Global Forum on Environment:

Promoting Sustainable Materials Management

through Extended Producer Responsibility (EPR)

Christoph Vanderstricht

Global EPR leader

Partner EY

Key learnings of 20 years experience advising public and private

sector in the design, implementation and optimisation of EPR

regulations and models across the world.

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Agenda

1. Introduction

2. Misconceptions

3. Differences

4. Similarities

5. Conclusions

Presentation title

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1. Introduction: Our EPR experience

Since 1994, the current EY team has been involved in more than 40 countries in the design,

development, implementation and optimisation of EPR and other solid waste management

regulations and operational solutions for the public as private sector in a vast waiver of

product categories: household and industrial packaging; batteries; electronic waste; tyres; non-

woven cotton; solar panels, lamps, etc.

(See countries in yellow

for geographical experience)

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1. Introduction: The future of resource management

There is wide recognition that, at a global level, current waste growth and resource

management practices are unsustainable. Key to develop a circular economy rather than a

linear economy which involves simply digging materials out of the ground produce

products, and send the waste to landfills.

Demographic growth

Consumption patterns

Urbanisation

Economic growth

Low waste management

infrastructure

Public health

Energy demand

Public financing

Central government

Producers

Waste management

technologies

Product innovation

► Government must create the economic and legislative

conditions for change

► Integrated waste management strategy and system

design to reinforce the waste hierarchy

► Implementation of capacity building at municipal/city

authority level

► EPR principles to place the cost burden on the producers

and drive market development. Creating circular

economies

► Increasing use of outsourcing, performance based

contracting and PPP/BOT commercial structures to

manage the municipal financial burden, drive change

and manage technology risks

► Increasing use of multi-stream collection systems

to manage public health risks and provide material

to the treatment system

► Investment in engineered landfills, waste to

energy/gasification and anaerobic digestion as well as

intangible factors such as education and awareness

► Economies of scale, increasing capital intensity,

technology focus drive joint ventures and M&A activity

in the supply chain

How to react to the pressures of change

Municipal

authorities

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1. Introduction: Drivers for a government to implement EPR regulations

Extended

Producer

Responsibility

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2. Misconceptions about EPR

► EPR is an instrument to better organise waste management operations and induce

product stewardship: collection points; transportation models and the use of

valorisation technologies

► EPR is only possible if there is recycling or valorisation capacity present in the

country

► EPR only concerns the Ministry of Environment

► EPR laws can be easily copied from one country to the other

► Small and medium enterprises should not be bothered by EPR

► The phantom of the monopoly

► Inefficiencies and fraud with collective schemes show that the model is not working.

Presentation title

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The most important component of the cost is the cost of collection of the waste, followed

by the cost of recycling (depending on the product).

In makets with high bying power the prices are 3 times lower than in markets with low

buying power (ie where more collective schemes are “competing”)

2. The phantom of the monopoly in a reversed market Buyer Market versus Seller Market

High supplier power

High buyer power

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The cooperation between the private and public sector is key to design

and implement a sustainable EPR regulation.

There are different partnership models for public-private cooperation:

Experience shows that in most case close cooperation between government and

private sector is necessary to realise the objectives and avoid dramatic risks in the

market.

Industry-government

co-regulation

(of industry self regulation combination and government regulation, with government

having the authority to enforce)

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Voluntary agreements

established by industry

Voluntary agreements as a

partnership between industry and government

(participation of individual firms not obligatory)

Regulation established and

enforced by government

Voluntary Mandatory

3. Differences:

Governance models for EPR development

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3. Differences for EPR: Why countries are different

Presentation title

Prioritised

Product

Strength of government

(enforcement)

Regulatory and constitutional

context

Financing capability

Culture

Social economic environment

Available collection and transportation Infrastructure

the “product” market

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10

Central collection site

Low-density collection points

High-density collection points (close-to-home

drop-off)

Street-side Containers

Kerbside or Door-to-Door Collection

BRING SYSTEMS

DOOR-TO-DOOR

Transport by residents / corporations

Collection System Transport

Durable goods

Fast moving consumer goods

3. Differences for EPR: Products are different

Collection models depend on the product, the economic activity

and the demographic specifications.

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4. Similarities for EPR: Why “countries” do have similarities

Presentation title

Improper EPR and solid waste management are a threat to public health and the environment

Effective EPR models create value and opportunities for social inclusion, jobs and better environment

Human action & Change of behaviour

Expectations of the key stakeholders

Strong enforcement and control from government is key

Seller markets lead to higher prices and buyer markets to lower prices

EPR is increasingly becoming the Wild West creating risks for countries and “producers”

The devil is in the detail

“Wrong” or “sub-optimal” EPR models lead to higher costs for society, governments and has strong negative impacts in terms of level playing field in the product markets.

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5. Conclusions

► EPR is an economic instrument impacting the whole market: the product

market as well as the waste market

► EPR is not only about the environment and therefore requires attention

from different ministries (Finance / Trade / Customs / Economy)

► EPR risks should not be underestimated

► EPR requires proper consideration and careful implementation by

governments and private sector

► EPR requires strong government enforcement and control

► EPR can contribute considerably in the development of an inclusive and

greener sustainable market in big number of countries

► EPR should be implemented as part of an integrated strategic approach

by governments, taking into account other challenges (eg energy needs /

resource management)

Presentation title

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More information

Christoph Vanderstricht,

Christoph.vanderstricht@be.ey.com Tel: +56985508312 (Chile)

Tel: +32477619252 (Belgium)

Thank you