Annex V. Evolutionary System Mechanisms of E- waste Alam. Collection System with Planner s Notes

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1 Annex V Evolutionary System Mechanisms of E- waste Alam Collection System with Planner s Notes

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3 Preface Evolutionary System Mechanisms of E-waste Alam 1 Collection System with Planner s Notes was developed in the Project initiated by The Minutes of Meetings between the Chief Representative of JICA Malaysia Office and the Authorities Concerned of the Government of Malaysia on the Japanese Technical Cooperation for the Project for Model Development for E-waste Collection, Segregation and Transportation from Households for Recycling signed by Department of Environment (DOE), Ministry of Natural Resources and Environment, Government of Malaysia and JICA Malaysia Office on July 15, 2011 in Kuala Lumpur. The Project, began in September 2011 and is expected to run through March 2013, aims at developing an appropriate, effective and efficient e-waste collection system from households by working with DOE. The developed system is expected to be used as a model for expanding it to the nationwide collection system. At the same time, it is expected for DOE to derive policy implications for the future expansion. This document describes the mechanisms of the system that has been generated in the Project. Also, how the planners designed those mechanisms is incorporated as the planners notes. Users of this report can also refer to several other reports for their further understandings. The major reports are: E-waste Flow Analysis; E-waste Flow Study; Pilot Project Plan with Evaluation; Standard Operating Procedure for E-waste Collection System; and Factor analysis for an EPR regulatory system based on the EPR Systems in Asian countries. 1 Alam means Environment in Bahasa Malaysia.

4 Acknowledgements The Project was implemented in collaboration with Department of Environment (DOE); DOE Penang; and Majlis Perbandaran Pulau Pinang (MPPP) (Municipal Council of Penang Island). The Project Team was advised by: Prof. Yoshifumi Fujii, Bunkyo University; and Dr. Theng Lee Chong, SoluWaste Management Consultants. The Project Team had comments from: Dr. Michikazu Kojima, Institute of Developing Economics, Japan External Trade Organization; Dr. Rie Murakami (Suzuki), University of Tsukuba; and Dr. Aya Yoshida, National Institute for Environmental Studies. Project Team Hideki Wada (Mr.), Sustainable System Design institute Ikuo Mori (Mr.), Kokusai Kogyo Co., Ltd. Norihisa Hirata (Mr.), Sustainable System Design institute Atsushi Otsuka (Mr.), Sustainable System Design institute Noriko Otsuki (Ms.), Kokusai Kogyo Co., Ltd.

5 Contents Annex V 1 1. System outline TARGET E-WASTES TARGET E-WASTE DISCARDERS E-WASTE STREAM ECONOMIC INCENTIVE TO DISCARDERS MANAGEMENT BODIES 4 2. System mechanisms MECHANISM TO AFFECT PEOPLE S DISCARDING BEHAVIOR MECHANISM TO ACHIEVE THE COLLECTION TARGETS MECHANISM OF THE PRICING MODEL AS A COMMUNICATION TOOL MECHANISM TO ENSURE A RELIABILITIES OF THE SYSTEM MECHANISM FOR WIDER ENVIRONMENTAL CONTRIBUTION FROM LOCAL BUSINESSES MECHANISM OF ADVERTISEMENT MECHANISM TO SECURE THE FUND FOR SYSTEM MANAGEMENT 9 3. Future scalabilities and recommendations FUTURE FORMATION STEPWISE IMPROVEMENT MECHANISM TO GIVE PRESSURE TO COST/PRICE UPDATE OF WTP CURVE BY DATA ACCUMULATION INVOLVEMENT OF THE CONVENTIONAL RECYCLERS APPLICABILITY TO THE ECONOMIC CHANGE APPLICABILITY TO OTHER HAZARDOUS WASTES FROM HOUSEHOLDS APPLICABILITY TO OTHER ASIAN COUNTRIES 12

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7 Abbreviations DOE EPR e-product e-waste JICA MPPP WTP Department of Environment Extended Producers Responsibility electrical and electronic product electrical and electronic equipment waste Japan International Cooperation Agency Majlis Perbandaran Pulau Pinang (Municipal Council of Penang Island) Willingness to be paid

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9 1. S YSTEM OUTLINE 1.1 TARGET E-WASTES E-waste is one of the Scheduled Wastes stipulated by the Environmental Quality Regulations 2005 under the Environmental Quality Act, The code of e-waste is SW110 which is defined as Waste from electrical and electronic assemblies containing components such as accumulators, mercury-switches, glass from cathode-ray tubes and other activated glass polychlorinated biphenyl-capacitors, or contaminated with cadmium, mercury, lead, nickel, chromium, copper, lithium, silver, manganese or polychlorinated biphenyl. The target e-wastes in the Pilot Project are classified by types of e-products 2. Classification systems can be modified according to the changes in the trend of major types of e-wastes discarded. 1.2 TARGET E-WASTE DISCARDERS Among all e-wastes defined above, this System targets the e-wastes discarded by households and businesses 3 and does not cover the e-wastes from e-product factories. 1.3 E-WASTE STREAM (1) Discarding manners There are two manners of discarding e-waste: Walk-in and Trade-in. 2 As of Jan. 1, 2013, the e-wastes are classified as shown in the table below. No. E-waste 1 Television set (CRT Type) 2 Television set (non-crt Type) 3 Refrigerator 4 Washing machine 5 Air-conditioner (Full set) 6 Personal computer (Desktop) 7 Personal computer (Notebook) 8 Printer 9 Mobile phone 10 DVD player, VCD player and etc. 11 Others (Battery charger, Mobile phone battery, mouse, keyboard, etc.) 3 As of Jan. 1, 2013, the system is running for households and businesses located in Penang Island. 1. System outline 1

