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Packaging waste Extended Producer Responsibilty (EPR) systems emerging all over the world.

ISWA/RDN/EXPRA workshop Promote waste collection in priority countries The example of MEXICO Dr. Philippe Diercxsens – Danone Waters. Packaging waste Extended Producer Responsibilty (EPR) systems emerging all over the world.

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Packaging waste Extended Producer Responsibilty (EPR) systems emerging all over the world.

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  1. ISWA/RDN/EXPRA workshopPromotewaste collection in priority countriesThe example of MEXICODr. Philippe Diercxsens – Danone Waters

  2. Packaging waste Extended Producer Responsibilty (EPR) systems emerging all over the world. Multiple and competitive EPR systems in placewithfinancial contribution fromindustry. Municipal waste management system emergingwith possible financial contribution fromindustry. Whatever the system, no financial contributionfrom industry up to date. Single,mostlyindustryowned, EPR system in placewithfinancial contribution fromindustry.

  3. Danone EcosystemFund http://ecosysteme.danone.com/

  4. Danone EcosystemFund : Mission & scope • The Fund is intended to strengthen and develop the activities of the partners who make up Danone’s ecosystem: farmers, suppliers and subcontractors, transport and logistics operators, distributors, territories & local authorities…. • The Fund can carry out actions in the following areas: • EMPLOYMENT • Aid to the strengthening of economic activities to create jobs. • SKILLS & EMPLOYABILITY • Support to the development of skills and integration actions, in particular through training. • MICRO-ENTREPRENEURSHIP • Aid to the set-up of economic activities and entrepreneurial projects to create jobs and support to the development of small and medium-sized companies

  5. RECYCLING CONTEXT IN MEXICO EXTREMELY COMPLEX ENVIRONMENT MUNICIPAL SOLID WASTE • 102 K tons municipal solid waste daily • 260 landfills • 61% “landfills” • 8.5% controlled fields • 26% unregulated • 4.5% recovery recyclables Source: SEMARNAT2012/PASA /Mundo Sustentable

  6. Introducing “Pepenadores” • Responsible for 90% of Mexican recycling ! • Very low efficiency due to very hard conditions • Social exploitation & poor life conditions (220USD / month average)

  7. The way they used to work…

  8. The way they work today…

  9. Mexican “Pepenadores”

  10. Who are the waste pickers of the Mexicali project?

  11. Mexicali is a project of social innovation in the waste picking sector • Increase rPET in bottles • Contribute to higher quality and quantity of recycling • Ensure access to rPET at a stable price • Acquire new business knowledge Objectives Context • Brand Bonafont (Mexico) is leader on the national market. • Waste and recycling flow relies mainly on an informal population. • Projects with landfill waste pickers (pepenadores) in Mexico • Environmental • Economic • Social • Political • New way of doing business (reputation) • Governance based on co-management • Income increase through higher productivity and « fair » price for waste pickers • Better working and living conditions

  12. STRONG NEED FOR MORE RPET Our vision is to keep on raising rPET levels Lack of offer & “rPET war” in Mexico 2014:30% to 50% 65% of recovered PET goes to China 2008:0% Rpet

  13. MEXICAN RECYCLING LIMITS % OF RECYCLING PERTYPE OF WASTE 4.5% GETS RECYCLED ….90% BY PEPENADORES MexicanConsumers RecycledBottles GarbageCollector • Strong Bottleneck + Social exploitation ! • Union Corrupt leaders $$ • Unaccounted • Not regulated • Lack of integration Rpetproductor Workers“Pepenadores” PlasticBuyer Source: SEMARNAT2012

  14. MEXICO LAGGING BEHIND IN THE INCLUSION OF INFORMAL SECTOR IN THE RECYCLING CHAIN MARKET Analysis of the relationships of the formal recycling system to see if there is space in the value chain for the informal one(1/3) NORMATIVE Analysis of level of government knowledge of the problem and willingness to solve it(0,75/3) ORGANIZATIONAL Analysis of the social dimension /associative and dynamism of the civil society (0,5/3) Source: Accenture / IDB Caracterization of informal recycling (October 2013)

  15. Project idea: improving recycling flow BEFORE 35km Landfill Recollection firm Final Buyer Intermediate Buyer Pepenadores

  16. Project idea: improving recycling flow TODAY • + 5km Segregation Plant Recollection firm Landfill Final Buyer

  17. PROJECT RECAP AFTER A BUMPY ROAD … BRIGHT PROSPECTS AHEAD 2010 2011 2012 2013 OUT ALEJANDRO! LET US WORK! • March :Union goes on a strike • Empowered pepenadores form new group • S2 bales homologation & go live recycling • Planning phase II • First SIC presentation • Bonafont searches for partners & places. • Guadalajara best alternative • Corrupt leaders not an option • Mexicali is chosen • MS starts with talks with pepenadores & live tests • Base line study • Construction starts • First trainings & health brigades in landfill • SP opening June • Seaurs leaves- PASA takes recycling operation • Libres form AC

  18. Who are the waste pickers of the Mexicali project?

  19. PEPENADORES UPDATE Recycling

  20. The way they work today…

  21. Future: • Partnershipswitheconomicoperators, local governmentsand communitiesin other LATAM and ASIA countries : • Argentina • Brazil • Uruguay • Indonesia • Partnershipswithother FMCG companieswithin the Consumer Goods Forum (CGF)http://www.theconsumergoodsforum.com/

  22. Thankyou Dr. Philippe Diercxsens Philippe.diercxsens@danone.com

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