Module 2: EPR Framework and components of plastic packaging waste recycling in Korea and the Philippines: potential gaps and suggestions Yong-Chul Jang, Ph.D. & Prof. Chungnam National University Kyonggi University 1 Overview 1. Developing and managing solid waste management information database (Planning and Management Information Systems) 2. Data required for recycling target setting in EPR system 3. Types of targets/obligations and their calculations 4. Processes, data collection mechanisms, and arrangements for target setting 5. Determination of product types covered by EPR • Workshop: Potential data gaps for PH 2 Learning objectives 1. How to set up data information database for the EPR system in Korea? 2. What data are required for recycling target setting in EPR system? 3. How to determine types of mandatory recycling target items for producers? How to determine their recycling target calculations? 4. How to collect data collection mechanisms, and arrangements for target setting? 5. What are the potentials data gaps in the PH to implement EPR system? 6. How to set up data information system of EPR in the PH? 3 1. Developing and managing solid waste management information database (Planning and Management Information Systems) ① ② ③ ④ ⑥ ⑤ ⑤ 4 [Figure] Implementation and structure of EPR for plastic packaging management in Korea 1. Developing and managing solid waste management information database (Planning and Management Information Systems) EPR Support system [Figure] Source separation, sorting, recycling of plastic packaging by EPR in Korea 5 1. Developing and managing solid waste management information database (Planning and Management Information Systems) ① Korea Ministry of Environment ① Resource recycling Act, Regulation, and policy ③ Producers of Plastic direction Packaging (including ② Mandatory recycling rates by items ⑤ Local government ③ Types of plastic packaging importers) Households/Consumers ④ Assessment of recycling performance by EPR Eco-friendly Source Collection designed Recycling Responsibility separation infrastructure Packaging ④ KPRC/KORA Data ② KECO EPR Implementation Agency ⑥Collectors and recyclers of Producer responsibility organization Data Information System plastic packaging ① Collection and recycling plan ① Sales data of plastic packaging from producers/imports ② Recycled amounts by recyclers for supporting ② Recycled amounts reports by recyclers/KORA ① Collection and recycled amounts data recycling costs ② Treatment of plastic packaging waste ③ Lists of EPR producers/imports of plastic packaging ③ Contribution costs by producers (recycling costs) ③ Residues in plastic packaging waste ④ Collection and recycling plans by producers/PRO ④ Sales data by producers/importers ⑤ Penalty for unachieved producers 6 1. Developing and managing solid waste management information database (Planning and Management Information Systems) ① [Korea Ministry of Environment] ▪ Building a concrete implementation policy framework to design for EPR, set out key strategies for target items, and monitor nationally recycling performance by EPR ▪ Recycling Act (Article 16): Recycling responsibility and mandatory recycling rates for producers ▪ Enforcement decree (Article 18) recycling target Items by EPR, Annex 4 Scope of Producers (as of 2022, 6,300 companies) ▪ Development of source separation for packaging recycling 7 1. Developing and managing solid waste management information database (Planning and Management Information Systems) ① [Korea Ministry of Environment] ▪ Determination of mandatory recycling rates for producers 1) Recycling Act: Enforcement Decree (Article 22) 2) Announcement date by Korea MoE: by Dec 31 3) Factors in mandatory recycling rates: sales, separated collections of recyclables, recycled amounts and recycling products demands for secondary raw material markets 8 1. Developing and managing solid waste management information database (Planning and Management Information Systems) [Figure] EPR data reporting Procedure and schedule in Korea 9 2. Data required for recycling target setting in EPR system [Table] Recycling items and mandatory rates, and