10 In the Walk-in manner, households can bring their e-wastes from their houses to the participating retailers ( E-waste Collection Member 4 ). In the Trade-in manner, households ask the retailers to take back the e-wastes from their houses. The e-wastes are taken back when new e-products are delivered by the retailers. The Trade-in service is provided only for bulky e-wastes such as television sets, refrigerators, washing machines and air-conditioners. (2) Storage by the retailers and transportation The collected e-wastes are stored by the retailers and transported to licensed recyclers 5 charge 6 upon the retailers request. in (3) Recycling in the licensed recyclers The licensed recyclers dismantle the e-wastes and sort out several parts and metals. 4 As of Jan. 1, 2013, the E-waste Collection members are 25 shops as shown in the table below. Business type Company name Number of shops E-products retailers (Trade-in and Walk-in) LSS (Loo Soon Seng Electrical) 3 BHB (Ban Hin Bee) 7 TC Electrical Centre 1 Total 15 shops Mobile phone shop (Walk-in) Wah Lee Chain 1 Chop Seng Hock Electrical (CSH) 3 Channel Communication & Electronics Centre 1 Sun Win Phone Shop 1 Innomax Telecommunication Centre 1 Total 5 shops Personal Computer Shop (Walk-in) Impian Communication 1 Multi Communication Enterprise 1 Gadgetzone 2 NC Computer / Nanyang Digital 1 Total 5 shops Mind Maker 1 E-Tech Computer 1 5 In Malaysia, e-waste recyclers are classified into two categories: 1) full recovery facility and 2) partial recovery facility. Full recovery facilities function to recover metals including precious metals. Partial recovery facilities only dismantle E-wastes and sort the dismantled parts, but do not recover metals. 6 As of Jan. 1, 2013, full-recovery facilities in charge in Penang Island are TES-AMM Malaysia and Shan Poornam Metals. 2 Annex V. Evolutionary System Mechanisms of E-waste Alam Collection System with Planner s Notes

11 Household /Business Retailer Licensed recycler Household /Business Retailer Household /Business Retailer Licensed recycler Household /Business Retailer Figure 1-1 Basic E-waste Stream 1.4 ECONOMIC INCENTIVE TO DISCARDERS Households are given vouchers corresponding to the e-wastes they discard. The voucher can be commonly used in any participating retailer ( E-waste Voucher Member 7 ). The prices of the vouchers are different by the types of e-wastes, reflecting the amount of metals contained. The price list can be revised by considering changes in the conditions such as metal price fluctuation 8. The amount of money corresponding to the vouchers used in any E-waste Voucher Member can be reimbursed by the participating licensed recyclers basically. 7 As of Jan. 1, 2013 in Penang Island, the E-waste Collection Members and the E-waste Voucher Members are the same. 8 As of Jan. 1, 2013 in Penang Island, the prices are given to e-wastes shown in the table below. E-waste Television set (CRT Type) Television set (non-crt Type) Refrigerator Washing machine Air-conditioner (Full set) Personal computer (Desktop) Personal computer (Notebook) Printer Mobile phone DVD player, VCD player and etc. Others (Battery charger, Mobile phone battery, mouse, keyboard, etc.) Price of Voucher RM12/Unit RM15/Unit RM10/Unit RM10/Unit RM20/Unit RM5/Unit RM5/Unit RM1/Unit RM4/Unit RM2/Unit RM0/Unit 1. System outline 3

12 Voucher Money Household /Business Retailer Licensed recycler Figure 1-2 Incentive to discarders Note: Money from the licensed recycler to the retailer is paid upon reclaimed by retailers after the voucher used in the retailer. 1.5 MANAGEMENT BODIES The System is managed by an intersectorial group named E-waste Alam Alliance 9 coordinated by local governmental agencies by inviting local participating businesses. 9 In the Pilot Project in Penang Island, E-waste Alam Alliance Penang was established for managing the system. 4 Annex V. Evolutionary System Mechanisms of E-waste Alam Collection System with Planner s Notes

13 2. S YSTEM MECHANISMS 2.1 MECHANISM TO AFFECT PEOPLE S DISCARDING BEHAVIOR The importance of public How does money affect people s behavior? environmental awareness is often A municipality named Yono-city (part of present Saitama-city, in Saitama prefecture) in Japan introduced a charging system to its municipal solid waste emphasized when any recycling management system. Residents of Yono-city had to use the specific plastic bags for discarding their waste since April 1, Until then, no direct cost was programs are discussed. Of course, required when discarding wastes. The plastic bags were sold in supermarkets public environmental awareness is with solid waste management fee included. What happened was an amazing waste reduction as shown in the figure below. very important but sustainable Many people started to segregate their waste more strictly. Consequently, combustible waste and incombustible waste were reduced and recyclables recycling programs cannot be collected by the municipality were increased. realized only by the power of Although Yono-city was one of municipalities which were very active to raise people s awareness in recycling, a monetary incentive was proved to be more environmental consciousness. effective The System assumes that people s 60 behavior is majorly affected by the e-waste prices. There are so many 40 conventional recyclers which deal 20 with not only general recyclables +13 such as paper, steel and plastic but 0 Combustible Incombustible Paper Bottles and Cans Total also e-wastes. They buy e-wastes Waste Waste from households with certain -27 prices (market prices). The System -40 has to compete with these market prices. Is prohibition on the existing actors The competition with the conventional recyclers possible? There exists a major e-waste stream from households to means putting the same prices as theirs. It is the conventional recyclers, then falling down to scrap dealers. These actors are not licensed for e-waste assumed that the System may get 50% of handling in Malaysia. The System aimed at changing the major stream to the discarded e-wastes, if the System can puts the licensed recyclers by means of providing economic same prices as the market prices. This also incentives. Another way to control the stream is to prohibit the scrap assumes that people are affected only by the dealers to deal with e-wastes but such prohibition does not work perfectly even with a lot of inspection cost. Also a lot price signal. Furthermore, if the system can put of complaints might be raised by the existing actors. higher prices than the market prices, the system gets more shares. Contrarily, if the System puts 100% should not be targeted. In fact, the System to compete with the conventional lower prices, the cooperation rate will be lower recyclers by prices cannot change the e-waste stream 100%. However, 100% achievement results in a steep rise than 50%. Thus, the prices of e-wastes can in the marginal cost. The collection target should be considered in the balance of cost efficiencies and control the rate of discarded e-wastes expected reduction of environmental impacts. for collection. The rate can be called as cooperation rate or collection rate, and people s response sensitivities to the price changes can be called willingness to be paid (WTP) and shown in the WTP curve. Change of Waste Generation Rate between FY1995 and FY1996 (%) 2. System mechanisms 5

