The International Institute for Industrial Environmental Economics Lund University, Sweden Trends in Extended Producer Responsibility within Enterprises Thomas Lindhqvist IIIEE – Lund University Prague 11 April 2011

The International Institute for Industrial Environmental Economics Lund University, Sweden Original Problem Costly waste management paid by municipalities More societal and legislative demands: – to treat waste with better standars – to recycle more This leads to a need for – more money – better products (= design changes)

The International Institute for Industrial Environmental Economics Lund University, Sweden The “bright” idea Engage producers to give incentives for change Use knowledge of producers to develop new systems Gather enough resources (financial)

The International Institute for Industrial Environmental Economics Lund University, Sweden Extended Producer Responsibility (EPR) – A Swedish concept Concept presented and developed in two reports written by the author to the Swedish Ministry of Environment in 1990 and 1991 A principle for policy making: Extending the responsibility of producers over the life cycle of the products they manufacture in order to get environmental improvements of the whole life cycle and in particular the end-of-life treatment.

The International Institute for Industrial Environmental Economics Lund University, Sweden Extended Producer Responsibility (EPR) - a policy principle Two groups of objectives: - Using resources in waste 1. Effective collection 2. High treatment standard 3. Re-use and recycling - Incentives for design changes The one who can change should be given responsibility = producers

The International Institute for Industrial Environmental Economics Lund University, Sweden EPR-based EU Directives Implementation of the Directive on Packaging and Packaging Waste (1994 revised in 2004) Directive on End-of-life Vehicles (2000) Directives on Electrical and Electronic Equipment (WEEE & RoHS) （ 2003) Directive on Batteries and Accumulators (2006)

The International Institute for Industrial Environmental Economics Lund University, Sweden Today’s Practice Companies join a Producer Responsibility Organisation (PRO) Pay a fee to that the PRO The PRO organises collection and recycling using waste and recycling companies The PRO reports to government that they fulfil the demands of legislation (% rate of recycling or kg collected)

The International Institute for Industrial Environmental Economics Lund University, Sweden Everyone’s responsibility is no one’s responsibility The solution is to create individual incentives If a company invests – then that company gets the profit Individual Producer Responsibility (IPR)

The International Institute for Industrial Environmental Economics Lund University, Sweden Packaging Fees based on weight and material => Less packaging => Shift of materials German consumption private consumers GNP - Total Packaging Consumption Indices 1991 = 100

The International Institute for Industrial Environmental Economics Lund University, Sweden Closing loops and taking reponsibility – a business opportunity Copying machines One-way cameras Carpets

The International Institute for Industrial Environmental Economics Lund University, Sweden Ideas – but not yet reality Baby trams Hobby tools

The International Institute for Industrial Environmental Economics Lund University, Sweden Reasons to Take Responsibility Beyond Legislation Preempt future legislation Create new business models (after sales etc.) Securing access to scarce materials Taking control over second hand markets Compete on quality, not quantity

The International Institute for Industrial Environmental Economics Lund University, Sweden A dilemma Is it a good idea to recycle? The only limitation is our lack of creativity!!

The International Institute for Industrial Environmental Economics Lund University, Sweden IIIEE reports on EPR