Yazan al Homsi Comments on the Growing Importance of EPR in 2024

Yazan al Homsi, a key player in the sustainability and venture capital sectors, has become a prominent advocate for Extended Producer Responsibility (EPR). His involvement in various sustainability-driven companies, including Aduro Clean Technologies, has made him a respected voice in discussions surrounding corporate responsibility, particularly in waste management and recycling. EPR, a policy approach designed to make producers accountable for the entire lifecycle of their products, is becoming increasingly critical as the world faces mounting environmental challenges.

In 2024, the importance of EPR continues to grow, especially as global waste management systems strain under the burden of increasing plastic pollution. Al Homsi highlighted this issue in a recent interview, pointing to events like the plastic pollution meeting in Ottawa. He noted, “Less than 10% of waste plastic gets recycled,” a staggering figure that underscores the urgent need for more effective recycling solutions. Al Homsi’s focus on driving corporate responsibility through policies like EPR reflects a broader global trend toward more sustainable practices, especially in industries with large environmental footprints like plastics and petrochemicals.

The economic and environmental impacts of EPR are multifaceted. On the one hand, EPR helps alleviate the pressure on municipalities and taxpayers by shifting the financial burden of waste management onto the producers. On the other hand, it serves as a catalyst for companies to innovate and reduce their environmental impact. By internalizing waste management costs, businesses are incentivized to produce more recyclable products and invest in advanced recycling technologies, a shift that al Homsi sees as crucial for long-term sustainability.

Financial Incentives and Corporate Responsibility Under EPR

EPR is not just about environmental stewardship—it’s also about the bottom line. As Yazan al Homsi explains, “Extended Producer Responsibility (EPR) means if you are Dow Chemical or Shell, you have to have a registry and an audit of how much you’ve produced and recycled.” This audit-based system ensures transparency and holds companies accountable for their environmental footprint. Producers are required to track how much waste they generate and report on the proportion that is successfully recycled. Failure to meet recycling targets can result in significant financial penalties, adding a tangible economic incentive for businesses to improve their waste management processes.

Al Homsi further breaks down the financial implications of EPR, noting, “If you produce 100,000 tons of plastic waste and only recycle 10%, the delta between the 30% and the 10% is 20%.” This shortfall is costly for companies, especially in regions like Europe, where failing to meet recycling mandates can lead to hefty fines. In his interview, al Homsi explained how European companies could face penalties of up to 1,000 euros per ton of unrecycled plastic, amounting to millions of euros annually. These financial repercussions are driving many businesses to rethink their approach to recycling, with a growing emphasis on compliance and innovation.

Recent news from 2024 shows an uptick in the enforcement of EPR policies, particularly in Europe and Canada. In the European Union, stricter EPR mandates have been rolled out across various sectors, including packaging, electronics, and plastics. North America is also witnessing a gradual increase in the adoption of EPR policies, with Vancouver at the forefront of Canada’s sustainability efforts. As a city known for its environmental leadership, Vancouver is expected to play a key role in shaping the future of EPR in North America, particularly as the federal government begins to align its waste management policies with European standards.

EPR Successes in Europe and Lessons for North America

Europe has long been a leader in implementing Extended Producer Responsibility (EPR) policies, setting the benchmark for other regions to follow. Yazan al Homsi frequently points to Europe as a case study in how EPR can drive corporate responsibility and environmental sustainability. He highlights a key aspect of European EPR policies: “In Europe, there’s an exact requirement you have to recycle 30%, and if you don’t, you have to pay taxes on what’s not recycled.” This stringent approach has pushed companies to take recycling seriously, with many firms investing heavily in sustainable practices to avoid the financial penalties associated with non-compliance.

Countries like Germany, France, and the Netherlands have adopted comprehensive EPR frameworks that require producers to take back and recycle a certain percentage of their products. In Germany, the Packaging Act mandates that all producers register with a central authority and report the quantities of packaging they place on the market. Similar laws exist across the European Union, with consistent enforcement ensuring that companies comply. As a result, Europe boasts some of the highest recycling rates in the world, with Germany recycling approximately 70% of its packaging waste.

However, North America has been slower to adopt EPR on a similar scale. In the United States and Canada, EPR policies are fragmented, with no uniform federal mandate to enforce recycling targets across industries. Despite these challenges, Yazan al Homsi believes that North America, and specifically Vancouver, has the potential to learn from Europe’s success. Vancouver, known for its progressive environmental policies, has begun implementing its own EPR frameworks. As a city that prioritizes sustainability, it is well-positioned to become a leader in EPR adoption, setting an example for other North American cities to follow.

The disparity between North America and Europe is not just in policy enforcement but also in corporate attitudes towards EPR. As al Homsi notes, many North American companies still view EPR as a burden rather than an opportunity. “In the US and Canada, it’s still not an enforcement. And as we know with a lot of these things, if it’s not enforced, people will not do it,” he said, explaining why the uptake of EPR has been slower outside of Europe. However, the financial benefits of adopting EPR, particularly as governments tighten regulations, could be a game-changer for North American businesses in the coming years.

The Business Case for EPR: Yazan al Homsi’s Vision

For Yazan al Homsi, EPR is not just about regulatory compliance—it’s about smart business. In a world where environmental sustainability is becoming increasingly important to consumers and investors, companies that fail to adopt sustainable practices risk losing their competitive edge. “It’s smart business. It’s not just a greenwash agenda… because if you don’t do it, you’re going to have to pay for it,” al Homsi asserts. This perspective reframes EPR as a strategic move that can drive profitability and long-term success, particularly as the costs of non-compliance continue to rise.

Al Homsi’s advocacy for EPR goes beyond just policy enforcement. He envisions a future where businesses that embrace EPR can turn waste management from a cost center into a profit center. One of the companies leading this charge is Aduro Clean Technologies, which has developed innovative recycling technologies that make it economically viable for companies to meet their recycling targets. By investing in such technologies, businesses can not only avoid financial penalties but also unlock new revenue streams by turning waste into valuable resources.

Aduro’s work with major corporations like Shell exemplifies this shift towards a more sustainable business model. As al Homsi pointed out, “When you have Shell testing your approach, that speaks volumes.” The validation that comes from these partnerships highlights the potential for EPR-driven solutions to reshape entire industries. In 2024, as more companies explore the economic benefits of EPR, the global business landscape is expected to see a significant transformation, with sustainability becoming a core component of corporate strategy.

Looking ahead to 2025, Yazan al Homsi believes that EPR will continue to gain momentum, particularly in markets like Canada, where the federal government is increasingly aligning its environmental policies with global standards. Vancouver, in particular, is poised to be a trailblazer in this space, with local initiatives and grassroots movements advocating for stronger EPR regulations. As al Homsi notes, “The other piece of the puzzle is you’re also going to be asked to recycle a certain percentage of what you produce.” This shift will not only benefit the environment but also position businesses to thrive in a rapidly changing regulatory landscape.