14 100% 50% Expected cooperation rate in the System 0% Price in the System Market Price Figure 2-1 Prices and cooperation rates (WTP: Willingness to be paid curve) 2.2 MECHANISM TO ACHIEVE THE COLLECTION TARGETS The purpose of the system is to achieve Failure to design systems in a deterministic collection targets that may be set by the way Solid waste management systems including recycling system are government from the viewpoint of sometimes designed deterministically. E-waste collection stream environmental protection. The pricing is sometimes defined by laws/regulations with rigid roles of stakeholders and the amount of required cost is determined by the model explained in Section 2.1 tells us the government under a provision of laws/regulations. Such deterministic system is so rigid that it is weak against changes in most appropriate price so as to achieve the the background conditions and that it does not accept any collection targets. However, the System innovative ideas. Any failure of such system will be patched, but total consistency will be lost in the end. performance might not be promised, The system should be designed flexibly so that it can be improved by all stakeholders innovative ideas. because the performance depends on other conditions, such as income level, environmental awareness and time affordability, even if the major signal affecting people s behavior is money. But it does not necessarily mean that the System is unreliable. The System allows enough function to explore various options to meet the collection target. Once the collection rate is lower than the collection target, the performance can be adjusted by setting higher prices. If the collection rate is expected high enough after people s learning process, lower prices may be enough to achieve the collection target. Also, the System can flexibly respond to the external conditions such as metal price fluctuations. Steep rises of metal prices may push the market prices, which weakens the competitiveness of the System. Under such conditions, the System can be adjusted by raising the prices used in the System so as to achieve the collection target flexibly. Furthermore, the collection system itself should be evolutionary by any innovative ideas in order to achieve the collection target. 6 Annex V. Evolutionary System Mechanisms of E-waste Alam Collection System with Planner s Notes

15 WTP curve Revision of WTP curve Collection target Benchmarking for market prices Voucher prices (so as to attain the collection target) Buying price by licensed recyclers Comparison Achieved Collection Rate Figure 2-2 Mechanism to explore options to meet the collection target 2.3 MECHANISM OF THE PRICING MODEL AS A COMMUNICATION TOOL As explained in Section 2.1, the WTP curve tells us the appropriate price for each type Who is the most appropriate planner? Can the government become a planner for the system? Is the of e-waste for achieving the target government the appropriate organization which can manage the system the most effectively and efficiently? Then who is the most appropriate planners. collection rate. It assumes that people s The pricing model was designed based on a market mechanism. behavior can be changed by changing the Private sector including e-product brands is one of the most appropriate sectors which can manage the system under the pricing Price of voucher. This mechanism can be model. The private companies can set the price so as to compete with the conventional recyclers, as they compete with each other. They called as Pricing Model. can give pressures on the prices shown by licensed recyclers. The private sector can manage all the matters regarding the system If the collection rates are lower than with the lease cost so that the collection target can be achieved. expected, after the collection rates are observed, discussion among responsible How can be the EPR defined in Asian counties? The EPR (Extended Producers Responsibility) is a concept for parties such as e-product brands will start. promoting smooth recycling for post-consumer wastes by obliging the producers to recycle them. Who should pay the recycling cost could The responsible parties may discuss how to be the focal point in the discussions on EPR and the producers are improve the system and the central obliged to pay the cost in some cases in highly industrialized countries where e-wastes are not salable. However, in many Asian countries, e-wastes are salable. The conventional recyclers, including government can request any improvement. those in the informal sectors, can buy e-wastes from households. The Was the WTP curve too optimistic? Is the discussions on EPR from the point of who should pay are nonsense in Asian countries, because any recycling cost is not required here. number of the participating shops still The pricing model requires the additional money input from outside small? Is there any other inconvenience around discarders? Through considering sources, if the prices to achieve the collection target are higher than the prices bought by the licensed recyclers. Here, the concept of EPR including who should pay can be defined by using the pricing model. these questions, any solution will be proposed. The proposal will be discussed again among stakeholders and be implemented. It is obvious that a very high price may encourage people to discard their e-wastes to the System. But the responsible parties might be reluctant to pay the additional money above the 2. System mechanisms 7

