Project/Presentation Name

Tendencias globales para Reducir, Reutilizar, Reciclar y REP - direcciones de laspolticas pblicas y respuesta de la industria2What this presentation will coverA little about Reclay StewardEdgeWhy waste management has become a global issueHow this is affecting government policy and legislationBrief summaries of key global examplesPerspective on the Chile law project

About Reclay GroupFounded in 2002Headquartered in Cologne, Germany280 employees worldwideTurnover: 170 Million EUR in 2012 (115 billion CLP)Since 2012 majority shareholder of Reclay StewardEdge, Toronto, CanadaSubsidiaries/offices in Austria, Czech Republic, Hungary, Poland, Slovakia, Slovenia, and Switzerland

3Our expertiseExtensive experience designing, implementing and operating recovery and recycling programs for used products and packaging. This includes: Designing effective policy frameworks reflecting local conditions Establishing mechanisms for effective implementation of packaging and product recycling programsPartnering with key stakeholders to successfully manage industry schemes from program design to material trading4ZimbabweZambiaYemenVietnamVenezuelaVanuatuUzbekistanUruguayUnited KingdomU.A.E.UkraineUgandaTurkmenistanTurkeyTunisiaTogoThailandTanzaniaTajikistanSyriaSwitz.SwedenSwazilandSurinameSudanSri LankaSpainSouth AfricaSomaliaSolomon IslandsSloveniaSlovakiaSierra LeoneSenegalSaudi ArabiaRwandaRussiaRomaniaQatarPortugalPolandPhilippinesPeruParaguayPapuaNew GuineaPanamaPakistanOmanNorwayNigeriaNigerNicaraguaNew ZealandNetherlandsNepalNamibiaMozambiqueMoroccoMongoliaMoldovaMexicoMauritaniaMaltaMaliMalaysiaMalawiMadagascarMacedoniaLux.LithuaniaLibyaLiberiaLesothoLebanonLatviaLaosKyrgyzstanKuwaitS. KoreaTaiwanN. KoreaKenyaKazakhstanJordanJapanJamaicaItalyIsraelIrelandIraqIranIndonesiaIndonesiaIndiaIcelandHungaryHondurasHaitiGuyanaGuinea-BissauGuineaGuatemalaGreenlandGreeceGhanaGermanyGeorgiaGambiaGabonFrench GuianaFranceFinlandFijiEthiopiaEstoniaEritreaEquatorial GuineaEl SalvadorEgyptEcuadorEast TimorDominican RepublicDijboutiDenmarkCzech Rep.CyprusCubaCotedIvoireCosta RicaCongoDem. Rep.CongoColombiaChinaChileChadCentralAfricanRepublicCape VerdeCameroonCambodiaBurundiBurmaBurkinaFasoBulgariaBruneiBrazilBotswanaBoliviaBhutanBeninBelizeBel.BelarusBangladeshBahamasAzerbaijanAustriaArmeniaArgentinaAngolaAlgeriaAlbaniaAfghanistanWestern SaharaBosnia &Herz.SerbiaMontenegroCroatiaAlaskaTexasUtahMontanaCaliforniaArizonaIdahoNevadaOregonIowaColoradoKansasWyomingNewMexicoMissouriMinnesotaNebraskaOklahomaSouthDakotaWashingtonArkansasNorthDakotaLouisianaHawaiiIllinoisOhioFloridaGeorgiaAlabamaWisconsinVirginiaIndianaMichiganMississippiKentuckyTennesseePennsylvaniaNorthCarolinaSouthCarolinaWestVirginiaNew JerseyMaineNewYorkVTMDNHCTDelawareMassachusettsRIUnited StatesCanadaYukonTerritoryNorthwestTerritoriesNunavutBritishColumbiaAlbertaSaskatchewanManitobaOntarioQuebecNewBrunswickNovaScotiaPrinceEdwardIslandNewfoundland& LabradorAustraliaSingapore?Reclay Group Consulting& Program Experience562 billion New Urban Residents by 2030, 3 Billion by 2050

Reference: World Urbanization Prospects, 2011 Revision (United Nations, 2012)67Cities 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, 201278Global Peak Waste Likely not Before 2100 -Enormous Growth is Coming

