Global Packaging Stewardship Overview

Russ Martin

Chief Executive Officer

Australian Packaging Covenant Council

Sydney, Australia

15 August, 2013

Packaging Product Stewardship - Preview

Context with product stewardship and extended producer responsibility (EPR) for other products

Lots of movement – in different directions or not?

Ongoing debatesEurope, Australia, US, Latin AmericaEurope, Australia, US, Latin America

Industry involvement in renewed pushes for product stewardship and EPR

Israel, Canada, US

Greater regulation – with industry support?Israel, South Africa, Canada, US

Implications for Australian packaging

Packaging and Printed Materials in North America

U.S. EPA Dialogue on Sustainable Financing of Recycling of Packaging at the Municipal Levelhttp://www.epa.gov/osw/conserve/smm/sfmr/packaging-report.pdf

Optimising Current Systems Alcoa AMERIPEN PAC NEXT Initiative Curbside Value Partnership PAC NEXT Initiative Curbside Value Partnership Carton Council

EPR Legislation Provincial legislation - British Columbia, Saskatchewan, Ontario, Quebec,

Manitoba State legislation – Vermont, Rhode IslandNestle Waters North America / Future 500 / Recycling ReinventedPAC NEXT Initiative

Product Stewardship Institute

PAC NEXT Initiative

Formed by the Packaging Association (PAC) in September 2011 to help industry transition to a world without packaging waste

North American in scope with an emphasis on Canada

5 Committees, including5 Committees, includingSystem Optimization - Policy Harmonization Material Optimization - Consumer Engagement Sustainable Center of Excellence

Developing a report of best practices of EPR and other recovery policies

Product Stewardship Institute is the only NGO represented on the Leadership Committee (comprised of retailers, consumer packaged goods companies, packaging manufacturers, and other stakeholders)

Canadian EPR and Product Stewardship Programs July 2013

Source: MGM Management

Canada-Wide Strategy for Sustainable Packaging

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

Council on Ministers of Environment

Action Plan commits all jurisdictions to work towards having EPR legislation & systems for packaging etc within 6 yearsEPR 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 are more appropriate

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

EPR for Packaging and Printed Paper in British Columbia

Packaging and Printed Paper designated for EPR under the BC Recycling Regulation

requires producers to collect & recycle the products they make & sell

Important dates: May 2011: Packaging and Printed Paper added to Recycling RegulationOctober 2011: Ministry of Environment-led public meetingsOctober 2011: Ministry of Environment-led public meetingsSpring 2012: Producer-led consultations November 2012: Stewardship plan submission (led by Multi-Material

British Columbia)February & April 2013: MMBC plan updated May 2014: Stewardship program implementation

Details and presentations available at http://multimaterialbc.ca andhttp://www.globalpsc.net/blog/video-now-available-epr-in-british-columbia-for-packaging-and-printed-paper/

MMBC Packaging and Printed Paper Stewardship Plan

One overarching objective – continuous improvement in recovery effectiveness and efficiency without undermining existing PPP recovery efforts in BC

Financial incentives to service providers for performance outcomes – Market-Clearing Price

Collector qualification standardsCollector qualification standards

Alignment of collection contract expiry dates to allow local government consideration of options

Must achieve, or is capable of achieving within a reasonable time, a 75% recovery rate (Recycling Regulation requirement)

Available at http://multimaterialbc.ca

Saskatchewan Household Packaging and Paper Stewardship Program Regulations

Approved February 2013

Transfers responsibility for financing up to 75% of recycling programs for residential Waste Packaging and Paper from municipalities to brand owners and first importers

Waste Packaging and Paper Stewardship Plan developed by Multi-Material Stewardship Western Inc. (MMSW)

Waste Packaging and Paper Stewardship Plan developed by Multi-Material Stewardship Western Inc. (MMSW)revised draft released 11 June 2013definition of ‘packaging’ same as BC’s but ‘paper’ defined differentlyconcerns about data used for funding formulacontains performance and reporting requirementsfinal due to Minister 6 August 2013

