Extended Producer Responsibility A global perspective Andrew Sweatman
EPR Overview Extended producer responsibility (EPR) Regulations Requires companies to own the liability for products and packaging throughout life-cycle Life cycle begins with product / packaging design, ends with recovery from users and disposal / recycling activities Major potential business impact to companies not prepared imagine paying $1-5 per unit to recover product and packaging!
Packaging EPR The EU Directive aims to harmonize national packaging laws, in order to: reduce environmental impact, and remove potential trade barriers between EU member states By 2001, all EU countries must: Recover 50-60% of packaging (i.e. recycle, compost or incinerate with energy recovery) Recycle 25-45% (includes composting) Greece, Ireland and Portugal have until 2005
Packaging EPR Almost all packaging regulated, classified into 3 groups: Sales/primary packaging used by the final user (e.g. bags, blister packaging, bottles, metal containers, cardboard trays and carrier bags) Grouped/secondary packaging used to transport sales units (e.g. plastic sheets and cardboard boxes) Transport/tertiary packaging used by industry rather than consumers (e.g. drums, containers, crates and pallets)
Packaging EPR Directive includes Essential requirements Minimize use of materials, hazardous materials and increase recyclability Packaging which complies with the requirements is guaranteed free access to EU Limits lead, cadmium, mercury, hexavalent chromium to: 600 parts per million (ppm) by June 30, 18 250 ppm by June 30, 1 100 ppm by June 30, 2001
Packaging EPR Responsibility for packaging recovery varies by country - common definitions are: Producers Users BOX BOX USA 4 EU SHOP & Raw material producers (manufacturers of cardboard, glass, plastics etc.) Converters/packaging manufacturers (manufacturers of boxes, bottles, containers etc) Packers/fillers (companies that package products e.g. computers, food etc.) Importers (companies that bring foreign good onto the markets) Distributors (shops, mail order etc.)
Packaging EPR: 3rd Party Schemes Most countries have third party recovery systems that manage waste: Members of these systems pays fees based on the type of packaging material (e.g. paper, glass and plastic) and the quantity of packaging used. The money generated from these fees is used to finance collection recycling, incineration etc. In return, the Third Party Organization assumes the companies responsibility for meeting the recovery and recycling requirements within the country
Packaging EPR: 3rd Party Schemes Fees for materials vary greatly: Plastics usually have high fees due to problems with recycling; cardboard, paper and other easily recyclable materials have lower fees Minor changes in coatings and laminates can have an impact on fees.e.g.1,000 folded cartons (weighing 20 g) 7\SHRIFDUGERDUG)LQLVK *HUPDQ\ %HOJLXP )UDQFH 1RFRDWLQJRUODPLQDWH 4.60 0.20 1.00 3ODVWLF/DPLQDWH 24.00 0.20 1.00 )RLODQGSODVWLFODPLQDWH 24.00 7.60 1.00
Packaging EPR: 3rd Party Schemes Green Dot system originated in Germany. Countries using the scheme are: Austria Spain France Belgium Portugal Luxembourg Symbol indicates that the company has contributed to national scheme
Packaging EPR Case Study: Green Dot System - Germany Packaging consumption in Germany has dropped considerably since the introduction of the Green Dot system Between 11 and 15 the amount of packaging was reduced by 00,000 tonnes More recently per capita sales have reduced. Average consumption has fallen from 4.7kg in 11 to 82.3kg in 17 - a drop of 13% Examples of the ways packaging has been reduced in Germany follow
Packaging EPR: Household Products Country Responsible party 3rd Party Organization Denmark Finland Austria Belgium Germany Ireland Spain Norway Sweden Local authorities responsible with industry required to co-operate All required to Take-back unless covered by a collective system Packaging manufacturers, packers/fillers, distributors and importers to ensure that recovery and recycling targets are met France Portugal Italy Netherlands UK Packers/fillers and importers required to join a recovery organisation or make their own approved arrangements Packaging manufacturers, packers/fillers, distributors and importers to contribute to or provide a recovery organisation or else make their own arrangements Packers/fillers and importers either to sign a Covenant committing themselves to meet policy objectives. Otherwise meet targets laid down by law, either through individual compliance or a collective organization Raw material producers, converters, packer fillers, importers and distributors to ensure that a certain percentage of the packaging they handle is recovered
Packaging EPR: Industrial Products Country Austria Belgium Finland Denmark Responsible party Manufacturers and distributors to take back used packaging unless it is covered by a collective system, or it can be shown to have been delivered to a registered large collector of their own waste Suppliers legally responsible for take-back. Ends-users usually arrange for used packaging to be collected and delivered to a reprocessor and negotiate reimbursement form suppliers Local authorities responsible with industry required to co-operate 3rd Party Organization Norway Sweden France Ireland Spain Germany Italy Netherlands Portugal UK Producers and importers to ensure that recovery and recycling targets are met End-users responsible for ensuring that used packaging is reused or passed on for recovery or recycling Suppliers legally responsible for take-back. Ends-users usually arrange for used packaging to be collected and delivered to a reprocessor and negotiate reimbursement form suppliers Packaging manufactures, packer/fillers, distributors and importers to take back used packaging or pay fees and delegate responsibility to collective organization Packaging/fillers & importers have legal obligations, but collection costs to be borne by end-user End-users responsible for ensuring that used packaging is reused, recovered or recycled - they may do this by joining a system set up to collect household packaging for recovery or recycling Raw materials producers, converters, packers/fillers, importers and distributors to ensure that a certain percentage of packaging they handle is recovered or recycled