contribution cost by EPR in Korea Recycling target Recycling target Contribution cost Recycling target items rate (%) (2022) rate (%) (2023) (won/kg) (2023) Carton pack 27.0 29.3 2601) Glass bottle 72.0 72.8 40 Steel cans 84.0 84.5 88 Cans Aluminium cans 81.0 80.7 139 Colorless PET bottles 80.0 80.0 150 PET bottles Colored PET bottles 85.0 83.0 251 Packaging Composite PET bottles 85.0 85.6 386 materials Plastic EPS (expanded polystyrene) 84.0 86.6 69~270 PSP (polystyrene paper) 52.0 53.2 315 packaging PVC (polyvinyl chloride) 39.0 38.5 973 materials Plastic containers and trays, mono-materials (PET) 86.0 87.0 226 Plastic containers and trays, mono-materials (others) 86.0 87.0 105 Multi-films, sheet 86.0 86.0 363 Single-use vinyl gloves 86.0 86.0 363 10 1) 1,300 WON = 1 USD 2. Data required for recycling target setting in EPR system • Data required for target recycling rates ① Sales data by producers (PET bottles, plastic bags, PS, PVC, etc) ② Mandatory recycling rates (determined annually by Korea Ministry of Environment) ③ Types of plastic packaging targets Example: Calculation of recycling target rate National target goal Sales data (400,000 tons PET bottles in 2022) x 80% (mandatory recycling rate in 2022) = 320,000 tons (national recycling target for PET bottles) Company mandatory recycling target amount (e.g., Coca-Cola company) Sales data (50,000 tons in 2022) x 80% (mandatory recycling rate of PET bottles in 2022) = 40,000 tons (Coca-Cola company) 11 2. Data required for recycling target setting in EPR system • Determination of annual target recycling rates based on ① Sales data of each item on the markets ② Collectable rate of recyclables by EPR ③ Achievement of recycling rates in previous year ④ Conditions of recycling market ⑤ Economic condition (inflation rate, economic growth, etc) ⑥ Discussion with stakeholders (producers, recyclers, PRO, experts, government) in jointed-meeting 2-3 times per year 12 3. Types of plastic packaging for recycling target setting by EPR in Korea (2023) 13 [Figure] Examples of packaging items by EPR in Korea 3. Types of plastic packaging for recycling target setting by EPR in Korea by year 2003 • Expand EPR recycling target item (packaging films- plastic vinyl) 2004 • Expand EPR target to various 2010 products & packaging materials • Expand EPR target items to all 2014 plastic packaging material 14 3. Types of plastic packaging for recycling target setting by EPR in Korea : Scope of producers Amount of sales or imports Manufacturing or imports by weight (Based on the previous year' s revenues) (Based on the previous year' s sales volume) Producers, importers Manufacturers1) Importers1) Manufacturers1) Importers1) [tons] [tons] Manufacturers and importers of products using plastic packaging (excluding foam More than 1 billion More than 0.3 billion resins). These products include food, drinks, won (About More than 4.0 More than 1.0 won ($270,000) detergents, cosmetics, pharmaceuticals, $900,000)1) rubber gloves, and pesticides More than 1 billion More than 4.0 Large retailers, manufacturers, and won (About $900,000) More than 0.3 billion (Including large More than 1.0 importers that single-use plastic bags (Including large won (About $270,000) retailers) retailers) Manufacturers and importers of products More than 1 billion More than 0.3 billion More than 0.8 More than 0.3 that use synthetic-resin packaging won (About $900,000) won (About $270,000) 1) Exemptions for producers and importers who manufacture or import less than the amount or imported amount above 15 4. Processes, data collection mechanisms, and arrangements for EPR ②[Korea Environment Corporation, KECO]: Data collection and management ▪ Implementation Agency of EPR since 2003 • Approval of domestic shipment (sales data) and annual recycling plan submitted by producers (including importers) • Monitoring and audits of recycled amounts by recyclers • Issue penalties for violators and unachieved target rates • Implementation of recycling grade assessment for packaging 4. Processes, data collection mechanisms, and arrangements for EPR ②[Korea Environment Corporation, KECO]: on-line EPR operating