Available at http://mmsk.ca/

US EPR Laws as of August 2013

Source: Product Stewardship Institute

US EPR Laws as of August 2013Product No. of

laws

States with EPR laws

Electronics / WEEE 23* CT, HI, IL, IN, ME, MD, MI, MN, MO, NC, NJ, NY,

OK, OR, PA, RI, SC, TX, 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) 10 CA, CT, IA, IL, ME, MT, NH, PA, RI, VT

Batteries 9 CA, FL, IA, ME, MD, MN, NJ, NY, VT

Source: Product Stewardship Institute

Batteries 9 CA, FL, IA, ME, MD, MN, NJ, NY, VT

Paint 7 CA, CT, ME, MN, OR, RI, VT

Fluorescent Lamps 3 ME, VT, WA

Carpet 1 CA

Pesticide Containers 1 CA

Mattresses 1 CT

Framework 1 ME

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

recycling fee.

Greater Industry Involvement in Packaging EPR

Vermont EPR Act 2010 60% recycling target for packaging and printed material within 5 yearstied EPR introduction to deposit repeal; was not adoptedcurrent bill does not include deposit repeal

Rhode Island - packaging EPR study commission

Nestle Waters North America/Recycling Reinvented/Future 500Nestle Waters North America/Recycling Reinvented/Future 500intended to build support for EPR about 30 organisations and companies have participated in dialoguesNWNA CEO Kim Jeffery on business case for EPR at http://bit.ly/LyXfei

Recycling Reinventedcreated January 2012 as a non-profit to educate and advocate for EPR

for packaging and printed paper in the United States2012 emphasis on raising corporate awareness and supportemphasis on state legislation in 2013 and 2014

Recycling Reinvented

Study commissioned on economic benefits, costs, and impacts associated with a ‘uniquely American’ EPR system for consumer packaging and printed paper (PPP)

the first of three working papers now availabledefining EPR and Recycling Reinvented’s goals

“Recycling Reinvented has three stated goals for what an EPR system for PPP should achieve: EPR system for PPP should achieve:

Increase the tons of PPP collected and recycled and available for use in domestic manufacturing.

Minimize the costs incurred for increasing collection and recycling and processing of PPP.

Maximize the environmental benefits from recycling PPP compared to disposal, through increased collection of PPP for recycling, improving material quality, and through improvements to the recycling system and end market opportunities for PPP. “

Available at http://www.globalpsc.net/costs-and-benefits-of-epr-for-packaging-and-printed-paper-in-minnesota/

Recently Introduced US EPR Packaging Legislation

Rhode Island - would have covered all post-consumer packaging

and set a target recycling rate of 80% by 2020. Developed in

response to marine debris concerns. Bill did not pass.

California - would have covered “sources of marine plastic

pollution”. Would require producers of covered products to either pollution”. Would require producers of covered products to either

implement a product stewardship program or pay a compliance

fee. Overall goals were a 75% reduction in marine plastic pollution

from land-based sources by 2020 and a 95% reduction by 2025.

Bill did not pass; potential reintroduction next year.

North Carolina - would have covered packaging and printed paper.

Did not make it out of committee.

EU-27 & Croatia EPR Laws as of February 2013

Product No. of

Laws

Member States with EPR laws

Electronics / WEEE 26 AT, BE, BG, CY, CZ, DK, EE, FI, FR, DE, GR, HU*, IE, IT,

LV, LT, LU, NL, PL, PT, RO, SE, SK, SI, ES, UK, HR

Packaging 25 AT, BE, BG, CY, CZ, EE, FI, FR, DE, GR, HU*, IE, IT, LV,

LT, LU, MT, NL, PL, PT, RO, SE, SK, SI, ES, UK, HR*

End of Life Vehicles 25 AT, BE, BG, CY, CZ, DK, EE**, FI, FR, DE, GR, IE, IT, LV,

