Life Cycle Assessment III

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Life Cycle Assessment III

• IPP Integrated Product Policy
• Analysis and Interpretation
• of the EC Communication on IPP

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Presentation outline

• Why a product perspective? Positioning of IPP
• The EC Communicationon IPP
• Further analysis
• Discussion

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Complexity
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Driving Forces for an IPP
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Differentproducts have different impacts
Product types and perspectives are different!

• All products and services have their specific
  footprint
• Influences to improve the overall systems
  performance vary
• Often boundary conditions and the present
  economic operation mode prevent a systems
  perspective
• Goal conflicts exist amongst LC stages, players
  and the three SD dimensions

BUT Where is the place to intervene with the
system?
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What is driving an IPP in Europe?

• Patterns of sustainable production and
  consumption
• WSSD Johannesburg
• European environmental strategies
• Resource strategy / recycling
• GHG commitment
• Pressure state response / critical loads /
  BREF
• Precautionary principle
• Polluter pays principle
• Lean administration
• Enabling legislation
• Waste Prevention

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What is IPP?

• Integrated . . .
• Considers whole life cycle of products - the
  whole supply chain and end of life
• Provides a framework for integrating the growing
  number of product-focused tools instruments -
  it also means integration into existing
  management systems at the firms
• . . . Product . . .
• Focuses on goods and services - front of pipe
  solutions (e.g., product design)
• . . . Policy
• Facilitates rather than directly intervenes -
  focuses on setting the main objectives and
  providing stakeholders with the means and
  incentiveswill include new policies and
  strategies in the private sector

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What is IPP?

• The Commission describe two major actions they
  propose to take
• establishing framework conditions for the
  continual improvement of product environmental
  performance, and
• developing a focus on products with the greatest
  potential for environmental improvement.
• By establishing framework conditions, the
  Commission essentially mean selecting the right
  policy tools (or instruments) to make products
  greener (or more sustainable).

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Proposed IPP Toolbox
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Is it all new?

• Product releated policy activities in member
  countries existed long before the development of
  the IPP concept.
• Danish Product Panels
• National labeling efforts (ISO type I and III)
• EPR programs
• IPP adds a framework to isolated activities
• IPP recognizes stakeholder and market importance

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Why an IPP?

• Products and Services are the direct source of
  pollution, waste, resource use
• Increase in quantity / variety of products
  services
• Faster product innovation cycles
• Increasing number of actors in the market
• Inappropriate use and disposal of products that
  might cause significant environmental impact
• Products involve more actors during life-cycle,
  therefore improve flow of information

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Key principles of an IPP

• Life-Cycle Thinking
• Stakeholder involvement
• Continuous improvement
• Use variety of policy instruments
• Use of market mechanisms to green supply and
  demand

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The EU IPP Strategy

• Contribution to ECs
• Sustainable Strategy
• 6th Environmental Action Program, especially
  Resources and Recycling Strategy
• Sustainable Production and Consumtion UN 10
  year program
• IPP to
• Supplement existing sectoral policies (add life
  cycle frame)
• Coordinate existing/future product policy
  instruments
• Activities
• Establish framework for continuous environmental
  improvements
• Develop focus on products with most significant
  environmental impacts

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IPP Framework (1)

• Suite of Approaches From Voluntary Agreements to
  Regulation
• Voluntary Agreements / Product Standards New
  Approach
• Public Procurement
• Encourage full use of existing legislation
• Revise Public Procurement Directive
• Stimulate private buyers decisions and B2B buying
• Taxes and Subsidies
• Internalize environmental externalities
• Re-examine reduced VAT for EU eco-labeled
  products
• Legislation
• necessary if market actors are unwilling / unable
  to correct market failure or if Single Market
  affected, e.g.
• restriction on hazardous substances (electr.
  equipment)
• Chemicals White paper
• ineffective EPR

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IPP Framework (2)

• Life Cycle Approach
• Life-Cycle Data and Interpretative Tools
• Establish LCA databases (energy, materials,
  transport, waste management models)
• EC to provide a platform for communication
• Handbook on LCA Best Practices
• UNEPs Life Cycle Initiative
• Environmental Management Systems (EMS)
• Develop guidelines for products within EMAS (by
  end 2004)
• Product Design Obligations
• Stimulate front-runners to develop greener
  products Draft Framework Directive for companies
  to integrate design for environment
• Voluntary environmental reporting schemes

