Climate Change, Litigation, Single-Use Plastics, Forestry, Enforcement Actions Lithium, WEEE, EPR, Carbon Credits & Offsets, ESG, Cosmetics, Pharma
Given the litigation, reputational, and enforcement risks, is it time for an #ESG audit of your Latin American business??Let’s set up a confidential call: [email protected] or book an initial no-cost conversation at?https://calendly.com/asusalud/initial-conversation
Climate Litigation:?Mexico
Climate litigation is already a growing trend in the Latin American region.?In one recent case, it was the government that was sued but ultimately prevailed.?Mexico’s Secretary of the Environment (SEMARNAT) had been sued by an NGO dissatisfied with the government’s prior NDC objectives (i.e., its stated commitment to cut emissions).?In July 2021, the court in that case had found that the NGO lacked standing to challenge the country’s NDCs.?And now in 2023, the courts have rejected the NGO’s appeal (amparo) against that decision. ?In other words, SEMARNAT does not have to defend its NDC decisions in court. ?Climate litigation can come in many forms with plaintiffs of all stripes.?Latin American courts are seeing more and more of these cases.?
Single-Use Plastics Bans
In May 2022, Panama’s Ministry of Environment published a decree (Decree 9/2022) to implement its law (Law 187/2020) phasing out single-use plastics.?The goal of the decree is to set the criteria for progressive reduction and replacement of single-use plastics by sustainable alternatives within the timeframes and standards set out in the law.?For purposes of the regulation, single-use plastic products include plastic ear swabs, plastic drinking straws; plastic for covering dry-cleaning; plastic egg cartons, disposable plastic stirs; plastic balloon holders; plastic toothpicks; plastic cocktail stirs; plastic sticks for candies; plastic rings for cans; disposable plastic plates, among others.??
In December 2022, the government suspended implementation of Decree 9/2022 for six (6) months in part to allow time to issue important implementing standards.?Namely, Decree 9/2022 calls for distributors, importers, and producers of covered products to apply to the Quality Certification Department of the General Directorate of Standards and Industrial Technology (DGNTI) for a certification of conformity for their sustainable alternatives (reusable, recyclable, biodegradable or compostable materials) to single-use plastics.
Now, Panama has posted for public comment the Draft Resolution with the Conformity Assessment Procedure for the sale and importation of products that replace single-use plastics (the “Draft”).?Circular Economy standards require this last mile of regulatory detail.?While it’s one thing to ban single-use plastics (after much debate about what that means and who is responsible), it then becomes critical to determine what is going to replace them.?Here, Panama sets out the sample and testing requirements.?The new Resolution would go into effect May 5, 2023.
Comments may be submitted for sixty (60) days.
Link to Draft:
Chile:?Environmental Enforcement Plans for 2023
As part of its annual work, Chile’s Ministry of Environment publishes its inspections and audit plans for the coming year.?On January 24,th it published a series of these plans outlining the planned for inspections across various programs, including Environmental Control Program for the application of the tax on air emissions of particulate matter, nitrogen oxides, sulfur dioxide and carbon dioxide in accordance with the provisions of Article No. 8 of Law 20.780.?Companies with facilities in Chile should take note.
Plastic Packaging & Informal Recyclers
As anyone familiar with Latin America knows, each country has an important number of waste pickers or informal recyclers known by a different name in each country:?cartoneros in Argentina, pepenadores in Mexico, catadores in Brazil, and recicladores de base in Ecuador.?The legion of these informal recyclers plays a critical role in the success of any Circular Economy plan.?In recognition of this importance, the Minister of Environment, Water, and Ecological Transition in Ecuador recently announced that for the first time in the ten years the country will increase the conversion factor of the Redeemable Tax on Plastic Bottles - PET (IRBP).?This will be a 53% increase in what the recyclers will receive when they sell the PET plastic bottles they have collected.?This change will benefit the country’s 50,000 informal recyclers.?Any successful Extended Producer Responsibility system or Circular Economy Plan in Latin America would be wise to leverage the local resource of these hard-working recyclers.?
Brazil’s New Forestry Fraud Unit
Stopping deforestation, especially in the Brazilian Amazon, is a foundational principle for President Lula’s new government under Minister of Environment Marina Silva.?As reported in recent editions, the federal government is seeking to regain international trust in its commitment to protect Brazil’s all-important forest resources, issuing important decrees from the very first day in office.?And the new focus continues.
Brazil’s Institute of the Environment and Renewable Natural Resources (IBAMA) just created a whole new enforcement unit focused on stamping out fraud in the forest control systems.?The new unit will be made up of federal environmental agents and intelligence officers.?The unit will focus on surveillance and intelligence activities that require the use of specialized techniques for investigating fraud in forest control systems, conducted ostensibly or covertly, alone or together with institutions involved in the repression of related environmental crimes.?
The new IBAMA anti-fraud unit seems to be both an attempt to focus resources and efforts on the problem, but it is also likely a move to assuage international actors who have concerns that Brazil doesn’t take its climate commitments – and its deforestation plans – seriously.?Minister Silva and President Lula are on a mission to reassure the world that Brazil means business when it comes to its “Zero Deforestation” agenda.
