northwest hazardous materials management conference june 8, 2010 stewardship ontario – partnering...
TRANSCRIPT
Northwest Hazardous Materials Management ConferenceJune 8, 2010
Stewardship Ontario – Partnering with stewards to build sustainable communities
Agenda
1. EPR in Canada
2. Focus on Ontario
3. Stewardship Ontario: who & what?
4. Blue Box Program – quick facts
5. Municipal Hazardous and Special Waste Program
6. What’s next in Ontario & how will it impact industry?
7. Industry challenges
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Canada moving towards EPR
• Canada, shifting from “product stewardship” to “extended producer responsibility” (EPR) which requires industry to cover 100% of the costs to manage products at their end-of-life
• Canada-wide Action Plan for EPR
• Initiatives transforming "product stewardship" into full EPR programs have already begun
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65 programs
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More to come
PLASTIC / ALUMINUM
GLASSELECTRONICS
PROPANE
OIL
PHARMA
TIRES
AUTO
BATTERIES
MILK
CONST/RENO/DEMO
BLUE BOX
SHARPS
AEROSOLS
PAINT
MERCURY
EXTINGUISHERS
FLAMMABLES
SERVICE PACKAGING
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How stewardship works in Ontario
Waste Diversion Act (WDA), 2002
Ministry of the EnvironmentRegulates materials that must be “stewarded” & sets targets and other
requirements industry must meet
Waste Diversion Ontario (WDO)Ensures regulations & requirements are fulfilled; oversees industry programs
Stewardship Ontario
Develops and operates diversion programsfor printed paper & packaging and household hazardous & special wastes
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Who are we?
• Ontario, Canada based not-for-profit industry-managed organization
• Driven by legislation (WDA)• Funded by stewards, governed by stewards
• A steward is a company that makes and/or markets products and/or packaging that is managed in either of our programs: Blue Box or Municipal Hazardous & Special Waste Program (MHSW)
• Brand owner/first importer of designated material • Party responsible for putting the designated material into the
marketplace
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Government mandate
To create and run cost effective stewardship programs that:
• Divert household printed paper & packaging from landfill (Blue Box )
• Responsible for 50% of program cost; full EPR within 3 years
• Provide environmentally responsible end-of-life management for familiar consumer products requiring special care e.g., fertilizers, pesticides, batteries, paint, solvents, automotive products (MHSW)
• Responsible for 100% of program costs
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Blue Box Program – a success story
• Diversion targets met & exceeded year after year (50% - 60% -70%)
• Blue Box Program runs in over 209 municipalities across Ontario
• Over 65% of printed paper and packaging waste is diverted from landfill
Blue Box Stewardship Program
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Recycling up 20% over 6 years
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Blue Box Program – exceeding expectations
Key accomplishments
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• Nearly $1/2 billion provided to the Blue Box Program since 2004
• $61M for system optimization
• $14M for market development
• Approximately 1500 stewards currently contribute fees to the Blue
Box Program
Challenges – aggressive targets
86
68
56
39
23
8085
70 70 70
50
85
0
10
20
30
40
50
60
70
80
90
100
GLASS PAPERPACKAGING
TINPLATE ALUMINUM PLASTICS PRINTEDPAPER
MATERIAL
PER
CEN
TA
GE
2012 TARGETS2008 PERFORMANCE
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Market Development - challenges
• Ensuring end markets for hard to recycle materials eg. Rigid plastics and laminants
• Requires aggressive action to construct complete supply chain:
• Secure supply
• Proved technology
• Manufacturing capability
• Market demand
Scale & Throughput
Reliable, Consistent Just-in-Time
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The rapidly changing landscape
• A lot of packaging innovations in the bio space
• Pressure to keep ahead of innovation
• Two systems to fund
• Fossil fuel based
• Bio based
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Municipal Hazardous & Special Waste Program (MHSW)
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Program purpose
• To collect designated materials so they can be managed at end of life in environmentally appropriate ways”
• Promote 3Rs (reduce, reuse, recycle) options for many materials (e.g., paint) and safe handling and disposal where 3Rs are not feasible (e.g., pharmaceuticals)
• Operate reverse logistics supply chain
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Legislative foundation
• Build a consolidated program for the 22 wastes designated under Ontario Regulation 542/06
• Full EPR• Incent 3Rs• Stimulate markets to maximize MHSW management• Expand collection infrastructure• Promote recycling best practices & innovation• Drive changes to consumer behaviours
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Step 1 – How is the plan built?
