, VITO NV All rights reserved

Sustainable built environment: Some International recognised evaluations tools Green Star Confidential 2009, VITO NV All rights reserved

Sustainable built environment: and what about sustainable building materials/systems?» The challenges» Sustainable use of building materials/systems, according to the 3 Ps (People, Profit, Planet) over entire life cycle» By means of» Economical management and reuse of materials, systems, elements and buildings» Development of new and innovative sustainable construction materials and systems» Encourage the choice for sustainable construction materials and systems:» Need for harmonised labels! Confidential 2009, VITO NV All rights reserved

Sustainable built environment: labels for building materials and systems ISO 14020:2000 Environmental labels and declarations - General principles for labels and declarations of products, systems and services» Type I Environmental Labels (ISO 14024: 1999)»» Type II Self declarations (ISO 14021:1999)» Type III Environmental Product Declarations (ISO 14025:2006) It all starts with LCA Confidential 2009, VITO NV All rights reserved

Agenda 1. General introduction 2. What is LCA / EPD? 3. European harmonisation & PEF 4. Questions Confidential 2009, VITO NV All rights reserved

LCA? LCA (Life Cycle Assessment) is a global analysis of the environmental burdens, directly or indirectly caused by a product, a material, a process, or even more in general, by a system over its entire life cycle INTEGRAL ENVIRONMENTAL IMPACT CRADLE TO GRAVE Confidential 2009, VITO NV All rights reserved

LCA methodological framework Goal and scope definition Inventory analysis LCA framework Interpretation ISO 14040 ISO 14044 Direct applications: -Product development and improvement -Strategic planning -Public policy making -Marketing -B2B communication: EPD - Impact assessment Confidential 2009, VITO NV All rights reserved

Goal and scope definition» Subject? a) A chair b) A yellow paper lying on a chair c) An element of modern furniture intended to host, for a more or less prolonged period of time, a noble part of the human body Confidential 2009, VITO NV All rights reserved

Life cycle inventory analysis - LCI Confidential 2009, VITO NV All rights reserved

Life cycle impact assessment - LCIA» Individual environmental profile 19/09/2016 Confidential 2009, VITO NV All rights reserved

Interpretation» Definition of hotspots» Opportunities for improvement» Comparison of alternatives» Conclusions Confidential 2009, VITO NV All rights reserved

What is an Environmental Product Declaration - EPD? An environmental product declaration EPD is defined as a quantified environmental dataset for a product, process, system or service with pre-set categories of parameters based on the ISO 14040/44 series of standards but not excluding additional environmental information Confidential 2009, VITO NV All rights reserved

Agenda 1. General introduction 2. What is LCA / EPD? 3. European harmonisation & PEF 4. Questions Confidential 2009, VITO NV All rights reserved

Harmonisation framework» ISO 14025 is valid for ALL products» ISO 21930 is focusing on construction products => The norms developed in the framework of CEN TC 350 draw a link from the construction products to the building Confidential 2009, VITO NV All rights reserved

CEN TC 350 - framework Confidential 2009, VITO NV All rights reserved

CEN TC 350 WG3» EN 15804: 2012:» Sustainability of construction works -» Environmental product declarations» Core rules for the product category of construction related products» EN 15942: 2011:» Sustainability of construction works» Environmental product declarations» Communication format» Business to Business Confidential 2009, VITO NV All rights reserved

PEF Product Environmental Footprint Issues at stake: Proliferation of environmental label, reporting and certification schemes National tailor-made legislations Misleading claims Consumers mistrust company driven green marketing Confidential 2009, VITO NV All rights reserved

PEF Product Environmental Footprint Communication from the Commission to the European Parliament and the Council COM published on 9 April 2013 Establishes and recommends two methods to measure environmental performance throughout the life cycle: 1. the Product Environmental Footprint (PEF) 2. the Organisation Environmental Footprint (OEF) Confidential 2009, VITO NV All rights reserved

A 3 years PEF pilot: 2013/2016» Why?» To test the PEF methodology for specific product groups» To develop PEFCRs for specific product groups» To revise the PEF methodology (if needed) and to align with the CEN TC 350 framework for building related products/systems Confidential 2009, VITO NV All rights reserved

