1 Tendencias globales para Reducir, Reutilizar, Reciclar y REP - direcciones de las políticas públicas y respuesta de la industria

2 2 What this presentation will cover  A little about Reclay StewardEdge  Why waste management has become a global issue  How this is affecting government policy and legislation  Brief summaries of key global examples  Perspective on the Chile law project

3 About Reclay Group  Founded in 2002  Headquartered in Cologne, Germany  280 employees worldwide  Turnover: 170 Million EUR in 2012 (115 billion CLP)  Since 2012 majority shareholder of Reclay StewardEdge, Toronto, Canada  Subsidiaries/offices in Austria, Czech Republic, Hungary, Poland, Slovakia, Slovenia, and Switzerland 3

4 Our expertise  Extensive experience designing, implementing and operating recovery and recycling programs for used products and packaging. This includes: o Designing effective policy frameworks reflecting local conditions o Establishing mechanisms for effective implementation of packaging and product recycling programs o Partnering with key stakeholders to successfully manage industry schemes from program design to material trading 4

5 ? Reclay Group Consulting & Program Experience 5

6 6 2 billion New Urban Residents by 2030, 3 Billion by 2050 Reference: World Urbanization Prospects, 2011 Revision (United Nations, 2012)

7 7 Cities are adding 1,500,000 Residents each Week Shenzen in 1987 Shenzen today Reference: WHAT A WASTE: A GLOBAL REVIEW OF SOLID WASTE MANAGEMENT, World Bank, 2012

8 8 Global Peak Waste Likely not Before 2100 - Enormous Growth is Coming Reference: WHAT A WASTE: A GLOBAL REVIEW OF SOLID WASTE MANAGEMENT, World Bank, 2012

9 9 Waste management costs are increasing Biggest proportional increase in low (and low-middle) income nations Total now = $205 billion Total in 2025 = $376 billion Reference: WHAT A WASTE: A GLOBAL REVIEW OF SOLID WASTE MANAGEMENT, World Bank, 2012

10 10 Waste management has become a global problem Search for “Global Solutions” is on  Six “big ideas” for accelerating reduction, reuse & recycling 1.Promote “best practices” 2.Green taxes 3.Tradable credits 4.Collaborative consumption 5.Circular economy 6.Extended Producer Responsibility Common objective to scale up perceived 3Rs best practices

11 11 Access to goods and skills without ownership Collaborative Consumption  Product-service systems for sharing or renting of a product  Redistribution markets, which enable the sale and reuse of a product  Collaborative lifestyles in which assets and skills can be shared Lower costs, less waste, and community building

12 Credit: City of Melbourne

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16 Circular Economy Framework The Circular Economy Natural Economy Closed Loop Resource Efficiency Industrial Ecology Cradle- to-Cradle Embodies Different Sustainability Concepts & Philosophies The Circular Economy Informal Sector Voluntary Industry Initiatives Landfill Bans EPR Deposit Laws Enables Different Tools & Mechanisms 16

17 17 The Circular Economy Reference: Towards the Circular Economy – McKinsey & Company for The Ellen MacArthur Foundation

18 18 Extended Producer Responsibility (EPR) Extended Producer Responsibility (EPR) is, according to OECD (2001), an environmental policy approach in which a producer's responsibility, physical and/or financial, for a product is extended to the post-consumer stage of a product's life cycle. A wide range of EPR models have been implemented globally.

19 ? ? ? ? V Beverage Container Deposit Legislation Used Packaging Management Initiatives 1990 No Waste Packaging or Product Stewardship Legislation 19

20 V V v ? ? ? ? V V V V V V Used Packaging Management Initiatives 2000 Container Packaging Taxes Beverage Container Deposit Legislation Packaging Waste Legislation & Product Stewardship in Place Industry-led Voluntary Recycling 20

21 ? ? ? ? V Used Packaging Management Initiatives 2013 Proposed/Expected Packaging Waste Legislation & Product Stewardship in Place 21

