Slide 1

Russ Martin President, Global Product Stewardship Council Zero Waste Summit 2012 Melbourne 22 October, 2012 Global Developments in Product Stewardship and their Implications for Australia

Slide 2

Slide 3

Slide 4

Potential US Financial Benefit as of 2010 Product Total Financial BenefitAvg. 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

Slide 5

Resource Significance of WEEE* WRAP Modelling Between now & 2020, 12MT of WEEE in the UK is ICT equipment, consumer electronics, display devices will contain 63 T of palladium & 17 T of Indium At current market values, precious metals in WEEE worth : 1bn worth of silver 5bn worth of gold 1bn worth of palladium Almost of all WEEE taken to UK recycling centres can be reused: worth more than 200m in gross revenue each year could make 100T of rare earths (~10% of UK demand) available again WEEE = waste electrical and electronic equipment

Slide 6

Resource Significance of WEEE Mobile Phones For every tonne of components recovered, 10 tonnes of greenhouse gases are avoided Recycling 50,000 handsets avoids the need to mine: 110 tonnes of gold ore 213 tonnes of silver-bearing ore 11 tonnes of copper sulphide ore Source: MobileMuster

Slide 7

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/t abid/56073/Default.aspx

Slide 8

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/Recyclingratesofmeta ls/tabid/56073/Default.aspx

Slide 9

US EPR Laws as of October 2012 Source: Product Stewardship Institute

Slide 10

US EPR Laws as of October 2012 Source: Product Stewardship Institute ProductNo. of laws States with EPR laws Electronics24*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 Switches15AR, IL, IN, IA, LA, ME, MD, MA, NJ, NC, RI, SC, UT, VA, VT Thermostats (Hg)10CA, CT, IA, IL, ME, MT, NH, PA, RI, VT Batteries9CA, FL, IA, ME, MD, MN, NJ, NY, VT Paint4CA, CT, OR, RI Fluorescent Lamps3ME, VT, WA Carpet1CA Pesticide Containers 1CA Framework1ME * CA was the first state to pass an electronics law, but it is based on an advance recycling fee.

Slide 11

Canadian EPR and Product Stewardship Programs August 2012 Source: Encorp Pacific (Canada)

Slide 12

The ECs Three-tier Policy Structure Framework legislation The Waste Framework Directive (2008/98/EC) (the WFD) 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)

Slide 13

EU WEEE Directive Recast New collection targets - 85% of WEEE generated ~10 million tons (~20 kg per capita) to be separately collected from 2019 onwards. Existing EU collection target is 4 kg of WEEE per capita Greater ability for EU Member States to fight illegal waste exports Harmonisation of registration and reporting requirements

Slide 14

Representative Asian Programs China WEEE Japan Law for the Promotion of Effective Utilization of Resources Law for the Recycling of Specified Kinds of Home Appliances South Korea Taiwan Thailand Economic responsibility usually rests with manufacturers Physical responsibility is usually less clear Source: Perchards, www.perchards.comwww.perchards.com

Slide 15

British Columbia All WEEE subject to EPR Electronics and Electrical Category designated for EPR under the BC Recycling Regulation was expanded in 2009 requires producers to collect & recycle the products they make & sell As of July 1, 2012, BCs EPR recycling addresses the largest variety of WEEE of any jurisdiction in North America. If it comes with a battery or a plug, BC now recycles it.

Slide 16

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 Regulation October 2011: MOE-led public meetings Spring 2012: Producer-led consultations November 2012: Stewardship plan submission (led by Multi-Material British Columbia) May 2014: Stewardship program implementation Details and presentations available at http://www.globalpsc.net/blog/video-now- available-epr-in-british-columbia-for-packaging-and-printed-paper/

Slide 17

Canada-Wide Strategy for Sustainable Packaging EPR Action Plan & Packaging Strategy adopted October 2009 coordinated 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 years EPR requirements should encourage take-back initiatives, with or without deposits territories will consider whether alternative measures are more appropriate Builds on Action Plan for EPR by outlining a harmonised approach to EPR requirements for packaging (household, C&I and service packaging)

Slide 18

Product Stewardship in New Zealand Accreditation by Minister for Environment Plasback TM - used farm plastics Agrecovery Rural Recycling Programme agrichemical plastic containers, silage wrap, crop protection net and agrichemicals Glass Packaging Scheme Refrigerants Recovery PaintWise Holcim Geocycle - used oil ROSE NZ used oil http://www.mfe.govt.nz/issues/waste/product-stewardship/accredited- schemes-in-nz.html

Slide 19

Voluntary Product Stewardship - Australia ChemClear - crop protection and animal health chemicals www.chemclear.com.au Publishers National Environment Bureau - newsprint www.pneb.com.au FluoroCycle - mercury-containing lamps www.fluorocycle.org.au drumMuster - used chemical containers www.drummuster.com.au MobileMuster - mobile phones www.mobilemuster.com.au

Slide 20

Australias 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

Slide 21

Australias TV & Computer Recycling Scheme Liable parties Co-regulatory arrangements approved by the Minister (or delegate) achieve outcomes, specified in the Regulations, on behalf of liable parties Reasonable access to collections by December 2013 Annual recycling targets 30% in 2012-13 rising to 80% in 2021-22 Material recovery target takes effect FY2014-15 90% of the weight of material recycled in a financial year is sent for further processing into useable materials

Slide 22

Sustainability Victoria Efforts on Batteries and Paint

Slide 23

Trends to Consider Expanded range of products within electronics e.g., in British Columbia beyond electronics Consolidated collections simplified education potential economies of scale Collaborative multi-stakeholder approaches greater engagement of local governments Partnership for Action on Computing Equipment (PACE), a Basel Convention partnership with industry, NGOs and other stakeholders Sustainability Victoria efforts on batteries and paint

Slide 24

Importance of Responsible Recycling Legal prosecution Health and safety of workers and general public Environmental damage from spills or accidents Arrangements could lose approvals Reputational damage

Slide 25

Importance of Responsible Recycling - 2

Slide 26

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 http://www.globalpsc.net/international- product-stewardship-summit-issues-paper/

Slide 27

Lessons Wide variety of models are available for Australia to consider Regulatory threats and fees have been used heavily in Europe but have delivered results North America - more voluntary & co-regulatory approaches Need national consistency with flexibility to adapt over time It is almost irrelevant whether a product stewardship program is voluntary, co-regulatory or regulatory, as long as: Ongoing consumer education Convenient access to collection facilities Verifiable performance reporting Producer responsibility for operating and financing Minimising free riders

Slide 28