Reference: WHAT A WASTE: A GLOBAL REVIEW OF SOLID WASTE MANAGEMENT, World Bank, 20129Waste management costs are increasing

Biggest proportional increase in low (and low-middle) income nationsTotal now = $205 billionTotal in 2025 = $376 billion

Reference: WHAT A WASTE: A GLOBAL REVIEW OF SOLID WASTE MANAGEMENT, World Bank, 201210Waste management has become a global problem

Search for Global Solutions is onSix big ideas for accelerating reduction, reuse & recyclingPromote best practices Green taxes Tradable credits Collaborative consumption Circular economy Extended Producer Responsibility

Common objective to scale up perceived 3Rs best practices

11Access to goods and skills without ownershipCollaborative ConsumptionProduct-service systems for sharing or renting of a productRedistribution markets, which enable the sale and reuse of a productCollaborative lifestyles in which assets and skills can be shared

Lower costs, less waste, and community building

Credit: City of Melbourne12

Credit: City of Melbourne13

Credit: City of Melbourne14

Credit: City of Melbourne15Circular Economy Framework The Circular EconomyNatural EconomyClosed LoopResource EfficiencyIndustrial EcologyCradle-to-CradleEmbodies Different Sustainability Concepts & PhilosophiesThe Circular EconomyInformal SectorVoluntary Industry InitiativesLandfill BansEPRDeposit LawsEnables Different Tools & Mechanisms 161617The Circular Economy

Reference: Towards the Circular Economy McKinsey & Company for The Ellen MacArthur Foundation18Extended 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.

ZimbabweZambiaYemenVietnamVenezuelaVanuatuUzbekistanUruguayUnited KingdomU.A.E.UkraineUgandaTurkmenistanTurkeyTunisiaTogoThailandTanzaniaTajikistanSyriaSwitz.SwedenSwazilandSurinameSudanSri LankaSpainSouth AfricaSomaliaSolomon IslandsSloveniaSlovakiaSierra LeoneSenegalSaudi ArabiaRwandaRussiaRomaniaQatarPortugalPolandPhilippinesPeruParaguayPapuaNew GuineaPanamaPakistanOmanNorwayNigeriaNigerNicaraguaNew ZealandNetherlandsNepalNamibiaMozambiqueMoroccoMongoliaMoldovaMexicoMauritaniaMaltaMaliMalaysiaMalawiMadagascarMacedoniaLux.LithuaniaLibyaLiberiaLesothoLebanonLatviaLaosKyrgyzstanKuwaitS. KoreaTaiwanN. KoreaKenyaKazakhstanJordanJapanJamaicaItalyIsraelIrelandIraqIranIndonesiaIndonesiaIndiaIcelandHungaryHondurasHaitiGuyanaGuinea-BissauGuineaGuatemalaGreenlandGreeceGhanaGermanyGeorgiaGambiaGabonFrench GuianaFranceFinlandFijiEthiopiaEstoniaEritreaEquatorial GuineaEl SalvadorEgyptEcuadorEast TimorDominican RepublicDijboutiDenmarkCzech Rep.CyprusCubaCotedIvoireCosta RicaCongoDem. Rep.CongoColombiaChinaChileChadCentralAfricanRepublicCape VerdeCameroonCambodiaBurundiBurmaBurkinaFasoBulgariaBruneiBrazilBotswanaBoliviaBhutanBeninBelizeBel.BelarusBangladeshBahamasAzerbaijanAustriaArmeniaArgentinaAngolaAlgeriaAlbaniaAfghanistanWestern SaharaBosnia &Herz.SerbiaMontenegroCroatiaAlaskaTexasUtahMontanaCaliforniaArizonaIdahoNevadaOregonIowaColoradoKansasWyomingNewMexicoMissouriMinnesotaNebraskaOklahomaSouthDakotaWashingtonArkansasNorthDakotaLouisianaHawaiiIllinoisOhioFloridaGeorgiaAlabamaWisconsinVirginiaIndianaMichiganMississippiKentuckyTennesseePennsylvaniaNorthCarolinaSouthCarolinaWestVirginiaNew JerseyMaineNewYorkVTMDNHCTDelawareMassachusettsRIUnited StatesCanadaYukonTerritoryNorthwestTerritoriesNunavutBritishColumbiaAlbertaSaskatchewanManitobaOntarioQuebecNewBrunswickNovaScotiaPrinceEdwardIslandNewfoundland& LabradorAustraliaSingapore????VBeverage Container Deposit LegislationUsed Packaging Management Initiatives 1990No Waste Packaging or Product Stewardship Legislation

