1.2 Simon Upton, Opening of Global Forum Tokyo
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Extended producer responsibility (EPR) is a key policy approach to promote more sustainable materials management. The document discusses a survey of EPR policies around the world. The survey found that EPR policies are most common in Europe and focus on waste from electronics, packaging, tires, and vehicles. Common policy instruments include take-back requirements, deposit-refund systems, and advance disposal fees. The objective of the forum is to update EPR guidance, share experiences implementing EPR, and gain consensus on effective policy measures, including involvement from emerging markets.
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1.2 Simon Upton, Opening of Global Forum Tokyo
- 1. PROMOTING SUSTAINABLE MATERIALS MANAGEMENT THROUGH EXTENDED PRODUCER RESPONSIBILITY Simon Upton Director of Environment, OECD www.oecd.org Global Forum on Environment Tokyo, 17 June 2014
- 2. 0 10 20 30 40 50 60 70 0 1 2 3 4 5 6 7 8 9 10 Population (billions) WORLD GDP per capita ('000 USD) RoWOECD OECD RoW BRIICS WORLD GDP per capita ('000 USD) BRIICS 0 10 20 30 40 50 60 70 0 1 2 3 4 5 6 7 8 9 10 Population (billions) WORLD GDP per capita ('000 USD) RoWOECD OECD RoW BRIICS WORLD GDP per capita ('000 USD) BRIICS 0 10 20 30 40 50 60 70 0 1 2 3 4 5 6 7 8 9 10 Population (billions) WORLD GDP per capita ('000 USD) RoWOECD OECD RoW BRIICS WORLD GDP per capita ('000 USD) BRIICS 0 10 20 30 40 50 60 70 0 1 2 3 4 5 6 7 8 9 10 Population (billions) WORLD GDP per capita ('000 USD) RoWOECD OECD RoW BRIICS WORLD GDP per capita ('000 USD) BRIICS 0 10 20 30 40 50 60 70 0 1 2 3 4 5 6 7 8 9 10 Population (billions)WORLD GDP per capita ('000 USD) RoWOECD OECD RoW BRIICS WORLD GDP per capita ('000 USD) BRIICS GDP +124% GDP +478% GDP +458% GDP +295% Source: OECD (2012), OECD Environmental Outlook to 2050, Baseline projection using ENV-Linkages model
- 3. 3 billion more middle-class consumers will fuel future demand 3 Global middle class1 Billions of people ROW 2030 3.23Latin America 4.88 3 billion Asia-Pacific North America Europe 2020 3.25 1.74 2009 1.85 0.53 1 Based on daily consumption per capita ranging from $10 to $100 (in purchasing power parity terms) Source: OECD (2011), Perspectives on Global Development: Social Cohesion in a Shifting World 0.03
- 4. 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 0 50 000 100 000 150 000 200 000 250 000 300 000 350 000 GDP (billions 2010 USD PPP) WORLD Emissions intensity (kg CO2e / 2010 USD PPP) RoW OECD OECD RoW BRIICS WORLD BRIICS 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 0 50 000 100 000 150 000 200 000 250 000 300 000 350 000 GDP (billions 2010 USD PPP) WORLD Emissions intensity (kg CO2e / 2010 USD PPP) RoW OECD OECD RoW BRIICS WORLD BRIICS 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 0 50 000 100 000 150 000 200 000 250 000 300 000 350 000 GDP (billions 2010 USD PPP) WORLD Emissions intensity (kg CO2e / 2010 USD PPP) RoW OECD OECD RoW BRIICS WORLD BRIICS 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 0 50 000 100 000 150 000 200 000 250 000 300 000 350 000 GDP (billions 2010 USD PPP) WORLD Emissions intensity (kg CO2e / 2010 USD PPP) RoW OECD OECD RoW BRIICS WORLD BRIICS GHG emissions intensity and GDP 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0 0 50 000 100 000 150 000 200 000 250 000 300 000 350 000 GDP (billions 2010 USD PPP) WORLD Emissions intensity (kg CO2e / 2010 USD PPP) RoW OECD OECD RoW BRIICS WORLD BRIICS BRIICS GHG emissions 39 GtCO2e OECD GHG emissions 19 GtCO2e World GHG emissions 81 GtCO2e RoW GHG emissions 22 GtCO2e RoW GHG emissions 13 GtCO2e BRIICS GHG emissions 19 GtCO2e OECD GHG emissions 16 GtCO2e World GHG emissions 48 GtCO2e Source: OECD (2012), OECD Environmental Outlook to 2050, Baseline projection using ENV-Linkages model
- 5. A Story of Industrial Entropy Photo credit: NASA Goddard Center; OECD. Debit 72 Gt RESOURCE STOCKS A Story of Industrial Entropy … Running Against the Earth’s Balance Sheet? SATURATION Atmosphere Aquasphere Litosphere RESERVOIRS 49 Gt of GHG 228 Mt of P ~12 Gt of solid waste Extracted & used 35 Gt (1980) . . . 72 Gt (today) . . > 100 Gt (2030) . . Increasing costs ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥
- 6. Planetary accounting level Global Extraction Used (GEU) = Global Material Consumption (GMC) Unused Global Extraction (UGE) Reusable • Mining overburden • Harvest residues • Fishery by-catch • Soil erosion from agriculture Global Extraction Waste
- 7. 62 Gt of material resources extracted in 2008 8.2 Gt12.7 Gt 20.3 Gt 30% 50% 90% 90% 70% 50% 10% 10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Fossil Energy Carriers Metals Biomass Minerals Unused Extraction Used Extraction 20.8 Gt Source: OECD Material Flow Analysis Data, SERI
- 8. 8 Japan is at the forefront of these developments 40 60 80 100 120 140 160 1990 1995 2000 2005 2010 GDP Municipal waste Material consumption // 0 OECDIndex 1990=100 40 60 80 100 120 140 160 1990 1995 2000 2005 2010 Index 1990=100 Material consumption GDP Japan Municipal waste // 0
