the international institute for industrial environmental economics lund university, sweden trends in...
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The International Institute for Industrial Environmental EconomicsLund University, Sweden
Trends in Extended Producer Trends in Extended Producer Responsibility within EnterprisesResponsibility within Enterprises
Thomas Lindhqvist IIIEE – Lund University
Prague11 April 2011
The International Institute for Industrial Environmental EconomicsLund 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 EconomicsLund 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 EconomicsLund 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 EconomicsLund 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 EconomicsLund 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 EconomicsLund 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 EconomicsLund University, Sweden
Everyone’s responsibility is no one’s responsibility
• The solution is to create individual incentivesIf a company invests – then that company gets the profit
Individual Producer Responsibility (IPR)
The International Institute for Industrial Environmental EconomicsLund 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 EconomicsLund University, Sweden
Closing loops and taking reponsibility– a business opportunity
• Copying machines
• One-way cameras
• Carpets
The International Institute for Industrial Environmental EconomicsLund University, Sweden
Ideas – but not yet reality
• Baby trams
• Hobby tools
The International Institute for Industrial Environmental EconomicsLund 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 EconomicsLund University, Sweden
A dilemmaIs it a good
idea to recycle?
The only limitation is our lack of creativity!!
The International Institute for Industrial Environmental EconomicsLund University, Sweden
IIIEE reports on EPR