TBT PROGRAMME - REG/FED/022-667 TRADE REGULATORY IMPACT ASSESSMENT - MAURITIUS INVESTIGATION OF OPTIONS TO REDUCE THE IMPACTS OF POLYETHYLENE TEREPHTHALATE (PET) BOTTLES IN MAURITIUS Submitted by Economisti Associati srl (Lead Firm) BKP Development (Partner) 04 October 2015 TABLE OF CONTENTS 1. PROBLEM DEFINITION.................................................................................................................................. 5 1.1 INTRODUCTION .................................................................................................................................................. 5 1.2 POLYETHYLENE TEREPHTHALATE (PET) ....................................................................................................... 5 1.3 RECYCLING PET ................................................................................................................................................. 7 1.4 DEFINITION OF PET BOTTLE ............................................................................................................................ 9 1.5 PET BOTTLES IN MAURITIUS: FACTS AND FIGURES ..................................................................................... 10 1.6 PRIOR ACTIONS ............................................................................................................................................... 11 1.7 LITERATURE REVIEW ...................................................................................................................................... 11 1.8 ECONOMIC IMPACTS OF PET BOTTLES .......................................................................................................... 12 1.9 SOCIAL IMPACTS OF PET BOTTLES ................................................................................................................ 13 1.9.1 INTRODUCTION............................................................................................................................................................. 13 1.9.2 COMMUNITY PARTICIPATION IN INCREASING PET BOTTLE RECYCLING ............................................................ 13 1.9.3 LOSS OF AESTHETIC VALUES AND REDUCED PUBLIC AMENITY ............................................................................. 13 1.9.4 PLASTIC BOTTLES AS A SYMBOL OF THE THROW-AWAY SOCIETY ........................................................................ 13 1.10 ENVIRONMENTAL IMPACTS OF PET BOTTLES ............................................................................................ 14 1.11 UNDERLYING DRIVERS .................................................................................................................................. 14 1.11.1 MARKET FAILURE ...................................................................................................................................................... 14 1.11.2 REGULATORY AND IMPLEMENTATION FAILURE ................................................................................................... 15 1.12 PROBLEM STATEMENT ................................................................................................................................. 15 1.12.1 INTRODUCTION .......................................................................................................................................................... 15 1.12.2 PET BOTTLE CONSUMPTION IN MAURITIUS ......................................................................................................... 15 1.12.3 PET BOTTLES AND LITTER ...................................................................................................................................... 16 1.12.4 WASTE AND LITTER MANAGEMENT ....................................................................................................................... 16 1.13 CONSULTATION AND EXPERTISE .................................................................................................................. 17 1.14 OBJECTIVES OF PET BOTTLE POLICY INTERVENTION ................................................................................ 17 2. STAKEHOLDER CONSULTATIONS .......................................................................................................... 18 2.1 REACTION TO WIDER APPLICATION OF THE LEVY ........................................................................................ 18 2.2 REACTION TO LEVY INCREASE ........................................................................................................................ 18 2.3 REACTION TO BOTTLE BANKS ........................................................................................................................ 18 2.4 REACTION TO DEPOSIT SYSTEM ..................................................................................................................... 18 2.5 REACTION TO INCREASE INCENTIVE FOR RECYCLING ................................................................................... 19 3. DATA AND METHODOLOGY ..................................................................................................................... 20 3.1 INTRODUCTION ............................................................................................................................................... 20 3.2 GENERAL NOTE ON DATA ................................................................................................................................ 20 3.3 IMPACTS .......................................................................................................................................................... 23 3.3.1 INEFFICIENT USE OF RESOURCES ............................................................................................................................... 23 3.3.2 LITTERING ..................................................................................................................................................................... 23 3.3.3 BEVERAGE PRODUCERS (BOTTLERS) ........................................................................................................................ 24 3.3.4 PLASTICS RECYCLERS: ................................................................................................................................................. 24 3.3.5 PUBLIC AUTHORITIES: ................................................................................................................................................. 24 3.3.6 TOURISM INDUSTRY AND LOCAL BUSINESSES: ........................................................................................................ 24 3.3.7 TRADERS: ...................................................................................................................................................................... 24 4. DESCRIPTION OF POLICY OPTIONS ....................................................................................................... 25 4.1 INTRODUCTION ............................................................................................................................................... 25 4.2 OPTIONS USED IN OTHER COUNTRIES ............................................................................................................ 25 i 4.3 OPTIONS DISCARDED AT AN EARLY STAGE .................................................................................................... 26 4.3.1 KERBSIDE COLLECTION ............................................................................................................................................... 26 4.3.2 PUBLIC AWARENESS CAMPAIGN ................................................................................................................................ 27 4.3.3 INCREASING THE LEVY TO RS5/PET BOTTLE ........................................................................................................ 27 4.3.4 ENFORCE THE LEVY AT EXIT POINT TO THE CONSUMER ........................................................................................ 27 4.3.5 LITTER MANAGEMENT AND BOTTLE BANKS ............................................................................................................ 27 4.3.6 BANNING THE SALE OF SMALL WATER BOTTLES .................................................................................................... 28 4.3.7 USING REFILLABLE PET BOTTLES ............................................................................................................................ 28 4.3.8 INCINERATION OF PLASTIC (AND OTHER WASTE) .................................................................................................. 29 4.4 OPTIONS SHORTLISTED FOR SCENARIO ANALYSIS ........................................................................................ 29 4.4.1 OPTION 1: STATUS QUO .............................................................................................................................................. 30 4.4.2 OPTION 2: DEPOSIT SYSTEM ...................................................................................................................................... 30 4.4.3 OPTION 3: EXPAND APPLICATION OF LEVY AND RECYCLING INCENTIVE TO INCLUDE OTHER PRODUCTS .... 32 4.4.4 OPTION 4: ACCESS TO WASTE TRANSFER SITES ..................................................................................................... 32 4.4.5 OPTION 5: INCREASED INCENTIVE FOR RECYCLING ............................................................................................... 33 4.4.6 SUMMARY .....................................................................................................................................................................