Case Study for Multi-Stakeholders Partnerships

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1 Case Study for Multi-Stakeholders Partnerships ~From Wastes to Valuable Resources~ (PET Bottle Recycling in Japan) Mar. 19, 2013 The Council for PET Bottle Recycling (CPBR, Japan)

2 Plastic Packages had been disposed as Wastes in Japan until the mid-1990s -Plastic Packages in Japan had been reclaimed as non-burnable Wastes until the mid-1990s. <Japan PET Bottle Association> -Established in 1982 -R&D for Recycling and Classification -From Waste to Valuable Resource -Reduction of Wastes -Extend a Life of Disposal Ground

3 Recycling Activity Before Packaging Recycling Law (~1995) <Development for Recycling> -Sorted Discharge & Sorted Collection Test : Collaboration with Consumer and Municipality -Research & Development for Recycling => 8 Recycling Plants were constructed by 1995 <Development for Application> -Fiber -Sheet -Others <Guideline> -Voluntary Design Guideline for Designated PET Bottles (1992~) Voluntary Publication for maintaining a better Recyclability

4 Voluntary Design Guideline (Latest) Voluntary Design Guideline for Designated PET Bottles = Obligation of PET Bottle Manufacturers & Bottlers CPBR requests Importers to import Beverages etc. filled in conformable bottles. Plastic Closures must be made of PE or PP. Do not use Aluminum Closures. Bottles must be made of only Clear PET (no color). When use multi-layer / coating for barrier, must evaluate Recyclability. Labels must be easily removable by hand. Do not use PVC.

5 Share of Obligation Scheme of Packaging Recycling Law Consumer (Sorted Discharge) Bottles Used Bottles Municipality (Sorted Collection) Bales Bottle Manufacturer & Bottler (M&B) (Reclaim) Resin Resin Producer B-to-B Recycling Recycler (Chemical, Mechanical / Material) PCR (Flake, Pellet) PCR User (Fiber, Sheet, etc)

(Ex.) Cooperation between M&B and Consumer s Groups for Recycling Training Course for 3R Promotion Leaders M&B <8 Organizations for Recycling> Consumer s Group <NPO GENKI Network for Creating a Sustainable Society> -Cooperation between Consumer s Group and M&B -Mutual Understanding -Send Information -Training and Support for 3R Promotion Leaders -3R Promotion Leaders in Tokyo instructed Consumers in Preparation of Recycling Programs in 2011~2012 6

Role Sharing and Partnership Partner Consumer Municipality Bottle Manufacturer & Bottler Packaging Recycling Law (from 1995) Role -Sorted Discharge -Discharge Clean Bottles -Uncap Closures -Remove Labels -Sorted Collection -Make Bales -Reclamation -Development -Easier to Sort -Easier to Recycle -Weight Reduction -B-to-B B Recycling -Voluntary Action Plan Actual Results -Rank A Bale: 87% (2011) -Recycle Rate: 86% (2011) -Discharge Rules -Establish Rules to Consumers -Frequency for Collection (1/W ~ 1/M for used PET) -Individual Discharge Collection -Easy delabelling by Perforation -Voluntary Design Guidelines -Keep Strength & Beverage Quality -Mechanical & Chemical B-to-B Recycling -3R Promotion 7

(Ex.) Rules and Guidelines (Koganei-City in Tokyo) PET Bottles http://www.city.koganei.lg.jp/ 8

Practical Effect brought by Packaging Recycling Law Bale Quality Bale Quality was improved year by year by Obligation of Consumer & Municipality. 100% 90% 80% Rank A 70% 60% 50% 40% 30% 20% 10% 0% 1998 2000 2005 2006 2007 2008 2009 2010 2011 Rank B Rank D Data from the Japan Containers and Packaging Recycling Association http://www.jcpra.or.jp/ 9

Practical Effect brought by Packaging Recycling Law 600 000 Tons Voluntary Collection 1000 JPY/ Tons Municipality Collection 45.1 38.9 500 Contract Price for Bale 400 300-13.6 17.3 Value of Post Consumer PET Bale Bid Price became higher due to Improvement of Bale Quality. As a Result, Value of Post Consumer PET was risen. 4.2 22.0 47.9 40.0 (Valuable) 60.0 20.0 0.0-20.0 200-40.0 100-77.1-71.4 50,000 JPY 530 USD -60.0-80.0 0 1997 2000 2005 2006 2007 2008 2009 2010 2011-100.0 (Waste) 10

11 Summary Development of the Usage for recycled PET Resin, and the recycling Technology Thorough Implementation of the sorted Discharge and the sorted Collection Faithful Execution of Role and Responsibility among Consumer, Municipality and M&B. Mixed Material becomes Wastes, whereas Sorted one becomes Resource.

12 Thank You for Your Kind Attention!! The Council for PET Bottle Recycling (CPBR, Japan) http://www.petbottle-rec.gr.jp/ http://www.petbottle-rec.gr.jp/english/