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International experience in implementation of ERP

Extended Producer Responsibility (EPR)

In 80s in the twentieth century, the Organization for Economic Cooperation and Development “polluter pays” concept was expanded to cover the responsibility of the producer for the products produced by him throughout the entire life cycle, including the stage of its final disposal.

EPR (Extended Producer Responsibility) is an environmental protection strategy aimed at reducing the negative environmental impact of products throughout the entire life cycle by making them responsible for damage caused by the product and especially the responsibility for collection, processing and final disposal of the product to its producer or importer.

Later, the EPR principle was introduced at the EU level and is used in most countries of the world.

Idea of ​​the EPR:

A management strategy that encourages producers to take into account the environmental consequences already at the production stage.

Purposes of the EPR:

To reduce the generation of waste and increase the degree of use (processing) of products by:

  1. prevention of the generation of waste;
  2. use of more environmentally friendly materials and processes;
  3. creation of closed cycles of the use of material resources;
  4. creation of products with a long service life;
  5. production of easily processed products;
  6. increase of the percentage of secondary processing  and reuse of materials;
  7. charging the producer with the costs of waste management in accordance with the “polluter pays” principle.

Systems of the EPR:

  • Individual responsibility of the producer: the producer himself organizes the collection and processing of used products.
  • Collective responsibility of the producer: The government approves or the producers form an association that organizes the collection and processing of used products at the expense of membership fees (EPR Operator).

Products of the EPR (usually in most countries)

  • cars, materials and equipment for them (batteries, oils, tires),
  • packaging (paper, plastic, glass, metal),
  • electrical and electronic equipment (batteries, accumulators, computers, household appliances),
  • household chemicals (solvents, paints),
  • medicines,
  • carpets,
  • construction materials,
  • office stationery, furniture.

Types of the EPR:

  • Mandatory
  • Voluntary

Tab. 1. EPR mechanisms

Mechanisms To promote collection and reuse To promote secondary processing
Objective To ensure the quantity and quality of the incoming flow
To collect more
To ensure the involvement of secondary resources into circulation
To process better
Methods Mandatory return of used products:
electrical and electronic equipment, vehicles
Pledge-return system:
packaging for purchase of beverages
Environmental tax from producers of hazardous and difficult to process goods:
chewing gum, cigarettes, diapers
Objectives To provide a waste stream for processing (high in quality, sufficient in quantity)
To support the processor (profitability of processing and demand for secondary products)
Solutions
  • Wide network of collection points
  • Educating the population (what and where to deliver)
  • Processor’s access to the waste stream
  • Economic support for the processor (at the first stage)
  • Promotion of the demand for secondary products

Tab. 2. Participants of the EPR

Participant Role
Consumer sorting and return of used goods / secondary materials
Producer (processor)
  • in good faith fulfills his processing obligations independently or through collective systems
  • uses the packaging labeling system to ensure separate collection at the source of waste generation
The EPR Operator
  • keeps records of sales and imports and determines the plan for the fulfillment of the producer’s obligations;
  • maintains reports on behalf of the producer;
  • organizes the collection, processing and disposal of used goods through the conclusion of contracts with processing enterprises;
  • administers operations related to the implementation of the EPR, incl. payment of disposal fees
The local government
  • provides the infrastructure for separate collection for goods covered by the EPR
The state
  • legislative activity and supervision
  • determines the list of goods under the EPR
  • approves the disposal standards for each product under the EPR

Tab. 3. Schemes for the implementation of the EPR

Scheme 1 Scheme 2
  • One EPR Operator in the market, responsible for collection and processing
  • All producers and importers pay contributions

Individual responsibility is possible, but without offsetting the fulfilled obligations (the amount of the contribution does not change)

  • Same as Scheme 1

Individual responsibility is possible with offset of fulfilled obligations (the amount of the contribution is reduced)

Scheme 3 Scheme 4
  • Number of EPR Operators is not limited
  • Areas of responsibility are allocated by the municipality or federal body
  • All producers act through associations

Individual responsibility is possible, but without offsetting fulfilled obligations (the amount of the contribution does not change)

  • Same as Scheme 3

Individual responsibility is possible with the offset of fulfilled obligations (the amount of the contribution is reduced)

Types of financial responsibility of the EPR

There is a wide variety of EPR schemes, among which the following can be distinguished:

“Simple” financial responsibility: producers have no obligation other than to fund existing waste management channels (e.g. through Packaging Recovery Notes in the UK). This model has several other incentives to improve waste management besides financial incentives (figure).

Financial responsibility under contracts with municipalities:

producers establish contracts with municipalities for the collection and treatment of waste (e.g. packaging in France). Producers’ motivation to improve waste management depends on the type of contract. The financial contribution of the producers is based on the results achieved by all enterprises in the municipality in terms of collection and/or the speed of processing.

Financial responsibility and partial organizational responsibility: Some activities are under the jurisdiction of municipalities (for example, collection is carried out by waste collection operators or under contracts with private companies), with financial support from producers, while other activities (for example, sorting, recoverable materials for resale) are the responsibility of the producers (e.g. packaging in Belgium).

Financial responsibility and full organizational responsibility: producers use professional waste collection and processing subcontractors (e.g. electronic and electrical waste in France) or have their own part of the collection and processing infrastructure (e.g. packaging waste in Germany)

Principles of the EPR implementation:

  1. Stage-by-stage expansion of the product list;
  2. Contribution funds go to the processor/collector for disposal purposes;
  3. Establishment of the amount of the contribution in proportion to:
    • market share of manufactured products;
    • the quantity or weight of disused products or the weight of the packaging;
  4. Constant monitoring of the EPR system and updating of legislation;

The results of the absence of EPR:

  • there is no need to reduce disposal costs;
  • operators outside the competitive area;
  • no one is worried about the environmental friendliness of products;
  • there is no control over the processes of collection and processing/disposal of waste;

The legal framework for the implementation of the Extended Producer Responsibility at the EU level is represented by both the general waste management legislation

  • Waste Framework Directive 2008/98/EC

and specific directives that establish the framework for the reuse and secondary processing of waste:

  • packaging waste 2004/12/EC;
  • rechargeable batteries 2006/66/EC;
  • electrical and electronic equipment 2012/19/EU;
  • out-of-service vehicles 2000/53/EC;

the requirements of which were subsequently included into the relevant national legislation of the EU member states. The last three directives provide direct requirements and recommendations for the establishment of the EPR systems in member countries for the products referred to in these directives. Although the Directive 2004/12/EC does not provide for the obligation to establish the EPR for packaging, most member countries have chosen this option.

  • pharmaceuticals,
  • textiles,
  • furniture,
  • mobile homes,
  • chlorinated liquid refrigerants,
  • oils and greases,
  • infectious medical waste,
  • crop protection containers and unused drugs,
  • fertilizer and soil conditioner packaging,
  • seed and plant packaging,
  • office computer cartridges.
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Medet Kumargaiyev direct_blog_position
Indicators of collection and processing of waste subject to the EPR:
Plastic
28251 tons
Autocomponents
252820 tons
Metal packaging
473 tons
Waste paper
116499 tons
Glass
62065 tons
Accepted for disposal:
Out-of-service vehicles
200104

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