Plan for the Implementation of the Extended Producer Responsibility System

The Plan for the Implementation of the Extended Producer Responsibility System (the Plan), issued in 2016 by China's State Council, establishes a framework extending manufacturers' environmental responsibilities across their products' entire lifecycle, from design to disposal. The Plan was issued to promote an extended producer responsibility (EPR) system in accordance with the requirements of the “Notice of the CPC Central Committee and the State Council on Issuing the Overall Plan for the Reform of the Ecological Civilisation System”.  

With an aim to strengthen the laws, regulations and standards related to the EPR system, the Plan set the following goals and targets:

• By 2020, the policy system related to the EPR system will be initially formed, product eco-design will make significant progress, and the standardised recycling and recycling rate of key waste products will reach an average of 40%. 
• By 2025, the relevant laws and regulations on the EPR system will be completed, the EPR system in key areas will operate in an orderly manner, product eco-design will be widely promoted, the proportion of recycled raw materials used in key products will reach 20%, and the standardised recycling and recycling rate of waste products will reach an average of 50%.

The policy primarily targets four product categories: electrical and electronic equipment, automobiles, lead-acid batteries, and packaging materials. It mandates manufacturers to implement eco-design principles, utilise recycled materials, establish proper recycling systems, and maintain transparency through information disclosure. The system operates through various mechanisms, including self-collection, joint recovery programmes, or commissioned recycling services. Manufacturers may also fulfil their responsibilities by contributing to relevant funds or subsidising professional recycling enterprises. 

Specific to electronic vehicle (EV) batteries, manufacturers to establish waste battery recovery networks by utilising their after-sales service networks. These manufacturers must collect and publish recovery information whilst ensuring proper recycling and safe disposal of waste batteries. Battery manufacturers are required to implement a product coding system and establish a full lifecycle tracking system. The policy designates Shenzhen as an initial pilot city for developing the EV battery recovery and utilisation system, with plans for nationwide implementation. 

The implementation framework establishes specific targets for waste recovery and recycling rates, promoting a circular economy while transforming manufacturing practices. The policy creates a comprehensive monitoring system through credit evaluation, regulatory standards, and enforcement mechanisms. It introduces financial incentives and support systems, including green financing and government procurement preferences, while establishing pilot programmes in key cities like Beijing and Shanghai to test and refine implementation strategies. 

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