Regulating Packaging * The Asia-Pacific Region * The Lessons to be Learnt

1. Regulating Packaging* The Asia-Pacific Region* The Lessons to be Learnt Gavin Williams Chief Executive Officer Packaging Council of Australia EFPA/ FPI Washington, DC Friday, 6 May 2005

2. The Issues • Australia - Another Packaging Covenant? • New Zealand - The Packaging Accord. • Asia - A mix of policy responses: • Increasing focus on regulation in some countries: • Japan, ROK, Taiwan - Comprehensive environmental legislation - framework for producer responsibility measures. • China - Packaging not the major environmental priority; measures to promote the “polluter pays” principle, encourage recycling, reusable products and green procurement. • In same countries little or no emphasis on packaging: • South East Asia - Environmental issues not yet a major priority. • Less Developed Countries - Myanmar, Laos, Cambodia, Indonesia - Packaging not widely perceived as a problem.

3. Australia • Packaging - Not yet highly regulated. No bans. CDL in one State. • The First Covenant - Co-regulatory. Based on product stewardship. No targets. Over 600 signatories. Two-tiers : • Voluntary - Signing onto the Covenant. • Regulatory - Focus on brandowners - “takeback” provisions. • The Policy Mix - Voluntary, Regulatory, Co-regulatory - what works? • A 2nd Covenant - Decision in July. Ministers now want targets: • Reduction in total amounts of packaging to landfill. • Increase in amount of packaging recycled. • Increased use of recycled packaging. • Reductions in use of non-recyclable packaging. • Improved company performance. • Targets - Raises some interesting issues: • What targets are appropriate? Overall? Material specific? • Achievable, “stretch” or “politically driven” targets? • The imports issue - Competitiveness aspects.

4. Australia...Likely Outcome • Another Covenant - Governments still prefer to avoid the regulatory (European) route. But… • …the next Covenant will be more onerous. Greater emphasis on measurement, KPI’s, outcomes, continuous improvement. • A second Covenant - The consequences of failure -» regulation.

5. New Zealand • The Packaging Accord - Signed in August 2004. Expires in 2009. Over 200 signatories. • A government/industry partnership: • The Accord is voluntary - If it fails, regulation threatened. • Sector Action Plans - Nine sector groups (including glass, steel, aluminium, paper, plastic, brandowners, retailers, operators, government). • Sector Groups - Action Plans to improve packaging sustainability. • Recovery targets have been set for 2008: • 65% of aluminium • 70% of paper • 23% of plastic • 55% of glass • 43% of steel • Brandowners and retailers are working to reduce the number of plastic checkout bags used.

6. Asia…Japan Key Countries: • Japan - Various recycling laws: • 1 April 1997 - Glass & PET bottles have to be separately collected and recycled. • April 2000 - Non PET plastics & paper packaging have to be separately collected and recycled. • Obligated companies are fillers & packaging manufacturers: • Retailers obligated for private labels. • Importers have same obligation as fillers/manufacturers. • Obligations being extended. • Japan Container & Package Recycling Association (JCPRA) - Companies can transfer their obligation to a third party: • Most users/producers of non-refillable glass, plastic or paper containers have little choice but to conclude agreement.

7. Asia...Republic of Korea • Extended Producer Responsibility System (EPRS) - Applies to packaging and selected products (batteries, tyres, electronic equipment etc). • Paper, metal, glass and plastic packaging - Subject to the EPRS if used for any of the following consumer products: foodstuffs, beverages, detergents, personal care (excluding glass packaging), pharmaceuticals, butane gas, insecticides, electrical & electronic equipment. • March 2003 - Voluntary agreement with fast food restaurants to reduce waste by charging deposits for disposable plastic containers. Further changes imminent. • Environmentally Friendly Product Purchase Promotion Act - In preparation since June 2004. All government bodies will be required to purchase “environmentally-friendly” products.

8. Asia...China • Amended Solid Waste Law 2004: • Introduces the “polluter - pays - principle and encourages recyclable and reusable products. • Packaging - Must follow Cleaner Production regulations or. • Imports of wastes that cannot be reused or recycled are prohibited. • Bans - Single-use foam containers for food. • Standard being drafted. • Outlook: • Water and air quality are the priorities. • Waste Management - Focus on ensuring that by 2010 all cities are equipped with controlled landfill to incineration units. • Government co-ordination remains ineffective.

9. Asia...Taiwan • Producer Responsibility: • Resources Recycling and Reuse Act (2002) introduces recycling and reuse measures. • Requires the EPA to limit/prohibit the use of packaging which does not comply. • Enables EPA to require companies to improve their packaging with regard to space ratio, layers, materials. • Requires companies to use materials that facilitate recycling and use refillable containers for a % of their products and reuse an amount of recycled material. • Plastic Shopping Bags - Prohibited if less than 0.6mm thick. • Regulation on Excessive Packaging - Drafted and likely to be implemented in 2006.

10. Asia...Other Countries • Bangladesh - Ban on polyethylene shopping bags in Dhaka. • Hong Kong - Studying producer responsibility schemes for beverage containers. • India - Ban on plastic carry bags of certain type & size. • Extended in New Delhi. • Indonesia- No specific environment related packaging reg. • Malaysia - Shortage of landfill. Impetus to establish a national packaging waste management policy. Poor co-ordination. • Singapore - Voluntary schemes to encourage recycling: collection rate targets for private apartments, bottle return schemes. • Thailand - No specific regulations…laws drafted for a tax on packaging…difficult to implement…voluntary measures for now.

11. The Lessons to be learnt • Industry Unity - Essential -“Disunity is death”. Retailers a key. • The Policy Mix - Choices - Voluntary agreements - Can they work? Is there sufficient industry unity? Is all regulation bad? • Industry MUST be involved in the public debate: • NOT just associations but also companies (at CEO level). • Too many companies use Associations as a “shield”. • Company CEO’s are politically influential - use them! • Policy Formulation: • “In the tent” not “outside the tent” - participate and lead. • Membership diversity must not be allowed to “cripple” Assoc. • Commitment to achieving outcomes - not just “blocking”. • Broaden negotiations beyond environmental agencies. • Challenge the notion that EU policy is “best practice”.

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