Funding our sustainable future

The foundations of a 10 year plan for industry

• Pressure on PVC from environmentalists

• Continued attacks through amendments to new legislative proposals

• Following ELV Directive attacks, the European Commission announced that it would examine PVC issues once and for all and not piecemeal every time it introduced new legislation

• Five studies undertaken by Commission on landfill, mechanical recycling, chemical recycling, incineration flue gases and the economics of waste management

• Green paper on Environmental issues of PVC published 26 July 2001

The Vinyl 2010 voluntary commitment was born

• United to ensure the whole industry chain speaks with one voice

• Developed in depth relationships with the decision makers

• Investigated all areas studied by the Commission and provided clear responses

• Recognised that there was a need for industry to act

• Developed the Voluntary Commitment to address all the issues raised by the debate

• Signed Voluntary Commitment on 7 March 2000

Who created Vinyl 2010?

• European Council of Vinyl Manufacturers (ECVM)

• European Stabiliser Producers Association (ESPA)

• European Council for Plasticisers and Intermediates (ECPI)

• European Plastics Converters (EuPC)

The Vinyl 2010 commitment

• Recycling 200.000 tons of post consumer PVC waste by 2010 (in addition to established recycling volumes at 2000 and excluding regulated waste streams)

• Replacement lead stabilisers 100 % by 2015

• Stop using cadmium stabilisers in 2001

• ECVM compliance charters for PVC production

• Implementation of social charter with EMCEF

How is Vinyl 2010 recycling currently financed?

• Up until now PVC & additive suppliers have paid 100% of Vinyl 2010 general and communication projects, Vinyl 2010 overheads & ‘other’ projects (such as Vinyloop/Stignaes)

+ 70 % of the agreed converter collection & mechanical recycling projects

• Converters had committed to pay 30% of the agreed converter collection & recycling projects either through their national associations, or through EuPC sector groups

Vinyl 2010 is working

Target scenario

…there’s still a big step to make

Target scenario

Evolution of recycling Volumes

Some of the value chain are yet to be engaged

• The presence of rigid & flexible company members in Vinyl 2010 Board has been reinforced

• The outstanding 30% of committed financial contribution of must be achieved

• Recovinyl must continue to be supported by converters

• A level playing field for both mono- and mixed collection & recycling schemes needs to be ensured

• Pb stabiliser targets must be met

The Vinyl Foundation is born: our babyour baby

• Commitment by all partners to continue working together

• Proposal by all partners to collect 30 % converters’ financial contribution through a new mechanism - the ‘Vinyl Foundation’

• Acceptance by PVC resin manufacturers to provide customer information to independent third party

• Recognition that the new funding system is an opportunity to communicate further down the value-chain, raise awareness for Vinyl 2010 collection & recycling projects and involvement in its progress

• An independent complementary organisation set up specifically to fund Vinyl 2010 projects on behalf of the converters

• PVC resin manufacturers provide information on sales volumes to KPMG Fiduciaire who work on behalf of the Vinyl Foundation

• Requests for payment issued to converters, and funds collected, by KPMG Fiduciaire on behalf of the Vinyl Foundation

Vinyl Foundation structure:

• The Vinyl Foundation Board will include a company representative of several sector groups from EuPC

• Money will be distributed directly to Vinyl 2010 agreed projects and sector groups, based on budget approved by Vinyl2010

• Reduces issue of free riders and spreads the message further

• Publication of positive list of contributors

• Contributors benefit from the opportunity to use their association as a Vinyl 2010 partner in marketing their products

Conclusion

Our PVC industry responsibility is to be good parents to our baby.

It will need support from all of us to grow and prosper.

It is our investment, in our future