SAIEE– Information SessionSection 18 EPR Regulations

and Notices

SAIEE Webinar

16 February 2021

Presented By: Patricia Schröder - Director

EPR Legislation

• EPR Regulations and Section Notices were Published on 05 Nov 2020 for implementation:

• Section 18 Extended Producer Responsibility Regulations (All Industries)

• Section 18 Sector Notices (EEE, Lighting & Paper & Packaging)

• Sectors not satisfied and requested amendments

• Amendment process granted by the Minister who subsequently issued amendment for implementation date to change to 05 May 2021

What is the Difference ?

• Applicable to EEE & Lighting Sectors• How implementation will be done• Products and Class of products

Identified• Sets Targets

• Applicable to ALL Sectors• Provides Framework for all

S18 EPR Schemes• Minimum Requirements for EPR

Schemes and PRO’s to operate

Section 18 – Definitions

“Producer” means any person or category of persons or a brand-owner who is engaged in the commercial manufacture, conversion, refurbishment or import of new and/or used product.

“Brand Owner”Means a person, category of persons or company who sells any product under a registered brand label.

"Producer responsibility organization" (PRO)means a non-profit company established by producers operating in any of the industrial sectors or waste streams covered in the Notice to support the implementation of their industry S18 Scheme

Definitions (cont.)

“ Extended Producer Responsibility”(EPR)means a producer’s responsibility for their product is extended to the post consumer stage of a products life-cycle

“Scheme”means a system that puts EPR obligations into effect

“Free Rider”means a firm or individual who benefits from the actions or efforts from another, in relation to an extended producer responsibility scheme, without sharing the obligations and the costs

WHAT IS EPR AND PRO ?

Extended Producer Responsibility (EPR) is a policy approach under which producers are given the end-of-life FINANCIAL and OPERATIONAL responsibility for their products put on market. This mainly involves a take-back scheme of post-consumer products for the collection, transportation, repair, refurbishment, management and treatment.

• Assigning such responsibility could in principle provide incentives to prevent waste going to landfill, promote environment protection and support the achievement of consumer recycling and materials management goals. It further extends to beneficiation opportunities, innovation, skills development and job creation.

A Producer Responsibility Organisation (PRO) is an organisation that assists producers meet their extended producer responsibility targets through various key stakeholders within the value chain in the country. The PRO is responsible for setting up and managing the value chain mechanisms for the targeted waste material and to create awareness for the recycling of all lighting, electrical and electronic waste.

PRO

Regulated Extended Producer Responsibility Scheme Models per the National Pricing Strategy for Waste Management

Main points on EPR Regulatory Requirements

• Regulations make all PRODUCERS fully accountable for compliance

• The Regulations make the PRODUCERS responsible and liable for the development and implementation of an EPR scheme plan and compliance against each product’s targets

• The process will be managed and financed by the PRODUCERS of EEE and Lighting Equipment through the payment of an EPR fee by the PRODUCER.

• Fees will be determined for each producer based on volumes of products or class of products put on market.

• The fees are dependent on weight and recyclability of each item on a rand per kilogram or per unit, depending on the product. The products that are more difficult to collect or recycle will attract a higher fee.

• PRODUCERS will be required to conduct life-cycle assessments, within 3 years for each product, accounting for changes in design, composition or production process in order to reduce the consumption of natural resources as well as toxicity and volume of waste generated. EPR will, in turn, promote design for recycling.

Main points of the PRO Regulatory Requirements• A producer must register with a compliant PRO. Non-registration means that the

Producer will be a “free-rider” and face the severe penalties (Imprisonment up to 15 years, Fines, or Fine and Imprisonment)

• PRO must be a registered non-profit company, be managed by a BoD

• The PRO must register with the Department (DEFF)

• Producers must register with DEFF (PRO will notify when this Registration process opens)

• PRO must be a registered non-profit company, be managed by a BoD, and comply with the Company’s Act, NPO Act and Corporate Governance Guidelines.

• PRO’s have the vital role in representing the collective interests of their respective sectors.

• The PRO is the vehicle to assist all producers to meet the regulatory requirements and the PRO represents all Producers in managing the EPR Scheme

• The regulations require that the PRO submits an EPR Scheme implementation plan on behalf of the Producers. The scheme implementation plan that will be developed along with the proposed EPR Fee, must be submitted for Ministerial approval by no later than the 5th November 2021, the development and operations must be funded by all the Producers.

• The Producers will be required to report performance measured against the individual targets and to submit verified data and performance audit reports to DEFF at various intervals annually. The PRO will fulfill this requirement for the Producers.

• Collect, administer and disburse the EPR fees collected from Obligated Producers

Main points on Lighting Sector Notice

• Must set up the procedures, processes, and invest resources to IMPLEMENT the EPR measures linked to:

a) Collection of products in post-consumer stage

b) Reuse

c) Recycling

d) Energy Recovery etc.

