Circular Economy and Global Plastics Initiatives€¦ · EU 2018 Circular Economy Package. New...

Privileged & Confidential | Attorney-Client Communication

ITI Fall ELC Meeting – San Diego

Circular Economy and Global Plastics Initiatives

Paul Hagen, [email protected] Meng, [email protected]

October 2, 2018

mailto:[email protected]


Overview

• The circular economy

• Marine plastics pollution

• EU Plastics Strategy

• China’s import ban and related developments

• New Basel Convention initiatives on plastic waste

• Issues to watch going forward

Privileged & Confidential | Attorney-Client Communication 2

The Circular Economy


What is the Circular Economy?

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Minimize waste generation and maintain value of products and materials

Product design•Repairability & reusability•Durability•Upgradeability•Recyclability

Sustainable sourcing•Raw materials•Improve market for secondary materials

Consumption• Green claims• Labeling• Procurement incentives

Waste management• Expand EPR regimes• Improve recycling rates• Reduce landfilling



Where are the Sources of Ocean Plastics?


Leakage into the Ocean


• Wind• Stormwater• Rivers• Direct deposit

• Wastewater discharge• Accidental release• Loss of packaging at

retail

Manufacturing & distribution

Use

End of life

• Intended loss • Unintended loss • Accidental release

• Littering• Loss from collection,

recycling, landfills

Challenges for Plastics Management

• Not all plastics can be recycled together− Diversity of plastics (resins, colors)− Stream contamination

• Tracing chemicals of concern• Economics• Lack of infrastructure• Scale/nature of the problem



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EU 2018 Circular Economy PackageCouncil has adopted Four Legislative Proposals

New legislation amending existing EU Directives: Directive on waste Directive on the landfill of waste Directive on ELV/Batteries/WEEE Directive on packaging waste


EU 2018 Circular Economy PackageNew Tools in January 2018 to Implement Circular Economy Action Plan

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EU Strategy for Plastics in the

Circular Economy

By 2030, all plastics packaging

should be recyclable

Identifies need for legislation to

reduce impact of single-use plastics

Interface of Chemicals,

Product and Waste Legislation

Assesses how rules on waste, products and

chemicals relate to each other.

Monitoring Framework on

Progress Towards Circular Economy

Identifies ten key indicators to

cover each phase of circular economy

Report on Critical Raw Materials and Circular

Economy

Highlights potential to make

use of the 27 critical materials in the economy more circular


• Released January 2018; single-use plastics proposal later

• New plastics economy vision for 2020

• Pledging campaign• Adding microplastics to REACH• Tracing chemicals from

electronics in recycled streams• Public procurement for plastics


EU Plastics Strategy

Proposal for Single-Use Plastic DirectiveReleased May 28, 2018; subject to ongoing negotiations

Categories of single-use plastics

• Cutlery, plates, straws, stirrers• Food containers• Beverage cups and containers• Bags• Food packets and wrappers• Wet wipes and sanitary items• Tobacco products• Balloons and balloon sticks• Cotton buds

Tools

• Ban• Extended producer

responsibility• Awareness-raising • Labelling • National consumption

reduction• Product design requirement• Collection target



Waste Import Control Catalogues and China’s “Foreign Garbage” Import Ban

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Ministries made two adjustments:

April 19, 2018

• December 31, 2018: Imports of the following categories of wastes are prohibited:• Metal-containing waste generated from melting,

smelting, refining metal (3 categories)• Industrial source waste plastic scrap and tailings

(8 categories)• Mixed metal waste, including waste vehicle

pressers and waste vessels (5 categories)

• December 31, 2019: Imports of the following categories of wastes are prohibited:• Wood and softwood waste (3 categories)• Metal and metal alloy scrap (13 categories)

August 16, 2017

• December 31, 2017: Imports of the following categories of wastes are prohibited:

• Non-industrial source (including household source) waste plastic scrap and tailings (8 categories)

• Unsorted waste paper (1 category)

• Waste textile raw materials (11 categories)

• Vanadium slag (4 categories)


