4.3 S. Kerr, guiding principles from producer perspective

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


• 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:


Common Definition of Obligated Steward


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.


• Industrial Commercial Institutional

• Residential• Internet sales

Defined treatment of

channels


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

Thank You!

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