system Login Sales data Calculation of reporting by penalty for producers producers [Figure] Implemenation of EPR by KECO in Korea (source: http://iepr.or.kr) 4. Processes, data collection mechanisms, and arrangements for EPR ②[Korea Environment Corporation, KECO]: governance of EPR [Figure] Implemenation of EPR by KECO in Korea : governance 4. Processes, data collection mechanisms, and arrangements for E PR ③ [Packaging Producers/importers]: Roles and responsibility 1) Take full responsibility of their plastic packaging products for collection and recycling 2) Report annual sales data to KECO by Apr 15 3) Design packaging products with easy recycling and eco-friendly methods 4) Need to meet mandatory recycling rates by item each year set by Korea MoE (if unachieved, pay penalties more than recycling costs) 5) Pay financially collection, sorting, recycling costs, and administrative costs (contribution costs, or recycling fee) to PRO (producer responsibility organization) who is in charge of collection and recycling of plastic packaging 6) Korea PRO of plastic packing materials: KPRC (Korea Plastic Recycling Corporation ) 4. Processes, data collection mechanisms, and arrangements for E PR ③ [Packaging Producers/importers]: contribution costs • Data required for contribution costs (recycling costs + administration costs) paid by producers to KPRC ① Sales data by producers (PET bottles, plastic bags, PS, PVC, etc) ② Mandatory recycling rates (determined annually by Korea Ministry of Environment) ③ Types of plastic packaging targets ④ Contribution costs Example: Total budget Sales data (400,000 tons PET bottles in 2022) x 80% (mandatory recycling rate in 2022) x unit cost = 320,000 tons (national recycling target for PET bottles) x unit cost (150,000 won/ton or 150 won/kg) = 48 billion won (37 million USD) Company: contribution costs (recycling fee) to meet recycling target amount (e.g., Coca-Cola company) Sales data (50,000 tons in 2022) x 80% (mandatory recycling rate of PET bottles in 2022) x unit cost = 40,000 tons (Coca-Cola company) x unit cost (150,000 won/ton or 150 won/kg = 6 billion won (4.6 million USD) 4. Processes, data collection mechanisms, and arrangements for E PR ④ [Korea Packaging Recycling Corporative, KPRC] & [Korea Resource Circulation Service Agency, KORA] 1) KPRC and KORA were established in 2013 and approved by Korea MoE (Recycling Act Article 27, 28) 2) Manage contribution costs (or recycling fee) paid by producers (approx.. 130 million USD in 2022) 3) Distribute collection and recycling costs to collectors & recyclers (80-90% of total costs paid by producers) contracted with KPRC and KORA 4) Report recycled amounts to KECO 5) Suggest and discuss recycling costs and contribution costs by item 4. Processes, data collection mechanisms, and arrangements for E PR ④ [Korea Packaging Recycling Corporative, KPRC] & [Korea Resource Circulation Service Agency, KORA] (source: KORA) [Figure] Financial flow mechanisms by EPR in Korea 4. Processes, data collection mechanisms, and arrangements for E PR ④ [Korea Packaging Recycling Corporative, KPRC] & [Korea Resource Circulation Service Agency, KORA] Login Collectors Local government On-line supporting system Recyclers [Figure] Online system for collectors/sorting and recycling facilities by KORA in Korea (source: KORA.or.kr) 4. Processes, data collection mechanisms, and arrangements for E PR ⑤[Households, Consumers] [Local Governments] [Figure] Guideline for source separation of recyclabes by households in Korea 24 (source: http://iepr.or.kr) 4. Processes, data collection mechanisms, and arrangements for E PR ▪ Source separation of disposables, recyclables are carefully conducted by households and routinely monitored by local government ▪ Recyclables in disposable bags are prohibited by regulations ▪ Plastic recyclables are transferred to sorting facilities, followed by recycling facilities for resource recovery [Figure] Source separation of recyclabes by households and local government in Korea 25 4. Processes, data collection mechanisms, and arrangements for E PR Plastic recyclables (targeted by EPR) households Sorting