11 Appendix C: International research
The following general resources were evaluated to better understand the opportunities and costs associated with different tyre product stewardship schemes overseas.
- The JWGT submission in response to the EPHC discussion paper (Australia).
- URS Australia 2005: 'Financial and Economic Analysis of the Proposed National Used Tyre Product Stewardship Scheme'.
- 'Scrap Tires in the US - Overview 2002 Update'.
- 'End-of-life Tyres - An Overall Picture of End-of-life Tyre Management in Europe'.
- Environment Canada Website: www.ec.gc.ca/epr/en/stewardship.cfm
- 'Industry Product Stewardship Business Plan (British Columbia).
The following provides a summary of the research completed.
Introduction
Approximately 150 million scrap tyres are generated in Europe each year, with one-fifth of those in the UK alone. According to the Ministry for the Environment figures, three to four million tyres reach the end of their life each year in New Zealand. As most are sent to landfill, this represents a major threat to the environment, both in terms of visual pollution and increased fire risk. Unlike many consumer goods, a tyre retains much of its structural, physical and chemical integrity until the end of its life, which opens up a number of opportunities from a product stewardship perspective.
Background
Given the fledgling nature of existing tyre recycling schemes in New Zealand, a review of possible solutions to this problem was necessary. The project brief provided by the Ministry for the Environment requires the study of cases of existing product stewardship to determine how this would best be achieved in New Zealand, and what role the Government would play.
Case studies
Credential environmental
Credential Environmental is a leading UK tyre waste management and recycling company made up of three integrated operating companies, each working in a defined area of waste and resource management to provide economic and sustainable solutions. Its focus is on innovation and forward thinking in response to the demands of a constantly changing market. The company produces a range of graded rubber crumb from waste tyres using latest technology. This is packaged on-site and sold for equestrian surfaces, floor covering, play and leisure surfaces, landscaping and turf applications and agricultural and horticultural products.
UK landfill directive
In July 1999, the British government adopted the EC Landfill Directive, which effectively banned the disposal of whole tyres to landfill from July 2003, and shredded tyres by July 2006. The cost of implementing this ban is carried by producers. The British Government is currently consulting on tyre recovery measures to meet the demands of this regulation.
In January 1998, the British Government asked the Used Tyre Working Group (UTWG) to recommend its preferred means of ensuring the UK would meet these requirements. The Group favoured a market-based approach, although it recognised this might not guarantee total compliance. The industry and Government continue to work alongside each other, through the UTWG, to develop a market-based approach (www.dti.gov.uk/sustainability/downloads/tyre.pdf).
Additionally, in 2006 EU member states agreed to incorporate United Nations regulations into EU law, so that recycled tyres fulfil similar standards of safety and quality control than new ones. Millions of tyres can thus be recycled and put back on European roads. The new standards involve the retreading process, which uses less raw materials and less energy, and therefore produces less tyre waste.
In order to promote this practice and to improve safety guarantees, the World Business Council has adopted a decision that aligns EU standards for retreaded tyres with the requirements of the United Nations Economic Commission for Europe (UNECE). On top of environmental benefits, safety enhancement and legal certainty, this decision has the advantage to prevent the EU from developing its own legislation, which may have been resented by European tyre manufacturers in search for global market shares (www.EurActiv.com, 5 April 2006. EU agrees on recycling standards for tyres. World Business Council on Sustainable Development).
Current Ministry for the Environment initiatives
The Ministry for the Environment commissioned Firecone in 2003 to assess the nature and size of the waste tyre problem, and the economic, social and environmental costs and benefits of the range of solutions available - from ensuring improved compliance with existing laws and regulations through to facilitating or subsidising the reuse of tyres and their constituent parts. As part of this study, a range of international policy approaches were reviewed, with five 'packages' of policy measures identified as offering the most promise. A range of measures available are summarised in Section 6.
Australian government approach
In 2005, URS Australia assessed Australia's need for a tyre product stewardship scheme and made recommendations accordingly. The proposed scheme sought to establish tyre product stewardship through an Extended Product Responsibility (EPR) framework. This approach aimed to address the current market failure where the majority of EoL tyres are disposed to landfill and discarded illegally, or used for applications that may not represent their highest net resource value. It was proposed the scheme be national, industry-led and co-regulatory, with an ARF to fund a benefit system. Modelling has showed the scheme to be financially viable, generating revenues of $7 million. Ongoing monitoring of the scheme and of the number and value of tyres sourced from different market areas was also recommended to assess the scheme's effectiveness.
