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Global Forum on Environment:
Promoting Sustainable Materials Management
through Extended Producer Responsibility (EPR)
Christoph Vanderstricht
Global EPR leader
Partner EY
Key learnings of 20 years experience advising public and private
sector in the design, implementation and optimisation of EPR
regulations and models across the world.
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Agenda
1. Introduction
2. Misconceptions
3. Differences
4. Similarities
5. Conclusions
Presentation title
Page 3
1. Introduction: Our EPR experience
Since 1994, the current EY team has been involved in more than 40 countries in the design,
development, implementation and optimisation of EPR and other solid waste management
regulations and operational solutions for the public as private sector in a vast waiver of
product categories: household and industrial packaging; batteries; electronic waste; tyres; non-
woven cotton; solar panels, lamps, etc.
(See countries in yellow
for geographical experience)
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1. Introduction: The future of resource management
There is wide recognition that, at a global level, current waste growth and resource
management practices are unsustainable. Key to develop a circular economy rather than a
linear economy which involves simply digging materials out of the ground produce
products, and send the waste to landfills.
Demographic growth
Consumption patterns
Urbanisation
Economic growth
Low waste management
infrastructure
Public health
Energy demand
Public financing
Central government
Producers
Waste management
technologies
Product innovation
► Government must create the economic and legislative
conditions for change
► Integrated waste management strategy and system
design to reinforce the waste hierarchy
► Implementation of capacity building at municipal/city
authority level
► EPR principles to place the cost burden on the producers
and drive market development. Creating circular
economies
► Increasing use of outsourcing, performance based
contracting and PPP/BOT commercial structures to
manage the municipal financial burden, drive change
and manage technology risks
► Increasing use of multi-stream collection systems
to manage public health risks and provide material
to the treatment system
► Investment in engineered landfills, waste to
energy/gasification and anaerobic digestion as well as
intangible factors such as education and awareness
► Economies of scale, increasing capital intensity,
technology focus drive joint ventures and M&A activity
in the supply chain
How to react to the pressures of change
Municipal
authorities
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1. Introduction: Drivers for a government to implement EPR regulations
Extended
Producer
Responsibility
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2. Misconceptions about EPR
► EPR is an instrument to better organise waste management operations and induce
product stewardship: collection points; transportation models and the use of
valorisation technologies
► EPR is only possible if there is recycling or valorisation capacity present in the
country
► EPR only concerns the Ministry of Environment
► EPR laws can be easily copied from one country to the other
► Small and medium enterprises should not be bothered by EPR
► The phantom of the monopoly
► Inefficiencies and fraud with collective schemes show that the model is not working.
Presentation title
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The most important component of the cost is the cost of collection of the waste, followed
by the cost of recycling (depending on the product).
In makets with high bying power the prices are 3 times lower than in markets with low
buying power (ie where more collective schemes are “competing”)
2. The phantom of the monopoly in a reversed market Buyer Market versus Seller Market
High supplier power
High buyer power
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The cooperation between the private and public sector is key to design
and implement a sustainable EPR regulation.
There are different partnership models for public-private cooperation:
Experience shows that in most case close cooperation between government and
private sector is necessary to realise the objectives and avoid dramatic risks in the
market.
Industry-government
co-regulation
(of industry self regulation combination and government regulation, with government
having the authority to enforce)
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Voluntary agreements
established by industry
Voluntary agreements as a
partnership between industry and government
(participation of individual firms not obligatory)
Regulation established and
enforced by government
Voluntary Mandatory
3. Differences:
Governance models for EPR development
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3. Differences for EPR: Why countries are different
Presentation title
Prioritised
Product
Strength of government
(enforcement)
Regulatory and constitutional
context
Financing capability
Culture
Social economic environment
Available collection and transportation Infrastructure
the “product” market
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10
Central collection site
Low-density collection points
High-density collection points (close-to-home
drop-off)
Street-side Containers
Kerbside or Door-to-Door Collection
BRING SYSTEMS
DOOR-TO-DOOR
Transport by residents / corporations
Collection System Transport
Durable goods
Fast moving consumer goods
3. Differences for EPR: Products are different
Collection models depend on the product, the economic activity
and the demographic specifications.
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4. Similarities for EPR: Why “countries” do have similarities
Presentation title
Improper EPR and solid waste management are a threat to public health and the environment
Effective EPR models create value and opportunities for social inclusion, jobs and better environment
Human action & Change of behaviour
Expectations of the key stakeholders
Strong enforcement and control from government is key
Seller markets lead to higher prices and buyer markets to lower prices
EPR is increasingly becoming the Wild West creating risks for countries and “producers”
The devil is in the detail
“Wrong” or “sub-optimal” EPR models lead to higher costs for society, governments and has strong negative impacts in terms of level playing field in the product markets.
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5. Conclusions
► EPR is an economic instrument impacting the whole market: the product
market as well as the waste market
► EPR is not only about the environment and therefore requires attention
from different ministries (Finance / Trade / Customs / Economy)
► EPR risks should not be underestimated
► EPR requires proper consideration and careful implementation by
governments and private sector
► EPR requires strong government enforcement and control
► EPR can contribute considerably in the development of an inclusive and
greener sustainable market in big number of countries
► EPR should be implemented as part of an integrated strategic approach
by governments, taking into account other challenges (eg energy needs /
resource management)
Presentation title
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More information
Christoph Vanderstricht,
[email protected] Tel: +56985508312 (Chile)
Tel: +32477619252 (Belgium)