1 st wave of pilots 2 nd wave of pilots Batteries and accumulators Decorative paints Hot & cold water piping systems Liquid household detergents IT equipment Metal sheets Non-leather shoes Photovoltaic electricity generation Stationery Intermediate paper products T-shirts Uninterrupted power supplies Retailer sector Copper sector Leather Thermal insulation Beer Coffee Fish Dairy products Feed Meat Pet food Olive oil Pasta Wine Packed water Confidential 2009, VITO NV All rights reserved

1 st wave of pilots 2 nd wave of pilots Batteries and accumulators Decorative paints Hot & cold water piping systems Liquid household detergents IT equipment Metal sheets Non-leather shoes Photovoltaic electricity generation Stationery Intermediate paper products T-shirts Uninterrupted power supplies Retailer sector Copper sector Leather Thermal insulation Beer Coffee Fish Dairy products Feed Meat Pet food Olive oil Pasta Wine Packed water Confidential 2009, VITO NV All rights reserved

The way forward Based on preliminary analysis of some existing EPDs prepared in line with EN 15804, the work to be done to align the two methods would not be too difficult The European pilot phase is an excellent opportunity to work collaboratively so that, at the end of it, the EN 15804 might be modified to align to PEF and PEF could be modified to take into account the lessons learned from the pilot phase It is important for the construction business that environmental information is provided in an objective, standardized form to avoid costly adaptations of the calculation in every country the product shall be traded Confidential 2009, VITO NV All rights reserved

The way forward Construction business representatives, especially SMEs are struggling with several new requirements in their sector like REACH and CE-marking. EPDs and PEF are not high on their agenda (European) sector organizations have an important role as intermediaries in the process towards the broader uptake of EPDs and PEF Companies and trade associations active in the construction sector are invited to openly and constructively participate in the European alignment phase Confidential 2009, VITO NV All rights reserved

The way forward Confidential 2009, VITO NV All rights reserved

Agenda 1. General introduction 2. What is LCA / EPD? 3. European harmonisation & PEF 4. Questions Confidential 2009, VITO NV All rights reserved

Thank you for your attention! QUESTIONS? Contact: Carolin.Spirinckx@vito.be Carolin.Spirinckx@energyville.be Confidential 2009, VITO NV All rights reserved

Q&A session

The Extended Producer Responsibility aspects of the Circular Economy Package Stéphane Arditi, Policy Manager: Products & Waste, European Environmental Bureau

The EPEE circular economy seminar EPR session Brussels 15/09/2016 Stéphane Arditi Policy manager stephane.arditi@eeb.org

The EEB EEB: the environmental voice of European citizens We stand for environmental justice, sustainable development and participatory democracy. Our aim is to ensure the EU secures a healthy environment and rich biodiversity for all. EPEE CE seminar 15 Sept 2016 EEB 39

About extended producer responsibility Extended Producer Responsibility (EPR) is an environmental policy approach in which a producer s responsibility for a product is extended to the post-consumer stage of a product s life cycle (OECD 2001-2016) EPEE CE seminar 15 Sept 2016 EEB 40

Question: Which EPR systems are EPEE members submitted to? At EU level and at national levels EPEE CE seminar 15 Sept 2016 EEB 41

