Towards a More Circular Energy Transition with Extended Producer Responsibility

To shift from fossil to renewable energy, products like solar panels, wind turbines, and battery-powered electric cars are needed. The rapid increase of these products presents new challenges in managing resources and waste, as well as a new dependency on critical materials from abroad. This policy brief by PBL explores how extended producer responsibility (EPR) can help address these challenges.

EPR can help extend the use of resources and materials

With EPR, producers and importers are made responsible for collecting and processing products once they are discarded. Products must be collected separately so they or their components can be reused, and the materials involved can be better recovered. This means resources last longer and fewer new resources need to be extracted.

Specific issues with key products for the energy transition

Batteries in electric cars, solar panels, and wind turbines have a long lifespan, making it difficult to include them in existing EPR systems. Reuse, such as via the second-hand market, sometimes faces specific risks like safety risks with batteries. Moreover, recovery of critical and other materials is often not profitable as cheaper downcycling options exist. Lastly, regulations often encounter literal borders, as these products cross into other countries within and outside the EU, where the disposal phase is often less well regulated.

Recommendations to better utilize EPR in the disposal phase

PBL identifies the following possibilities for EPR policy to reduce supply risks and environmental pressure of material use in these products:

1. Apply EPR to more products and promote the implementation of effective EPR systems in countries within and outside the EU.
2. Better account for specific characteristics of energy transition products in existing and new EPR systems.
3. Adjust EPR requirements to extend the use of energy transition products.
4. Promote higher-quality recycling and recovery of critical materials through recovery requirements and additional requirements regarding recyclate in new products.
5. Ensure a level playing field and facilitate enforcement.