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ImprovementofExtendedProducerResponsibility(EPR)crucialforcirculareconomyBerlin/TheHague,revisedversiond.d.December2017Ecopreneur.euanditsmemberorganizationsbelievethatExtendedProducerResponsibility(EPR)iscrucialforrealizingthecirculareconomy.AsstatedinourgeneralpositionontheEUCircularEconomyPackage(CEP)d.d.2December2015,weaskforambitiousimplementationofthecurrentproposalfromtheEuropeanCommission,includingambitiousgoalsalongthefullcircle,economicincentivesforproducersandconsumersfavouringcircularproductsandservices,mandatoryGreenPublicProcurementwithintegrationofcircularity,anEUDirectiveforcirculardesign,andattractiveresearchprograms.WithrespecttoEPR,weareverygladthatitisincorporatedintheCEP.WhatweaskforisimprovementandextensionofexistingEPRschemestoincentivizecompaniestoimplementcircularbusinessmodels.UnderEPR,manufacturersshouldreceiveeconomicincentivesforcirculardesignconsiderationsfacilitatingcircularbusinessmodelssuchasperformancebasedcontracting,maintenance,reuse,recycling,cradle-to-cradle,sharingplatforms,3Dprintinganddigitisation.Inparticular,wewelcomeanylevyschemethatcanhelpmakeclean(nontoxic)secondaryrawmaterialsmorecompetitive.Intheviewofthesustainablepioneersinourmembership,inordertoensureaneffectiveapproach,itisessentialthatthefollowingrequirementsaremet:1. EnforcementofexistingwasteregulationsinrelationtoEPRschemes.Currently,

companiespayalevytoaProducerResponsibilityOrganization(PRO)underEPRschemeswithoutanyguaranteethatthematerialsintheirproductswillre-entertheEUeconomy.Activeenforcementofwasteregulationsisnecessarytopreventfraud,includingillegalwasteshipmentsoutsidetheEU.Ifthisconditionisnotmet,companieswilldislikeEPRschemestosuchanextentthatEPRwillbeineffectivetodrivecircularinnovation.ClearprovisionsformarketsurveillanceshallbedefinedandimplementedatmemberstateandatEUlevel.

2. Differentiationofleviesdowntoproductandcompanylevelisneededtoincentivizecompaniestoimplementcircularbusinessmodels.Ifnot,pioneeringcompanieswillpayforthewasteproducedbythelaggards.Inaddition,asubstantialdifferentiationisneededtomaketheschemetrulyrewardingforpioneers.Existingthirdpartycertifiedtakebackschemesshallbetakenintoaccountforfeemodulationorexemptions.Finally,regulationsshouldallowforthecoexistenceofindividualtake-backandrecyclingschemesbesidescollectiveEPRschemes,withcompaniesmanagingindividualschemesbenefitingfromEPRfundingmechanismsatanequalbasis-providedthattheyreportoncollectionandtreatmentandhavesetobjectivesfortheresults.

3. EnsurethatharmonizedcriteriaareestablishedandappliedconsistentlyacrosstheEU,includingcalculationschemesfortheheightoflevies.Scopes,feesandcalculationmodes(e.g.forpackagingandWasteofElectricandElectronicEquipment)oftenvaryfromone

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countrytoanother,inmanycaseswithoutinformationonthefeecalculation.Thecriteriashouldbeabletodeterminewhichproductorserviceis(more)circular.

4. ExtendEPRschemestocovermoreandmoreproductsandsectors,startingwiththeonesproducingthemostwasteandlitter.WhileEPRshouldbepartofapolicymixincludingVATdifferentiationandcirculardesignrequirementsinEcodesign,itisanecessaryelementformainstreamingcirculareconomyinallproductsandsectors.Forproductswithaverylonglifespan,suchasinthebuildingsector,afirststepcouldbetheintroductionofabuildingpassporttoallowfutureidentificationofmaterials,partsandproducts.

5. MandatoryinvestmentoftheEPRfundsinthecirculareconomy.EachPROshouldensurefundsareallocatedproperlyandsupportresearchoneco-design,recyclingandinfrastructuredevelopment.ThegovernmentshouldoverseeandenforcethatPROsactuallydoso.Onewaytofinanceinnovativesolutionsforcollection,reuseandrecycling,wouldbetointroduceabonus/malussystemwherebycompaniescanreceiveabonusforproductsandserviceswhicharemorecircular,whilecompanieswithlinearproductsandservicespayalevy.

6. Additionaladministrativeburdensshouldbeminimised,specificallyforSMEs.However,wedoacceptadditionalobligationstoincreasetransparencyabouttheproductcontentandwastemanagementcoststotheuser/consumer,suchastovisiblydisplayfeesoninvoicesoratpointofsale.

7. Producer’sfinancialcontributionsshouldbeprimarilybasedontherealcostsoftreatment,butmodulatedfeesmayinvolveotherconsiderationssuchasecodesigntoreducetheimpactofwasteintheenvironment,includinglitter,whichisunjustlyignoredbymostEPRschemes.Inallcasesthefeesshouldbetransparent,consistent(seealsopoint8)andeasilyexplainedtoconsumers.Sustainablemanufacturersinourmembershiparekeentoworkinpartnershipwithpolicymakersinthedevelopmentoftheseprovisions.

8. Foreachproductandsector,itisimportantthatcriteriaunderlyingfeemodulationsareconsistentwiththerelevantrecognizedenvironmentalproductlabelsandcertificationschemes,bothintechnicalcontentandrequireddocumentation.Allcriteriamustbebasedonatransparentprocessandrobustdata.Environmentalwasterisk,impactassessmentandfutureresourcescarcityassessmentsneedtobegoodpracticefortheestablishmentofsuchcriteria.

9. Proposalsshouldhelptoboostecodesignandmarketsforsecondaryrawmaterials,includingthepreventionofwastebeforemanagement,demandingdesignforrecycling,andimprovinggreenpublicprocurement.Examplesexistfore.g.recycledplasticpackaging.Secondarymaterialsmustbeabletocompetewithvirginmaterialonquality(alsointhecontextofREACHandClassification,LabellingandPackagingregulation)andprice.Itisimportanttoprovideincentivesformanufacturerstoincreaseuseofrecycled

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materialsinproductsinordertoincreasemarketdemandanddrivetowardamorecirculareconomy.Itisalsonecessarytoincentivisetheproducersofsecondaryrawmaterialstoprovidehigherqualityandquantityofsecondaryrawmaterials.Inaddition,internationalqualitystandardsforsecondarymaterialsshouldbeestablishedtoencourageglobalharmonization.

10. InitiateresearchonimprovingEPR,includingespeciallythecalculationofmodulatedfeesforecodesignconsiderations.Also,inthecontextofcirculareconomybeyondEPR,stepupresearchonaproduct-basedmaterialsinformationsystemasatoolfortransparency(productpassports)andonataxshiftaspromotedbyEx’Tax.Sofar,Horizon2020callsandmemberstatesresearchpolicieshaveinsufficientlysupportedthistypeofresearch,eventhoughitliesattheheartofthecirculareconomy.

AboutEcopreneur.euEcopreneur.euistheEuropeanSustainableBusinessFederationof7nationalassociationswhosecommonaimisaneweconomicframeworkinwhichsustainabilityispromoted,theenvironmentrespectedandecologicalprinciplesarefollowed.Ecopreneur.eurepresentsover2500sustainablecompanies-mostlySMEs.