LT, LU, NL, PL, PT, SE, SK, SI, ES, UK, HR

Source: http://epr.eu-smr.eu/stakeholder-consultation

Batteries 27 AT, BE, BG, CY, CZ, DK, EE, FI, FR, DE, GR, HU, IE, IT,

LV, LT, LU, MT, NL, PL, PT, RO, SE, SK, SI, ES, UK, HR*

Tyres 20 AT, BE, BG, CY, DK, EE, FI, FR, HU*, IE, IT, LV, LT, NL,

PL, PT, SE, SK, SI, ES, HR

Graphic Paper 11 AT, BE, CY, DK, FI, FR, LV, LT, NL, SE, SK,

* Product fee legislation / governmental fund. Not included in No. of Laws.

** Takeback obligation but no producer responsibility organisation (PRO)

EU-27 & Croatia EPR Laws as of February 2013

Product No. of

laws

Member States with EPR laws

Oils 10 AT, BE, CY, DE, LV, PL, PT, SI, ES, HR

Medical Waste,

Old/Unused

Medicines

10 AT, BE, EE**, FI, FR, PT, SE, SI, ES, HR

Agricultural Film 8 BE, FI, FR, DE, IE, IT, SE, ES

** Takeback obligation but no PRO

Source: http://epr.eu-smr.eu/stakeholder-consultation

** Takeback obligation but no PRO

The following also have EPR for: AT - bulky metals, glass, plastics and wood, plastic foils,

compund packaging (Tetra-Pak), expanded polystyrene; BE - disposable plastic

kitchenware and photo-chemicals; FR - fluorinated refrigerant fluids, pharmaceuticals,

lubricants, textiles, infectious healthcare waste, furniture, dispersed hazardous waste,

plant protection product packaging and unused products, fertiliser and soil

amendments packaging, seed and plant packaging, mobile phones, office equipment,

ink cartridges; NL - window panes; PL - light bulbs. PT - packaging of medical waste and

packaging of phytopharmaceuticals; SI – waste from hazardous pesticides, graveside

candles; and HR – waste containing asbestos.

EUROPEN Green Paper on Packaging & Sustainability

Multi-stakeholder dialogue – reported November 2011

“packaging should be seen as part of the solution in

achieving a resource efficient society”

Seven key considerations: Seven key considerations: material selection

design

consumer choice

production

use

end-of-life

innovative business models

http://www.globalpsc.net/blog/europen-green-

paper-on-packaging-sustainability/

The EC’s Three-tier Policy Structure

Framework legislationThe Waste Framework Directive (2008/98/EC) (the WFD)

The Waste Shipment Regulation (EC) no. 1013/2006

Waste treatment legislationThe Landfill Directive (1999/71/EC)

The Waste Incineration Directive (2000/76/EC)The Waste Incineration Directive (2000/76/EC)

Future recycling standards, to be based on the WFD

Specific waste stream legislationThe 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)

Changes to the Packaging and Packaging

Waste Directive? 1

European Commission plans to submit proposals for revision

(or repeal) in 2014, with a view to adoption in 2015 or 2016

Still ‘fit for purpose’?

Revised to bring into line with the WFD?

Tightening of The Essential Requirements:Tightening of The Essential Requirements:to make prosecutions easier?

to prescribe minimum ratios of product to packaging (as in China,

South Korea, Taiwan)?

Incorporate broader ‘life-cycle thinking’?e.g., prevention, resource-efficiency, carbon content

best way to address ‘life-cycle thinking’?

Source: Perchards, www.perchards.com

Changes to the Packaging and Packaging

Waste Directive? 2

Address packaging and its contents holistically, though the

Sustainable Consumption and Production program?

Forget about the sustainability of packaging in isolation?

Continue with recycling (and maybe recovery) targets in the

PPWD alongside the household waste diversion targets in PPWD alongside the household waste diversion targets in

the WFD?