All the above must comply with the waste management act and other applicable regulations in terms of licensing and registrations of the post-consumer service providers

• Must set up a Producer Responsibility Organisation – Lightcycle SA NPC Established

• Targets are set for the products for a five-year period

TARGETS

Lighting Sector PRO – Lightcycle SA NPCApplies to Producers of Lighting Products or Class of Products to which extended

producer responsibility as per the Section 18 Notice

Normal Membership (Available to Producers and Other Stakeholders in the value chain)

❖ Tiered Membership which has a sliding scale membership fee structure• Patron Members• Small Enterprises• Medium Enterprises• Large Enterprises• National, Provincial and Local Government institutions• Academia• Individual Members

❖ Deliverables/Benefits (not limited to)• Communications on current legislation, industry news etc• Producers will be able to participate in the EPR Scheme development• Access to auditing and verification services for suppliers to meet Regulatory and PRO supply chain

requirements (certification)• Access to training and development programs• Knowledge sharing and consumer awareness campaigns• Marketing and advertising opportunities• Research and Development

Est. 2018

Lighting Sector PRO – Lightcycle SA NPCApplies to Producers of Lighting Products or Class of Products to which extended

producer responsibility as per the Section 18 Notice

PRODUCER EPR MEMBERSHIP (Available to Obligated Producers Only)

❖ Deliverables as per the regulatory requirement for PRO’s (not limited to)

• Provide compliant and transparent EPR Support to Producer Members• Collection and handling of the EPR Fees (market data etc kept confidential and not shared)• Ensure Producer compliance and reporting to DEFF as per the Section 18 Regulations• Disbursement of fees to the supply value chain to meet the targets and obligations of producers• Skills development Program development• Job creation in the sector• Support the recovery, recycling, waste reduction, beneficiation opportunities etc. • DEFF and other Government Liaison• Informal Sector Integration• Establishment of best practice and industry Norms and Standards• Embracing Circular Economy Principles

Customs/ SARS/DEFF

(Support)

Lightcycle SA Black Box Registry

Producers Pre-Consumer

Lightcycle SA NPCOperations

Lightcycle SA Post-Consumer Value

Chain/Other Social Services or Projects

DEFF (High Level Monitoring and

Policy/Enforcement)

DEFF (Target Reporting and Free

Rider Identification)

DATA(Aggregated)

ZAR

LIGHTCYCLE SA NPC BLACK BOX REGISTRY AND OPERATIONAL FUNCTIONS

NEXT STEPS

Register now to become a Member • Available on Lightcycle SA Website

https://lightcyclesa.org/register-with-the-pro/

Choose the correct menu to register as:

• Producer• Brand Owner• Service Provider • General Memberships (Individuals, NGO’s.

Institutions such as Academia, Government etc.

Communication and invoicing will follow once registered.

WWW.LIGHTCYCLESA.ORG

Email: info@lightcyclesa.org

Summary

• PRO’s will have a vital role in assisting producers to identify shared constraints and synergistic opportunities

• Along with stronger collaboration across the value chain, a mindset shift will be needed not only for legislative compliance, but also for the benefit of the consumer and environment.

• Intensive consumer awareness campaigns will also help to drive behaviour change

• EPR will see an investment in collection infrastructure, not only providing consumers with more convenient recycling facilities, but also a concerted recovery effort at the pre-consumer post-industrial phase.

• EPR will be about the journey, not the destination, and you cannot go it alone.

Contact:

Patricia Schröder – DirectorEmail: info@urbanelements.co.zaCell: 0824927356

Electronic and

Electrical PRO

What is e-Waste

"e-waste" is an abbreviation of "electronic and electrical

waste". A key part of the definition is the word "waste"

and what it logically implies – that the item has no

further use and is rejected by the owner in its current

condition.

E-Waste is a term used to cover items of all types of

electrical and electronic equipment or component parts

(EEE), powered either by Alternating or Direct current,

that have been discarded by the owner as waste without

the intention of re-use.

Who is EWASA• The e-Waste Association of South Africa (EWASA) was established in 2008

to manage the establishment of a sustainable environmentally sound e-waste management system for the country

• EWASA is a Level 2 BBBEE NPC Producer Responsibility Organisation

• Since inception it has been working with manufactures, vendors and distributors of electronic and electrical goods and e-waste handlers (including refurbishers, dismantlers and recyclers) to manage e-waste effectively.

• Management of EPR funds, data clearance and controlling

• Quality control through independent technical experts and auditors

• Public Relations

• Education & Training

• Research & Development

• Skills transference

• Technology development

• Beneficiation of waste

• Job creation

• Social compacts

• Manage EPR schemes on behalf of Producers

Who is the customer?