• United Nations Environment Assembly (UNEA) expert working group declaration

• Basel Annex negotiations and partnership

• G7 Declaration

• G20 Action Plan on Marine Litter

• GEF 7 Strategy development


International Activity on Ocean Plastics

UNEA Expert Group

• United Nations Environment Assembly (UNEA) declaration in December 2017

• Open-ended ad hoc expert group on marine litter and microplastics− 1st meeting in May 2018− 2nd meeting in November 2018

• Considering existing mechanisms (Basel, Stockholm, SAICM, etc.) and potential for a new global governance structure to address marine plastics


G7 Ocean Plastics Charter

• Signed by Canada, France, Germany, Italy, the UK and the EU in June 2018; US and Japan did not sign

• Also signed by the Circular Economy Leadership Coalition

• Commitments include:◦ Work with industry towards 100% reusable, recyclable, or recoverable plastics by

2030.◦ Work with industry and other levels of government to recycle and reuse at least

55% of plastic packaging by 2030 and recover 100% of all plastics by 2040.◦ Work with industry towards increasing recycled content by at least 50% by 2030.◦ Significantly reduce the unnecessary use of single-use plastics.◦ Use tools like green public procurement, product stewardship, labeling

requirements, industry leadership initiatives, data collection, and public awareness campaigns.



Basel Convention

• Global agreement covering waste shipped for disposal or recycling

• Provides framework for “waste” and “hazardous waste” classifications

• Covered shipments subject to prior notice, consent, documentation

• Various trade bans• Plastics and E-waste are priorities• Implications for repair, EPR programs,

and circular economy


Quick History of Basel Convention


Global concern over dumping of hazardous

waste in developing countries (1980s)

Basel Convention signed in

1989, entered into force in

1992

186 Parties to the

Convention

United States signed but is

not party

Parallel agreement

governs trade in recyclables among OECD

countries

Mandate on Plastics

Basel COP 13 (2017) included marine plastic litter and microplastics in work programme of OEWG for 2018-2019

. . .consider relevant options available under the Convention to further address marine plastic litter and microplastics, taking into account, inter alia, the assessment requested by the United Nations Environment Assembly of the United Nations Environment Programme in its resolution 2/11, any relevant resolution by the Environment Assembly at its forthcoming third session and existing guidance documents and activities under the Basel Convention that address issues related to marine plastic litter and microplastics, and develop a proposal for possible further action, within the scope of the Convention and avoiding duplication with activities relating to the matter in other forums, for consideration by the Conference of the Parties at its fourteenth meeting.


Original Norway Proposal (Summer 2018)

List plastic waste “other waste” on Annex II:

“waste and scrap from plastic and mixed plastic materials and mixtures of waste containing plastics,

including microplastic beads”

All plastic wastes subject to

control and non-party trade ban


Delete entry on plastics in Annex IX

(presumptively non-hazardous list)

Variability at national level re whether plastic

wastes should be treated as hazardous

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OEWG September 2018 –Key Outcomes on Plastics

Norway Annex II – Other Wastes

Mixed reception by governments

Norway will propose slightly narrowed text

Will be debated at COP in 2019

Norway Annex IX –Non-Hazardous

Listing

Mixed reception by governments

Norway to propose revised waste listing

Will be debated at COP in 2019

New Plastics Partnership

Broad support by governments

Draft decision and terms of reference open for comment

Will likely be launched at COP in

2019

EU - Add chemicals to Annex I to move

some plastics to hazardous waste

Not fully developed proposal

Will be discussed with other proposals on

plastics in pre-existing EWG on

Annexes

Will not be ready for debate at COP in

2019

24Privileged & Confidential | Attorney-Client Communication

New Plastics Partnership Emerging

• Likely to be modeled on other partnerships− Mobile Phones (MPPI)− E-Waste (PACE)

• Opportunities for active observer role− Industry− US Government− NGOs

• Draft COP decision, mandate and terms of reference open for comment

• Will be negotiated and likely adopted at COP-14

• Currently very broad

• Capacity building

• New guidance and listings?