facilities Recycling facilities Recycled products 26 [Figure] Source separation, sorting, recycling of plastic packaging by EPR in Korea 4. Processes, data collection mechanisms, and arrangements for EPR ⑤[Households, Consumers] [Local Governments] ▪ Source separation of recyclables by households, commercial sectors, and consumers • Collection and sorting of recyclables • Support of source separation and enforcement by local government (e.g., manual checks, CCTV) [Fig] Monitoring of recyclables by source separation 27 4. Processes, data collection mechanisms, and arrangements for E PR ⑥ Plastic Packaging Recyclers 1) Follow government standards for installation, operations, monitoring of recycling facilities 2) Report recycled amounts to KORA/KECO (on-line EPR management system) 3) Send invoice of recycling costs to KORA 4) Maximize resource recovery from plastic packaging waste 4. Processes, data collection mechanisms, and arrangements for EPR ⑥ Plastic Packaging Recyclers About 94% of plastic packaging sold to the markets was collected and recovered by EPR in2022 Packging films and PET bottles are major fractions of recycled amounts by EPR ( Source : KORA, Recycling statistics of plastic waste by EPR in 2022, 2023) Example 1: Recycling target amount and contribution cost Problem: A multi-film packaging company reported the sales of food products with plastic packaging (30,000 ton) to the KECO in 2022. 1. What is the mandatory recycling amount of multi-film plastic packaging in 2022 in Korea? 2. How much contribution cost by the producers should be paid to the PRO for supporting collection and recycling facilities for plastic films in 2022? 30 Example 1: Recycling target amount and contribution cost Problem: A multi-film packaging company reported the sales of food products with plastic packaging (30,000 ton) to the KECO in 2022. 1. What is the mandatory recycling amount of multi-film plastic packaging in 2022 in Korea? Answer: 2. How much contribution cost by the producers should be paid to the PRO for supporting collection and recycling facilities for plastic films in 2022? Answer: 31 5. How to determine types of plastic packaging for recycling target setting by EPR [Korea Ministry of Environment] : Determination of target Items by EPR: factors Recycling markets Availability of International recycling Regulations technology EPR target items Demands Collection infrastructure by NGO, industry 32 6. Summary of learning objectives (quiz) ① What data are needed for mandatory recycling target rates by EPR in Korea? ② Who are the stakeholders in the EPR system in Korea? ③ What are the roles of KECO and Korea MoE? ④ What are the responsibility of producers and KPRC? What is the difference of roles between KPRC and KORA? ⑤ What is the contribution cost to be paid by producers and how to determine it? ⑥ How many categories of plastic packaging materials are the EPR list in 2023? What factors are considered for selecting candidate for mandatory EPR list? 33 7. Review 1) EPR Structure and framework in Korea 2) EPR implementation agency (KECO, Korea MOE) 3) Roles and responsibility of each stakeholder 4) Mandatory recycling target rates 5) Determination of types of plastic packaging by EPR 6) Data reporting and flow in the EPR 7) Material flows by EPR 8) Financial flows by EPR 9) Contribution costs by producers 34 8. Suggested topics and data gap analysis for discussion in the PH(1 hour) Each topic may be discussed in 10 minutes. 1. Draw and compare the structure of EPR system between Korea and PH. What is the difference and similarity of the EPR systems between Korea and PH? 2. What are the potential gaps of EPR system in the PH? 3. How to determine recovery or recycling target setting in the PH?, What types of data are needed for recycling target setting? 4. What types of target plastic packaging should be included in EPR in the PH?, What criteria can be considered by the target selection? 5. What types of data are needed for EPR? How to collect relevant data and methods for implementing the EPR in the PH? 35 Thank you for your attention Q/A Prepared by Prof. Yong-Chul Jang Kyonggi University 36