Extended Producer Responsibility-(EPR) is an Environmental policy approach which many governments world over are undertaking today for ensuring sustainability and circularity, regulating the waste generation and treatment by making the “producer” responsible for the entire chain of waste collection, transportation and recycling/reduction of waste generated by their products.
In an EPR Policy ,the “ producer” is not only the entity which produces various products in the country but also the importer who brings a product to the country and puts it first in the market.
Why EPR?
- Developing and implementing an EPR policy in the country ensures a complete circular economy development in the country.
- EPR works on the concept that the manufacturer of the product is made responsible for the entire life cycle of the product especially for the take back, recycling, and final disposal.
- Through an EPR Policy, the costs of waste management which includes collection, transportation , recycling and disposal shift to the producers, from municipalities, by the government fixing an EPR fee per ton of waste stream , which the producers have to bear for each type of product waste stream that are covered under EPR.
- Under the EPR Policy each producer is also given an annual target by the government for collection, transport, and recycling/recovery which they must meet as a percentage of their waste generated based on their annual put on market quantity of their product.
How does it get implemented once the Policy is in place?
- Under the EPR scheme a PRO- Producer Responsible Organisation- will also be established under the government . The PRO will implement the EPR policy through the collection of the EPR fees from the producers and channelise the same to the collectors, transporters and recyclers (all of whom have to be registered with the PRO), to ensure the annual targets of recycling provided to each producer (as per the EPR guidelines set by the government), is met by them.
- The PRO who will be contracted by the “Producer”, will take the responsibility to implement the recycling target set for the producer against the costs for the same paid by the producer to the PRO (calculated as per the stipulated EPR fees/ton of their waste and the quantity of waste that needs to be recycled/recovered as per his mandated target),and provide the documentary evidence to the Producer of meeting their obligations for submission to the authorities as mandated by the Policy.
- Once EPR Policy is implemented, from an expected slow start, with lower percentage targets fixed initially for the producers on the quantity of their waste to be treated annually based on the existing market conditions, infrastructure available etc , it will be gradually increased over the years as the market matures based on the enhanced facilities for collection, transportation and treatment/recycling that will come up in the country due to this policy.
- As the market matures it also makes a major shift in the entire waste management cycle in country by reducing landfills and driving circularity. This is how major countries in Europe have reduced their wastes generation going to landfills and ensured the recovery and recycling of waste has grown many fold ,with countries like Germany also closing landfills since 2005.
- For e.g.: Germany as a country generates over 1.8 billion Euro every year as EPR fees from producers which gets channelised into the waste management sector which has ensured the waste management infrastructure and systems have been highly developed , and landfills closed with wastes completely diverted away from landfills for a circular reuse.
What is the cascading impact of an EPR Policy -when implemented?
- Once EPR is in place, it encourages Producers to factor in the environmental impact of their products at the design stage, or the purchasing stage for importers.
- This leads them to place on the market more durable products, repairable products, products that are easier to recycle, products devoid of hazardous substances where possible all of which would reduce their costs.
- It encourages producers to incentivise waste collection by DRS; takeback schemes through RVMs, dedicated collection points etc to ensure they meet their EPR targets provided by the government.
- The above incentives which could be monetary/discounts etc motivates Consumers who would also be encouraged to participate more in the waste sorting at source and recycle the wastes responsibly through these delivery options for their wastes. They would thus avoid littering and comply with the waste sorting guidelines.
- Many Consumers in the current generation who are more environment conscious, also factor in the environmental impact in their products purchasing decision and producers would be encouraged to highlight this aspect to increase their sales. They will also make available products that are still functionally available to other users through sale or donation.
- Retailers will find an interest in delivering additional services to their basic take back obligations: consolidation and transportation of waste, thus reducing collection costs for the PROs and eventually to the producers a lower EPR cost.
- Local authorities will find better participation and awareness of communities in implementing waste segregation at source and in providing information and education to their residents.
- Waste operators and recyclers will be willing to further invest in capacity and technology to face the demand arising out of the EPR framework.
- The availability of targeted finance made available through EPR fees for waste management leads to more investments in the sector and a better collection and recycling infrastructure developing in the country.
- It should be noted that the EPR fees is not a tax but a targeted fees exclusively for bringing in circularity into waste management sector.
- As the market grows due to EPR , it would also benefit the producers as they would get cheaper recycled materials which reduces their product costs . As the volumes of waste collection and treatment increases due to the EPR mandates, the EPR fees also would drop with costs amortised over large volumes of wastes collected and treated compared to the current fixed costs incurred for lesser volumes.
- It has been clearly observed in many countries where EPR has been implemented that EPR does not affect the consumers in any major way with the producers trying to transfer these costs to the consumer.
- Studies from the data from markets where EPR is implemented shows a very marginal impact on the prices to the consumers. Typically, the impact ranges from 0.01% to less than 1% maximum for daily use consumer goods, and for electronics waste alone (which is never a frequent purchase item for a customer unlike like consumer goods,)upto around 3.5%. This is a very small impact on the society to contribute to a sustainable consumption for the future.
- The end result of EPR policy will ensure over the years ,the waste is completely diverted away from landfills ,the waste management industry develops within the country and it creates more economic activity and job opportunities due to growth of the waste management sector.
What products can be covered under EPR?
- The following waste streams can be brought under the EPR Policy program
- Packaging- This includes paper, plastic, cans, glass , etc
- E waste- All types of electronic and electrical wastes
- Batteries- All types of batteries
- Tyres
- Garments/clothes
- Construction and demolition waste
- Pesticides
Where does UAE stand on EPR?
Currently in the UAE, the EPR policy is being developed at a Federal level for three streams- packaging, E waste and Batteries by the Ministry of Climate Change and Environment, supported by a consortium of Transeuro/LandBell/BlackForest Group -Germany as the consultants who bring in their global expertise on EPR .
It is expected to be implemented in 2026.