22 Country Performance: Overall Recycling Quotas in 2009(%) 22

23 Typical Recycling Model Operated in Europe 23

24 EMPRESAS Aportan una cuota según los envases que pongan en el mercado En CC.AA. donde esté autorizado el SIG El SIG paga el coste adicional de la recogida selectiva y apoya las acciones de sensibilización hacia los ciudadanos CC.AA. Convenios Marco ENTIDADES LOCALES Convenios de Colaboración Las entidades locales pueden adherirse a los Convenios Marco firmados con CC.AA. Convenio directo Los ciudadanos separan en el hogar y depositan los residuos en contenedores específicos Recogida selectiva A cargo de las entidades locales Planta de selección por tipo de material Valorización energética Reciclado Nuevos envases y/o productos 1 2 3 5 6 7 4 Rechazo Recauda Y Administra S I G Funcionamiento del Sistema Integrados de Gestión (SIG)

25 white-washed symbols = program proposed or under consideration full-colour symbols = program in place or pending see inset 2012 Status 25 EPR Programs in Canada

26 26 Case Study Ontario  900,000 square kms.  12.7M population  4.4M households  500 municipalities Organized into 120 regional recycling programs  95% of single family homes with recycling services  ~25% of multi-family units served

27 27 Ontario’s Blue Box Program Plan (BBPP)  Brand Owners & first importers are “producers”  Producers fund 50% approved net cost of municipal residential Blue Box programs Shared responsibility approach  Blue Box Waste defined as: Glass, metal, paper, plastic & textiles or any combination of above  Producers report on and pay for amount & type of printed paper & packaging they supply into the market

28 28 Total Responsabilidad del Sector Público Total Responsabilidad del Sector Privado Responsabilidad Compartida  Manejo Estatal  Financiado a traves de impuestos  Servicio público  Manejo privado  Financiado a traves de aportes de los productores  Sistema independiente  Manejo compartido  Financiación publico-privada  Acción conjunta municipalidades- sector privado Sistemas de Gestión de Envases Post-Consumo

29 29 Total Responsabilidad del Sector Público Total Responsabilidad del Sector Privado Responsabilidad Compartida Sistemas de Gestión de Envases Post-Consumo  Consumidor paga y el gobierno maneja el sistema  No incentivos para mejorar caracteristicas del envase por parte del productor  Productor paga y es responsible de la operación del sistema  El productor esta motivado en realizar mejoras en el empaque usado  El productor paga parte del costo total del sistema  El productor y el consumidor/gobierno local tienenen el incentivo de mejorar la eficiencia del programa de reciclaje

30 The Essence of “EPR” 30

31 31 What are the Key Drivers of EPR?  EPR a reflection of broader transition underway  Quantifying environmental impacts  Internalizing these costs to producers & users  Driven by converging forces  Government systemic financial stress  Commercial pressures for greater transparency along the supply chain  Securing supplies of key strategic materials  Policy innovation & adoption across the OECD  Recognition that cradle-to-cradle management essential to sustainability  Social license to grow

32 La Importancia de los Recolectores de Base  A nivel mundial millones de recolectores de base retiran manualmente material reciclable destinado a rellenos:  India: 1.5 millones (2010), en su mayoría mujeres y grupos marginados  Colombia: 18,000 (?) “recicladores”  Uruguay: 15,000 “clasificadores”  Argentina: 42,000 “cartoneros”  Brasil: 229,000 “catadores”  Realizan la separación del material reciclado que es vendido en los mercados globales  Con frecuencia trabajan en condiciones de riesgo 32

33 33 “ ¿ Puede sentirse orgulloso de esta cadena de valor?”

34 El Reto: Integración de los Recolectores de Base a la Economía Formal Antes Después 34

35 Will the Chile EPR law meet its objectives?  Should EPR be integrated into comprehensive general waste law?  Are legislators also prepared to:  Require households to pay for waste management services?  Make recycling mandatory?  Ban priority materials from final disposal? 35

36 36 Can Chile “de-link” economic growth & waste? Reference: WHAT A WASTE: A GLOBAL REVIEW OF SOLID WASTE MANAGEMENT, World Bank, 2012

37 Thank you Derek Stephenson – President [email protected] Tel: 416.594.3459