Advertorial: Waste is not a liability, but a future resource

Online since 1.03.2017 • Filed under Advertorial • From Issue 5 - March 2017 - August 2017 page(s) 1
Advertorial: Waste is not a liability, but a future resource

Manufacturers are happy to make products and consumers are happy to buy products, but the full monetary cost of a product is not being taken into account because it excludes the cost of remediation. At the end of a product’s life, there is no-one to take responsibility for it and it becomes waste that is dumped.

Extended Producer Responsibility Organisations (EPRO) are a solution for the challenges we face. An ‘insurance’ policy for manufacturers, EPROs remove the onus of ensuring products, from the individual producers, do not damage the environment at the end of life. This has already been achieved in South Africa as tyre manufacturers and importers pay a waste management fee directly to REDISA. REDISA has

created a model of Extended Producer Responsibility in the waste tyre industry that can be understood as a form of environmental insurance that stabilises and supports the tyre recycling industry and is on target to reach 100% collection by the end of 2017.

The money collected is applied to building and supporting collection and recycling systems and processes. The plan not only mitigates the environmental and resource consumption burdens of an industry but also allows brands to manage the liability that can arise from their daily business of meeting consumer needs and wants.

Independence

It is not Government’s role to create jobs, clean the environment, or create circular economies – an approach that is now recognised worldwide as the best way to unlock the economic potential in waste, and to create entirely new industries much needed in growing economies.

Government’s role should be to create an environment in which the private sector can thrive.

The REDISA Plan provides Government with an environmental solution at no cost to the fiscus, with its core mandates being both environmental and socioeconomic upliftment through the development of entrepreneurial and job opportunities.

Public private collaboration

By collaborating with government on the one hand, and tyre manufacturers and importers on the other, REDISA has helped create over 3 000 new jobs and start 200 small businesses in just over three years, simply by seeing used tyres differently – not as waste but as worth.

Overcoming challenges

One of the biggest challenges in the country is educating people about the opportunities that can be found and created in waste, all by creating a circular economy of which extended producer responsibility forms a part.

We have successfully defeated the biggest hurdle faced in encouraging circularity, namely funding. If it were easy to recover and reuse materials profitably, then business would be doing so. We argue that at a macro level it is not only a necessity but also profitable once you consider all the externalities that effectively subsidise a linear economy.

The socio-economic benefits

With waste comes opportunity and, by looking at waste differently through a circular economy lens, there can be sustainable businesses and economic growth.

We have seen the results of the successful implementation of a circular economy approach in our organisation, though this is not to say there have been no challenges. In 2015 The McKinsey Report used

REDISA as a case study to show how major economic and environmental benefits can be gained from turning waste into worth. The report showed that by 2020 the REDISA tyre plan would deliver an annual net benefit to the economy of over R80 million before even considering the environmental benefits, estimated at an additional R380 million.

The results from the report show that, given the massive change in technology, consumer behaviour and business models, the circular economy is both viable and attractive.

REDISA

T +87 35 REUSE (73873)

W www.redisa.org.za

Issue 5 - March 2017 - August 2017

Issue 5 - March 2017 - August 2017

This article was featured on page 1 of SABI Magazine Issue 5 - March 2017 - August 2017 .

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