16 prices which the licensed recyclers can show. Instead, the responsible parties might propose other solutions. If the government will not agree with the solution, further discussions will be made. Having a compass is important in such discussions. Without any compass, the discussion will start wondering and the decision might be made politically without any reasonable reason. The constructive discussions are possible by using any common compass. The pricing model can be used as such a compass for such discussions. 2.4 MECHANISM TO ENSURE A RELIABILITIES OF THE SYSTEM Local businesses will not perform the best, unless they are motivated by themselves. In the System, the advantage to stand in the frontier of an environmental program was emphasized, when the participating retailers were invited. The point that the image of environmental pioneer may boost their sales was emphasized. Any compulsion or request from the governments is not enough to ensure the reliable system. Once it is initiated by their motivation, a reliable system can be realized. Selection of local businesses in Penang In the Pilot Project in Penang, the first participating e-product retailers were selected by MPPP. The criterion was not only the market share, but rather the willingness to participate. As far as they are willing to participate, it is expected that they will manage any troubles by them, not relying too much on supports from the government. Once pioneer groups are created, the participants can be added by being introduced by the pioneers. Also, it is advisable that participation from local businesses which have headquarters in the central city should be confirmed and agreed by the headquarters. 2.5 MECHANISM FOR WIDER ENVIRONMENTAL CONTRIBUTION FROM LOCAL BUSINESSES Local businesses such as e-product shops are the major In 1980 s, Japan contributors for the System in terms of collection. Usually Some major supermarket chains began to collect some recyclables such as styrofoam trays for in any environmental programs, participation from local foods, milk cartons and PET bottles. Such businesses is limited to such direct contribution. contribution from general businesses, not from solid waste related businesses was so fresh in 1980 s in Japan. This worked to normalize In the System, wider contribution from local businesses is environmental consciousness. possible. Any businesses can contribute to the System by becoming an E-waste Voucher Member. Businesses not related to e-products as well as e-wastes can participate in the System. Any bread shops, coffee shops and KIOSK have chances to appeal themselves as environmentally friendly companies. Such prevalence is preferable from two aspects. One is normalization of environmental consciousness. If people often come across the member shops in towns, they come to feel that environmental awareness became common and their environmental awareness increases, which may affect positively to other environmental programs. The other is regional economic development. When the e-waste voucher members become common, the voucher can be regarded as a kind of local Eco-Money which has a potentiality to work as an economic revitalization. 8 Annex V. Evolutionary System Mechanisms of E-waste Alam Collection System with Planner s Notes

17 2.6 MECHANISM OF ADVERTISEMENT Usually, a new solid waste collection system needs to be advertised actively. Otherwise, people do not have means to cooperate. As for e-waste, the situation is a little bit different. People discard their e-wastes when they buy new e-products basically. If they are asked in e-product shops about the old e-products to be replaced, people will be willing to give the e-wastes to the shops as far as the price is attractive enough. By considering this unique characteristic of e-wastes, no special advertisement is necessary, after almost all retailers participate in the System. However, there are some exceptions. Above-mentioned characteristics apply only for very bulky e-wastes and replacement is a precondition. The features are not applicable to products which are small and portable such as notebook computers and mobile phones. For these products, any other promotion including special advertising is necessary. 2.7 MECHANISM TO SECURE THE FUND FOR SYSTEM MANAGEMENT The System does not require a lot of direct money for management. The management cost is only for 1) voucher printing, 2) printings for paper works such as receipts, and 3) some advertising tools if required. The time lag between the giving out and the usage of the vouchers allows these costs to be affordable. Households discarding the e-wastes and given the e-waste vouchers do not necessarily use them immediately. Some of them might keep the vouchers for a while. The money corresponding to such time lag will be pooled by the licensed recyclers in charge and can be used for the management cost In fact, in the Pilot Project, the amount of the used voucher reclaimed by the participating retailers was 75% of total e-waste collected as of Dec. 31, System mechanisms 9

18 3. F UTURE SCALABILITIES AND RECOMMENDATIONS 3.1 FUTURE FORMATION In the Pilot Project, E-waste Alam Alliance Penang was established as an intersectorial management group coordinated by the state government, DOE Penang and MPPP. The participating local businesses and the licensed recyclers were invited. This management group can be established in each state for managing daily matters. However, it is not efficient for the central government to discuss with all state alliance groups independently. Here, establishment of a central alliance group may be necessary. 3.2 STEPWISE IMPROVEMENT It is not realistic to set ambitious targets from the first moment. It is advisable to start with lower targets and then to review the WTP curves by analyzing the data obtained from the initial results. By using the pricing model, the amount of required cost can be shown quantitatively. By using the data of expected required costs, the central governmental agencies and the stakeholders can discuss constructively. Through these trials, the central governmental agencies and the stakeholders can improve the system in a stepwise way. Higher targets can be set based on these trials. 3.3 MECHANISM TO GIVE PRESSURE TO COST/PRICE In the Pilot Project, there were no bodies which can give pressures on the prices shown by the licensed recyclers. The e-product retailers had no relation with the e-waste licensed recyclers so far and the local governments have limitations to talk about the private trades. Such function should be installed in the System by inviting other parties. If the System will be designed under EPR concept, and therefore the e-product manufactures and brands will be involved, they are the most appropriate sector which can give pressures on the prices. These will provide a good check-and-balance function, because the brands can reduce their cost if they succeed to raise the prices. Also, the brands have been negotiating with the licensed recyclers so far, when they recycle their e-wastes from their factories. 3.4 UPDATE OF WTP CURVE BY DATA ACCUMULATION The WTP curve described in the Pilot Project is quite tentative, as the duration of the Pilot Project is only around six months. Accumulation of data for revising the WTP curve is very important. Cooperation rate resulted from any update of the prices of e-wastes are helpful to describe the WTP curve. Regressions of dots with various prices may make the WTP curve 10 Annex V. Evolutionary System Mechanisms of E-waste Alam Collection System with Planner s Notes