What to do about Packaging EPR? Optimize packaging to reduce cost and environmental impact Provide guidance to packaging engineers or suppliers In each member state: Determine who is responsible for the packaging in each member state Decide whether to comply individually or through a thirdparty scheme Establish systems to track packaging
Packaging EPR Case Study: Philips Semiconductors New one-piece Semiconductor reels: are 38% lighter can be used more than five times encourage recycling through symbols, labelling and offering collection of used trays and reels by contracted suppliers for cleaning and reuse. 220,000 kg of material saved by Philips annually using the system (assuming reuse 5 times)
Packaging EPR Case Study: Philips Semiconductors Previously, each reel was singlepacked in a cardboard box New box design with identical top and bottom parts and variablelength spacer sleeve cut to length between 5 and 25 reels Product protection standards are maintained Corrugated fiberboard, therefore no separation needed for recycling and customer handling time is minimized
Electronics EPR Most significant legislation is the proposed European Directive on Waste from Electrical and Electronic Equipment (WEEE Directive) - currently in 3rd draft form Asia-Pacific Nations also considering take-back laws
Electronics EPR To be met no later than January 1, 2004: 0% of of large household appliances to be recovered and recycled 70% of all other electrical and electronic products to be recovered and recycled Only exemptions are: cables, surgical equipment and watches large industrial equipment is excluded if over 1000 volts AC or 1500 volts DC current
Waste Electronics EPR:Current laws Country Sumary Date Denmark Italy Law requires municipalities to run collection/ recovery schemes. Allows take-back by producers that can demonstrate compliance with environmental requirements. Paid for through municipal waste removal fees and additional fees for businesses. Comprehensive waste management decree of 16 calls for industry to develop take-back schemes. A collection/recovery network for refrigerators exists, and is expected to include collection/recovery of other electronics before 2000. Take-back is free of charge to end user upon purchase of new product. DECEMBER 18 NOVEMBER 17 Netherlands Norway Distributors required to take products back (own brand or historical) when new purchases are made. The products are then sent to local authority, manufacturers or importer for recycling. Manufacturer/importer pays for costs of scheme through individual or joint (covenant) compliance. Distributors required to take products back (own brand or historical ) when new purchases are made. Municipalities must accept waste from consumers free of charge and at a cost to business. Manufacturers/importers must take products back relative to market share. Large Appliances JUNE 1 18 smaller items APRIL 21 1 MARCH 18 Switzerland Distributors, manufacturers and importers to take-back products. Take-back paid for through surcharge on new products, though technically financing has been left to the market. JANUARY 18 Sweden Government delivered a plan to Parliament on mid-17 calling for a ban on landfilling of electronics. Producers would bear responsibility for end-of-life equipment. DRAFT JULY 18
Waste Electronics EPR:Proposed laws Country Take-back activities Austria Disagreements between government and industry on which electronic scrap should be considered hazardous continue to delay take-back legislation first proposed in 14. Likely to be funded through surcharge on new products. Belgium Flanders region currently considering take-back legislation Finland Producer responsibility legislation for electrical and electronic equipment due to have been published in December 16 but delayed. Will likely involve a surcharge on new products to pay for collection/ recovery. Government now running collection/recovery pilot. France Government favors share-responsibility, reverse-distribution scheme run by industry, but no draft legislation has appeared. Negotiated agreement between government and industry on the recovery and recycling of home appliances could emerge in 1. Germany Take-back regulation for IT equipment has been on hold since 16. A separate decree on battery take back has been expanded to include built-in batteries in such products as computers, fax machines copiers, and small consumer electronics, but not the products themselves. Spain UK Government has announced no plans for legislation, though it has teamed with national electronics association on collection. Year long pilot (started 1 January 18) may be expanded into regular take-back scheme, depending on results. Pilot s take-back is free of charge to end-users. No national legislation proposed. Government wants industry to take voluntary approach. Several privately run pilot projects have been conducted or are in progress.
What to Do About Electronics EPR? Phase-out lead, mercury, cadmium and hexavalent chromium and halogenated flame retardants Minimize different plastics used and mark following ISO 1146 for easier recycling Incorporating fees into product cost and profitability calculations
Electronics EPR Case Study: British Telecom BT currently recovers around 1. million rental telephones a year for refurbishment, reuse and recycling. In 13 the cost of the recycling scheme to BT was 1.1 million (US$ 1.87 million) By 17 BT had converted this loss to an income, and received 1.3 million (US$ 2.21 million) from the telephone recovery scheme
RTIS Consortia Regulatory Tracking & Interpretation