Regulatory challenges in the implementation and operation of EPR Laws and RegulationsDr. Fritz Flanderka, Managing Director, Reclay Group

25th November, 2015

I. Introduction

II. EPR – a global policy instrument

III. EPR – a complex regulatory approach

IV. Challenges

V. Summary

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Content

Owner-operated, medium-sized company (founded in 2002)

International recycling and waste management service provider

Setup and operation of take-back and recycling schemes

Advising companies and governments on developing sustainable waste management solutions

Over 3,000 clients

Turnover:185 million EUR (2014)

12 offices worldwide

230 employees

Headquartered in Cologne, Germany

1. About Reclay Group

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I. Introduction

Managing Director at Reclay Group, responsible for legal/public affairs and strategy since 2005

20+ years experience in the development of postconsumer waste management programs, including designing and implementing EPR for Germany‘s Green Dot scheme

Founder and former Managing Director of PRO Europe

Author of numerous publications on EPR

2. Personal Background

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I. Introduction

www.oecd.org/env/tools-evaluation/ext

1. What is EPR?

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II. EPR – a global policy instrument

“Extended Producer Responsibility (EPR) is a policy approach under which producers are given a significant

responsibility – financial and/or physical – for the treatment or disposal of post-consumer products. Assigning such

responsibility could in principle provide incentives to prevent wastes at the source, promote product design for the environment and support the achievement of public

recycling and materials management goals.”

EPR legislation in place

II. EPR – a global policy instrument

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2. Already existing EPR programs

Germany: Implemented in 1991, the German system has proven successful on the European and international stage

European Union: Implementation of EPR schemes in all Member States

North America: EPR programmes cover a wide array of products and are primarily designed and implemented at sub-national level

1. Examples

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III. EPR – a complex regulatory approach

Extended Producer Responsibility is increasingly recognised worldwide as an efficient waste management policy to help improve recycling and reduce landfilling of products and

materials.

Asia: EPR schemes and regulations in Japan and the Republic of Korea; implementation process has started in some rapidly emerging economies

OECD: EPR first defined in the 2001 OECD Guidance with a review and update in 2014 (mainly focused on the issue of waste picker)

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III. EPR – a complex regulatory approach

Integration of a large number of actors is necessary:

Obliged parties (industry and retailers)

Collective compliance schemes

Consumer

Municipalities

Private waste management companies

Administration (ministries, law enforcement agencies)

2. Actors

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III. EPR – a complex regulatory approach

Need to coordinate operations of many actors

Financing

Target setting (i. e. recycling quotes)

3. Actor coordination

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III. EPR – a complex regulatory approach

Consideration of:

Settlement structure/coverage

Pre-existing collection systems (public waste collection, informal sector)

Social Structures

1. Adaptation to national specificities

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IV. Challenges

There are different requirements and conditions in every country → no blueprint for the implementation of EPR!

Industry and retailers

participation obligation in compliance schemes?

Importing industry

authorized representatives?

Registration requirements

Verification of participation in compliance schemes

Reporting requirements

2. Determination of obliged parties

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IV. Challenges

Approval requirements

Monitoring

Competition between multiple schemes

3. Collective compliance schemes

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IV. Challenges

Voluntary participation?

Organization of compliance schemes (household collection / bring system)

Educational work and public awareness components at local and national level (media campaigns)

4. Consultation of consumers

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IV. Challenges

Inclusion of municipalities is of greatest importance:

They have a significant political influence regarding the stability of the system.

They are the local link to consumers and the first contact point for all concerns.

They provide information and educational work on site (waste removal calendar, local campaigns etc.)

5. Participation of municipalities

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IV. Challenges

Crucial question: Do municipalities have to coordinate with take-back systems or

are they legally responsible for the collection?

Equally important is the inclusion of the private waste management sector:

Inclusion at all levels of the value chain necessary

Essential for sorting and recycling (investments, access to world wide markets)

6. Private waste management sector

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IV. Challenges

Reliable legal frameworks are necessary to guarantee significant investments of the waste management companies!

Consultation of ministries (environment, industry, competition, etc.) for approval process and monitoring of supra-regional requirements for obliged parties (compliance schemes, i. e. industry and retailers)

Local monitoring through lower authorities

7. Administrative requirements

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IV. Challenges

EPR has proven successful on the international stage and will gain further acceptance.

The reasons for implementing EPR vary – economic factors are often as important as environmental ones.

There is no one size fits all!

When implementing EPR there is a wide range of challenges which need to be met. → The devil is always in the details!

EPR programs can only be succesful when adapted to the local conditions. The inclusion of all relevant actors needs to be ensured!

Before starting EPR programs, it is a necessity that the law is in force. Every party needs to know it‘s role!

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V. Summary

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Thank you!