What's in a Policy?

Key Considerations for a Future Producer Responsibility Policy

By Garth T. Hickle

As the chain of commerce becomes more globalized, the concern regarding the environmental impacts of goods and services is becoming more prominent. Policymakers are turning an eye towards the manufacturers of these products as responsible for reducing the impacts of these products throughout the product's life.

The movement for producer responsibility, while well established in the European Union, is gaining traction in Asia, Latin America, and North America. Packaging, along with electronics, batteries, and other products with toxic and hazardous constituents are most often targeted for producer responsibly measures. The intent of these efforts is to support the internalization of the environmental costs of the product while simultaneously relieving government of the sole responsibility for financing collection and recycling of discarded products.

However, while the concept of producer responsibility may at first blush seem to be a relatively simple proposition; it requires careful consideration of several key issues. Responsibility for some may mean to simply require manufacturers to take back their products, while to others the responsibility could go much deeper. The following list identifies components of producer responsibility, but it does not represent an exhaustive catalogue of strategic considerations during policy development.

Financing: A particular producer responsibility program is often defined by the type of financing mechanism that is in place to fund the collection and recycling of products. Generally, the packaging programs in place globally rely on fees that are assessed on producers and importers who place packages on the market.

Goals: Quantified performance goals, often referred to as "rates and dates," constitute a critical element of a producer responsibility approach. In the packaging regulations around the globe, specific recovery and recycling rates exist for particular materials such as glass and plastic.

Level-Playing Field: For both producers and responsible manufacturers, the policy provisions to ensure a level playing field and compel participation is critical to the success of the program. While stewardship organizations serve a valuable role in easing the path towards meeting obligations for industry, they are not well positioned to compel manufacturer compliance with regulations. That responsibility clearly falls within the purview of government. Regulations may require a stewardship plan submittal that outlines the compliance strategy or may institute a "do not sell" requirement that effectively prohibits the sale of products by non-compliant companies.

Individual vs. Collective Responsibility: Many of the global stewardship programs permit manufacturers to fulfill their obligations either by operating their own collection and recycling programs or by participating in an industry-managed organization that works on behalf of a group of manufacturers.

Design for the Environment: While design for the environment strategies such as reduction of toxic components, design for disassembly and recycling, or utilization of bio-based materials are encouraged by shifting the financial responsibility to manufacturers, specific requirements stipulating design requirements are often included in producer responsibility policies.

The Role of Government: It is inherent in producer responsibility that manufacturers expand their environmental footprint analysis to assume responsibility for products at the end of life. The role of government in these programs remains varied and is often dependent upon the existing collection and recycling infrastructure. In Ontario and Quebec, for instance, producers and local government each assume a 50% share of the municipal recycling programs, thus maintaining local government participation in what has traditionally been a government service.

As producer responsibility is embraced by policymakers for environmental and financial reasons and by industries for strategic marketing advantage, it will be incumbent upon all parties to promote harmonization of regulations to reduce compliance costs and achieve greater system efficiencies. This is starting to occur with global product standards and evaluation tools to specify green products and producer responsibility policies that assign end-of-life management responsibilities, and these represent the next frontier for global harmonization.

Garth T. Hickle is the Product Stewardship Team Leader for the Minnesota Pollution Control Agency, and faculty for Minneapolis College of Art and Design's groundbreaking Sustainable Design Certificate Program (www.online.mcad.edu).