EPR in WEEE Article 12 Financing in respect of WEEE from private households (note there is an article 13 on non domestic WEEE) 1. Member States shall ensure that producers provide at least for the financing of the collection, treatment, recovery and environmentally sound disposal of WEEE from private households that has been deposited at collection facilities set up under Article 5(2). 2. Member States may, where appropriate, encourage producers to finance also the costs occurring for collection of WEEE from private households to collection facilities. 3. For products placed on the market later than 13 August 2005, each producer shall be responsible for financing the operations referred to in paragraph 1 relating to the waste from his own products. The producer may choose to fulfil this obligation either individually or by joining a collective scheme. Member States shall ensure that each producer provides a guarantee when placing a product on the market showing that the management of all WEEE will be financed and shall ensure that producers clearly mark their products in accordance with Article 15(2). This guarantee shall ensure that the operations referred to in paragraph 1 relating to this product will be financed. The guarantee may take the form of participation by the producer in appropriate schemes for the financing of the management of WEEE, a recycling insurance or a blocked bank account. 4. The responsibility for the financing of the costs of the management of WEEE from products placed on the market on or before 13 August 2005 ( historical waste ) shall be borne by one or more systems to which all producers existing on the market when the respective costs occur contribute proportionately, e.g. in proportion to their respective share of the market by type of equipment. 5. Member States shall take the necessary measures to ensure that appropriate mechanisms or refund procedures are developed for the reimbursement of contributions to the producers where EEE is transferred for placing on the market outside the territory of the Member State concerned. Such mechanisms or procedures may be developed by producers or third parties acting on their behalf. 6. The Commission is invited to report, by 14 August 2015, on the possibility of developing criteria to incorporate the real end-of-life costs into the financing of WEEE by producers, and to submit a legislative proposal to the European Parliament and the Council if appropriate. + articles 14, 15 on information to users and recyclers EPEE CE seminar 15 Sept 2016 EEB 42

EPR provisions in CE package The revised legislative proposals on waste creates economic incentives for better product design through provisions on extended producer responsibility. (CE action plan p 4) General requirements for extended producer responsibility schemes (CE action plan p10) Article 8 is amended as follows (Revised WFD): (a) in paragraph 1, the following sub-paragraph is added: 'Such measures may also include the establishment of extended producer responsibility schemes defining specific operational and financial obligations for producers of products.'; (b) the second sentence of paragraph 2 is replaced by the following: 'Such measures may encourage, inter alia, the development, production and marketing of products that are suitable for multiple use, that are technically durable and that are, after having become waste, suitable for preparation for re-use and recycling in order to facilitate proper implementation of the waste hierarchy. The measures should take into account the impact of products throughout their life cycle.'; (c) the following paragraph 5 is added: '5. The Commission shall organise an exchange of information between Member States and the actors involved in producer responsibility schemes on the practical implementation of the requirements defined in Article 8a and on best practices to ensure adequate governance and cross-border cooperation of extended producer responsibility schemes. This includes, inter alia, exchange of information on the organisational features and the monitoring of producer responsibility organisations, the selection of waste management operators and the prevention of littering. The Commission shall publish the results of the exchange of information.'; EPEE CE seminar 15 Sept 2016 EEB 43

Generic requirements for EPR 1 'Article 8a General requirements for extended producer responsibility schemes 1. Member States shall ensure that extended producer responsibility schemes established in accordance with Article 8, paragraph 1: define in a clear way the roles and responsibilities of producers of products placing goods on the market of the Union, organisations implementing extended producer responsibility on their behalf, private or public waste operators, local authorities and, where appropriate, recognised preparation for re-use operators; define measurable waste management targets, in line with the waste hierarchy, aiming to attain at least the quantitative targets relevant for the scheme as laid down in this Directive, Directive 94/62/EC, Directive 2000/53/EC, Directive 2006/66/EC and Directive 2012/19/EU; establish a reporting system to gather data on the products placed on the Union market by the producers subject to extended producer responsibility. Once these products become waste, the reporting system shall ensure that data is gathered on the collection and treatment of that waste specifying, where appropriate, the waste material flows; ensure equal treatment and non-discrimination between producers of products and with regards to small and medium enterprises. EPEE CE seminar 15 Sept 2016 EEB 44

Generic requirements for EPR 2. Member States shall take the necessary measures to ensure that the waste holders targeted by the extended producer responsibility schemes established in accordance with Article 8, paragraph 1, are informed about the available waste collection systems and the prevention of littering. Member States shall also take measures to create incentives for the waste holders to take part in the separate collection systems in place, notably through economic incentives or regulations, when appropriate. 3. Member States shall take the necessary measures to ensure that any organisation set up to implement extended producer responsibility obligations on behalf of a producer of products: (a) has a clearly defined geographical, product and material coverage; (b) has the necessary operational and financial means to meet its extended producer responsibility obligations; (c) puts in place an adequate self-control mechanism, supported by regular independent audits to appraise: the organisation's financial management, including the compliance with the requirements laid down in paragraph 4(a) and (b); the quality of data collected and reported in accordance with paragraph 1, third indent, and the requirements of Regulation (EC) No 1013/2006. (d) makes publicly available the information about: its ownership and membership; the financial contributions paid by the producers; the selection procedure for waste management operators. EPEE CE seminar 15 Sept 2016 EEB 45