Introduce household packaging recycling targets?

Abolish the packaging targets in favour of material-specific

recycling targets covering all waste streams?

Retain the packaging targets alongside material-specific

recycling targets covering all waste streams?

Source: Perchards, www.perchards.com

EPR Regulations – South Africa

National Environmental Management: Waste Act (2008) requires Industry Waste Plans for designated materials

Packaging and paper sector was identified as a priority

Packaging Council of South Africa submitted a plan in August 2011:

objective: recycling rate from 44.5% in 2009 to 51% over five yearsobjective: recycling rate from 44.5% in 2009 to 51% over five yearscollection co-ordinated by industry body called South African

Packaging and Paper Recycling and Environmental Programme informal collectors are expected to play a key role in collection

• job creation is a priority of this plan

• will also keep costs low

Paper and Packaging Industry plan on hold while regs made

Source: Perchards, www.perchards.com

EPR Regulations – Israel Packaging Law

Introduces EPR for all single-use consumer and transport packaging made of paper, board, plastic, metal and glassRecycling targets as % of

packaging put on market

2011

(Jul-Dec)2012 2013 2014 2015

Glass, paper or carton 30 40 50 55 60

Metal 20 30 40 45 50

Plastic 15 22.5 22.5 22.5 22.5

Municipalities must ensure the separation of wet and dry wastes from households

Ministry of Environmental Protection will finance waste

sorting and recycling infrastructure in all municipalities

Plastic 15 22.5 22.5 22.5 22.5

Wood 15 15 15 15 15

Overall target 30 40 50 55 60

Source: Perchards, www.perchards.com

Overseas Trends for Product Stewardship & EPR

Increased application across a broader range of products

Focus on better understanding impacts on local government

costs and resource savings

Attempts to harmonise varying schemes to reduce costs

Industry support for underpinning legislation to address free Industry support for underpinning legislation to address free

riders comparable to Used Packaging NEPM

Increased debate over material ownershipa growing issue as secondary material prices rise

Increased debate over security of supply and the export of

jobs

Implications for Packaging

Increased funding from industry, but:

greater demands for material quality & cost controls

more direct relationships between industry stewards and collection

service providers, e.g. British Columbia’s Market Clearing Price

some local governments hesitant to cede program control

debates over material ownership and assumed market risks

continued debate over how much industry funding is appropriate

Increased emphasis on litter and marine debris

Evolution beyond focus on material recovery targets to

broader life-cycle perspectives

especially in Europe and Canada

Broader Implications for Packaging

Product stewardship / EPR increasingly important to

packaging sustainability and increasingly expected across

supply chains

Multi-national companies that address these requirements

strategically will continue to expect their suppliers to assist strategically will continue to expect their suppliers to assist

in providing effective (and cost-effective) responses.

With increased physical and financial responsibility being

assumed, there will be an expectation for greater program

control and flexibility

Australia’s 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

Priority Product Listing Under the Act

Under the Act, any future mandatory or co-regulatory approach

must be preceded by 12 months notice before a particular

product can have such a regulatory approach applied packaging first listed for potential regulation on 19 December 2011

30 June 2013, Parliamentary Secretary released first priority list 30 June 2013, Parliamentary Secretary released first priority list

of products potentially covered under the Act:waste architectural and decorative paint

end-of-life handheld batteries (less than 2kg in weight)

packaging (and subsets of packaging, such as consumer packaging and

beverage packaging)

end-of-life air conditioners with small gas charges

end-of-life refrigerators with small gas charges

Discussion Topics

Policy implicationsefforts to address litter / marine debris and material contributions, e.g.,

plastics?

extent of funding commitment?

net impacts on local governments?

ownership of recovered materials and points of transfer?ownership of recovered materials and points of transfer?

material-specific or impact-specific efforts?

Project considerationsbenchmarking funding commitments against other countries or programs?

fuller understanding of recycling costs and benefits?

broader packaging life-cycle understanding?