Legislation maintains market momentum for management of WEEE, and will continue to do so, reports Suchitra Padmanabhan in this review of the waste electrical and electronic equipment market in Europe.
The EU has been hit hard by the current economic slowdown and some markets, such as the UK, have been more severely impacted than others. The waste electric and electronic equipment (WEEE) market is no exception to this trend.
The EU waste management market is viewed as a strong and stable growth market, since it is essentially supported by strong regulation and revenues linked to long-term contracts. In addition, rigorous enforcement of implementation deadlines has maintained it as an attractive business prospect in Europe. Member states must fulfil targets to divert waste away from landfill and use higher value added solutions such as recycling, composting, energy recovery and waste prevention.
 The disposal of IT and telecommunications equipment is one of the main issues the EU must address when enforcing new WEEE regulations |
The European waste electronics recycling industry has witnessed significant changes over the past decade, owing mainly to legislation in the form of the WEEE Directive and associated policies such as the RoHS (Restriction of Hazardous Substances) Directive. These twin interlinked pieces of legislation currently dominate market trends and have influenced market dynamics by prompting manufacturers, consumers and waste management specialists alike to sit up and take notice of the lifecycle costs and end results of the electronic goods currently used in the market.
The Directives, (2002/95/EC)1 on the restriction of the use of certain hazardous substances in electrical and electronic equipment and (2002/96/EC)2 on waste electrical and electronic equipment, are designed to tackle the fast increasing waste stream of electrical and electronic equipment and complement European Union measures on landfill and incineration of waste.
In January 2003, the European Union introduced a Directive on waste electrical and electronic equipment (WEEE). As per the WEEE Directive producers are responsible for the recycling of the products that they put on the market. By 2006 producers were expected to meet recycling and recovery targets mandated by this Directive. Basically the Directive required all members of the European Community (EC) to pass regulations stating that electrical devices, such as computers and household appliances, be manufactured in such a way that they can be recycled or recovered at a rate of 70%-80% – dependent on the type of appliance it is.
 There are still issues regarding implementation of the EU WEEE Directive when it comes to refrigerator recycling |
Since then, there have been numerous studies of the efficacy of this Directive and the potential impact of the legislation for various electronic goods. For example, a study done by CIT Ekologik AB in Sweden examines the implications for refrigerators and suggests that there are still key challenges which remain in the effective implementation of the WEEE Directive. In this regard, the study supports the WEEE irective and argues that its objectives can be achieved if the "refrigerator shredders of today are complemented with additional technology and glass, plastics, and PUR-foam are recycled to a greater extent than today".
The afore mentioned study is an illustration of the far reaching consequences that the legislation has on goods that have become an everyday convenience in the western world. The production of electrical and electronic products is one of the most rapidly growing markets in the developed world today. The fast rate of consumption increases the generation of waste and it is precisely this trend that the WEEE Directive and related legislation seeks to address and potentially limit.
The RoHs (Restriction of Hazardous Substances) Directive was equally key to this market as it stated that by July 2006, all manufacturers of electronic and electrical equipment sold in Europe must comply by reducing six hazardous substances. The six substances covered under the RoHS mandate are lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls (PBB) and polybrominated biphenyl ethers (PBDE).
The European Union (EU) has long been a recognized world leader in the development of comprehensive environmental laws. Over the past few decades, the EU has developed an inclusive body of environmental legislation, which has proven innovative and successful in many respects. Much of the emphasis of both of these Directives is the introduction of producer responsibility, whereby manufacturers take responsibility for the entire life cycle of a product. A feature of the Directives – the forced take back of end-of-life products – is likely to provide a strong incentive for more ecologically-minded design, since manufacturers themselves will directly benefit from repirability, easy dismantling and low content of hazardous substances. The intention behind this proposal is that it might encourage manufacturers to build these products in such a way that they can be dismantled and recycled.
In this respect, the EU has led the way by applying increasing pressure to Member States to enforce stricter regulation around the treatment and disposal of WEEE – including household appliances, consumer equipment, lighting equipment, electrical and electronic tools, toys, medical equipment systems, monitoring and control instruments, automatic dispensers and, most importantly, IT and telecommunications equipment.
The objective of the WEEE directive is, quite simply, to promote reuse, recycling and other forms of recovery of electrical and electronic waste in order to reduce the quantity of such waste to be eliminated, and to improve the environmental performance of the economic operators involved in the treatment of such waste. Perhaps the most significant impact of the WEEE Directive on businesses is the requirement that manufacturers of electrical and electronic equipment will have to pay for the recovery of WEEE, and the subsequent treatment and environmental disposal of it.
Implementation hurdles
However, environmental legislation continues to be poorly implemented by national governments in the EU and often the legislation is not adequately enforced. This has also led to varying stages of market development within the EU with Germany leading the way in terms of an already well-established market, although the UK and Ireland and southern Europe are increasingly considered as the markets of tomorrow.
For companies in the electronics business in Europe, there is moreover a complex system of regulations that must be complied with. Voices of dissent already emanate in the EU with respect to the heavily restrictive legislative environment. Dean Halwani, Environmental Health and Safety Manager for Spartech Plastics, has said: "It has become increasingly difficult for manufacturers of electronic and electrical equipment to remain competitive in the European marketplace," and "compliance with these standards is essential for any company that hopes to sustain itself in this changing marketplace."
Market impacts
With respect to impact, legislation, along with landfill site scarcity in certain countries, will be the most important driver for both prices and volumes in the waste recycling industry. Legislation is based on producer responsibility and includes a take back obligation that aggressively supports recycling of major components. The impact of legislation as a key driver in this market is already visible in countries that have created strong local laws to supplement these EU policies.
Accordingly, the market is still geographically fairly concentrated, with Germany setting the pace for other countries to follow. The Alpine Region, consisting of Austria and Switzerland, is also well ahead of most other European regions. The United Kingdom and Ireland, and the Netherlands, have an important electronics recycling industry which is actively supported by local legislation and pressure groups this will shape market demand. In future, the relative importance of the French and Scandinavian markets is expected to grow significantly.
Overall, it is evident that the EU is fiercely committed to enhancing its recycling portfolio and reducing the potential impacts of a rapidly growing electronics and IT market on the waste management industry. The recycling market is expected to grow quickly over the next five years as countries in the EU try to keep pace with legislation as well as their neighbouring countries in terms of compliance and setting high environmental standards for recycling.
The current economic scenario will prove to be an important test for the WEEE market, and while some countries maintain pressure on equipment suppliers and consumers to dispose of goods responsibly, it is expected that significant regional variations will shape market characteristics.
Suchitra Padmanabhan, Programme Manager, European Waste Management Market, Environment & Building Technologies
For further information, please contact Chiara Carella,
Corporate Communications, e-mail: chiara.carella@frost.com
- Directive 2002/95/EC of the European Parliament and of the Council of 27 January 2003 on the restriction of the use of certain hazardous substances in electrical and electronic equipment
- Directive 2002/96/EC of the European Parliament and of the Council of 27 January 2003 on waste electrical and electronic equipment (WEEE)
This article is on-line. Please visit www.waste-management-world.com