19 more reliable. 3.5 INVOLVEMENT OF THE CONVENTIONAL RECYCLERS In the Pilot Project in Penang Island, the System was designed to compete with the prices of the conventional recyclers. Even attractive prices in the participating retailers, the WTP curve tells us that there are some leakages to the conventional recyclers, then eventually to unlicensed recyclers such as scrap dealers. If the licensed recyclers show prices attractive enough to the conventional recyclers, the e-waste stream after conventional recyclers can be shifted. Although the Pilot Project did not cover the e-waste stream once e-wastes are taken to the conventional recyclers, it is worthy to develop another pricing model for the conventional recyclers. The pricing model developed in the Pilot Project can be applied for shifting the e-waste stream from unlicensed recyclers to the licensed recyclers. Conventional Recycler X RM Scrap dealer Household /Business Retailer Licensed recycler Figure 3-1 Idea to involve the conventional recyclers 3.6 APPLICABILITY TO THE ECONOMIC CHANGE So far, e-wastes are traded as economic goods in Malaysia, but it is well known, by the market principle, that they will be traded in future as wastes which need solid waste management fees. Though the System was designed under the condition that e-wastes are salable, it can be applied even under the condition that e-wastes are not salable. Under the latter situation, the System can be adjusted by changing the voucher system. A solid waste management fee system may be introduced instead of the vouchers. It is advisable to set the same price as municipal solid waste management fee, as the competitive system will no longer be the conventional recyclers but the municipal solid waste management system and illegal dumping. 3. Future scalabilities and recommendations 11

20 3.7 APPLICABILITY TO OTHER HAZARDOUS WASTES FROM HOUSEHOLDS The System can be applied to other hazardous wastes from households. If target wastes are traded as economic goods, the principle of the System can be applied easily. Even for wastes such as florescent lumps which are not salable, the System concept can be applied by considering the differences explained in APPLICABILITY TO OTHER ASIAN COUNTRIES In almost all countries in Asia, the System can be applied directly, because e-wastes are traded as economic goods and e-products retailers are commonly available. Just one unique condition in Malaysia is that it has a regulation on e-wastes with definition of licensing recyclers and actually many licensing recyclers exist. Such condition is not seen in all Asian countries with some exceptions such as Thailand and Philippines. But this condition is not so hard of an obstacle. It is not so difficult to establish such recycler network. Once the central government will introduce the similar regulation, private companies will be stimulated by the business opportunity. 12 Annex V. Evolutionary System Mechanisms of E-waste Alam Collection System with Planner s Notes

21 Annex V I Pilot Project Troubleshooting

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23 Contents Annex VI 1 1. Backgrounds of the Troubleshooting COMMENCEMENT OF THE PILOT PROJECT AND ISSUES FOUND NECESSITY OF POSSIBLE SOLUTIONS FOR THE ISSUES FOUND 1 2. Issues Found and Possible Solutions PROCEDURES OF THE E-WASTE COLLECTION IN THE PILOT PROJECT ISSUES FOUND AND POSSIBLE SOLUTIONS 2 (1) EXPLANATION ISSUE (1A) 2 (2) ISSUE OF FILL-IN THE RECEIPTS (2A & 3A) 3 (3) NON-FULL SET ISSUE (3A) 3 (4) ISSUE OF THE MP S LUCKY DRAW (3B) 4 (5) TRANSPORTATION FREQUENCY ISSUE (4A & 5A) 4 (6) RECEIPT MANAGEMENT ISSUE (4B & 5B) 5 (7) VOUCHER CLAIM ISSUE (3A & 4C & 5B) 5

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25 Abbreviations CPU CRT DOE e-waste FRF MP MPPP PP RM Central Processing Unit Cathode Ray Tube Department of Environment Electrical and Electronic Equipment Waste Full Recovery Facility Mobile Phone Majlis Perbandaran Pulau Pinang (Municipal Council of Penang Island) Pilot Project Ringgit Malaysia

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27 1. B ACKGROUNDS OF THE T ROUBLESHOOTING 1.1 COMMENCEMENT OF THE PILOT PROJECT AND ISSUES FOUND It has been more than four months since the Pilot Project (PP) commenced on 2 nd June 2012 but some issues have been found by monitoring activities until October Some of them were already solved and some are still not yet solved. The issues found are as follows: - Explanation issue - Issue of fill-in the receipts - Issue of the MP s lucky draw - Non-full set issue - Transportation frequency issue - Receipt management issue - Voucher claim issue 1.2 NECESSITY OF POSSIBLE SOLUTIONS FOR THE ISSUES FOUND The abovementioned issues should be solved, or possible solutions should be found because they would be obstacles in the expansion and maintenance of the e-waste collection system. To show the countermeasures taken and possible solutions for issues found in the PP will serve as troubleshooting in the expansion stage of the e-waste collection system. 1. Backgrounds of the troubleshooting 1

28 2. I SSUES F OUND AND POSSIBLE SOLUTIONS 2.1 PROCEDURES OF THE E-WASTE COLLECTION IN THE PILOT PROJECT To help structurally understand the issues found and possible solutions in the PP, procedures of the e-waste collection in the PP are shown as follows: 1a Explanation of the e-waste collection service to consumers (by the retailers) 2a Fill-in the receipts (by the retailers) 3a Collection of the e-waste and Issue of the vouchers (by the retailers) 3b Lucky draw (Only for MP) (by the retailers) 4a Storage of the collected e-waste 4b Keeping of the receipts 4c (by the retailers) (by the retailers) Keeping of used vouchers (by the retailers) 5a Handover of the e-waste from the retailers to the FRFs 5b Claim of the amount of the used vouchers from the retailers to the FRFs Figure 2-1. Procedures of the e-waste collection 2.2 ISSUES FOUND AND POSSIBLE SOLUTIONS In accordance with the procedures of the e-waste collection in the PP, the issues found and possible solutions are described below. Some of issues have been already solved. The corresponding codes of e-waste collection procedures assigned in Figure 2-1 are shown in the parenthesis after each title of the related issues. (1) Explanation issue (1a) a) Issues found - Not all of the staff of the retailers explains the e-waste collection system to their customers well. No explanation No e-waste 2 Annex VI. Pilot Project Troubleshooting

