EXTENDED PRODUCER RESPONSIBILITY FOR THE PACKAGING AND PAPER INDUSTRIES

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EXTENDED PRODUCER RESPONSIBILITY FOR THE
PACKAGING AND PAPER INDUSTRIES
IPSA CONGRESS MARCH 2009
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AGENDA

• Packaging in Perspective
• The National Waste Bill
• Solid Waste - what is the Packaging Industry
  doing?
• Overpackaging
• Biodegradable Packaging
• The Way Forward
• Over to David..

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PACKAGING IN PERSPECTIVE
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PACKAGING IN PERSPECTIVE

• The Industry in South Africa is worth some R35
  Billion per annum (2008)
• It employs directly approximately 50 000 people
• The Recycling sector, excluding informal
  collectors, employs some 10 000 additional people
  
• Packaging is estimated to be some 6-10 of the
  household waste stream in South Africa

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PACKAGING IN PERSPECTIVE

• Per capita packaging consumption in SA is
  25-30 of that in Europe/ USA
• Packaging has a comparatively small carbon
  footprint .
• There are some much bigger nasties than packaging
  in our throw away society.

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PACKAGING IN PERSPECTIVE

• Packaging is an essential part of modern life,
  misunderstood, unloved but necessary
• Packaging protects, preserves, informs, attracts,
  creates economical options and enables our
  lifestyles and saves more waste than it creates.

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• A recent survey by Collect-A-Can revealed that
  over 90 of South Africans surveyed saw litter as
  the greatest environmental threat facing us.

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PACKAGING IN PERSPECTIVE

• As a nation we are clueless as to the major
  environmental issues facing the world and thus
  us.
• The politicians are facing massive pressure to
  fix the litter problem.
• We in the Packaging Industry are doing a lousy
  job of selling the benefits of packaging to
  society at large

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LEGISLATION GOVERNMENTS POSTION
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LEGISLATION AND GOVERNMENTS POSITION

• Polokwane Declaration
• National Environmental Management - Waste
  Management Bill
• Product Taxes

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POLOKWANE DECLARATION (2001)

• Implement a Waste Management System which
  contributes to sustainable development
• To develop a common effort towards a goal for
  reduction of waste generated and disposed by 50
  by 2012 and develop a plan by 2022 for a zero
  waste society

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NATIONAL ENVIRONMENTAL MANAGEMENT WASTE BILL

• Bill is on Presidents desk awaiting signature
• Defines waste hierarchy
• Avoid
• Reduce
• Re-use
• Recycle
• Recover
• Landfill

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SOME SALIENT POINTS

• Five new important elements to the Bill which
  is framework law
• Introduces extended producer responsibility
• Require the development of an Industry Waste Man
  Plan
• Minister can declare priority waste
• Municipalities empowered to force household
  separation and fine for littering
• Controlled recovery (EFW) legalised

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PRODUCT TAXES

• Only one example to date Plastic Bag
• Winners
• Government Taxes collected R90million per
  annum
• Retailers Consumers pay for product previously
  supplied free
• The Environment
• Losers
• Plastic Bag Industry
• The Environment very small percentage of money
  collected has landed up in environmental
  initiatives.
• This is not the best way to deal with
  environmental problems. Voluntary industry
  driven initiatives are much better. Tax increased
  to 4c from 3c in current budget.

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SOLID WASTE -WHAT THE PACKAGING INDUSTRY HAS
DONE TO DATE
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• REDUCE
• RE-USE
• RECYCLE
• RECOVER

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REDUCE

• Technology has enabled the packaging industry to
  reduce mass without compromising the basic
  functions of the pack
• For example
• The beverage can in South Africa has reduced to a
  weight of 33g today versus a weight of 62 grams
  in 1966
• A glass beverage bottle has reduced in weight by
  18 over the last 10 years

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REDUCE

• The PET 2 litre cool drink bottle has reduced to
  a weight of 52g today versus a weight of 90g in
  1979 when it was first introduced
• Detergent refill packs have reduced packaging
  material by 70
• A cement sack weighs on average 240 gsm today
  vs. weighing 320 gsm in 1990

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RE-USE

• Impressive figures in the malt beer industry
• Returnable containers work in some industries but
  are certainly not the solution across the
  spectrum
• Cost and energy of return loop
• Water and cleaning material wastage
• Nature of the product

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RECYCLE

• Packaging Waste
• A resource that is in short supply, because the
  supply chain is not working properly.

