Electricity and Control June 2021

WRITE @ THE BACK

EPR Regulations: game-changing waste management rules

Garyn Rapson, Paula-Ann Novotny, Nonhlanhla Payne and Amaarah Mayet, Webber Wentzel

O n 5 May 2021 the regulations regarding Extended Pro- ducer Responsibility (EPR Regulations) in the Waste Sector came into force under the Waste Act. On the same day, the second round of amendments to the EPR Regula- tions were finally published after extensive consultation with the affected industries. The significance of the EPR Regulations cannot be overstated. These are game-changing waste management rules which will undoubtedly have a positive impact for the environment, although they will weigh heavily on industries affected. Webber Wentzel highlights some key considerations for industry and business with regard to the EPR Regulations. ƒ The regulations apply to existing and new producers, brand owners and importers of a number of identified products, including: - electrical and electronic equipment; - certain batteries; - lighting equipment; and - paper, packaging and some single use products (paper, plastic, glass and metal); ƒ They apply to brand owners who transport, or sell their products in primary, secondary or tertiary pack- aging: in effect anyone who sells anything in SA that is packaged; ƒ They apply retrospectively to any products placed on the market before 5 May 2021; ƒ They apply to SA companies, international compa- nies that placed products on our market through li- censed agents, importers of branded goods and, if none of those, retailers; ƒ Registration is required by all the above parties by 6

November 2021 (or within three months for any new producers or importers); ƒ All the above parties must, by 6 November 2021, either: - establish and implement their own EPR scheme; - join another EPR scheme; or - appoint a producer responsibility organisation (PRO) to establish and implement an EPR scheme; ƒ The entire value chain of the waste produced by the identified products must be considered in the EPR scheme (collection, storage, transport, reuse, recy- cling, treatment and disposal); ƒ EPR fees must be paid by the producers to fund the implementation of the EPR schemes, including the full waste lifecycle of the waste produced by the identi- fied products; ƒ There are onerous auditing, reporting, transforma- tion and other obligations that the producers or PROs must adhere to and achieve through the EPR schemes; and ƒ Strict mandatory take back, production design, re- use, collection, recycling and/or recovery targets are set to be achieved over a period of five years from the date of implementation of the EPR schemes, for the waste produced by the identified products. Care- ful analysis of these targets is required to understand the full extent of the impact of the EPR Regulations on a business. Webber Wentzel has some reservations as to how ef- fective the EPR Regulations will be in the short term – and has issued a recent update: Over-extension of Extended Producer Responsibility , which is available on its website. Despite the reservations, the rules of the waste manage- ment game have changed and the impact will be felt by many. For some, however, these EPR Regulations offer im- mense opportunity. As the saying goes, one person’s waste is another person’s treasure. Webber Wentzel also recently prepared an article on possible double taxation issues for manufacturers and importers of plastic carrier bags and plastic flat bags: Doubling Down on Plastic Bag Producers , also available on its website. In the final amendments to the EPR Regulations that came out on 5 May 2021, this risk has been addressed through expressly excluding plastic carrier bags and plastic flat bags from the ambit of the EPR Regulations. This is a welcome legal development. Manufacturers and importers of these products must continue to comply with the Plastic Carrier Bags and Plastic Flat Bags Regulations, 2003 published under the Environment Conservation Act, 1989, as recently amended.

The new EPR Regulations in the waste sector will affect industries widely.

For more information visit: www.webberwentzel.com

32 Electricity + Control JUNE 2021