21st Century Policy Project

Future Search Conference Issue: Market Development

Issue Definition and Scope

As current market development efforts are in progress to support the mandate of AB 939 to achieve 50 percent diversion of the waste stream by the year 2000, our 21^st Century Project challenges us to redesign our market development approach. The recent increase in recycled-content products in the marketplace requires our new focus in promoting market forces to encourage proper uses of recovered materials and virgin feedstock; to manufacture new consumer products; and, to clear the market of surplus recovered materials. The proposed scope of our collective efforts is to reshape our design for a more effective market development policy, strategy, and program to support sustainability for the next decade and beyond.

Background

Market development efforts bring the best results when supply matches demand, product quality is consistent with buyers’ expectations, and the equilibrium price for the commodity is at a level generally affordable by the customers. In the real world, market operations often face some types of constraints, and social policy and values should find their proper place in assisting market development for the long-term benefits of the society. A well-defined vision of future consumer products with regard to recycled content is needed to guide environmentally sustainable natural resource utilization and economically sustainable recycling businesses.

Public awareness has begun to bring into view producer responsibility, life-cycle analysis, greening of supply chain, and recycled-content products. The current need for market incentives by the public and private producers remain to be balanced against the long-term benefits and sustainability of our society.

Currently, market development activities at the Board focus on collection and processing of recyclables, manufacturer use of recycled feedstock, and product marketing and consumer use. Marketing Guides have been developed for recycled materials including paper, glass, metals, tires, plastics, and organics. Market development efforts have also promoted Buy Recycled and Construction & Demolition Recycling Programs. Assistance to the private sector through the 40 Recycling Market Development Zones and the low-interest Loan Program have resulted in diversion of millions of tons of recyclables from the landfills. For recycling to succeed and achieve our AB 939 objectives, there must be additional markets for recycled materials and products.

Issue Questions

• What should be the role of the government in market development?
• How should the policy framework for market development be structured such that the long-term sustainability of production factors (natural resources and recyclables, capital, and labor) can be improved to absorb more recyclables into the manufacturing processes?
• How should the policy and programs for market development be constructed to maximize long-term social and economic benefits and at the same time ensure sustainability of our resource base and economic progress?
• Should the Board undertake additional efforts to educate consumers and the public to create and stimulate sustainable markets for recovered materials and recycled content products?
• How can the Board help the marketplace tolerate fluctuations in secondary material markets?
• How can we make recovered materials, recycled content products, and other environmentally preferred products more price competitive?
• How should we protect the current recycling infrastructure investment, and at the same time enhance markets for recycling businesses?
• How can the government level the economic playing field (currently biased against the use of recyclables in comparison to virgin materials) through legislation/regulations and incentives?
• How can we educate the public (decision makers, sector stakeholders, interest groups, citizens) to understand the reality of recycling, in terms of social costs and benefits, and market barriers?

Last updated: October 18, 2007