OVERVIEW OF EXTENDED

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Ontario Environment Network, Labour Caucus

OVERVIEW OF EXTENDED

PRODUCER
RESPONSIBILITY

Jim Mahon

Ontario Environment Network

Detoxifying the Economy & the Body Politic

Toronto, March 30, 2003

Ontario Environment Network, Labour Caucus

OVERVIEW OF

EXTENDED PRODUCER
RESPONSIBILITY


What is EPR?


Why EPR?


Policies embodying EPR


Recent survey of EPR Programs


Essential Elements of an Effective
EPR Program

Ontario Environment Network, Labour Caucus

Raw
Materials
Acquisition

Materials
Manufacture

Product
Design/
Manufacture

Product Use or
Consumption

End of Life

Energy

Energy

Energy

Energy

Energy

Wastes

Wastes

Product Recycling

Wastes

Wastes

Reuse

WHAT IS EPR? THE PRODUCT LIFE
CYCLE

Ontario Environment Network, Labour Caucus

EXTENDED PRODUCER
RESPONSIBILITY


Term used by OECD, EU, Canada


Extended Producer Responsibility is the
principle

that
producers

of products are
responsible

for the
life
-
cycle

environmental impacts of the whole product system,
including
upstream

impacts inherent in the selection of
materials for the products, impacts from the manufacturer’s
production process itself, and
downstream

impacts from
the use and disposal of the products.


Focus on producers because in most cases have the
greatest ability to reduce life
-
cycle environmental impacts.


Producers accept their responsibility when they design
their products to minimize the life
-
cycle environmental
impacts, and when they accept the physical or economic
responsibility for the environmental impacts that cannot be
eliminated by design.


Ontario Environment Network, Labour Caucus

PRODUCT STEWARDSHIP AND
EXTENDED PRODUCT
RESPONSIBILITY


Extended
Product

Responsibility and Product Stewardship
used by US EPA; Environment Canada also uses Product
Stewardship.


Used to highlight shared responsibility
--
actors along
product chain share responsibility.


Minnesota: “Product stewardship means all parties with a
role in designing, producing, selling or using a product
assume responsibility for the environmental impacts of that
product throughout its life. In particular, product
stewardship requires manufacturers to share in the
financial and physical responsibility for collecting and
recycling products at the end of their useful lives.”


Also used to distinguish voluntary agreements from mostly
mandatory programs in Western Europe.

Ontario Environment Network, Labour Caucus

ATTRIBUTES OF EPR


Extends up and/or down the product
chain


Focuses on the product system, not just
the production facility


Shared and overlapping responsibilities
among actors along the product chain

Ontario Environment Network, Labour Caucus

Raw
Materials
Extraction
Raw
Materials
Processing
Manufacturing
Distribution
Use
Waste
Management
EPR:

DOWN THE CHAIN


EPR AS A PRINCIPLE FOR
WASTE POLICY

Ontario Environment Network, Labour Caucus

EPR:

UP AND DOWN THE CHAIN

Raw
Materials
Extraction
Raw
Materials
Processing
Manufacturing
Distribution
Use
Waste
Management
EPR AS A PRINCIPLE
FOR PRODUCT POLICY