Generic requirements for EPR 4. Member States shall take the necessary measures to ensure that the financial contributions paid by the producer to comply with its extended producer responsibility obligations: (a) cover the entire cost of waste management for the products it puts on the Union market, including all the following: costs of separate collection, sorting and treatment operations required to meet the waste management targets referred to in paragraph 1, second indent, taking into account the revenues from re-use or sales of secondary raw material from their products; costs of providing adequate information to waste holders in accordance with paragraph 2; costs of data gathering and reporting in accordance with paragraph 1, third indent. (b) are modulated on the basis of the real end-of-life cost of individual products or groups of similar products, notably by taking into account their re-usability and recyclability; (c) are based on the optimised cost of the services provided in cases where public waste management operators are responsible for implementing operational tasks on behalf of the extended producer responsibility scheme. EPEE CE seminar 15 Sept 2016 EEB 46

Generic requirements for EPR 5. Member States shall establish an adequate monitoring and enforcement framework with the view to ensure that the producers of products are implementing their extended producer responsibility obligations, the financial means are properly used, and all actors involved in the implementation of the scheme report reliable data. Where, in the territory of a Member State, multiple organisations implement extended producer responsibility obligations on behalf of the producers, Member State shall establish an independent authority to oversee the implementation of extended producer responsibility obligations. 6. Member States shall establish a platform to ensure a regular dialogue between the stakeholders involved in the implementation of extended producer responsibility, including private or public waste operators, local authorities and, where applicable, recognised preparation for re-use operators.' 7. Member States shall take measures to ensure that extended producer responsibility schemes that have been established before [insert date eighteen months after the entry into force of this Directive], comply with the provisions of this article within twenty-four months of that date. ; EPEE CE seminar 15 Sept 2016 EEB 47

Questions around EPR (co-decision) Should EPR and the generic requirements become mandatory (may vs shall)? What kind of targets towards reuse and prevention? Full cost coverage: what does that mean? Transparency of costs and revenues? Coverage (type of products, geographical scope, no discrimination )? Fees modulation what and how to? EPEE CE seminar 15 Sept 2016 EEB 48

EPR beyond end of life? Future EPR? 1= reuse, repair, prevent waste? 2= manufacturing, extracting distributing? Current EPR Source: epa.gov EPEE CE seminar 15 Sept 2016 EEB 49

EPR and product design Can EPR act as a lever for product design? Criteria to differentiate fees? What if more and more appliances are leased/rented? EPEE CE seminar 15 Sept 2016 EEB 50

Need for a coherent framework 1 Incentives for uptake of recycled materials Eco-design EPR with differentiated fees Waste treatment standards EPEE CE seminar 15 Sept 2016 EEB 51

Need for a coherent framework 2 Ecolabels & labels of excellence Differentiation of taxes GPP and sustainable procurement criteria Extended producer responsibility modulation Legally binding set of minimum requirements on resource efficiency of products & services, including mandatory disclosure of certain information Measurement standards EPEE CE seminar 15 Sept 2016 EEB 52

Thanks for your attention Stéphane Arditi Policy manager stephane.arditi@eeb.org

Q&A session

The Ecodesign aspects of the Circular Economy Package Ferenc Pekar, Policy Officer - Sustainable Products - DG Environment, European Commission

The Ecodesign aspects of the Circular Economy Package Ferenc Pekár Sustainable Production, Products and Consumption DG Environment European Commission Brussels, 15 September 2016

Production Product design Dir. on Ecodesign Reparability, durability, recyclability, etc. EPR Economic incentives for better product design

