1. May 2023
GLOBAL EXTENDED PRODUCER
RESPONSIBILITY DEVELOPMENTS
AND WHAT THEY MEAN

2. • Understanding regulatory requirements and
impacts of EPR policies (financing mechanisms,
recycling targets, reporting requirements, etc.)
• Ensuring compliance and compliance
mechanisms for industry
• Managing roles, responsibilities and
relationships between each actor (industry,
associations, governments incl. municipalities,
waste service providers, communicators, etc.)
• EPR system optimization (reporting
relationships and transparency mechanisms)
FULL-SERVICE PRO OPERATOR AND
CONSULTING
>200
Colleagues
2002
founded
10
Locations
>270
million Turnover

3. WHAT IT IS

4. EPR: At the Intersection of Policy and Economics
Policy Economics

5. EPR
Extended Producer Responsibility (EPR) is an environmental policy approach in which
a producer’s responsibility for a product is extended to the post-consumer stage of a
product’s life cycle. An EPR policy is characterized by:
1. the shifting of responsibility (physically and/or economically; fully or partially)
upstream toward the producer and away from municipalities; and
2. the provision of incentives to producers to take into account environmental
considerations when designing their products.*
Moreover, EPR contributes to improving recycling and material recovery. **
* OECD: https://www.oecd.org/environment/extended-producer-responsibility.htm
** OECD on Deposit-refund systems and the interplay with additional mandatory extended producer responsibility policies, 19 Dec 2022

6. Typical Elements
Roles and responsibilities of actors
Recycling targets
Reporting system
Information to waste holders
Defined geographical scope
Appropriate availability of waste collection
Financial and organizational means
Self-control mechanism/auditing
Transparency
Cost coverage
Monitoring and enforcement
Stakeholder dialogue
Independent oversight in case of competition
Legislative
Framework

7. Packaging without system participation
As waste for industry or commercial waste
Packaging subject to DRS
Hazardous contents
Transport packaging
Retail and grouped packaging - system incompatibility
Reusable packaging
Packaging
Scope
Packaging subject to system participation
Filled with goods
As waste for private end consumers
Sales/retail packaging and grouping packaging
Service packaging
Shipping packaging

8. WHY EPR for Packaging?
Benefits of EPR
• Allows producers to take control of ‘their’
materials recovered through curbside collection
• Allows producers to better manage costs for
recycling
• EPR as an alternative to direct state intervention
and state financing (taxes)
Backdrop
• Global (marine) plastics issues
• CSR/ESG positioning
• Availability of raw materials
• Limited landfill capacity / acceptance
• Financial interests
• Environmental interests
• Consumers / clients / voters
• Sourcing

9. PACKAGING EPR
… has become an accepted policy approach around the world to tackle environmental effects of packaging.
… comes in as many specific manifestations as it has been implemented by countries, states or provinces.
EPR packaging
legislation in place
EPR packaging
legislation in
development / tax-
based solutions /
other
No introduction of
EPR packaging
legislation known
USA, CA: individual status
by states / provinces
Jurisdictions with packaging EPR:
1995: 11
2005: 38 (+ a few in planning)
2015: 50 (>10 in planning)
2023: 60 (>25 in planning)

10. HOW IT
COMES
ABOUT

11. THE TRANSITION
TO EPR
• Develop scope of EPR system
• Develop and pass EPR legislation
Phase I : Policy Shaping
PRO Operations
Phase II : EPR PRO Design and
Implementation
1-3
years
1-2
years
3-5 years
from today
• Determine governance and
operational foundation for PRO
• Design for cost efficiency and to meet
targets
• Cost modelling
• Manage a complex, multi-million business
• Tracking and securing material
• Compliance and cost control

12. Has Over 20 Years EPR Experience! Reclay StewardEdge (RSE) has extensive experience modelling
costs for EPR systems in North America. In addition, RSE is able
to anticipate, project and optimize producer costs in existing EPR
systems for a variety of material categories (e.g. packaging,
waste electronics). It has been doing this for over 20 years.
Cost modelling in Canada
Through own resources, we have:
• Modelled overall system costs for CBCRA Manitoba (beverage containers) in
2010, updated in 2017
• Modelled overall system costs for MMSM and MMSW (Manitoba and
Saskatchewan) for all packaging in 2010 and 2012
• Modelled overall and producer specific system costs for tires in Ontario in 2017
• Modelled overall system costs for CBCRA Ontario (beverage containers) in 2022
Cost modelling in USA
Through own resources, we have:
• Modelled overall system costs for several US states for packaging EPR in 2021
Through partners, RSE has:
• Modelled overall and producer specific system costs for deposit return systems
for beverages in several US states in 2021
Cost Modelling
in Canada
Cost Modelling
in USA
• Modelled overall
system costs for
packaging EPRs
• Modelled system
costs for deposit
return systems
together with
partners of RSE
• Modelled overall
system costs for
beverage containers
• Modelled overall
system costs for all
packaging
• Modelled overall and
producer specific
system costs for tires
is able to project producer costs for a
variety of material categories
COST MODELLING

