Packaging Waste Recycling and recovery

Learnings and trends from Europe and Brazil

Mexico

14 March 2013

Overview

• Learning Europe • Learning Brazil • Main considerations for Mexico

Learning Europe

Legal Framework - Europe

EU legal framework (since 1992) • sets objective and targets • holds packaging manufactures,

producers and importers of packaged goods partly of fully responsible

• secures free movement of packaged goods within EU

It allows for industry • To comply collectively or

individually • Set-up compliance schemes

(many use Green Dot trade mark) Industry secures recycling capacities for collected materials

EU packaging recycling and recovery targets

5

Industry-owned EPR compliance schemes for packaging in Europe

Purchasing

Use of consumer packaging

Producing packaging

Sorting

Collecting packaging waste

Collecting mixed MSW

Discarding at households

Discarding out of home

Recycling

Packing of products

Production of other products

Energy recovery Disposal

EPR for packaging includes the entire packaging chain.

The obliged industry (typically packers, fillers, packaging manufactures) created CS to collectively organise and manage consumer packaging collection and recycling.

Industry-owned CS are not-for-profit organizations.

They contract economic operator to carry-out collection, sorting and recycling services but must not engage in business areas of commercial service providers.

They report legal compliance on behalf of their shareholders and customers.

These services are financed via packaging material specific fees paid by producers/fillers and importers, and in most cases partially or fully added to the product prices to consumers.

Scope

Leading compliance schemes in many countries industry-owned

• 24 industry-owned, not-for profit schemes

• Exceptions are Germany and UK with only privately owned schemes, Poland with small industry-owned schemes

• Number of private operators (waste management companies or retailers) are increasing rapidly

• European countries without compliance schemes: Denmark, The Netherlands, Switzerland

• Cost differs greatly due to specific local conditions, nor harmonization within EU

Shared responsability systems EU Commission determines the strategic objectives and sets targets

National governments transpose EU legislation into national law, may set additional requirements and secure enforcement

Compliance schemes manage collection and recycling on behalf of the obliged industry in collaboration with local authorities

Obliged industry executes EPR by setting up and financing a compliance scheme

Local authorities In charge of municipal waste management, support recycling and recovery of post-consumer packaging

Waste management companies provide state-of-the-art collection & sorting services

Consumers separate used packaging at home and out-of-home

Recyclers reprocess sorted materials to produce secondary raw materials or new products

• Builds on effective waste management legislation • Recycling targets for consumer packaging • Inclusion of all consumer packaging types • Industry shares responsibility with government

and consumers • Industry obligations shared among producers,

packaging suppliers, retailers • Industry to discharge legal obligations

through producer compliance scheme(s) • Collection cost added to the consumer

purchase price of products • Requirements and authorisation procedures

for compliance schemes • Penalties for free-riders

Learnings from European packaging waste legislation

Learning Brazil

Legal Framework - Brazil

• National Solid Waste Law which officially recognises the importance of waste pickers

• Dumps to be closed by 2014 (announced 2010), respective fund provided to local governments

• National recycling quota set “across materials”: 22% (2015), 28% (2019), 34% (2023), 40% (2027) and 45% (2031)

• Recognized existing collection and recycling systems • Waste pickers are considered as micro-entrepreneurs • Shared responsibility between municipalities and industry for

recycling

Internal

• CEMPRE (since 1992) - CPG companies, packaging manufacturers, retailers – Gained political support – Provided seed capital to kick-start coalition

• Recognize the role of waste pickers • Support a cooperative model and help

transforming the informal waste sector • Regarded as independent center of

expertise by government and accepted as key stakeholder in developing legislation

• Membership continues to expand • alliance between producers, associations,

users and retailers

Industry leadership via CEMPRE

The Brazilian collection model Key success factors

Role of municipalities

• Collection and transport MSW-municipal solid waste

• Waste picker Cooperatives are needed to provide employment opportunity

Role of industry, CEMPRE

• Supports setting-up and train waste picker cooperatives

• Disseminates information about waste management, recycling, collection

• Support with sorting and baling equipment

• Industry secures recycling capacities

Main considerations for Mexico

Different market conditions in developing economies • Waste management legislation, institutional development • Waste management infrastructure and financing • Consumption patterns and population density

European EPR legislation

not transferable

• Contradicts modern public policy approaches towards resource efficiency

• Singling out packaging from other recyclables in household waste stream proven to be inefficient

• European EPR legislation for packaging may evolve into product stewardship legislation due to increased demand for secondary raw materials & cost

Consumer packaging recycling

Recycling capacity

Consumer packaging collection schemes

Waste management infrastructure

Waste & packaging legislation

Consumer packaging collection

Waste management infrastructure

Waste legislation and enforcement

Consumer participation

Key elements to strengthen

Internal

Waste management legislation Basic provisions supporting recycling (1)

• Minimum technical, environmental standards for waste management operations

• Bans on designated recyclables from final disposal in landfills – increase landfill taxes

• Mandatory source separation of household wastes • Municipalities to charge citizens for waste

management services (e.g. pay-as-you-throw) • Recycling target for household waste • Mandatory inclusion of informal waste sector

(But legal implications for Mexico) • Requirements for local authorities to implement

source separation & recycling programs

Waste management legislation Basic provisions supporting recycling (2)

• Allows for consideration of the three pillars of sustainability

• Adequate government enforcement mechanisms

• Minimum overall waste recycling & recovery targets, including consumer packaging

• Recyclable materials treated raw materials (not waste)

Security Level / 20

Markets for recycled materials wildly exist or can be created.

Markets need security of supply.

Supply depends on separate collection of recyclables in consumer waste to get • Quantity • Quality • Economic viability

Consumer packaging collection

EM, GE / 2012-05-21

Learnings concerning collection schemes

• Governments to ensure adequate legal framework and enforcement • Industry-run schemes (legislated or voluntary) need

– To be organized as a not-for-profit entity – To closely collaborate with local authorities and collectors – Focus on collection of consumer packaging – Support inclusion of informal waste sector – Access to markets for secondary material – Leading staff with commercial / business experience – Transparency, traceability, equal treatment of all partners – Secure consumer information and engagement

Main considerations for Mexico

• Need for a waste management legislation promoting recycling

• Need for legal enforcement (institutions, public funding) • Need to drive informal waste sector in transition

(Legal implications …) • Convince municipalities organize separate collection

(Focus on advantages: financial, employment …) • Industry to support collection e.g. with informing

consumer, transparency on material values and buyers • Industry to secure recycling capacities

• Avoid money making consultants ….

THANK YOU !