Plastic Waste Listing NegotiationsHazardous Waste Other Wastes Annex IX

• Proposed changes to Annex I constituents and categories

• Negotiations on Annex III characteristics

• Proposals for threshold limit values on constituents

• Full Basel controls and trade bans apply

• Subject to future OECD to non-OECD trade ban

• Norway proposal for plastics to be listed in Annex II

• Parties not receptive to listing all plastics in Annex II

• Narrower listing?• Basel controls apply• Ban on trade with U.S.

(non-party)• Not covered by future

OECD to non-OECD trade ban

• Norway proposed deleting current Annex IX listing for plastics

• Parties appear supportive of keeping some plastic wastes on Annex IX

• Watch for revised Norway proposal

• OEWG has recommended that the COP consider revisions

• Recognized as outside the Convention

• Most beneficial to circular economy


Beyond Plastics: Guidance for Electronics


Negotiations to Amend Annexes

• Parties established a new EWG to review Convention Annexes and to propose amendments

− Annex I: Waste streams and constituents considered hazardous

− Annex III: Hazardous characteristics

− Annex IV: Final disposal and recycling operations

− Annex IX: Waste entry for non-hazardous electronic waste (and related references to reuse and repair)

• Outcome will determine legal and logistical requirements for shipments for repair, reuse and recycling world-wide

• EWG meeting held in March (Geneva); work to continue through COP-14 (2019)


Revisions to Basel waste listings for electronics• A1180: Waste electrical and

electronic assemblies or scrap containing components such as accumulators and other batteries included on list A, mercury-switches, glass from cathode-ray tubes and other activated glass and PCB-capacitors, or contaminated with Annex I constituents (e.g., cadmium, mercury, lead, polychlorinated biphenyl) to an extent that they possess any of the characteristics contained in Annex III

• B1110:Electrical and electronic assemblies:o Electronic assemblies consisting only of metals or

alloyso Waste electrical and electronic assemblies or

scrap (including printed circuit boards) not containing components such as accumulators and other batteries included on list A, mercury-switches, glass from cathode-ray tubes and other activated glass and PCB-capacitors, or not contaminated with Annex I constituents (e.g., cadmium, mercury, lead, polychlorinated biphenyl) or from which these have been removed, to an extent that they do not possess any of the characteristics contained in Annex III (note the related entry on list A A1180)

o Electrical and electronic assemblies (including printed circuit boards, electronic components and wires) destined for direct reuse, and not for recycling or final disposal


Proposals to Expand Scope of Annex I (Presumptively Hazardous)

New proposals to expand scope of hazardous wastes include:

• Aluminium, aluminium compounds

• Brominated flame retardants

• Electrical and electronic assemblies

• Lithium/lithium batteries

• Nanomaterials

• Ozone depleting substances

• Wastes and compounds of silicon

• Wastes from production, use of plastic products

• Other waste consumer items


Basel “Ban Amendment”

• Adopted in 1995 but not yet in force • Will prohibit exports from OECD to non-OECD countries• Applies to “hazardous wastes” defined under Art. 1(1)(a)

(not to “other wastes”)• Already implemented by EU and others• Likely to take effect in 1-2 years• Annex negotiations will define impact on IT companies



Key Next Steps


Early October: Revised Texts from Norway

10/31/18Comments on

draft COP Framework Decision on

Marine Plastics

12/11/18 Meeting of EWG on Annex

Amendments (Buenos Aires)

12/17/18 Comments on draft Terms of Reference for

Plastics Partnership

End of April 2019: COP

Meeting (Geneva)

Looking Ahead – Key Work Streams

• EU policies and legislation on plastics will be highly influential

• Anticipate new bans on “single-use” plastics

• New Basel listings will likely restrict trade in some waste plastics

• Outcome of Basel amendments regarding used electronics for reuse and waste classification of electronics, lithium-ion batteries and plastics will determine whether circular economy business models are legally permissible or economically viable

• Watch for new initiatives out of G-7 and UNEA


Questions?

Thank you!Paul HagenPrincipalWashington, [email protected]

Dacia MengAssociateWashington, [email protected]

http://www.bdlaw.com/attorneys-45.html


http://www.bdlaw.com/attorneys-45.html


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