The Ministry of Worldwide Commerce and Funding (MITI) mentioned that it might take a “progressive strategy” to introduce EPR in related industries, equivalent to {the electrical} and electronics and packaging sectors.
EPR schemes are used to make sure that producers take duty for the complete life cycle of their merchandise, from their manufacturing to their eventual disposal, defined MITI minister Tengku Zafrul Tengku Aziz on the launch of the framework on Thursday.
“For much too lengthy, waste and air pollution administration has usually been the duty of the federal government,” mentioned Tengku Zafrul. “However reaching web zero by 2050 should take a whole-of-nation strategy.”
The manufacturing and development sector is the third largest supply of the nation’s greenhouse fuel emissions at 9 per cent of complete emissions, after power and highway transportation.
He added that the intention of Malaysia’s EPR is to not penalise producers, however for them to include the price of environmental administration into the manufacturing course of, incentivising extra sustainable manufacturing practices.
“MITI will contribute to the EPR rollout by conducting early engagement with business to tell them of the upcoming insurance policies and helping business teams within the institution of a producer duty organisation (PRO) inside goal sectors, equivalent to packaging and E&E,” it mentioned within the framework.
The ministry can even help pilot research on EPR implementation, which would come with monetary help for small and medium enterprises via mechanisms equivalent to tax exemptions, it mentioned.
The brand new framework by MITI enhances a nationwide round financial system blueprint revealed final month by Malaysia’s Ministry of Housing and Native Authorities, which goals to implement EPR for packaging by addressing post-consumer strong waste.
On the identical time, the Ministry of Pure Assets and Environmental Sustainability is exploring EPR for choose client electronics classes. NRES minister Nik Nazmi Nik Ahmad lately described EPR as the very best instrument the federal government can use to make sure that producers play a job in reaching sustainability.
The introduction of MITI’s EPR coverage was welcomed by business gamers, which have lengthy thought-about the shortage of laws a barrier to efficient round product design and recycling efforts.
“It’s encouraging to see that EPR insurance policies and frameworks are…turning into laws and being made obligatory,” mentioned Roberto Benetello, chief government officer on the Malaysian Recycling Alliance (Marea). The alliance is a voluntary PRO for the fast-moving client items sector with members together with Unilever, Spritzer, Tetra Pak, Mondēlez, Colgate-Palmolive and Nestlé Malaysia.
Infrastructure missing
Nonetheless, challenges stay on the subject of making certain extra round design and manufacturing in Malaysia’s manufacturing sector. Talking at a panel dialogue following the framework launch, he mentioned {that a} main barrier is an absence of infrastructure for accumulating and recycling packaging waste, resulting in a low provide of secondary uncooked supplies. “We have to develop the marketplace for secondary uncooked supplies [and] we have to take care of all sorts of supplies, not simply the easy-to-recycle arduous plastic,” he mentioned.
To handle this, MITI is getting ready to implement a number of main “needle-mover” insurance policies. The primary is the event of a taxonomy to assist corporations and traders determine what counts as a round financial system funding, mentioned Aedreena Reeza Alwi, senior director of MITI’s supply administration unit for the ministry’s New Industrial Grasp Plan.
“Most of the investments which are coming into [Malaysia’s manufacturing sector] are centered on recycling, whereas we all know that in a round financial system, recycling is barely the final piece of the puzzle,” she mentioned. A taxonomy will assist the business determine actions that may very well be focused as round financial system investments, together with enhancing product lifecycle design.
One other essential coverage is the implementation of a minimal round content material in manufactured merchandise, which might require producers to make use of a minimal share of recycled uncooked supplies, mentioned Aedreena. Nonetheless, this initiative will seemingly require extra effort and time to arrange the business for. “We don’t at present have sufficient waste to recycle again [into products], or if we do they’re…exported out of Malaysia to fulfill minimal round content material necessities in different elements of the world,” she mentioned, emphasising the necessity for regulation.
“That’s why [MITI’s] coverage is supporting the native housing ministry’s coverage on strong waste administration, as a result of we have to improve the recycling price,” Aedreena added. Malaysia’s home recycling price is at present round 35 per cent. The nation has set a home recycling goal of 40 per cent by 2025.
Within the meantime, the ministry urges producers to contemplate how they are going to put together themselves for the eventual implementation of insurance policies below the framework. “You must begin interested by how you’ll redesign…your manufacturing processes to contemplate the minimal round content material coverage after we put it in place ultimately,” she mentioned.
