Written by the team at Covanta, a PSI Partner, this blog examines a concept foundational to EPR: The transition from a “linear” to a “circular” economy. Covanta recently published an article to help businesses move up the waste hierarchy.
In a linear economy, raw materials are turned into products that are then sold to consumers who hold the responsibility for disposal. And then the process repeats. This is sometimes called the “Take-Make-Waste” model. Take materials from the ground. Make products from them. And then eventually, products are discarded.
The problem with a linear economy, according to the World Wildlife Fund’s position paper is that it is unsustainable: 50% of all greenhouse gas emissions worldwide are caused by the extraction of raw materials.
In contrast, according to the Ellen MacArthur Foundation, a circular economy is based on the elimination of waste and pollution, the circulation of products and materials, and the regeneration of nature: “It is underpinned by a transition to renewable energy and materials. A circular economy decouples economic activity from the consumption of finite resources. It is a resilient system that is good for business, people and the environment.”
So, how exactly does EPR fit into that definition?
The Elimination of Waste and Pollution
The primary concern of EPR is to help eliminate, or at the very least curb, waste and pollution. Much of today’s waste comes in the form of packaging designed with the single objective of getting a product into consumers’ hands. Instead, companies must seek out alternative approaches when designing the product packaging that solve for form and function, and potential reuse, as well. EPR is meant to incentivize such a shift.
The Circulation of Products and Materials
Utilizing products and their materials to their fullest at every lifecycle stage is the essence of the circular economy concept. A key aim of EPR is to extend the natural life of products and even create new avenues of value through intelligent design, allowing them to be repurposed, their salvageable parts to be resold, or their components to be recycled into new products or, as a very last resort, processed into recoverable energy.
The Regeneration of Nature
The ultimate goal of a circular economy is improving our natural environment and society’s relationship with it. The key to this pillar of a circular economy is a change in perspective. Instead of looking to do less damage to the environment, society should be seeking to actively improve the environment and prosper alongside it.
As it relates to EPR, this means designing products to be synergistic with the environment instead of simply “inoffensive” to it, so that when they do reenter ecosystems, they go beyond reducing pollution or conserving resources to reinvigorating natural cycles. A good example of what this may look like is designing fertilizers and pesticides to be less synthetic, but to also renew soil nutrients that will in turn help the carbon cycle and climate.
The Current State of EPR
EPR is a complex solution to a complex problem. In an effort to make the seemingly challenging shift toward its policies more appealing for companies, a number of European countries have employed programs in which the state provides incentives for businesses to proactively alter their production models. Germany, who embraced the strategy in 1991, saw packaging decrease by more than 13% in the first seven years. In 2009, Canada launched a nationwide EPR plan called the Canada-wide Action Plan for Extended Producer Responsibility (CAP-EPR) which has been enforced by nine of Canada’s 10 provinces. In the United States, California just enacted its 11th EPR law — for electronics. The European Union has set an ambitious target for deploying EPR. By 2024, all packaging in EU countries must be recyclable with a goal of, by 2030, having 75% of all packaging waste recycled.
Meeting EPR Head-On
Responding to EPR requires businesses to examine their entire manufacturing and marketing processes and identify practical ways in which they can re-tool to fit into a more circular economy—especially as public opinion and legislation bear down on them more aggressively. They must examine the whole of their production cycle to identify and act on ways to mitigate potential liabilities; capitalize on Environmental, Social and Governance (ESG) goals and shift toward systems—and ways of thinking—that prioritize strategic resource use, intelligent product design and responsible operational execution.
To see how stronger recycling efforts can help companies overcome the challenges of EPR, download Covanta’s recent article.