◼ Institutional• Government at all levels

National DepartmentsProvincial DepartmentsLocal government

• Large private organisationsBusinessIndustry

◼ PublicSmall businessPrivate individuals

Producers Dismantlers Recyclers Academia

Samsung 2nd Life AST Vaal TVET

Canon AEW Refinery Wasteplan Durban TVET

Black& Decker Bolunga Oricol SATN

Stanley Dark Metals Gauteng Metal uYILO eMobility

Pick n Pay Newtech Green Office Nelson Mandela Uni

ConvaTec Partserv Just PC’s UN H2020

Accerio Shredmaster Reclite UNEP

Battcol Xperien Sindawoyne EMPA

SECTIONAL MEMBERSHIP/PARTNERSHIPS

Guiding Principles

•Responsibility Manufacturers/importers need to commit to the recycling of their products and ensure that the recycling solution operates smoothly.

•Simplicity Consumers, traders, manufacturers and recyclers, must easily understand and implement e-Waste recycling.

•Reliability Crucial steps in the recycling chain require independent, trustworthy control.

•Liquidity If the market value of the recycled material can’t pay for the process, additional funds have to be introduced, such as the Extended Producer Responsibility Fee on new equipment that allows for their return of all goods free of charge in a environmentally responsible manner.

SORTING/SEPARATION/GRADING

DISPOSALMATERIALRECYCLING

REFURBISHMENT

LOGISTICS

COLLECTION

VIABLENONVIABLE

Green E-Waste Channel

Structure of e-Waste Recycling Industry in

SA

Tier 1 – Cradle to Cradle Recyclers (WEEE Standards)

Tier 2 – First line Recyclers

Tier 3 – Entry level Dismantlers

Tier 4 – Informal Waste Collectors

CONTROL SYSTEM

Collection Transport

Entry

Recycler

Treatment Results

Comparison

•Quality Assurance

Planned outcomes

• Collection of all material (with or without value) is

governed by the solution

• Local dismantling and recycling can create jobs

• Local profit for metals that are not hazardous to

recycle

• Access to global materials market where

beneficiation options do not exist in South Africa

• Material to be channelled into local/appropriate

beneficiation, closing the material loop

Material Value

• E-Waste has elements that contain positive and

negative value

• Overall value is affected by collection and treatment

cost

• Manual process generates more value

• Manual process is more suited to lower wage

countries

• Material values can change over time from positive to

negative or neutral

Socio-Economic Value

• Currently the majority of e-waste collected and treated

holds value

• Non-valuable e-waste is stored or dumped –

appropriate treatment costs

• Extended Producer Responsibility (EPR) principles

enable all fractions to be treated appropriately at end of

life (Lifset 1993, Lindqvist & Lifset 2003, Kunz 2014)

• EPR becomes a financial safety net and creates a

market demand for material

• Consumers know the e-waste will always be collected

and treated.

• Government does not need to finance the

collection and treatment

Material supply chain growth

• Treatment capacity for all fractions is currently limited

• Valuable fractions including some plastics are

treated

• CRT displays, certain batteries and other

products need exporting for specialist treatment

• Expanding the treatment capacity is an

opportunity given EPR collections will need

treating

• Interdependency of neighbouring countries and

knowledge transfer will generate

sustainable growth

Consumer – Domestic and Industrial

Recovery

Organisation

(PRO)

WEEE FINANCING, COLLECTION ANDRECYCLING

Municipalities Retail trade

Collection Sites of

PRO

Treatment / Recycling

Material Flow

Financing

Reporting

State Authority

FINANCING OF RECOVERY AND

RECYCLING OF WASTE

Obliged companies through

“Extended Producer

Responsibility” principle

Cars BatteriesConstruction

Waste

Industrial

Waste

Packaging

Waste

Electrical and

Electronic

Equipment

Industry through

„Polluter Pays“principle

WasteType

Treatment

financed by

Environmental Sustainability

• Environmental sustainability must be the principal aim

of legislation

• The closing of ‘material loops’, ‘cradle to cradle’,

‘circular economy’

• Already in place for metals

• Producers actively working on plastics

• Its all about preserving South Africa for

generations to come

Enabling Legislation

Sta

nd

ard

s &

En

forc

em

en

t

Acce

ss to

E-W

aste

Co

ntr

ol &

Co

mp

etitio

n

Protect the Environment

PRO Governance

• Critical to ensuring a level playing field for all

stakeholders

• A control system is needed to ensure governance is

effective and appropriateKeith AndersonChairman & CEOE-Waste Association of South Africakeith@ewasa.orgwww.ewasa.org031 535 71460825530373

Question and Answer Session