Discussion points for the internationally-harmonized EPR systems - PowerPoint PPT Presentation

Discussion points for the internationally-harmonized EPR systems United Nations Economic and Social Commission for Asia and the Pacific Institute of Global Environmental Strategies, Japan

Ｃ ｏ ｎ ｃ ｅ ｐ ｔ of Extended Producer Responsibility (EPR) � OECD defines EPR as ⇒ An environmental policy approach where the producers’ responsibility, physical and/or financial, for a product is extended to the post-consumer stage of a product’s life cycle EPR is intended to � -reduce the amount of materials going to landfills, by promoting 3Rs -transfer responsibility (especially cost) for waste management from local government which is downstream in the product life cycle and instead to into producers in the upstream of the product life cycle. - provide producers incentives to environmental consideration at product design and raw material selection Producer = -Brand owner -Importer � Other actors’ involvement ; - distributor, retailer, and consumer in the supply chain has role and responsibility

Ｃ ｏ ｎ ｃ ｅ ｐ ｔ of EPR Raw Material Production Process Producer’s Responsibility Final Product (conventional) Distribution Consumption Waste Extended Reuse/Recycle Final Dispose Other actors’ involvement - distributor, retailer, and consumer in the supply chain has role and responsibility

Model of the 3R system based on EPR and its instruments Change of materials Materials Minimum recycled Design for -Material Taxes content requirement Environment Change of -Tax Reduction production concept Take-back requirement -Subsidies Producers -Deposit/refund schemes Green Market -Eco-labeling -Advanced disposal fees Reduce -Awareness Raising Promote Producer Distributors Business recycling Responsibility model change: Organization Consumers -Leasing Recycle -Servisizing Reduce in Upstream Waste Illegal dumping Appropriate treatment Tax/Surcharge according to the quantity Strict Penalty Final dispose Reduce in Downstream

Introduction of EPR in OECD Countries C o u n t r y ( e x a m p l e ) S c o p e o f E P R p r o g r a m ( e x a m p l e ) A u s t r a l i a W a s t e O i l C a n a d a R e f r i g e r a n t ( I n g e n e r a l , E P R s c h e m e d o e s n o t e x i s t a t f e d e r a l l e v e l ) C z e c h R e p u b l i c P a c k a g i n g , o i l s , b a t t e r i e s , f l u o r e s c e n t t u b e s , t i r e s , h o u s e h o l d r e f r i g e r a t o r s F r a n c e P a c k a g i n g , W E E E , E n d o f l i f e V e h i c l e s ( E L V ) , B a t t e r y G e r m a n y P a c k a g i n g , W E E E , E L V , B a t t e r y , B i o - w a s t e s J a p a n C o n t a i n e r s a n d P a c k a g i n g , H o m e a p p l i a n c e , E L V , F o o d w a s t e , C o n s t r u c t i o n w a s t e N e t h e r l a n d s P a c k a g i n g , E n d o f l i f e V e h i c l e s , T i r e s , P l a s t i c f i l m s f o r a g r i c u l t u r e , B a t t e r y N o r w a y P l a s t i c p a c k a g i n g P o l a n d P a c k a g i n g , B a t t e r y , T i r e s , R e f r i g e r a n t R e p u b l i c o f K o r e a P a c k a g i n g , H o m e a p p l i a n c e s , F o o d w a s t e , C o n s t r u c t i o n w a s t e E U P a c k a g i n g , W E E E , E L V , B a t t e r y U S A T h e r m o s t a t , C a r p e t , B a t t e r y , C o n t a i n e r s Source: OECD

Introduction of EPR in other Asian Countries (examples) C o u n t r y ( e x a m p l e ) S c o p e o f E P R p r o g r a m ( e x a m p l e ) C h i n a P a c k a g i n g ( p r o v i s i o n a l r u l e ) , C h i n a R o H s a n d W E E E ( u n d e r p r e p a r a t i o n ) J a p a n R e f r i g e r a n t ( I n g e n e r a l , E P R s c h e m e d o e s n o t e x i s t a t f e d e r a l l e v e l ) R e p u b l i c o f K o r e a P a c k a g i n g , H o m e a p p l i a n c e s , F o o d w a s t e , C o n s t r u c t i o n w a s t e Source: OECD