- 9. • EPR is a key policy approach that helps countries get more resource efficient • Used in most OECD countries and beyond • OECD developed EPR guidance in 2001 • 15 years later we are looking at EPR again – it’s time for an update • We developed a quick survey • We are the beginning of this exercise • This is what we know: 9 Extended Producer Responsibility
- 11. • Waste Electric and Electronic Equipment • Packaging • Tyres • End of Life Vehicles/Auto batteries • Others 11 Product groups
- 12. 12 Regional distribution – Product groups 0 10 20 30 40 50 60 70 80 North America Europe Asia Oceania LAC Africa WEEE Packaging ELVs Tyres Other
- 13. 13 Regional distribution – Product groups 0 10 20 30 40 50 60 70 80 North America Europe Asia Oceania LAC Africa WEEE Packaging ELVs Tyres Other
- 14. 14 Regional distribution – Product groups 0 10 20 30 40 50 60 70 80 North America Europe Asia Oceania LAC Africa WEEE Packaging ELVs Tyres Other
- 15. 15 Regional distribution – Product groups 0 10 20 30 40 50 60 70 80 North America Europe Asia Oceania LAC Africa WEEE Packaging ELVs Tyres Other
- 16. • Take-back requirements • Economic instruments – Deposit/refund – Adance disposal fees – Material taxes – Upstream combination tax/subsidy • Recycled content standards 16 Regional distribution - Policy instruments
- 17. 17 Regional Distribution – Policy instruments 0 20 40 60 80 100 120 140 160 North America Europe Asia Oceania LAC Africa Take-back ADF D/R Other
- 18. 18 Regional Distribution – Policy instruments 0 20 40 60 80 100 120 140 160 North America Europe Asia Oceania LAC Africa Take-back ADF D/R Other
- 19. 19 Regional Distribution – Policy instruments 0 20 40 60 80 100 120 140 160 North America Europe Asia Oceania LAC Africa Take-back ADF D/R Other
- 20. • Share experience with the design and use of EPR • Identify key areas where guidance would be useful and consensus about measures exists • Involve key emerging market economies in the process and ensure global relevance 20 Objectives of Global Forum
Editor's Notes
- In OECD 80% of unused extraction is related to fossil fuel carriers followed by metals (14%) . Along with 62 Gt of material resources that were extracted and entered the economy in 2008, an additional 44 Gt of materials were extracted as a consequence, but not used in the production process. These materials – referred to as unused domestic extraction (UDE) – include mining overburden, harvest residues and fisheries by-catch. They generally have low or no economic value. Although these materials are unused from the perspective of direct consumption and production, they often end up having other uses. Mining overburden is stored for later use in land reclamation, as is waste rock, which can also be used in road construction. Harvest residues can be used as biofuels. Fisheries by-catch can be sold as food or processed into feedstock or organic fertilizer. Unused extraction is important, particularly for some materials; it accounts for around 70% of the total extraction associated with fossil energy carriers (due to the large volume of unused materials associated with coal extraction) and almost half for metals, but only 10% or less for biomass and construction minerals. With unused extraction taken into account, fossil energy carriers overtake both biomass and construction minerals as the dominant material resource extracted globally, accounting for over 40% of extraction in 2008. Soil erosion from agriculture is an important unused flow. SERI (2010) estimates that global soil erosion from agricultural land ranges between 25-50 billion tonnes a year. The indicator UDE in the OECD material flow database does not account for soil erosion. Estimating soil erosion is complex and beyond the scope of this report.
- EPR is now very widely used across the OECD and an increasing number of emerging market economies. About 400 EPRs are in use worldwide. OECD’s guidance on EPR dates back to 2001, while 2/3 of EPRs have been put in place since then. Hence, there is a need to assess the new experience and update the 2001 guidance. As a first step in this process, OECD developed a survey of global EPR use. This was developed using an internet search, as well as input from OECD member and non-member countries. This is what we know for the moment:
- With about 400 EPRs currently in use around the globe, most of them since the turn of the century, there is a significant, new body of experience available that can help to inform policy making in this area. Despite this vast new body of experience, there have been few attempts to extract the key lessons in a systematic way. The objectives of this Global Forum are to take stock of the significant experience that has accumulated since the OECD last looked at this group of policies; To identify key areas where guidance would be useful and some consensus about measures exists; to involve key emerging market economies in the process and ensure global relevance of updated OECD guidance in this area.
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