Forum on Extended Producer Responsibility - New EU Collective Systems
Over 87% of resource consumption in the EU still relies on virgin raw materials, creating a strong dependence on third countries. In this context, Federico Magalini, Director of Sustainability Services UK and Italy at dss+, has presented a new report commissioned by Erion. The study explores how Extended Producer Responsibility (EPR) systems can offer an alternative solution to reduce supply risks and dependence on imports.
Milan, 21 June 2024 – Despite efforts made in the circular economy, over 87% of resource consumption in the European Union still depends on virgin raw materials. Given an average global per capita consumption of resources of around 12.5 tonnes per year, current policies are not sufficient to reduce the use of raw materials, the demand for which will grow - compared to 2000 - by 2.5 times by 2050. In this scenario, the role of Extended Producer Responsibility Systems is of particular importance, as in addition to being a waste prevention and management tool, they will also become a vector for the supply and optimisation of resources.
This is what emerges from the study "Erion Vision 2050: Past, Present and Future of Extended Producer Responsibility Systems" commissioned by Erion to the consultancy firm dss+ and presented on 20 June 2024 on the occasion of the "Forum on Extended Producer Responsibility" event. The new European generation of Collective Systems” at the Teatro della Pergola in Florence. The event was attended by Andrea Fluttero, President of Erion Compliance Organization, Danilo Bonato General Director of Erion Compliance Organization, Naoko Tojo, Professor at the International Institute for Industrial Environmental Economics, Lund University, Federico Magalini Director of Sustainability Services UK and Italy at dss+. Also speaking at the round table were Claudia Brunori, Director of the Sustainability Department of Enea, Stefano Ciafani, President of Legambiente, Marco Learnato, General Director of Applia Italia, Christian Ludwig, CEO of WEEE Europe, Pedro Nazareth, CEO of the Portuguese ELECTRAO Consortium, Davide Rossi, CEO of the EuCER Council, Eric Ruyters, Secretary General of Eucobat and Katarzyna Sulisz, Sustainability Policy Officer of FESI.
“Extended Producer Responsibility (EPR) systems (or PROs), originated in the 90s both to organise and finance waste management and to stimulate better product design, now find themselves facing an important challenge: bridging the gap between the objectives sustainability programs and the supply of strategic resources for the European Union” – states Danilo Bonato, General Director of Erion Compliance Organisation. “It is, therefore, crucial to rethink the role of EPR within the EU, particularly in response to the urgent demands for Critical Raw Materials and the imperative to decarbonise the economy within a framework consistent with the Sustainable Development Goals.”
Faced with this scenario, to achieve the objective of climate neutrality by 2050 it will be necessary, first, to promote a single market for the recovery of Critical Raw Materials (CRM - palladium, neodymium, cobalt, lithium, tantalum, etc.) and guarantee recycling efficiency on a European scale, ensuring supply to the main production sites. Suffice it to say that in the clean-tech sector, the demand for lithium, compared to global demand, has gone from 30% in 2017 to 56% in 2022 and that of Cobalt from 17% to 40%. Consequently, the increasingly pressing need for CRM has led to an increase in exploration activities and investments in mining infrastructure which have thus increased by 30% in 2022 (IEA source). The market size for these materials, necessary for the energy transition, reached $320 billion in 2022, making them one of the focuses of the mining industry. It is estimated that by 2030 the global demand for CRM, necessary to achieve the decarbonisation objectives set by the European Commission, will grow 3.5 times exceeding 30 million tonnes (source: IEA - Net Zero Emissions by 2050 Scenario).
“Encouraging companies to leverage ecodesign and use recycled materials in their new products is essential to support closing loops and reducing dependence on new natural resources. – continues Bonato – “The promotion of innovative business models, such as product as a service, can positively orient consumer behaviour and shift economic attention from ownership to use, promoting sustainability in a rapidly evolving market”.
Furthermore, the PROs must necessarily have the role of guarantor of compliance with legal obligations to allow the correct disposal of waste by consumers and the recovery of Secondary Raw Materials. To do this, a widespread increase in collection networks will also be necessary both to guarantee optimal waste recovery and to allow the PROs themselves to support local authorities in achieving the collection rates set by the European Union. Considering that the new European Regulation on Critical Raw Materials requires that, by 2030, 25% of annual consumption comes from recycling to make Europe less dependent on third countries, it will be even more important to improve the efficiency and circularity of resources. To date, unfortunately, innovative business models of the circular economy in Europe record an average penetration of between 5-10%. Recycled materials represent only 8.6% of incoming materials and the share of product regeneration compared to new production is stuck at 1.9%.
From the point of view of the product, it will be important to optimise its life cycle starting from the design: last April 23rd the European Parliament approved the new Regulation on eco-design for sustainable products (ESPR) which provides for the introduction of eco-design requirements and minimum standards regarding durability, reparability, energy efficiency and recycling of goods. This will allow us to influence design changes by leveraging the sharing of critical waste management issues to improve the recyclability and environmental impact of products. Packaging products represent an excellent case of how EPR has led to dematerialisation, the reduction of the types of plastics used, the thickness itself and the dangerous substances present.
Last, but not least, consumers must be incentivised and encouraged towards correct disposal practices, particularly for products with very short or very long-life cycles. Awareness campaigns are needed to increase public participation in waste collection initiatives and to stimulate their interest in preferring eco-sustainable products, as well as awareness of the environmental impact of incorrect waste management (for example abandoning cigarette filters).
“The Legislator must also do its part, to align with Vision 2050 by demanding greater compliance with quality standards for collection and treatment, reducing the dispersion of materials and guaranteeing high-quality recycling. – declares Federico Magalini, Director of Sustainability Services UK and Italy at dss+– It is then necessary to incentivise the market for recycled materials with mandatory requirements for the use of recycled material in new products, giving priority to the quality of the recovered material over the mere quantities of recycled waste.”
Source: As published by Erion. ERION: OLTRE l’87% DEL CONSUMO DI RISORSE NELL’UE DIPENDE ANCORA DA MATERIE PRIME VERGINI CON UNA FORTE DIPENDENZA DA PAESI TERZI - Erion