29 b) Possible solutions - Staff training: Staff should be aware of proper e-waste recycling. Internal training by setting a slogan of 100% Explanation 50% Collection Mini e-waste seminar targeting staffs of the retail shops (DOE) - Approach from the Consumer side: If consumers ask the staff about the e-waste collection service, the staff cannot avoid explaining it to the consumers. Outstanding pops for goods and cash desks are installed in stores so that the customers notice about the e-waste collection service and many questions are raised to the store staff by them (i.e. making the environment where store staff are required to explain the e-waste collection services). Through dissemination of the information on the e-waste collection service: Communities and Schools (MPPP) so that residents know the service before shopping even the staff do not explain it well. (2) Issue of fill-in the receipts (2a & 3a) a) Issues found - When the retailers fill in the receipt, the following issues are found. Lack of information on brand names: brand name was recorded not for the e-waste but for the new products purchased by the customers. Miscalculation of amount of issued vouchers: store staff often issue the voucher with incorrect amount by mistaking the types and/or sizes of e-waste collected. b) Possible solutions - The retailers have been reminded of the issue already. - The receipt form should be revised in order to avoid the miswriting. (3) Non-full set issue (3a) a) Issues found - Some of air-conditioners, computers and fridges are not collected in full set. Air-conditioners: Only indoor units Computers: Only CPU or CRT Fridge: No motor b) Possible solutions - Until now, the voucher is not given out in the case of non-full set collection. 2. Issues found and possible solutions 3

30 - Different prices should be set according to conditions of collected e-waste; otherwise non-full set items should be recognized as others when the items handed over from the retailers to the FRFs. (4) Issue of the MP s lucky draw (3b) a) Issues found - Even an incentive of RM4 per unit can be competitive in the market because very old models are not accepted in the secondhand market. - Average probability of hits of the MP s lucky draw is higher than the expected probability of 10%. *In case the probability of hits is more than 10%, revenues from used MPs and costs for the incentives are not balanced. b) Possible solutions - The lucky draw is discontinued. - A common voucher of RM4 is given to all customers who bring 1 unit of used MP. (5) Transportation frequency issue (4a & 5a) a) Issues found - Collected e-waste has not been frequently transported from the retailers upon request of them. *The FRFs hesitate to collect e-waste if there are only a few units per trip of the transportation. *According to the FRFs, Miscommunication has happened between the FRFs and the retailers due to individual contacts from the retailers. b) Possible solutions - For MP: the FRFs can arrange collection by motorbike. - For other items: when the system is expanded to the entire area, this issue will be solved presumably because the amount of the e-waste would increase. As for now, however, it is necessary for FRFs to collect the e-waste more frequently from the retailers even though the number of units to be collected is small in order to encourage the retailers. - Regarding transportation request, development of an integrated communication system by or website is proposed by FRFs in order to prevent miscommunication and to promote efficient dispatch of transportation trucks. 4 Annex VI. Pilot Project Troubleshooting

31 (6) Receipt management issue (4b & 5b) a) Issues found - In some cases, receipts are not attached to the transportation slip when the e-waste is handed over to FRFs by the retailers because they are forgotten or lost. *Some receipts are not properly collected from delivery staffs of the shops. If no receipts are available, it is difficult for FRFs to check the number of e-waste collected by the retailers and the amount of issued vouchers, which will be the future cost beard by FRFs. Brand information of the collected e-waste should be checked again when handing e-waste over to FRFs. b) Possible solutions - When the e-waste is handed over to FRFs, it should be carefully checked by FRFs whether or not the real number of units being collected and the number of units written on the receipts and the transportation slips are matched for each item. No receipt No transportation - Management of the receipts should be established by the retailers depending on their conditions. Especially, 1. How to treat the receipts in case of a centralized delivery and 2. How to collect the receipts from delivery staff should be established. (7) Voucher claim issue (3a & 4c & 5b) a) Issues found - FRFs requested information of customers who used the voucher in order to make sure if the voucher is properly issued or not. b) Possible solutions - The issue is already solved, but entry of ID number of the issued vouchers on the receipts should be ensured upon issuing the vouchers. It is not necessary for the retailers to attach customers information when claiming the vouchers. The retailers need to prepare an invoice with the amount matching to the sum of the vouchers used by customers. 2. Issues found and possible solutions 5

32 6 Annex VI. Pilot Project Troubleshooting

33 Annex VII Standard Operating Procedure for e- waste collection system

34

35 Contents Annex VII 1 1. Background of the e-waste collection system HISTORY ABOUT PENANG E-WASTE PROJECT 1 2. Outline of the e-waste collection system CONCEPT OF THE SYSTEM INFORMATION MANAGEMENT ADVERTISEMENT COLLABORATION MECHANISM 9 3. Standard Operating Procedure for e-waste collection system ORGANIZATION FRAMEWORK SUPERVISORY BY E-WASTE ALAM ALLIANCE PENANG DAILY MANAGEMENT MATTERS BY LOCAL BUSINESS GROUP 11 Appendices 15 APPENDIX 1. CALCULATION METHOD OF COOPERATION RATE 17

36

37 Abbreviations JICA DOE e-waste e-product MPPP Japan International Cooperation Agency Department of Environment Electrical and Electronic Equipment Waste Electrical and Electronic Equipment Product Majlis Perbandaran Pulau Pinang (Municipal Council of Penang Island)

38

39 1. B ACKGROUND OF THE E - WASTE COLLECTION SYSTEM 1.1 HISTORY The e-waste collection system was developed in 2012 in a JICA Project: the Project for Model Development for e-waste Collection, Segregation and Transportation from Households for Recycling" whose short name is Penang E-waste Project. 1.2 ABOUT PENANG E-WASTE PROJECT (1) Objective of the Project The Project aims at developing an appropriate, effective and efficient e-waste collection system from households. (2) Contents of the Project The contents of the Project can be summarized as below. Study on the current e-waste stream Estimation on the present and the future amount of e-waste Planning and implementation of a Pilot Project System Discussion on policies for promoting e-waste collection Workshops and seminars Training tour to Japan (3) Pilot Project A Pilot Project was planned to test the developed e-waste collection system in the Project. The Pilot Project was initiated in June The system was inherited to the e-waste collection system. 1. Background of the e-waste collection system 1