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IPP Framework (3)

• Consumer and Supply-chain Information
• Educate consumers to prefer Greener products
• EC to provide tools / frameworks for consumers
• MS to decide level of consumer awareness
• Support EU Eco-labels (type I, II, III)
• Initiate Green Private Procurement via EPDs
  (label type III) to improve B2B communication
• Voluntary environmental reporting including
  economic, environmental and social criteria

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Focus on Particular Products

• Identify the most environmentally-damaging
  products
• via analysis and stakeholder consultation
• EC study on product identification
• Pilot projects for products
• Predetermined Automotive, construction, food and
  furniture sectors.
• EC to provide financial support for pilot
  projects
• Pilot projects to cover
• documentation of all environmental impacts of
  products
• identify most significant environmental impacts
• most suitable policy instruments
• implement environmental improvements

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Coordination Integration

• Strengthen Cardiff Process
• integration strategies
• indicators especially for transport, energy,
  agriculture, climate change
• Indicators for environmental improvement with
  Management Systems and European Environmental
  Agency
• IPP progress report for European Parliament and
  Council
• Promote IPP on an international level (OECD,
  UNEP, countries)

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Summary of the EC IPP Concept

• Focus on using market forces and engaging
  stakeholders to
• Stimulate consumer demand for greener products
• Stimulate business leadership in the supply of
  green products
• Integrate environmental costs into product prices
  
• Further characteristics
• Stakeholder participation
• Continuous improvement
• Toolbox

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Life Cycle of Products and Services
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Life Cycle of Products and Services
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How was the original communication document
received? (1)

• DG Enterprises and DG Markets, as well as the
  European Parliament were suggesting further
  improvements of the draft communication
• The negative spin on priority products is felt
  inadequate
• Only positive and enabling mechanisms should be
  pursued
• Market forces should be utilized more
• The proposed research program was not integrative
  but rather oriented towards individual tools from
  the toolbox
• Labeling
• procurement
• The overall lack integration of different policy
  targets within DG Environment was highlighted,
  too
• Avoid over-regulation
• Avoid conflicts between existing legislation and
  IPP
• Better integrate recent directives (EUE, ELV,
  WEEE, RoHS)

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How was the original communication document
received? (2)

• Council Reaction in the EC IPP Communication
• General
• Support for product oriented policiesThe main
  challenge is to match environmental protection
  with economic and social development, both
  strongly influenced by products production and
  consumption. Traditional instruments for
  environmental protection, such as legal
  frameworks, are not sufficient to carry out a
  sustainable development strategy the involvement
  of enterprises is needed in order to develop
  win-win options and take advantage of the
  opportunity offered by these to achieve a
  sustainable development.
• Recognises the need for a new regulatory regime
  beyond command and control

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How was the original communication document
received? (3)

• Council Reaction in the EC IPP Communication
• Requests
• Include also services, in particular tourism
• Strengthen Green Procurement
• EU EPD scheme
• Better coordination of instruments
• Better integration of all market actors
• Consider SME issues
• Integrate design and product development better
• Establish better links to chemicals policy and
  material restrictions

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What is missing? Improvement possibilities (1)

• The current IPP communication
• is not offering incentives to the various market
  actors
• does not include the roles and responsibilities
  and/or opportunities for the market actors and
  stakeholders
• does not suggest priority areas for action
• Neither for products and services of particular
  importance
• Nor for environmental themes of importance
• is only discussing the environmental dimension of
  Sustainable Development
• does not present a future structure and
  managerial approach for IPP

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What is missing? Improvement possibilities (2)

• The approach presented does not utilize the
  broader product sustainabilty toolbox, including
• Design for Environment
• Supply Chain Management
• Stakeholder Communication
• Product Stewardship Programs
• Product Certifications, such as FSC, MSC
• The IPP concepts leaves out critical issues,
  including
• CSR
• Social metrics
• Etc.