19 VVvZimbabweZambiaYemenVietnamVenezuelaVanuatuUzbekistanUruguayUnited KingdomU.A.E.UkraineUgandaTurkmenistanTurkeyTunisiaTogoThailandTanzaniaTajikistanSyriaSwitz.SwedenSwazilandSurinameSudanSri LankaSpainSouth AfricaSomaliaSolomon IslandsSloveniaSlovakiaSierra LeoneSenegalSaudi ArabiaRwandaRussiaRomaniaQatarPortugalPolandPhilippinesPeruParaguayPapuaNew GuineaPanamaPakistanOmanNorwayNigeriaNigerNicaraguaNew ZealandNetherlandsNepalNamibiaMozambiqueMoroccoMongoliaMoldovaMexicoMauritaniaMaltaMaliMalaysiaMalawiMadagascarMacedoniaLux.LithuaniaLibyaLiberiaLesothoLebanonLatviaLaosKyrgyzstanKuwaitS. KoreaTaiwanN. KoreaKenyaKazakhstanJordanJapanJamaicaItalyIsraelIrelandIraqIranIndonesiaIndonesiaIndiaIcelandHungaryHondurasHaitiGuyanaGuinea-BissauGuineaGuatemalaGreenlandGreeceGhanaGermanyGeorgiaGambiaGabonFrench GuianaFranceFinlandFijiEthiopiaEstoniaEritreaEquatorial GuineaEl SalvadorEgyptEcuadorEast TimorDominican RepublicDijboutiDenmarkCzech Rep.CyprusCubaCotedIvoireCosta RicaCongoDem. Rep.CongoColombiaChinaChileChadCentralAfricanRepublicCape VerdeCameroonCambodiaBurundiBurmaBurkinaFasoBulgariaBruneiBrazilBotswanaBoliviaBhutanBeninBelizeBel.BelarusBangladeshBahamasAzerbaijanAustriaArmeniaArgentinaAngolaAlgeriaAlbaniaAfghanistanWestern SaharaBosnia &Herz.SerbiaMontenegroCroatiaAlaskaTexasUtahMontanaCaliforniaArizonaIdahoNevadaOregonIowaColoradoKansasWyomingNewMexicoMissouriMinnesotaNebraskaOklahomaSouthDakotaWashingtonArkansasNorthDakotaLouisianaHawaiiIllinoisOhioFloridaGeorgiaAlabamaWisconsinVirginiaIndianaMichiganMississippiKentuckyTennesseePennsylvaniaNorthCarolinaSouthCarolinaWestVirginiaNew JerseyMaineNewYorkVTMDNHCTDelawareMassachusettsRIUnited StatesCanadaYukonTerritoryNorthwestTerritoriesNunavutBritishColumbiaAlbertaSaskatchewanManitobaOntarioQuebecNewBrunswickNovaScotiaPrinceEdwardIslandNewfoundland& LabradorAustraliaSingapore????VVVV VVUsed Packaging Management Initiatives2000Container Packaging Taxes Beverage Container Deposit LegislationPackaging Waste Legislation & Product Stewardship in PlaceIndustry-led Voluntary Recycling20ZimbabweZambiaYemenVietnamVenezuelaVanuatuUzbekistanUruguayUnited KingdomU.A.E.UkraineUgandaTurkmenistanTurkeyTunisiaTogoThailandTanzaniaTajikistanSyriaSwitz.SwedenSwazilandSurinameSudanSri LankaSpainSouth AfricaSomaliaSolomon IslandsSloveniaSlovakiaSierra LeoneSenegalSaudi ArabiaRwandaRussiaRomaniaQatarPortugalPolandPhilippinesPeruParaguayPapuaNew GuineaPanamaPakistanOmanNorwayNigeriaNigerNicaraguaNew ZealandNetherlandsNepalNamibiaMozambiqueMoroccoMongoliaMoldovaMexicoMauritaniaMaltaMaliMalaysiaMalawiMadagascarMacedoniaLux.LithuaniaLibyaLiberiaLesothoLebanonLatviaLaosKyrgyzstanKuwaitS. KoreaTaiwanN. KoreaKenyaKazakhstanJordanJapanJamaicaItalyIsraelIrelandIraqIranIndonesiaIndonesiaIndiaIcelandHungaryHondurasHaitiGuyanaGuinea-BissauGuineaGuatemalaGreenlandGreeceGhanaGermanyGeorgiaGambiaGabonFrench GuianaFranceFinlandFijiEthiopiaEstoniaEritreaEquatorial GuineaEl SalvadorEgyptEcuadorEast TimorDominican RepublicDijboutiDenmarkCzech Rep.CyprusCubaCotedIvoireCosta RicaCongoDem. Rep.CongoColombiaChinaChileChadCentralAfricanRepublicCape VerdeCameroonCambodiaBurundiBurmaBurkinaFasoBulgariaBruneiBrazilBotswanaBoliviaBhutanBeninBelizeBel.BelarusBangladeshBahamasAzerbaijanAustriaArmeniaArgentinaAngolaAlgeriaAlbaniaAfghanistanWestern SaharaBosnia &Herz.SerbiaMontenegroCroatiaAlaskaTexasUtahMontanaCaliforniaArizonaIdahoNevadaOregonIowaColoradoKansasWyomingNewMexicoMissouriMinnesotaNebraskaOklahomaSouthDakotaWashingtonArkansasNorthDakotaLouisianaHawaiiIllinoisOhioFloridaGeorgiaAlabamaWisconsinVirginiaIndianaMichiganMississippiKentuckyTennesseePennsylvaniaNorthCarolinaSouthCarolinaWestVirginiaNew JerseyMaineNewYorkVTMDNHCTDelawareMassachusettsRIUnited StatesCanadaYukonTerritoryNorthwestTerritoriesNunavutBritishColumbiaAlbertaSaskatchewanManitobaOntarioQuebecNewBrunswickNovaScotiaPrinceEdwardIslandNewfoundland& LabradorAustraliaSingapore????VUsed Packaging Management Initiatives2013Proposed/ExpectedPackaging Waste Legislation & Product Stewardship in Place21

