Shelagh Kerr, President & CEOElectronics Product Stewardship Canada
Guiding Principles for Successful EPR
OECD Global Forum on the EnvironmentTokyo, Japan
June 18, 2014
EPSC Members
WEEE Timeline in Canada
2005 2007 20082006 2009 2011 20122010 20132004
Alberta
British Columbia and Saskatchewan
Nova Scotia
Ontario
Prince Edward Island
Quebec and Manitoba Manitoba
Newfoundland
Government Run ProgramIndustry Run Program
EPR Overview of Provincial Regulations
Obligated ProductAB BC MB NB NFLD NS ON PEI QC SK
Major Appliances
Small Electrical
Microwaves (countertop)
Phase I Electronics (displays, computers, printers)
Phase II Electronics(home, vehicle & portable audio video and selected telecom) 2015?
Phase III Electronics(photocopiers/printers, gaming consoles, servers, peripherals)
* * *
Batteries(rechargeable and non-rechargeable)*Voluntary in all provinces
Packaging (cardboard, plastics, Styrofoam, printed materials)
100% 80% 50% 100%
75%
Cellular Telephones*Voluntary in all provinces
Regulation currently in place (* includes some products) Regulation not expected until 2014 or later
Canadian Electronics Recycling Programs
Population Amount (in tonnes) Collected in Last
Reported Year (2013)
Kgs/Capita – Last Reported
Year
Amount Collected Since Launch(in tonnes)
Nova Scotia and Prince Edward Island 1,086,000 5,381 T 4.95 25,998 TAlberta 4,025,100 17,280 T 4.29 116,972 T
British Columbia 4,582,000 23,234 T 5.07 108,623 TOntario 13,538,000 76,766 T 5.67 247,815 T
Saskatchewan 1,108,300 3,048 T 2.75 17,889 T
Quebec 8,155,300 unavailable - 12,511 T
Manitoba 1,265,000 unavailable - 3,863 T
Newfoundland 526,700 unavailable - 138 T
New Brunswick (no regulated program)
751,171 N/A N/A N/A
Canada (National)
34,286,400 TOTAL: 125,709 AVG: 5.16 TOTAL: 533,311 T
Source: EPRA, 2014
Supported by the following Producers:• Electronics• Retail• Food and Consumer Packaged Goods• Tires• Paint• Beverages• Processed Foods• Newspapers• Magazines• Consumer Specialty Products• Restaurants• Hardware and Housewares• Pesticides and Fertilizers • Automotive: Oil and Filters
Canadian Industry Principles of Producer Responsibility
1. A Level Playing Field
All obligated producers participate in approved programs (individual or collective) to maintain a level competitive playing field.
Where producers have exhausted efforts to deal with free riders, the regulator should take appropriate enforcement action.
This particularly applies to foreign free riders.
2. Harmonized Nationally
Materials collected by programs should be harmonized across Canadian provinces and territories to achieve:• economies of scale, • program efficiencies, • positive environmental outcomes and• convenience for consumers.
3. No Cross-Subsidization between Product Categories
Each product category should be assigned only the costs of managing the specific designated products involved.
4. Competitive Markets Ensure Operational Efficiencies
Operational efficiencies are achieved by:
Leveraging competitive markets for services
Streamlining administration and governance processes
Ensuring financial and human resources are used effectively and efficiently
5. Producer Obligations Met Individually Or Through A Collective
The program should allow the flexibility for either an industry
collective response or individual company responses.
6. Service Providers Should Be AccountableAll collectors, transporters, recyclers and processers of end-of-life products – whether municipalities or private companies - must be auditable and accountable to regulators and the public.
7. Appropriate Standards Must Be Established and Enforced
All collectors, transporters, recyclers and processers of end-of-life products must demonstrate compliance with international, federal and provincial laws and industry standards.
8. Programs Need to Lead To Environmental Improvement
The program’s influence on the marketplace should be used to drive proper reuse, responsible recycling, and enhanced resource recovery.
Successful EPR Programs have the Following Characteristics
Governments• Set clear policy objectives, establish non-prescriptive regulatory
frameworks and monitor progress. • Set collection and recovery targets for designated materials in
consultation with producers on the form targets will take and timelines
• Establish service standards for accessibility and educational requirements
• Ensure proper monitoring• Provide the necessary compliance and enforcement measures.
Successful EPR Programs have the Following Characteristics
Industry• Responsible for decisions on how the targets and standards are
met.• Take the lead on the design and development of programs
including product lists and definitions, fees and timing.• Determine the applicable financing mechanism for each regulated
product to ensure the simple and harmonized management of the program.
• If fees are visible to the public, an annual independent financial audit will be undertaken to ensure transparency
Considerations for Programs
Path to EPR Success…
Outcomes based, non prescriptive regulation
Industry lead
A phased approach
Leveraging existing infrastructure
Funding Flexibility
Competitive market
Enforcement of level playing field
Path to EPR Success …
Agreement on metrics, what gets measured
Targets, clarity on including the right numbers based on at least 2 years of collected
data or a similar region
Return on Investment for consumers: cost-benefit is
vital for sustained public support
TRANSPARENCY
Path to EPR Success …
• Provincial Landfill Bans• Standard approach to Reporting• Enforcement of level playing field• Common Definition of Obligated Steward
Common environmental goals
Provincial government partners to provide:
Path to EPR Success …
Common Definition of Obligated Steward
Path to EPR Success …
Practical Approach to Product Definitions• Government to regulate
broad product categories• Industry to define new
products to ensure they carry the right fees/charges
Example: Principles for WEEE Product Categories
1. Categories to be based on product functionality, legal obligation, recycling characteristics and costs.
2. Fee over 10% of product price to trigger category review.3. Category placement to take into account legacy products and costs. 4. Cross-subsidization across and within categories to be kept to a
minimum requiring fee formulas linked to weight based costs and commodity values.
5. All Provincial programs to convert to a new categorization at the same time with 120 day notice.
6. Categories should be forward looking and linked to successive technologies.
Path to EPR Success …
• Industrial Commercial Institutional
• Residential• Internet sales
Defined treatment of
channels
Path to EPR Success …
Constant Communication
• Forums to coordinate policies between regulators and industry• Put emerging issues on the table• Communicate to all Stakeholders
collaboration, shared stakeholders, benchmarks, performance, communications, updates …….
Current Canadian EPR Issues under Discussion
• Disposal bans should be implemented where possible• Obligated materials to be harmonized across jurisdictions• ICI waste to be coordinated through generators• Industry ability to set and adjust fees as required• Visible versus Internalized Fees• Encouragement of National PROs• For Profit/Not for Profit PROs• National methodology for tracking and reporting on
diversion