Ontario Environment Network, Labour Caucus

MODELS OF EPR


Product take back for waste management


Life
-
cycle partnerships for waste management


Materials selection


Materials management


Extended environmental management programs


Leasing systems


Delivering service and function instead of
products


Design
-
for
-
the
-
environment programs


Environmental purchasing

Ontario Environment Network, Labour Caucus


WHY EPR? SUSTAINABILITY

I = P x A x


T

Impact = Population x Affluence x Technology

Affluence = Consumption/Person

T = Impact/Consumption


Ontario Environment Network, Labour Caucus

LIMITS OF FACILITY
-
BASED AND
WASTE
-
BASED ENVIRONMENTAL
CONTROLS


Allows transfers of pollutants between environmental
media


Allows transfers of pollutants between life
-
cycle stages


Ignores materials selection


Ignores workplace health and safety


Ignores impacts in use of products


Ignores the end of life of products


Ignores resource use


Ignores energy use and greenhouse gases


Ontario Environment Network, Labour Caucus

TAKE
-
BACK POLICIES: GERMAN
PACKAGING ORDINANCE



Take back
responsibility
initially on retailers



Created DSD to
collect and recycle
from households



Packer/fillers pay
fees based on
costs of recycling
materials



Recycling quotas



High rates
achieved
--
68
--
92%

Ontario Environment Network, Labour Caucus

EPR LEGISLATION OR
AGREEMENTS FOR TAKE BACK


PACKAGING


EU


Canada


Germany


The Netherlands


France


Austria


Denmark


Finland


Japan


Sweden


Norway


AUTOMOBILES


EU


Germany


The Netherlands


Sweden


Austria


ELECTRONICS


EU


The Netherlands


Norway


Sweden


Switzerland


Italy


Japan


Taiwan


Korea


Belgium


Ontario Environment Network, Labour Caucus

EPR LEGISLATION OR
AGREEMENTS FOR TAKE BACK


PAINTS, CHEMICALS


British Columbia



RECHARGEABLE BATTERIES


Minnesota


Austria


Denmark


Germany


Korea


The Netherlands


Norway


Sweden


Switzerland


Belgium


United States


Canada


CARPET


United States

Ontario Environment Network, Labour Caucus

BENEFITS AND DRIVERS FOR
VOLUNTARY ADOPTION


COST SAVINGS


DEMONSTRATION OF ENVIRONMENTAL
STEWARDSHIP


PRODUCT INNOVATION


INCREASED CUSTOMER LOYALTY AND
SATISFACTION


GREEN MARKETING


LEGISLATION ABROAD


EXISTING FACILITY
-
BASED ENVIRONMENTAL
REGULATIONS


ENVIRONMENTAL LIABILITIES

Ontario Environment Network, Labour Caucus

VOLUNTARY APPROACHES: THE
GREEN LEASE


Providing product function or service
without transferring ownership of the
product or materials


Dematerializes the function


Remanufacturing instead of recycling


Xerox Copier Leasing; Interface Flooring
Systems Evergreen Lease

Ontario Environment Network, Labour Caucus

EXAMPLE: XEROX


Asset Recycle Management


Remanufacturing copiers from lease
program


saved $50 million in first year


Cartridge Return
-
1100 tons diverted in
1995


Design for the Environment


Savings of > $200 million per year

Ontario Environment Network, Labour Caucus

CONCLUSIONS FROM RECENT OECD
STUDY OF IMPLEMENTATION OF EPR


Characteristics of products affect the management of the EPR programs
and their effectiveness.


Mandatory programmes give better results in the case when desired
recycling level is economically unprofitable.



Mandatory numerical collection/reuse/recycling targets have been
effective in achieving higher results.


Substance/landfill bans drive product re
-
design and development of
alternative substances.



An effective and convenient collection system is a prerequisite for
consumer participation.




Establishment of a financial mechanism for durable, complex products
poses more challenges than that for non
-
durable, simple products.


Individual financial responsibility presents an important opportunity to
stimulate design changes if it works for the product system.

Ontario Environment Network, Labour Caucus

PRINCIPLES FOR APPLICATION
OF PRODUCT STEWARDSHIP

1.

The extension of responsibility should be done in
such a way as to create effective feedback to
product designers that stimulates the design of
cleaner products.

2.

EPR programs should take a life
-
cycle approach,
and be directed at producing life
-
cycle benefits,
even if they focus on end of life, so that
environmental impacts are not increased or
transferred somewhere else in the product chain.

3.

There should be a well
-
defined focus of
responsibility, so that the responsibility is not
diluted out of existence.



Ontario Environment Network, Labour Caucus

Essential Elements of an

Effective EPR Program


Mandatory


Focus on products.



Assignment of responsibility.



Physical or financial responsibility.



Performance standards and deadlines.



Mandated phase
-
out of hazardous materials.


Ban waste disposal and exports.


Flexibility and accountability.



Historical waste
.


Complementary measures.