##### 1.2.1. Background behind extended producer responsibility

Due to the delay of waste reduction and the shortage of waste disposal capacity, it has been becoming more and more difficult to find new locations for waste disposal. Therefore there is a necessity to take new policy measures aimed at reducing waste volume in the upstream of waste generation. Specifically, internationally recognized as an important issue, primarily in developed countries, is the question of how to transmit the necessary information to consumers to reduce waste generation beginning with the manufacturing stage.

##### 1.2.2. Results of international discussions

Based on this recognition, the concept of extended producer responsibility came to be discussed at an OECD working group, later becoming internationally shared as an important approach in the 1990's. With Japan serving as a core member, an OECD project team commenced study of this approach in 1994. In 2001, a guidance manual for OECD member governments was prepared and published.

Extended Producer Responsibility in OECD “A Guidance Manual for Governments”

1) Definition	An environmental policy approach in which a producer's responsibility, physical and/or financial, for a product is extended to the post-consumer stage of a product's life cycle.Two related features of EPR policy:(1) the shifting of responsibility (physically and/or economically; fully or partially) upstream to the producer and away from municipalities; and(2) the providing of incentives to producers to incorporate environmental considerations in the design of their products.
2) Primary function	The transfer of the financial and/or physical responsibility of waste management from local government authorities and the general taxpayers to the producer
3) Four primary objectives	(1) Source reduction (natural resource conservation/materials conservation)(2) Waste prevention(3) Design of more environmentally compatible products(4) Closures of materials use loops to promote sustainable development
4) Effects	EPR can provide a pressure point to drive upstream changes in material selection and in the design aspects of a product. Appropriate signals can be sent to the producer to internalize substantial externalities from the final disposal of the product.
5) Responsibility	While sharing responsibilities across the product chain is an inherent part of EPR, a key characteristic of EPR is that the producer accepts a significant degree of the physical and/or financial responsibility of products at the post-consumer phase.
6) EPR policy instruments and measures	(1) Product take-back(2) Deposit/refund schemes(3) Material taxes, upstream combination tax/subsidy(4) Advance disposal fees(5) Standards: minimum recycled content requirements(6) Leasing/servicizing

Source: OECD, “Extended Producer Responsibility, A Guidance Manual for Governments” (2001), As edited and summarized by the Ministry of the Environment of Japan

1.2.3. Establishment of recycling systems based on extended producer responsibility

The concept of extended producer responsibility is clearly noted in the Fundamental Law for Establishing a Sound Material-Cycle Society $ ^{4} $ . Based on this and other concepts, Japan is establishing recycling systems for containers and packaging, household appliances, construction materials, food, and vehicles, corresponding to the particular qualities of each product.