Extended Producer Responsibility

1

• Extended Producer Responsibility
• The New Frontier
• presented to
• Rubber Recycling 2004

2
EPR Definition

• OECD defines EPR as an environmental policy
  approach in which a producers responsibility for
  a product is extended to the post-consumer stage
  of a products life cycle.

3
EPR Policy Goals (OECD)

• Shifting of responsibility upstream toward the
  producer and away from municipalities
• Provide incentives to producers to incorporate
  environmental considerations in the design of
  their products

4
EPR Philosophy

• Cost of managing consumer waste is traditionally
  borne by society as a whole (general taxpayer)
• Represents an environmental externality
• Not reflected in product price
• Ideally, product price should include full
  life-cycle costs
• Sends more accurate price signal to consumer

5
EPR Philosophy in Design

• Important to always keep fundamental philosophy
  in mind when designing EPR programs
• Danger in being too pragmatic when making design
  decisions
• Design choices focused on efficiency or
  simplicity can undermine program support

6
Design Criteria Checklist

• Financially sustainable
• Level playing field
• No cross-subsidization
• Separation of products/ materials
• Environmentally sound
• DfE, 3Rs hierarchy
• Socially responsible
• Performance driven
• Transparent, inclusive

7
Design Challenges

• Financially sustainable
• Difficult to accurately predict funds required to
  deliver program
• Presents challenge in ADF schemes
• ADF must be adjustable
• ADF based on budget, not other way around
• Most elegant in producer-pay programs
• Bill or payment at the end of the year
• Desire of industry to share costs
• Confusion over respective roles in shared
  responsibility
• Sharing cost leads to distortion of price signal
• Fear of escalating cost if industry does not
  control infrastructure

8
Design Challenges

• Level playing field
• Issue in voluntary programs
• Effectively managed through backdrop legislation
• Increasingly, industry requesting legislation as
  pre-requisite to EPR
• Harmonization related issue
• More a priority for industry than government
• Must be driven by industry
• Cant succeed as lowest common denominator

9
Design Challenges

• No cross-subsidization between products /
  materials
• Cost-effectiveness can conflict with product
  separation
• Producers can work together on common collection/
  processing systems to produce efficiencies while
  maintaining product independence
• Composition surveys
• Material handling research

10
Design Challenges

• Environmentally sound
• Ideally, EPR should encourage Design for
  Environment
• Flow-through fees download cost onto consumer
• ADFs must vary by product/ material
• PROs practical and effective management
  organizations, but remove competition
• 3Rs hierarchy
• Programs should encourage environmentally-preferab
  le management options
• In absence of definitive research, hierarchy
  assumed valid
• Environmental conscience on PRO

11
Design Challenges

• Socially responsible
• Community issues and local economy should be
  considered
• Cost factors may conflict with social issues
• Political involvement and monitoring important to
  EPR management

12
Design Challenges

• Performance driven
• EPR programs with goals or mandates set by or
  negotiated with government produce better results
• Reporting requirements
• transparent, verifiable
• Performance standards must apply to voluntary as
  well as mandated programs
• Voluntary programs cannot be avoidance mechanisms
• Consequences for non-performance

13
Design Challenges

• Transparent, inclusive
• Composition of PRO
• Multi-stakeholder
• Include ENGO and public seats
• Arms-length from government
• Seems to be important to public
• Counters impression of fees being taxes
• Communications with stakeholders and public
• Responsive to issues

14
Challenges for the Future

• Whats Next?
• Expanded materials
• Multi-material PROs
• Design for Environment
• Harmonization

15
Contact

• Recycling Council of AlbertaChristina Seidel,
  Executive DirectorBox 23Bluffton, AB T0C
  0M0phone [phone]fax [phone]info_at_re
  cycle.ab.cawww.recycle.ab.ca