Ecodesign Directive 2009/125/EC Setting of mandatory requirements for energy-related products to improve their environmental performance Products not meeting these requirements cannot be placed on the market (applies also to imports) Allows access to single market (CE-marking based) Establishes the framework (conditions, criteria, procedures ) Legal Basis Article 114 (TFEU): free movement of products within the internal market Products to be addressed in Ecodesign Working Plans Basis for any measure is a technical preparatory study

Which products? Significant volume of sales and trade (200.000 units p.a.) Significant environmental impact Significant potential for improvement in terms of its environmental impact without entailing excessive costs No (significant) negative impact on: Functionality Health and safety Affordability Industry s Competitiveness

Which environmental impacts? All significant environmental impacts of products over the life-cycle 80% of a product's environm. impact determined by design phase So far mostly on energy efficiency of products in the use phase Exceptions: durability requirements for some product groups (hose & electric motor of vacuum cleaners; info on notebook batteries), water use, recyclability info requirements Potential to go beyond energy efficiency

Energy Label (Directive 2010/30/EU) Washing machines Vacuum cleaners Luminaires

Energy Label: EC proposal for a new Regulation Currently discussed in European Parliament and Council Back to: A to G Consumption of energy and other resources by energy-related products during use + supplementary information concerning energy-related products on functional and environmental performance such as durability "based on data that are measurable by market surveillance authorities, is unambiguous and has no significant negative impact on the clear intelligibility and effectiveness of the label"

Ecodesign and Energy labelling: Results 28 Ecodesign, 16 Energy labelling regulations, 3 voluntary agreements Deliver close to half of the 20% energy efficiency target for 2020 175 Mtoe primary energy savings per year by 2020, i.e. the annual primary energy consumption of Italy 320 Mt CO 2 equiv. greenhouse gas emission reduction; i.e. around 25% of EU 2020 reduction target Savings of 490 per household per year 55 billion extra revenue for industry, wholesale and retail sector, 0.8 million extra jobs

Process

Material efficiency of products Durability, reparability, modularity, easy recycling, etc. Several projects/initiatives to develop verifiable criteria: Socio-economic impacts of increased reparability Product durability: methodology for fridges and domestic electric ovens Material efficiency in product policies, Ecodesign4Circularity (JRC) Request to CEN/CENELEC to develop standards on material efficiency M/543 adopted in Dec. 2015, standards to be delivered by 2019 Analysis of possible horizontal requirements on repair information provision by 2018

Socio-economic impacts of increased reparability First such study at EU-28 level Objectives: Identify suitable policy options and policy scenarios to improve reparability; Perform case studies on four product groups: washing machines, dishwashers, vacuum cleaners and coffee machines; Quantify the job creation, economic and resource-savings potential.

Socio-economic impacts of increased reparability Economic impacts: manufacturers, retailers: small slowing down of projected increase of turnover, part of this loss outside the EU Repair sector: increase, especially in SMEs This increase might be partially absorbed by retailers and manufacturers - new opportunities R&D to increase Social impacts: significant amount of jobs in repair sector: quality jobs, largely in SMEs and smaller companies

Socio-economic impacts of increased reparability Environmental impacts: neutral to positive, clear gains of resources Most promising scenarios: measures to ensure availability of spare parts for a certain amount of years measures to enable an easier dismantling of products highest resource savings, but most significant reductions on the increase of turnover in certain sectors impact to be analysed case-by-case during specific Ecodesign preparatory studies.

Next Ecodesign Working Plan To be adopted in Autumn 2016 Circular economy related criteria in a more systematic way Ongoing work (e.g. compressors, electronic displays) Revision of existing measures (e.g. lighting, wet appliances) New product groups: energy and resource saving potential Product specific and/or horizontal measures

Thank you for your attention! Ferenc Pekar, European Commission, DG ENV ferenc.pekar@ec.europa.eu

Q&A session

EPEE members Discussion: Priorities & next steps

Wrap up EPEE Secretariat

Thank you for your attention! Contact details: secretariat@epeeglobal.org tel: +32 (0) 2 7381784 74