National Environmental Management: Waste Act, 2008 (Act No. 59 of 2008)NoticesGuideline and Toolkit for the Determination of Extended Producer Responsibility FeesAddendumsAddendum A: Toolkit User Manual |
Addendum A: Toolkit User Manual
This user manual is a supporting document to the excel Toolkit for calculating the EPR Fees under different approach models per product class and waste stream. The excel Toolkit is composed of 5 sheets and its development started in July 2023 and it is still being developed.
Flat Fees
Inputs:
Step 1
➢ | Insert the specific code for differentiation. |
➢ | Insert Product Category name and description details. |
Step 2
➢ | Insert costs from A to F. |
➢ | Insert the total revenue earned from sales of recycled material (G) if applicable. |
➢ | Insert the weight of the products in tonnes or volume in litres or the weighted average on units (variable I) |
Output:
Step 3
➢ | Variable H will automatically calculate the Nett Cost. |
Step 4
➢ | The EPR Fee will be generated automatically after taking into consideration steps 1-3. |
➢ | EPR Fee = H/I |
Modulated Fees
Follow step 1-4 from flat fees approach.
Step 5:
➢ | Calculation of ease of recyclability (variable J): The modulation factor is calculated by taking into consideration the extent to which the product can be recycled, material composition differentiation rate is applied. |
➢ | Integration with base fee: The modulation factor is then integrated with a base fee, which represents the standard fee for the product or industry (EPR Fee base multiplied by the differentiation rate) |
Eco-modulated Fees
Follow step 1-4 from flat fees approach.
Step 5:
• | Identification of environmental factors: The first step is to identify the relevant environmental factors that should be considered in the fee calculation. This can include factors such as the environmental impact of the product, its recyclability, the use of hazardous materials, or the carbon footprint associated with its production and disposal. |
• | Weighting of environmental factors: Each environmental factor is assigned a weight or importance based on its significance in terms of environmental impact. This weighting can be determined through scientific research, stakeholder consultation, or regulatory guidelines. |
• | Calculation of eco-modulation factor: The eco-modulation factor is calculated by multiplying the weight of each environmental factor by its corresponding measurement or indicator. This can involve quantifying the environmental impact of the product or its lifecycle stages, such as energy consumption, waste generation, or emissions. |
• | Integration with base fee: The eco-modulation factor is then integrated with a base fee, which represents the standard fee for the product or industry. |
• | Fee adjustment: The final EPR fee is calculated by adding the eco-modulation factor to the base fee. This adjusted fee reflects the environmental impact of the product and incentivizes more sustainable practices, such as eco-design, waste reduction, or the use of environmentally friendly materials. |
Take-back Scheme
A general overview of how EPR fees are calculated within a take-back scheme:
1. | Determining the cost components: The first step is to identify the various cost components associated with the take-back scheme. This may include collection, transportation, sorting, recycling, and disposal costs. |
2. | Allocating costs: Once the cost components are identified, the next step is to allocate these costs among the obligated producers or businesses participating in the take-back scheme. This allocation can be based on factors such as market share, sales volume, or product type. |
3. | Weight-based or unit-based approach: EPR fees can be calculated based on the weight of the products placed on the market or the number of units sold. The specific approach depends on the nature of the products and the goals of the EPR program. |
4. | Cost per unit or cost per weight: The allocated costs are then divided by the total units or weight of the products covered by the take-back scheme to determine the cost per unit or cost per weight. |
5. | Adjustments and factors: Adjustments or factors may be applied to account for factors such as product complexity, environmental impact, or recycling efficiency. |