Link to Portaria:
Uruguay’s WEEE Regulation
Most Latin American countries have heartily embraced the concepts of Extended Producer Responsibility (EPR) and product stewardship that have come out of the EU.?Most countries have adopted local laws inspired by different EU Directives.?One popular local adoption has been around the EU’s WEEE Directive that requires producers, importers, and merchants take responsibility for their end-of-life electric and electronic products.?Many countries have had their local versions of a WEEE law or regulation on the books for over a decade.?However, some are still in the process of adoption.
Uruguay just posted for public comment its Draft WEEE Regulation.?The Draft calls for EPR for waste electronics with roles for consumers, manufacturers/importers/brand holders, merchants, waste managers, and others in the reverse logistics value chain.?The Draft might be considered “next generation” WEEE regulation when compared to existing rules in other Latin American countries for including newer policy concepts such as a form of duty to repair.?Manufacturers are expected to provide a warranty system, have sufficient spare parts, insure channels or facilities for repair, design for environment and durability, among other obligations.?The Draft is quite thorough – going well beyond the call for approved producer management plans (which it does) to set out storage standards, restrictions on PCBs, and call for social inclusion in the EPR schemes.?
领英推荐
Generally, WEEE is divided into two distinct management categories:?General Purpose EEE and Non-General Purpose EEE.?The former is defined as equipment which due to its characteristics and design can be used in homes, businesses, industry, or other economic activities.?This General Purpose EEE is to be managed under EPR management plans.?The latter, Non-General Purpose, is equipment conceived for specialized uses in economic-productive activities – think custom or specialized electronics from the B2B realm.?These custom or specialty EEE are to be managed directly and at the expense of their generator or holder through authorized operators.?
Given the broad reach of this proposed regulation, companies selling products into Uruguay will want to take note.?They have the chance to participate in the public comment period open until March 27, 2023.
Link to Draft:
Environmental Education:?Reason for Hope
Anyone working in environmental, sustainability, or adjacent fields is probably familiar with the concept “eco-depression” even if they don’t know the term.?It is the word used to describe the sense of desolation or hopelessness of working in these fields that seem to be gloom and doom news on the regular.?With over 25 years in the field, I often get asked how I stay optimistic.?I usually answer:?education.?I feel that education about environmental issues is key to changing hearts and minds.?
So I am elated to report some recent news from the UN:?26 of 30 Latin American countries offer environmental education as part of their primary school curricula.?Additionally, a new tool was recently launched by the Environmental Education Network, an intergovernmental platform of environmental education in Latin America.?The Environmental Education Resources Guide was organized by Ecuador with the UN Environment Programme (UNEP).?
Per UNEP, the goal is to provide primary school educators with reference materials on environmental issues to include in their classrooms.?The guide covers ten environmental themes: climate change, environmental education, water, air, soil, energy, sustainable consumption, biodiversity, waste management, and ecosystem restoration.
Link to the Resources Guide:
Lithium in the News
Germany’s Chancellor has been on a trip through South America looking to secure access to lithium for his country.?China has already made deep investments in lithium – and other natural resources – across Latin America.?Geopolitical movements manifest as natural resources competition.?Some have even ventured to say that certain minerals – like lithium – will replace oil and gas in importance as the world transitions away from fossil-fuel powered industry.?Given its importance to the energy transition and green technologies, like EVs, Chile, Argentina, and Bolivia – the Lithium Triangle – will be on the radar for foreign governments jockeying to secure these resources.?
Mexico Cuts Back Red Tape
Mexico’s FDA-analog, COFEPRIS, has been modernizing its activities by moving them online.?Where once many routine processes required an in-person visit to COFEPRIS, now thanks to the new digital platform, DIGIPRiS, the filings can be made any time and, in some cases, the responses are automatic.
As of January 23rd, requests for advertising notices can only be submitted through the DIGIPRiS platform, and they will receive an automatic response. ?This change impacts all the sectors that are required to file a notice of advertisement:?pharmaceuticals, medical devices, health services, cosmetics, food and beverages, personal hygiene products, among others.?This change will be a big benefit not only to the regulated community but to the agency, which can now focus efforts on product registration and enforcement actions.
Link to DIGIPRiS:
Carbon Credit Due Diligence
Does your company count on?#carbonoffsets?and?#carboncredits?from?#LatinAmerica?for its?#ESG?and?#climatechange?commitments? Then, let's talk about what I'm calling "carbon credit due diligence."?With the renewed focus on the?#Amazon?under Brazil's new President and the continued need to meet?#sustainability?commitments, companies using Latin American projects for their carbon credits need to get serious about audits and due diligence to make sure they don't end up with phantom credits.?Your company is running too many risks:
- reputational risks like the ones mentioned in the article below,
- legal risks through?#climatelitigation?which is on the rise in the region,
- regulatory risks from state actions against "#greenwashing"
Carbon credit due diligence with experts on the specific region - like Latin America - should be your gold standard. It's time to check up on the projects you pay for - and my network of experts and I are ready to help you ensure that no ugly surprises are lurking in your carbon offset and carbon credit baskets. We know the laws, the terrain, the languages, and the cultures in Latin America. Let's set up a confidential call:?[email protected]
Realtor Associate @ Next Trend Realty LLC | HAR REALTOR, IRS Tax Preparer
2 年Thanks for the updates on, Around Latin America.