4.3 S. Kerr, guiding principles from producer perspective


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4.3 S. Kerr, guiding principles from producer perspective

  1. 1. Shelagh Kerr, President & CEO Electronics Product Stewardship Canada Guiding Principles for Successful EPR OECD Global Forum on the Environment Tokyo, Japan June 18, 2014
  2. 2. EPSC Members
  3. 3. WEEE Timeline in Canada 2005 2007 20082006 2009 2011 20122010 20132004 Alberta British Columbia and Saskatchewan Nova Scotia Ontario Prince Edward Island Quebec and ManitobaManitoba Newfoundland Government Run Program Industry Run Program
  4. 4. EPR Overview of Provincial Regulations Obligated Product AB BC MB NB NFLD NS ON PEI QC SK Major Appliances Small Electrical Microwaves (countertop) Phase I Electronics (displays, computers, printers) Phase II Electronics (home, vehicle & portable audio video and selected telecom) 2015? Phase III Electronics (photocopiers/printers, gaming consoles, servers, peripherals) * * * Batteries (rechargeable and non- rechargeable) *Voluntary in all provinces Packaging (cardboard, plastics, Styrofoam, printed materials) 100% 80% 50% 100% 75% Cellular Telephones *Voluntary in all provinces Regulation currently in place (* includes some products) Regulation not expected until 2014 or later
  5. 5. Canadian Electronics Recycling Programs Population Amount (in tonnes) Collected in Last Reported Year (2013) Kgs/Capita – Last Reported Year Amount Collected Since Launch (in tonnes) Nova Scotia and Prince Edward Island 1,086,000 5,381 T 4.95 25,998 T Alberta 4,025,100 17,280 T 4.29 116,972 T British Columbia 4,582,000 23,234 T 5.07 108,623 T Ontario 13,538,000 76,766 T 5.67 247,815 T Saskatchewan 1,108,300 3,048 T 2.75 17,889 T Quebec 8,155,300 unavailable - 12,511 T Manitoba 1,265,000 unavailable - 3,863 T Newfoundland 526,700 unavailable - 138 T New Brunswick (no regulated program) 751,171 N/A N/A N/A Canada (National) 34,286,400 TOTAL: 125,709 AVG: 5.16 TOTAL: 533,311 T Source: EPRA, 2014
  6. 6. Supported by the following Producers: • Electronics • Retail • Food and Consumer Packaged Goods • Tires • Paint • Beverages • Processed Foods • Newspapers • Magazines • Consumer Specialty Products • Restaurants • Hardware and Housewares • Pesticides and Fertilizers • Automotive: Oil and Filters Canadian Industry Principles of Producer Responsibility
  7. 7. 1. A Level Playing Field All obligated producers participate in approved programs (individual or collective) to maintain a level competitive playing field. Where producers have exhausted efforts to deal with free riders, the regulator should take appropriate enforcement action. This particularly applies to foreign free riders.
  8. 8. 2. Harmonized Nationally Materials collected by programs should be harmonized across Canadian provinces and territories to achieve: • economies of scale, • program efficiencies, • positive environmental outcomes and • convenience for consumers.
  9. 9. 3. No Cross-Subsidization between Product Categories Each product category should be assigned only the costs of managing the specific designated products involved.
  10. 10. 4. Competitive Markets Ensure Operational Efficiencies Operational efficiencies are achieved by: Leveraging competitive markets for services Streamlining administration and governance processes Ensuring financial and human resources are used effectively and efficiently
  11. 11. 5. Producer Obligations Met Individually Or Through A Collective The program should allow the flexibility for either an industry collective response or individual company responses.
  12. 12. 6. Service Providers Should Be Accountable All collectors, transporters, recyclers and processers of end-of-life products – whether municipalities or private companies - must be auditable and accountable to regulators and the public.
  13. 13. 7. Appropriate Standards Must Be Established and Enforced All collectors, transporters, recyclers and processers of end-of-life products must demonstrate compliance with international, federal and provincial laws and industry standards.
  14. 14. 8. Programs Need to Lead To Environmental Improvement The program’s influence on the marketplace should be used to drive proper reuse, responsible recycling, and enhanced resource recovery.
  15. 15. Successful EPR Programs have the Following Characteristics Governments • Set clear policy objectives, establish non-prescriptive regulatory frameworks and monitor progress. • Set collection and recovery targets for designated materials in consultation with producers on the form targets will take and timelines • Establish service standards for accessibility and educational requirements • Ensure proper monitoring • Provide the necessary compliance and enforcement measures.
  16. 16. Successful EPR Programs have the Following Characteristics Industry • Responsible for decisions on how the targets and standards are met. • Take the lead on the design and development of programs including product lists and definitions, fees and timing. • Determine the applicable financing mechanism for each regulated product to ensure the simple and harmonized management of the program. • If fees are visible to the public, an annual independent financial audit will be undertaken to ensure transparency
  17. 17. Considerations for Programs
  18. 18. Path to EPR Success… Outcomes based, non prescriptive regulation Industry lead A phased approach Leveraging existing infrastructure Funding Flexibility Competitive market Enforcement of level playing field
  19. 19. Path to EPR Success … Agreement on metrics, what gets measured Targets, clarity on including the right numbers based on at least 2 years of collected data or a similar region Return on Investment for consumers: cost-benefit is vital for sustained public support TRANSPARENCY
  20. 20. Path to EPR Success … • Provincial Landfill Bans • Standard approach to Reporting • Enforcement of level playing field • Common Definition of Obligated Steward Common environmental goals Provincial government partners to provide:
  21. 21. Path to EPR Success … Common Definition of Obligated Steward
  22. 22. Path to EPR Success … Practical Approach to Product Definitions • Government to regulate broad product categories • Industry to define new products to ensure they carry the right fees/charges
  23. 23. Example: Principles for WEEE Product Categories 1. Categories to be based on product functionality, legal obligation, recycling characteristics and costs. 2. Fee over 10% of product price to trigger category review. 3. Category placement to take into account legacy products and costs. 4. Cross-subsidization across and within categories to be kept to a minimum requiring fee formulas linked to weight based costs and commodity values. 5. All Provincial programs to convert to a new categorization at the same time with 120 day notice. 6. Categories should be forward looking and linked to successive technologies.
  24. 24. Path to EPR Success … • Industrial Commercial Institutional • Residential • Internet sales Defined treatment of channels
  25. 25. Path to EPR Success … Constant Communication • Forums to coordinate policies between regulators and industry • Put emerging issues on the table • Communicate to all Stakeholders collaboration, shared stakeholders, benchmarks, performance, communications, updates …….
  26. 26. Current Canadian EPR Issues under Discussion • Disposal bans should be implemented where possible • Obligated materials to be harmonized across jurisdictions • ICI waste to be coordinated through generators • Industry ability to set and adjust fees as required • Visible versus Internalized Fees • Encouragement of National PROs • For Profit/Not for Profit PROs • National methodology for tracking and reporting on diversion
  27. 27. Thank You! shelagh@epsc.ca www.epsc.ca