Country Performance: Overall Recycling Quotas in 2009(%) 22Typical Recycling Model Operated in Europe

23EMPRESASAportan una cuota segnlos envases que ponganen el mercadoEn CC.AA. donde est autorizado el SIG El SIG paga el coste adicional de la recogida selectiva y apoya las acciones de sensibilizacin hacia los ciudadanosCC.AA.Convenios MarcoENTIDADES LOCALESConvenios de ColaboracinLas entidades locales pueden adherirse a los Convenios Marco firmados con CC.AA.Convenio directoLos ciudadanos separan en elhogar y depositan los residuosen contenedores especficosRecogida selectivaA cargo de las entidadeslocalesPlanta de seleccinpor tipo de materialValorizacinenergticaRecicladoNuevos envasesy/o productos123567

4Rechazo

Recauda Y AdministraS I G

Funcionamiento del Sistema Integrados de Gestin (SIG)

white-washed symbols = program proposed or under consideration

full-colour symbols = program in place or pending

see inset

2012 Status25EPR Programs in Canada26Case Study Ontario 900,000 square kms.12.7M population4.4M households500 municipalitiesOrganized into 120 regional recycling programs95% of single family homes with recycling services~25% of multi-family units served

27Ontarios Blue Box Program Plan (BBPP)Brand Owners & first importers are producersProducers fund 50% approved net cost of municipal residential Blue Box programsShared responsibility approachBlue Box Waste defined as: Glass, metal, paper, plastic & textiles or any combination of aboveProducers report on and pay for amount & type of printed paper & packaging they supply into the market

28Total Responsabilidad del Sector PblicoTotal Responsabilidad del Sector PrivadoResponsabilidad CompartidaManejo EstatalFinanciado a traves de impuestosServicio pblicoManejo privadoFinanciado a traves de aportes de los productoresSistema independiente

Manejo compartidoFinanciacin publico-privadaAccin conjunta municipalidades- sector privado

Sistemas de Gestin de Envases Post-ConsumoFull public sector responsibility: Managed by the state or municipalitiesFinanced through taxesPublic servicesUnder this approach the government itself or through tender processes it hires private companies to operate the system.