13. EU Packaging Regulation
The European Commission has proposed a new
regulation to replace the existing Directive on
Packaging and Packaging Waste. The new regulation,
directly applicable across the EU requires:
• All packaging designed to recycle and be 100% recyclable
• Minimum targets for recycled content in plastic packaging,
such as 30% for drinks bottles by 2030 and 65% by 2040.
• Certain plastic packaging, such as tea bags, coffee pods, very
light plastic bags and sticky labels for fruit and vegetables, will
need to be compostable.
• Deposit return systems in place for plastic bottles and cans.
• Minimum targets for reuse/refill of packaging

14. REGULATORY TIMELINE

15. HOW IT
WORKS

16. Process is similar for plastics, paper or glass
Output
Materials
Acquistion
of service
providers
…
…
…
…
…
…
Sorting
We identify service
providers by doing
market surveys and
tenders per region
Collection service
providers are
contracted
typically on a
perennial basis.
Waste collection
service providers
take over the
material in a
defined area
Sorting contracts
with sorting service
providers are
typically done on a
yearly basis
Logistics is done via
databases, which are
available depending
on the country
Tracking of
collection data,
sorting data and
output data
Distribution to
recycling partners
or industry,
but served flexibly
depending on the
market and price
situation
Collection
Processing/
Recycling
Very strongly linked to
our Quality
Management, Anti-
bribery and conde of
conduct policies.
COLLECTION, SORTING, RECYCLING

17. WASTE
COLLECTION
PRO
Operational vs financial responsibility is defined by policy
Collection by local waste management companies, in coordination with
the municipalities
Coordination agreement between PROs and municipalities on:
Collection frequency (weekly/ biweekly/…)
Provision (Household collection/bring-system)
Type of collection (bin/sack)
Actors involved in the system and their role –
Legislature and Municipalities
Municipalities

18. WASTE SORTING
Material ownership is a key
interest in the circular
economy
Operational vs financial
responsibility
Different contract options in a
competitive PRO market
(individual contracts, all-in
contracts)
Vertically integrated and non-
integrated PROs
Selection of waste treatment
partners

19. Sorting plant for
paper, board,
carton
Various
Qualities
of paper
Sorting plant for
packaging
Paper
Aluminium
Packaging
Sheet metal
Composites
Plastics
• Plastic Bottles
• Foils
• Types of plastic
• Styrofoam
• Mixed plastics
Aluminium
plants
Steelworks
Recycling plants
• Recycled
• Raw materials
• Energy recovery
Energy recovery
Thermal disposal
Glass Glass recycling
plant
Glass
cullet
Glassworks
Paper mill
Sorting wastes
WASTE SORTING

20. • Service provider able to meet
producers‘ EPR obligations
collectively (vs. individual plans)
• Connecting the dots: hundreds or
thousands of municipalities, brand
owners, retailers, wm/recycling
operators, etc.
PRO
MUNICIPALITY
Comprehensive responsibility (vs. cherry
picking)
Data management & transparency
Promotion & Education
(Scapegoat)
Material Supplier
THE ROLE AND
IMPORTANCE OF PROS IN EPR

21. PROMOTION AND EDUCATION
The RecycleMe app is a digital initiative that
was launched together with leading beverage
producers in Austria and Canada to:
• Raise public awareness of correct
recycling
• Optimize the separate collection and
material cycles of packaging.
www.recyclemich.at
Recycling Incentive-App for Consumers
Consumers are key for a well-functioning EPR system
Awareness and education campaigns
Convenience of recycling options
Information on
Sorting instructions & information on recycling
Public awareness and education
Motivation

22. High quality sorting
Production planning
Asset portfolio management
Supply chain optimization
Industry
Industry clients
Packaging Collection
Initial Sorting
Design for Recycling
PO
PET
Other
Paper &
cardboard
Reclay and Borealis joined forces with Recelerate to close the loop and
return packaging to producers
SUCCESS STORY: HOW A PRO CAN HELP
PROVIDE RECYCLED MATERIAL TO PRODUCERS

23. WHAT IT
MEANS

24. IMPACTS OF
EPR

25. OPPORTUNITIES & CHALLENGES FOR INDUSTRY
Challenges
• Industry faced with growing EPR
legislation movement
o Some is bad legislation
• Cost increases expected
• Compliance requirements
Opportunities
• Shape more EPR laws
• Work towards national
harmonization
• Greater access to materials
• Environmental benefits
• System options for industry
• (DRS vs EPR)

26. IMPORTANT FUTURE TRENDS
Recycling rates &
recycled content
targets
Chemical recycling
Recyclability
Eco-feemodulation
Collection and deposit
schemes
Developing legal
framework

27. QUESTIONS

28. Adrian Vannahme
Vice-President
avannahme@reclaystewardedge.com
+1 431 777 5136
CONTACT