What materials?What materials?
How much?How much?
What’s available?What’s available?
Collection?Collection?
Targets?Targets?
R&D?R&D?
Consumer education?
Consumer education?
Cost$Who pays what?
Cost$Who pays what?
Performancemeasures?
Performancemeasures?
The PlanThe Plan
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Materials included?
Phase 1 - launched in July 2008 and included nine material categories:
• Paint/coatings, solvents, batteries, pressurized containers, fertilizers, pesticides, antifreeze, oil filters and oil containers
Phase 2 – Launches July 1, 2010 with 13 new material categories:
• Aerosols, Batteries, corrosives (including irritants), fire extinguishers (portable), flammables (including solvents), fluorescents, pharmaceuticals, sharps and toxics
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How it works
• Stewards pay fees based on type and quantity of material they supply for sale or use in Ontario
• The fees are then used to operate the MHSW program, including collection, transportation and processing (or safe disposal) of all designated materials
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Program infrastructure
• Three collection streams developed• Municipal-based depots and collection events
• Retail-based collection of paints and batteries
• Incentive-based system for automotive materials
• Collection network consists of• 91 permanent municipal depots which sponsor collection events
• 51 municipalities with temporary depots & 127 collection events
• 4,249 retail collection locations for paints, batteries and pharmaceuticals
• 106 collection locations for automotive MHSW
• Post-collection network consists of• 40 approved transporters & processors
• 26 approved material processors
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• Multi-material collection channel
• Specialty channel
• Post-collection strategy
• Procurement & contracts team
• Steward & materials stream
Stakeholders
EventsReturn to
Retail
Household
CollectionDepot
Depot in a Box
StewardsQuantities
Household & Small IC&IConsumption
Product Product Container
Transfer Station Transportation
Processing Disposal
IntermediateProcessor
SSCToxic Taxi
MHSW Program on a page
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Our customers
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Over 2,036 stewards registered (funders) producing a diverse range of materials
• Manufacturers of home improvement and other consumer products
• Retailer-owned brands
• Automotive product manufacturers
85¢ of every dollar goes to diversion
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Role of SO in establishing fees for stewards
• SO determines cost to manage program and sets fees based on market share
• Pay to pollute program
• Each steward decides how to manage cost:
• Within their business
• Within their supply chain
• With their customers
• Products often bear visible eco fees at point-of-sale
• Stewards who fail to pay fees on time will be subject to penalties
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Assessing costs to stewards
Determine material
management costs
Consider investments
needed to reach targets
… and promotion &
education… like research &
development
Calculate share of
common costs
1 3 4
5
2
Define contingency
for forecast risk
6
Divide cost by
sales
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Targets & performance – year 1
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Targets & performance – year 1
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Targets & performance – year 1
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Targets & performance – year 1
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Targets & performance – year 1
What’s on the horizon?
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New waste diversion legislation is expected from Ontario’s Ministry of the Environment – fall 2010
How will it impact MHSW stewards?
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Impact
• Steep monetary penalties for non-performance
• Individual companies exposed to risk
• Stewardship organizations will be held to higher standards
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Industry challenges
• Establishing targets that are reasonable but ambitious
• Balancing 3Rs requirements
• Sustainability V. EPR
• Plethora of disparate programs across Canada
• No harmonization in legislation or regulation re: definitions of materials, definitions of stewards/obligated parties
• Administrative overkill for Canadian CPG companies who must discharge obligations differently in every jurisdiction
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Questions?
THANK YOU!
