EU steps up the race for raw materials: Producer responsibility could take on a new strategic role
When European Commission President Ursula von der Leyen delivered her annual State of the Union address on 16 September, one of the recurring messages was that Europe needs to become more self-reliant.
This applies, among other things, to access to the raw materials needed by European industry.
In her speech, von der Leyen highlighted Europe’s heavy dependence on China for critical raw materials and rare earths.
To address this, the Commission plans, among other initiatives, to establish a new European Corporation on Critical Raw Materials, which will help secure the supply of raw materials to European industry.
The Letter of Intent accompanying the speech, which outlines the Commission’s planned initiatives, also includes a forthcoming Diversify EU package.
“First and foremost, this is an industrial and supply policy agenda. But it is also relevant from an extended producer responsibility perspective,” says Poul Poulsen, Acting CEO of Retur.
Extended producer responsibility is fundamentally about producers’ responsibility for products when they become waste and about ensuring the collection and treatment of waste streams.
This is why developments concerning raw materials are worth following.
As the EU places greater political emphasis on access to raw materials, it also raises a relevant question about the materials already contained in products on the European market and what happens to them when those products reach the end of their useful life.
This applies, for example, to electronics and batteries, but the question of keeping materials in circulation is relevant across several of the product areas covered by extended producer responsibility.
The State of the Union does not contain any new proposals on extended producer responsibility in this area. However, the raw materials agenda provides a broader political context for efforts relating to collection, reuse and recycling.
Another clear message from the Commission is its ambition to simplify rules and reduce administrative burdens for businesses.
In her Letter of Intent, von der Leyen writes that the Commission will continue its efforts to reduce administrative burdens and simplify EU rules. At the same time, new proposals are to be designed according to a principle of simplicity by design.
This is also relevant from an extended producer responsibility perspective.
“Companies subject to extended producer responsibility already have to deal with requirements such as registration, reporting and documentation. With the Commission also making simplification a political priority, it will be relevant to follow how the ambition to reduce administrative burdens is reflected in future legislation and in the implementation of existing rules,” says Poul Poulsen.
The two documents do not provide any concrete details on how this will affect extended producer responsibility. That question therefore remains open.
At the same time, the Commission is sending a clear signal that implementation and enforcement will be given high priority.
In the Letter of Intent, von der Leyen stresses that the EU must both complete the legislative work already under way, implement what has been adopted and enforce the rules. The message is summed up succinctly: “The time for delivery is now.”
This is relevant at a time when companies across several areas of extended producer responsibility are already working to put new EU regulation into practice.
“For companies, the coming period will therefore not only be about keeping an eye on new political initiatives. It will also be important to follow how existing rules are implemented and enforced. Retur will, of course, make sure to keep its members updated,” says Poul Poulsen.
The European Single Market also remains high on the Commission’s agenda.
The Letter of Intent highlights the One Europe, One Market initiative, which aims to strengthen the Single Market and reduce barriers for companies operating across the EU.
Extended producer responsibility continues to be administered through national systems, meaning that companies operating in several countries must comply with the applicable rules and systems in each Member State.
The State of the Union and the Letter of Intent do not contain any proposals to change this.
“But with the Commission also focusing on reducing barriers in the Single Market and simplifying rules for businesses, it is worth following whether and how this agenda may, in the longer term, affect the administration of extended producer responsibility,” says Poul Poulsen, continuing:
“Extended producer responsibility is not a central theme in this year’s State of the Union. However, several of the major priorities relating to raw materials, simplification, implementation and the Single Market intersect with extended producer responsibility. We do not yet know what this will mean in concrete terms, but it is a development we will be following closely.”