Third-party demanufacturing as a solution for extended producer responsibility

In this paper, three approaches to the implementation of Extended Producer Responsibility (EPR) are discussed and compared. They are OEM Takeback in which producers take direct responsibility, Pooled Takeback in which responsibility is shared through a consortium of producers, and Third-Party Takeback in which ‘Product Responsibility Providers’ are contracted to assume responsibility for end-of-life on behalf of producers. For many product categories, this latter approach may be the most effective way to meet the goals of EPR programs. This paper discusses the benefits and challenges of third-party demanufacturing in detail, and also introduces a particular example of the approach. The Renewit system aspires to create a structure for an industry of third-party recyclers, by providing a unified information system to enable efficient product recycling, and an OEM-driven financial mechanism to fund the recycling.