� Germany: Packaging Ordinance of 1991 <Target materials : glass, plastic, paper, steel can aluminum can > •One of the first EPR-based recycling schemes in the world. •Producers has a responsibility of recycling and disposal instead of municipalities. •DSD was established to implement EPR acting for producers. By participating in the program, manufacturers may use eco-label called Green Dot for their products. Types of waste Recycling target achieved in Secondary Packaging 2003 Materials manufacturers Glass 99% fee Paper/cardboard 161% Contract Bottlers/ DSD Recycler G-dot Manufacturers ( Duals System Plastic 97% Deutschland) Distributors/ (run by collected Tinplate 74% license fee) Contract Retailers Aluminum 121% Collector Consumers Compounds 128% collection Source: IGES RISPO Good Practices Inventory

� Used Car Recycling System of 2002 (effective in 2005) in Japan -Obligating car manufacturers and importers to collect and appropriate recycle Automobile Shredder Residue (ASR), Freon and air bags -Deposit of disposal fees in advance to the fund corporation -Concern of increasing export of second hand cars Recycling rate of materials by major Advanced disposal fees Initial Car User car companies in Japan Claiming cost Car Export Fund Fund 2004 2005 Manufacturers Second Corporation Final Car User Exporter Corporation Exporter hand car and importers payment Obligation to hand over ELV (has Toyota ASR 50% 57% Designated companies to responsibility collect used cars for recycling Airbags 95% 93% Obligation to hand over ELV used car made Freon Nissan ASR 64% 67.9% Designated companies to collect Designated companies to collect by them) Freon from used cars Freon from used cars Collection Fee Obligation to hand over ELV Airbags 94.5% 93.5% Air Bag Honda ASR 52.6% 59.6% Permitted Wreckers Market for Permitted Wreckers secondary Collection Fee Obligation to hand over ELV parts and Airbags 94.5% 93.5% materials Permitted shredder companies Permitted shredder companies Shredder dust

� EPR is effective as a policy tool to promote the 3Rs within a country. � However, considering the international flow of goods and products, EPR should be examined from a different viewpoint. � In the context of economic integration of Asian region, potential risk and issues should be examined. � E-waste can represent such rising issues.

For the introduction of EPR systems and needs for internationally-harmonized mechanism � The expansion of global market for products as well as gaps in national capacity for recycling and environmentally sound management of waste would lead to increase in higher environmental risk. � Also, there is a concern of environmental pollution risk due to international gap in recycling mechanism among countries (a concern of pollution export) Country A(EPR) Country B EPR scheme No legislation New Products Consumption Pollution Resource recovery Used goods Recycling Capacity Inadequate Recycling Capacity Possibility of loophole for EPR Program

� It may be necessary to construct a mechanism to adjust and harmonize the gap in recycling-related institutional setting and recycling and management capacity. Country A(EPR) Country B(EPR) New Products Used goods Support for Recycling Capacity Recycling Capacity Institutional Building and the Capacity Development Difficult-to-treat materials

Internationally-harmonized mechanism To establish internationally-harmonized mechanism, the following two measures are necessary 1. Harmonization of institutional setting 2. International scheme for information sharing Also, international cooperation for capacity development is an important starting point for this process.

1. Example of Points to be Considered for Harmonization of Institutional Setting Institutional settings to be Objectives harmonized Environmentally sound � Standardization of design for recycling for products in recycling any country � Coordination of coverage of To prevent loop-hole producer’s responsibility in domestic � Coordination of domestic deposit institutional setting via scheme and financial cooperation trade by reducing institutional gap and harmonization � Network of port authority to Prevention of illegal prevent illegal trade activities