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Creating Incentives for Greener Products

A Policy Manual for Eastern Partnership Countries

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The European Union’s Eastern Partnership (EaP) countries (Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine) struggle with environmental challenges related to the consumption and end-of-life management of many harmful products. This policy manual considers the potential use and implementation of four categories of product-related economic instruments to address some of these challenges: product taxes, tax differentiation based on environmental factors, deposit-refund systems and extended producer responsibility (EPR).

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Extended Producer Responsibility: Design and implementation

A frequent objective of Extended Producer Responsibility (EPR) schemes is to ensure secure and safe collection and disposal of substances or products that would otherwise be hazardous or harmful within the general waste stream. Another frequent motivation is to reduce public waste management costs by shifting the burden of collecting and managing significant parts of the waste stream away from tax-financed municipal operations. This section discusses commodity coverage of EPR schemes as well as issues of design, constitution and financing of Producer Responsibility Organisations (PROs). It also addresses the establishment and enforcement of EPR performance targets as well as costs borne by industry and consumers.

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