Russ Martin

President, Global Product Stewardship Council

WasteMINZ Annual Conference, Rotorua

5 October, 2011

Global Developments in

Producer Responsibility

Global Product Stewardship Council

Functions:

an independent forum for product stewardship development facilitating international harmonisation of product stewardship web- and social media-based clearinghouse for the dissemination of

information and research on product stewardship international linkages to advance product stewardship research on product stewardship

Current activities include:

development of a series of webinars on product stewardship across a broad range of products and geographic regions

establishing a global networks of experts building a database and library of quality research and reports expanding member services and growing our membership base

Introduction - 1

EPR rules were first introduced in Europe for packaging:

• Italy’s Law no. 475 of November 1988

• German Packaging Ordinance of June 1991

• features: producer responsibility collective funding of recycling by industry material-specific targets

• increase resource efficiencies across supply chains

• raise value and awareness of sustainability

Introduction - 2

Over time, a general shift occurred from strict EPR to product stewardship/shared responsibility:

• lower overall systems costs • incentives for both industry and local government to improve overall collection system efficiencies • responsibility according to levels of influence

Now: • EPR or product stewardship in virtually all developed countries and several developing countries • more than 330 producer responsibility organisations (PROs) in Europe alone

International Product Stewardship Summit: Some Relevant Findings product stewardship has moved beyond traditional end-of-life emphasis to encompass broader sustainability

industry leaders will accept the full costs of product stewardship, provided they are paying the right costs

the caveat: businesses want greater program control and the flexibility to reduce costs.

Issues Paper available at www.GlobalPSC.net

International Product Stewardship Summit: Possible Goals for Product Stewardship • reduce greenhouse gas emissions and climate change impacts • reduce health and environmental harm from products • maximise stakeholder engagement • encourage adoption of cradle-to-cradle approaches • encourage manufacturers and retailers to take more responsibility for lifestyle impacts • engaging consumers and clarifying their responsibilities • optimise beneficial resource recovery • attribute full costs to beneficiaries of products • reduce local and state government intervention in waste and products • increase resource efficiencies across supply chains • raise value and awareness of sustainability

EC Producer Responsibility Directives

The 30 countries in the European Economic Area (the EU 27 + Iceland, Norway and Liechtenstein) have had to transpose the following directives into national law:

• The Packaging and Packaging Waste Directive of 1994 • The End-of-Life Vehicles Directive of 2000 • The Waste Electrical and Electronic Equipment Directive of 2002 • The Batteries and Accumulators Directive of 2006

Although in theory the Directives should provide consistency and harmonisation across Europe, significantly different rules have resulted especially with regard to allocation of responsibility

The EC’s Three-tier Policy Structure

Framework legislation • The Waste Framework Directive (2008/98/EC) • The Waste Shipment Regulation (EC) no. 1013/2006

Waste treatment legislation • The Landfill Directive (1999/71/EC) • The Waste Incineration Directive (2000/76/EC) • Future recycling standards, to be based on the WFD

Producer responsibility legislation • The Packaging and Packaging Waste Directive (94/62/EC) • The End of Life Vehicles Directive (2000/53/EC) • The Waste Electrical and Electronic Equipment Directive (2002/96/EC) • The Batteries and Accumulators Directive (2006/66/EC)

Potential US Financial Benefit as of 2010

Product Total Financial Benefit Avg. Per Capita Electronics $658 million $2.13 Paint $609 million $1.97 Medical sharps (home) $198 million $0.64 Batteries (primary) $247 million $0.80 Batteries (secondary) $ 74 million $0.24 Fluorescent lamps (household) $ 87 million $0.28 Thermostats (mercury) $ 46 million $0.15 Pesticides $ 40 million $0.13 Phone books $ 40 million $0.13

Total Potential Financial Benefit for US = $2 billion/yr *Based on an estimated US population of 309,101,167 (U.S. Census Bureau, April 2010)

** Values in US$

Source: Product Stewardship Institute

US EPR Laws as of August 2011

Source: Product Stewardship Institute

US EPR Laws as of August 2011

Source: Product Stewardship Institute

Product No. of laws

States with EPR laws

Electronics 24* CT, HI, IL, IN, ME, MD, MI, MN, MO, NC, NJ, NY, OK, OR, PA, RI, SC, TX, UT, VA, VT, WA, WV, WI

Auto Switches 15 AR, IL, IN, IA, LA, ME, MD, MA, NJ, NC, RI, SC, UT, VA, VT

Thermostats (Hg) 9 CA, IA, IL, ME, MT, NH, PA, RI, VT

Batteries 8 FL, IA, ME, MD, MN, NJ, NY, VT

Fluorescent Lamps 3 ME, VT, WA

Paint 2 CA, CT, OR

Carpet 1 CA

Pesticide Containers

1 CA

Framework 1 ME

* CA was the first state to pass an electronics law, but it is based on an advance recycling fee.