Shared responsibility: Shared managementPublic-Private FinancingMutual initiative: Government & private sectorUnder this approach the producers cover a portion of the cost of separate (or selective) collection of used packaging with the remainder usually covered by local authorities. This approach reflects the fact that local authorities have historically controlled waste collection, processing and disposal infrastructure (trucks, sorting and handling equipment, and disposal facilities, etc.) required to operate household waste management and recycling programs. The involvement of producers in collection system design and operation may be limited, and producers may or may not have direct responsibility for the collected material. Canada local authorities still collect and market the collected material. France and Portugal Industry directly involved in the form of take-back guarantees.

Full producer responsibility: Private managementFinanced through producers contributions (fees)Independent systemUnder this approach the producers cover the full cost of separate (or selective) collection of used packaging. How this responsibility is exercised varies from country to country. Industry may be required to pay 100% of local authorities costs for operation used packaging collection schemes, or it may also be required to take full legal and operational responsibility for organising and operating/managing the packaging collection scheme.

2829Total Responsabilidad del Sector PblicoTotal Responsabilidad del Sector PrivadoResponsabilidad Compartida

Sistemas de Gestin de Envases Post-ConsumoConsumidor paga y el gobierno maneja el sistemaNo incentivos para mejorar caracteristicas del envase por parte del productorProductor paga y es responsible de la operacin del sistemaEl productor esta motivado en realizar mejoras en el empaque usado

El productor paga parte del costo total del sistemaEl productor y el consumidor/gobierno local tienenen el incentivo de mejorar la eficiencia del programa de reciclajeFull public sector responsibility: Consumer pays and the government manages the systemThere are no direct financial incentives to improve the type of packaging being used by the producer.

Shared responsibility: The producer pays for part of the total system cost and responsibility is shared with local governmentsThe producer and the consumer/local government have an incentive to improve the efficiency or recycling programs

Full private sector responsibility: The producer has full financial and operational responsibility for the operation of the recycling systemThe producer has a direct financial incentive to improve the recyclability of the packaging to reduce end of life management costs

29

The Essence of EPRInternalizing CostsProducer ManagementLevel Playing FieldRegulatory Oversight 303031What are the Key Drivers of EPR?EPR a reflection of broader transition underwayQuantifying environmental impactsInternalizing these costs to producers & users Driven by converging forcesGovernment systemic financial stressCommercial pressures for greater transparency along the supply chainSecuring supplies of key strategic materialsPolicy innovation & adoption across the OECDRecognition that cradle-to-cradle management essential to sustainabilitySocial license to grow

La Importancia de los Recolectores de BaseA nivel mundial millones de recolectores de base retiran manualmente material reciclable destinado a rellenos:

India: 1.5 millones (2010), en su mayora mujeres y grupos marginadosColombia: 18,000 (?) recicladoresUruguay: 15,000 clasificadoresArgentina: 42,000 cartonerosBrasil: 229,000 catadores

Realizan la separacin del material reciclado que es vendido en los mercados globalesCon frecuencia trabajan en condiciones de riesgo32The Essential Role of Waste PickersWorldwide, millions of waste pickers manually remove recyclable items from landfills:India: 1.5 million (2010), mostly women and marginalized groupsColombia: 18,000 recicladoresUruguay: 15,000 clasificadoresArgentina: 42,000 cartonerosBrazil: 229,000 catadoresProvide essential separation of valuable recyclable materials sold into global marketsOften working under hazardous conditions

3233Puede sentirse orgulloso de esta cadena de valor?

Is This A Supply Chain to be Proud of?

33El Reto: Integracin de los Recolectores de Base a la Economa Formal

AntesDespus

34The Challenge: Integration into Formal Economy

34Will 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? 3536Can Chile de-link economic growth & waste?

Reference: WHAT A WASTE: A GLOBAL REVIEW OF SOLID WASTE MANAGEMENT, World Bank, 2012Thank you

Derek Stephenson Presidentdstephenson@reclaystewardedge.comTel: 416.594.3459