40 2. O UTLINE OF THE E- WASTE COLLECTION SYSTEM 2.1 CONCEPT OF THE SYSTEM (1) Requirement for the system a) Current problems Currently, e-wastes are majorly dealt by the conventional recyclers whose handling practices are unsure and not monitored. The e-wastes collected by conventional recyclers are then going to the scrap dealers, where e-waste flow is again not monitored and unsure. Figure 2-1. Problems of the present major flow of e-waste b) Requirement to the system For the Pilot Project System to succeed, it is crucial to switch the major e-waste flow to a more reliable channel as shown in the following figure. 2 Annex VII. Standard Operating Procedure for e-waste collection system

41 <Current> Conventional recyclers Scrap dealers Households/ Businesses Pilot Project Full recovery facility <Pilot Project> Conventional recyclers Scrap dealers Households/ Businesses Pilot Project Full recovery facility Figure 2-2. Requirement of the e-waste collection system (2) How to switch the flow To change the e-waste flow means to change the human behavior. The human behavior can be induced by some ways. One of the most effective ways is to use economic incentives. The reason why the current e-waste flows to the conventional recyclers is money. People can get money, if they bring their e-wastes to the nearest conventional recyclers, even the amount is very small. The new system should include certain economic incentives attractive enough to change the discarders behavior. In the e-waste collection system, the buying prices set by the full recovery facilities were given to the discarders. 2. Outline of the e-waste collection system 3

42 X RM Takeback for discarded e-wastes upon delivery E-product shop Labor saving X RM Households/ Businesses Full recovery facility X RM Supermarket X RM Buyback for deadly stored e-wastes at any time Time saving Figure 2-3. Concept of the Pilot Project System (3) Target e-wastes The target e-wastes in the e-waste collection system are classified below. This can be modified as necessary. Television set (Brown Tube Type) Television set (non-crt Type) Refrigerator Washing machine Air-conditioner (Full set) Personal computer (Desktop) Personal computer (Notebook) Printer Mobile phone DVD player, VCD player and etc. Others (Battery charger, Mobile phone battery, mouse, keyboard, etc.) (4) Basic system a) Material flow Home electric appliances shops collect the e-wastes from customers houses upon delivery of purchased products. They also receive the e-wastes carried into their shops by customers. Mobile phone shops receive end-of-life mobile phones upon repurchasing. In addition, even in the case of no repurchasing, they also receive the used mobile phones carried into their shops by customers. 4 Annex VII. Standard Operating Procedure for e-waste collection system

43 Hypermarkets receive e-wastes brought by the customers. Full recovery facilities transport e-wastes collected by the shops upon necessity. Upon delivery Home Electric Appliances Shops Transportation Households/ Businesses Upon repurchasing Mobile phone shops Transportation Full recovery facility Carry-in Hypermarkets Transportation Figure 2-4. Material flow in the Pilot Project b) Money flow Upon receiving e-wastes from customers, e-waste vouchers are issued and given to the customers. The vouchers can be used not only at the shop issued the voucher but also at other shops participating in the Pilot Project. Every month, the participating shops can issue the invoices to the full-recovery facility, attached by the vouchers used. E-waste Voucher Home Electric Appliances Shops Monthly reimbursement for the used voucher Households/ Businesses E-waste Voucher Mobile phone shops Monthly reimbursement for the used voucher Full recovery facility E-waste Voucher Hypermarkets Monthly reimbursement for the used voucher Use of e-waste Voucher Figure 2-5. Money flow in the Pilot Project (5) Common Voucher a) Price of voucher The prices of the voucher are determined through the discussion with the full recovery facilities in charge and are to be reconsidered some time so as to adjust to the economical fluctuation. 2. Outline of the e-waste collection system 5

44 b) Design of voucher Vouchers were designed so as not to be forged. Special stickers were used on the voucher for this purpose. (Note) The dot means a special sticker so as not to be forged. Figure 2-6. Common Voucher (Left: front, Right: rear) 2.2 INFORMATION MANAGEMENT (1) Information management system Shops issue the receipt with four-ply. The four-ply receipts are given to 1) the customer, 2) shops, 3) full recovery facility and 4) E-waste Alam Alliance. When the collected e-wastes are sent to full recovery facilities, the transportation slip is issued by the shops. The three-ply transportation slips are given to 1) shops, 2) full recovery facilities and 3) E-waste Alam Alliance. Receipt Home Electric Appliances Shops Transportation slip Households/ Businesses Receipt Mobile phone shops Transportation slip Full recovery facility Receipt Monthly invoice with the used voucher attached Hypermarkets Transportation slip Monthly report E-waste Alam Alliance 6 Annex VII. Standard Operating Procedure for e-waste collection system