Canadian EPR and Product Stewardship Programs 2011

Source: Encorp Pacific (Canada)

Producer Responsibility Regulations – Canada

EPR Action Plan & Packaging Strategy adopted October 2009 coordinated provincial and federal initiative through Canadian

Council on Ministers of Environment (CCME)

Action Plan commits all jurisdictions to work towards having EPR legislation & systems for packaging etc within 6 years

EPR requirements should encourage take-back initiatives, with or without deposits

territories will consider whether alternative measures more appropriate

Builds on Action Plan for EPR by outlining a harmonised approach to EPR requirements for packaging (household, C&I and service packaging)

EPR Regulations – South Africa

National Environmental Management: Waste Act (March 2009) requires Industry Waste Plans to be drawn up for designated materials, within the overall framework of the National Waste Management Strategy

If no consensus within a realistic timeframe, the Department of Environmental Affairs will write its own standards and promulgate them as regulations

The draft national strategy says that standards will be drawn up on product design, 'informed by international best practice‘

Government Product Stewardship in Australia Co-regulation - Packaging Covenants ’99-’05, ’05-’10, ‘10 on Discussion Paper on Co-regulatory Frameworks 2004-05

set out how governments envisaged co-regulation working governments not committed to any particular course of action

New South Wales EPR Priority Statements 2004, 2005-06, 2007 Industry ‘put on notice’ for 16 ‘wastes of concern’

Deferred to voluntary programs and national efforts No real action taken Copied with minor variation by Western Australia in 2005 Neither EPR nor prioritisation No action was ever taken

Product Stewardship for Oil Program 2001 partnership between oil producers & recyclers framed in legislation levy on domestic & imported oils - A$35 million over seven years

Voluntary Product Stewardship - Australia

MobileMuster - mobile phones www.mobilemuster.com.au

drumMuster® - used chemical containers www.drummuster.com.au

ChemClear® - unwanted crop protection and animal health chemicals www.chemclear.com.au

Publishers National Environment Bureau - newsprint www.pneb.com.au

Issues Paper available at www.GlobalPSC.net

National Waste Policy: Less Waste, More Resources (November 2009)

“the Australian Government, with the support of state and territory governments, will establish a national framework underpinned by legislation to support voluntary, co-regulatory and regulatory product stewardship and extended producer responsibility schemes to provide for the impacts of a product being responsibly managed during and at end of life.”

Product Stewardship Act 2011

Framework Criteria for prioritisation: National markets

Hazardous substances

Business opportunities

Consumer willingness to pay

Significant costs associated with end-of-life management

Material conservation and resource recovery, and associated benefits such as reducing greenhouse gas emissions $147 million net savings

Product Stewardship in New Zealand – Accreditation by Minister for Environment Glass Packaging Forum

Geocycle Holcim Used Oil Recovery Scheme

PlasbakTM- used farm plastics

Agrecovery Rural Recycling Programme – agrichemical plastic containers, silage wrap, crop protection net and agrichemicals

Refrigerant recovery

Resene PaintWise http://www.mfe.govt.nz/issues/waste/product-stewardship/accredited-schemes-in-nz.html

R2 and e-Stewards® Certification Schemes

Certification to an accredited, independent third-party auditor that specific standards to safely recycle and manage electronics are being met.

Currently two accredited certification standards exist: • Responsible Recycling Practices (R2) • e-Stewards® standards

Low Recycling Rates of Certain Metals United Nations Environment Programme report:

• recycling rates of metals are in many cases far lower than their potential for reuse

• less than one-third of 60 metals studied have an EOL recycling rate above 50%

• 34 elements are below 1% recycling: • Lithium – batteries (hybrids & electric vehicles) • Gallium, Germanium, Indium, Tellurium – solar • rare earth metals – catalysts, batteries, permanent magnets for electric drives, wind turbines, phosphors for smart phones, iPads, TVs, computers, energy efficient light globes, etc.

http://www.unep.org/resourcepanel/Publications/Recyclingratesofmetals/tabid/56073/Default.aspx

Low Recycling Rates of Certain Metals Potential consequences:

• scarcity of key resources – availability and cost

• direct impacts on sustainability

• inhibition of ‘Green Economy’ development

• need for greater ‘urban mining’ of resources

• largest recycling park in China – 1MT copper/yr

• largest copper mine in China – less than half that

• recycling rates for platinum -

• 80-90% for industrial apps, 0-5% for electronics

• product stewardship as a risk management and geopolitical strategy

http://www.unep.org/resourcepanel/Publications/Recyclingratesofmetals/tabid/56073/Default.aspx

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Global Product Stewardship Council Public Group

Phone: +61 2 9940 3571 Fax: +61 2 9940 3491

www.GlobalPSC.net

info@GlobalPSC.net