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RECYCLE

• In 2007 we collected and recycled 1,498 million
  tons
• Overall recycling rate in SA in 2007 40,8 for
  packaging and paper industries
• Why recycle?
• Virgin raw material trends
• Oil not renewable
• Timber supplies in SA
• Significantly lower carbon footprint

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CARBON DIOXIDE SAVINGS
2007 study by Franhofer Institute, Germany
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RECYCLE

• In 2007 we collected and recycled 1,498 million
  tons
• Overall recycling rate in SA in 2007 40,8for
  packaging and paper industries
• Why recycle?
• Virgin raw material trends
• Oil not renewable
• Timber supplies in SA
• Significantly lower carbon footprint

• Valuable resource being landfilled
• We must find way to handle impact of commodity
  cycles

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RECYCLE

• METAL BEVERAGE CANS
• 67 recycling rate
• Employment to 37 000 people
• Collected 750 000 tons since it started
• Shareholders invested R300m since inception

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RECYCLE

• PAPER
• 53,5 Recycling Rate
• 2007 collected 1 035 000 tons of paper in SA
• R400 million invested directly in recycling
• Demand for recycled paper will grow to 1,155
  million tons by 2009

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RECYCLE

• GLASS PACKAGING
• 25 Recycling Rate
• Major returnable contributor
• The Glass Recycling Company
• Target from 25 to 50 in 3 years
• R65 million investment in cullet colour sorting
  equipment
• R20m annual fees

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RECYCLE

• PLASTICS PACKAGING
• 23 Recycling Rate
• Plastics covers 6 main families which should each
  be looked at individually
• 160 recyclers 172 000 tons
• Demand exceeds supply
• Impressive initiatives Petco attracted R130m
  investments from zero 23
• New Associations formed
• Must show plastic logo clearly

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RECOVER

• Plastic has calorific value up to 40 better than
  South African coal
• Study completed in plastics industry on
  possibility of using waste for energy
• Used extensively in Europe
• The new law allows controlled EFW

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OVERPACKAGING
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OVERPACKAGING

• Major issues of Future
• Personal Experience
• - Radio Shows
• When is Overpackaging
• Some Perceived Problem Packs
• - Chips/ Cereals- Some Retailers fast
  foods
• - Disposable Razors etc.

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BIODEGRADABLE PACKAGING
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BIODEGRADABLE PACKAGING

• 2 basic types
• Additives
• Alternative Raw Materials
• Certain applications where this can work, but a
  number of downsides which need to be understood
• Most importantly disaster that can be caused if
  they end up in the recycling stream
• Moral issue if we were to grow crops specifically
  for packaging

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THE WAY FORWARD
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THE WAY FORWARD

• Government approached PACSA/RAG in 2008 to
  develop an Industry Waste Management Plan. Key
  issues
• Government wants us to take responsibility for
  our waste and pay for its removal from the
  waste stream
• Focus on household post consumer waste,
  including all paper

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DOMESTIC POST CONSUMER PACKAGING WASTE -THE
CURRENT POSITION

• No enforced separation at homes
• Most domestic waste collected at landfills
• About 8 MRFs in SA.
• Much valuable recyclate contaminated/lost.

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Ideal Model for Household Post Consumer Waste
(Mid and Upper Income Groups)
HOUSEHOLD WASTE SEPARATE INTO TWO BAGS
Dry Waste
Wet Waste
MRF Material Recovery Facility
Rigid Plastics
Metal
PET
Glass
Flexible Plastics
Paper
Composting and Landfill
UNWANTED WASTE
Pelletise and Convert to Energy
RECYCLING INDUSTRY
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THE WAY FORWARD

• Government approached PACSA/RAG in 2008 to
  develop an Industry Waste Management Plan. Key
  issues
• Govt wants us to take responsibility for our
  waste and pay for its removal from the waste
  stream
• Focus on household post consumer waste,
  including all paper

• We want
• To ensure industry schemes in place already not
  compromised

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THE WAY FORWARD

• To involve all players in the entire supply
  chain from RM to retail.
• Government use Buyisa funds not already spent.
• Levy which is inevitable must be as small as
  possible and compulsory.
• We have engaged an International expert
  organisation, Perchards Limited, to help us
• over to David Perchard