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EPR – UPDATED OECD
GUIDANCE
Peter Börkey, OECD Environment Directorate
EPR Conference,
12-13 May 2016, New Delhi, India
• OECD EPR project
• Definition, trends and achievements
• Guidance
– Governance
– Competition
– Design for environment
– Informal sector
Outline
OECD EPR Project
• Update of 2001 Guidance Manual
1. In-depth case studies of around 40 EPR
schemes covering 5 product groups
2. Policy guidance with a focus on:
• Governance
• Competition
• Design for Environment
• The informal sector
3. Policy dialogues in emerging market economies
• The work benefits from financial support from the EU and a number
of other OECD member countries
Description of work
14 country case studies completed
Definition, trends and
achievements
Extended Producer Responsibility is
Expanding
0
50
100
150
200
250
300
350
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
Numberofpoliciesadopted
Year
Cumulative EPR adoption
Cumulative EPR adoption
Trends in MSW management
• Reduced disposal and increased recycling
• Reduced burden on public budgets
• Economic opportunities
• Limited impact on DfE
Key messages on achievements of
EPRs
Guidance
• 3 models with advantages and
disadvantages
EPR governance
Multiple
PRO
Single PRO
Government
run
• All models require strong government
involvement:
– To enforce a level playing field
– To enforce environmental standards and
targets
• EPR can not be run by the private sector
on its own
• Transparency is paramount for effective
government oversight
EPR Governance
Product Markets
PRO
Markets
Collection Markets
Sorting Markets
13
Treatment Markets
Key markets with competition concerns
Largest market
5-10% of EPR costs
50-80% of EPR costs 10-40% of EPR costs
EPR and competition
• Competition impact assessments should be
integrated into design of EPR
• PRO should only be stablished as single
operator if net benefits can be demonstrated
• Services that PROs procure should be
procured by transparent, non-discriminatory
and competitive tenders
– Relevant factors include contract duration,
recovery of sunk costs, and principle of non-
exclusivity
EPR and DfE
• So far little impact on DfE due to use of CPR
rather than IPR
• Variable fee CPRs preferable to fixed-fee CPRs
• Modulation of fees according to design is an
option, but administrative costs need to be
assessed
• Full cost recovery important to maximise
incentive effect
EPRs and the informal sector
• Emerging economies have a large informal sector that has a
potentially important role in EPRs.
• Need to distinguish between types and impacts of informal sector:
• Failure to include the informal sector into EPR can undermine them
• Need to register waste pickers and work towards formalisation and
professionalisation
• Informal sector should be actively engaged in discussion for
establishment of EPRs
Positive impacts Negative impacts
In collection and sorting, the informal
sector can provide positive economic
and environmental impacts Unsound practices need to be
eliminated (e.g. informal processing)
Some evidence that informal systems
collect more material than formal
THANK YOU!
For further information, please contact Peter Börkey,
peter.borkey@oecd.org or go to www.oecd.org/environment/waste

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EPR Updated OECD Guidance

  • 1. EPR – UPDATED OECD GUIDANCE Peter Börkey, OECD Environment Directorate EPR Conference, 12-13 May 2016, New Delhi, India
  • 2. • OECD EPR project • Definition, trends and achievements • Guidance – Governance – Competition – Design for environment – Informal sector Outline
  • 4. • Update of 2001 Guidance Manual 1. In-depth case studies of around 40 EPR schemes covering 5 product groups 2. Policy guidance with a focus on: • Governance • Competition • Design for Environment • The informal sector 3. Policy dialogues in emerging market economies • The work benefits from financial support from the EU and a number of other OECD member countries Description of work
  • 5. 14 country case studies completed
  • 7. Extended Producer Responsibility is Expanding 0 50 100 150 200 250 300 350 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 Numberofpoliciesadopted Year Cumulative EPR adoption Cumulative EPR adoption
  • 8. Trends in MSW management
  • 9. • Reduced disposal and increased recycling • Reduced burden on public budgets • Economic opportunities • Limited impact on DfE Key messages on achievements of EPRs
  • 11. • 3 models with advantages and disadvantages EPR governance Multiple PRO Single PRO Government run
  • 12. • All models require strong government involvement: – To enforce a level playing field – To enforce environmental standards and targets • EPR can not be run by the private sector on its own • Transparency is paramount for effective government oversight EPR Governance
  • 13. Product Markets PRO Markets Collection Markets Sorting Markets 13 Treatment Markets Key markets with competition concerns Largest market 5-10% of EPR costs 50-80% of EPR costs 10-40% of EPR costs
  • 14. EPR and competition • Competition impact assessments should be integrated into design of EPR • PRO should only be stablished as single operator if net benefits can be demonstrated • Services that PROs procure should be procured by transparent, non-discriminatory and competitive tenders – Relevant factors include contract duration, recovery of sunk costs, and principle of non- exclusivity
  • 15. EPR and DfE • So far little impact on DfE due to use of CPR rather than IPR • Variable fee CPRs preferable to fixed-fee CPRs • Modulation of fees according to design is an option, but administrative costs need to be assessed • Full cost recovery important to maximise incentive effect
  • 16. EPRs and the informal sector • Emerging economies have a large informal sector that has a potentially important role in EPRs. • Need to distinguish between types and impacts of informal sector: • Failure to include the informal sector into EPR can undermine them • Need to register waste pickers and work towards formalisation and professionalisation • Informal sector should be actively engaged in discussion for establishment of EPRs Positive impacts Negative impacts In collection and sorting, the informal sector can provide positive economic and environmental impacts Unsound practices need to be eliminated (e.g. informal processing) Some evidence that informal systems collect more material than formal
  • 17. THANK YOU! For further information, please contact Peter Börkey, peter.borkey@oecd.org or go to www.oecd.org/environment/waste