45 Figure 2-7. Information flow in the e-waste collection system (2) Information forms a) E-waste receipt There are two kinds of e-waste receipts. One is for home electric appliance shops and supermarkets, and the other is for mobile phone shops which collect only mobile phones. The e-waste receipts contain 1) purchased units of new products, 2) number of e-wastes applied and 3) brands of the e-wastes. By using the information on brands of e-wastes, the data of amount of e-wastes by brands can be collected. Company Shop E-waste Receipt (For Customer) E-C No. Products Purchased Recycled Brand 1 TV-CRT Unit Unit 2 TV-LCD Unit Unit 3 Fridge Unit Unit 4 Washing Unit Unit Machine 5 Airconditioner Unit Unit 6 PC-CRT Unit Unit 7 PC-LCD Unit Unit 8 PC-Note Unit Unit 9 Printer Unit Unit 10 Mobile Unit Unit Phone 11 DVD player, Unit Unit LCD, etc. 12 Others Unit Unit Application date (DD/MM/YYYY) Receipt date (DD/MM/YYYY) Gift Voucher Total Signature Retailer Retailer Customer Customer E-waste recycling for the future environment! Thank you for your cooperation! Figure 2-8. E-waste receipt for home electric appliance shops and supermarkets RM Company Shop Purchase Newly purchased Model change Recycling Agree ( unit) (Brand ) Later Signature Receipt date (DD/MM/YYYY) Retailer Customer E-waste Receipt (For Consumer) M-C E-waste recycling for the future environment! Thank you for your cooperation! Figure 2-9. E-waste receipt for mobile phone shops b) Transportation slip The transportation slip shown in the following figure is commonly used by the different types of shops. 2. Outline of the e-waste collection system 7

46 Company Shop No. E-waste 1 TV-CRT 2 TV-LCD 3 Fridge 4 Washing Machine 5 Air-conditioner 6 PC-CRT 7 PC-LCD 8 PC-Note 9 Printer 10 Mobile phone 11 DVD player, LCD etc. 12 Others Number of units Recycler Transportation date (DD/MM/YYYY) Signature (Shop) Signature (Recycler) E-waste Transportation Slip (For Shop) T-S Figure E-waste transportation slip 2.3 ADVERTISEMENT (1) Advertisement tools The following advertisement tools are distributed to the participating shops. Standing banner Sign board In addition, when a new retailer starts the collection, blank common voucher books and the receipt books are distributed. 8 Annex VII. Standard Operating Procedure for e-waste collection system

47 <Standing Banner> <Sign Board> Figure Promotion goods for guiding the Facebook page (2) IT strategy A Facebook page is managed by the local business members for distributing any further information to the customers. 2.4 COLLABORATION MECHANISM (1) Collaboration mechanism a) E-waste Alam Alliance Penang The e-waste collection system is managed by E-waste Alam 1 Alliance Penang. Under E-waste Alam Alliance Penang, the local business group is deployed for the daily operation matters. 1 Alam means Environment in Malaysian. 2. Outline of the e-waste collection system 9

48 E-waste Alam Alliance - Penang Penang State MPPP DOE Penang Retailers Full Recovery Companies Local Business Group for E-waste Alam Alliance - Penang MPPP DOE Penang Retailers Full Recovery Companies Figure Collaboration Mechanism for the e-waste collection system b) Logo E-waste Alam Alliance Penang discussed the logo as follows. This logo is usable in other area by replacing the symbolic mark on it. Figure Logo of E-waste Alam Alliance Penang (2) Participating local business There are two categories, a) and b) below, for local businesses to participate in the system. a) E-waste collection members (Gold member) E-waste collection members are in charge of collecting/receiving e-wastes from households. b) E-waste voucher members (Silver member) Households can use their vouchers in E-waste voucher member shops. 10 Annex VII. Standard Operating Procedure for e-waste collection system

49 3. S TANDARD O PERATING P ROCEDURE FOR E- WASTE COLLECTION SYSTEM 3.1 ORGANIZATION FRAMEWORK (1) E-waste Alam Alliance Penang and Local Business Group The daily matters for operating the system are managed by the local business group under the supervision of E-waste Alam Alliance Penang. (2) Members a) E-waste Alam Alliance Penang E-waste Alam Alliance Penang is composed of participating retailers including the voucher members and the full recovery facilities, coordinated by MPPP and DOE Penang, and chaired by the State government. b) Local Business Group The Local Business Group is composed of the participating retailers including the voucher members and the full recovery facilities and coordinated by MPPP and DOE Penang. 3.2 SUPERVISORY BY E-WASTE ALAM ALLIANCE PENANG Endorsement of the e-waste collection plan Endorsement of updates of voucher prices and classification of target e-wastes Discussion on any basic matters for the smooth implementation 3.3 DAILY MANAGEMENT MATTERS BY LOCAL BUSINESS GROUP (1) Taskforce The taskforce composed of DOE Penang and MPPP shall annually propose a draft e-waste collection plan which contains the following items and conduct the midterm review in the first year in October, Objective of the e-waste collection system Target number of the participating e-waste collection members Target number of the participating e-waste voucher members Target cooperation rates Necessary supporting measures to the participating local businesses 3. Standard Operating Procedure for e-waste collection system 11

50 Possible public relation measures Organization structure with persons in charge and their mandates (2) DOE Penang To consult with the full recovery facility for proposing the classification system for the target e-waste and the prices of vouchers as necessary To educate the participating local businesses by providing the importance of the e-waste collection To collect the data regarding the e-waste collection system from the full recovery companies and analyzes them to know the cooperation rates To consider an award program To monitor the performance of the full recovery companies and take necessary measures if there are any problems (3) MPPP To promote the e-products retailers to participate in the e-waste collection system To promote the general shops to participate in the e-waste collection system as e-waste voucher members To visit the participating e-waste collection members in a predetermined frequency and take necessary measures so as to secure their performance for attaining the cooperation rate target To visit the participating e-waste voucher members preodically and take necessary measures so as to secure their appropriate procedure To conduct the studies on the e-waste prices in the conventional recyclers in a predetermined frequency and report to DOE Penang To take possible measures for advertising the e-waste collection system, including the management of Facebook page: (4) E-waste collection member Shops participating as E-waste collection members shall take possible necessary measures so as to secure the enough performance in the e-waste collection system. E-waste collection member shops shall manage the advertising tools distributed and the used vouchers properly. E-waste collection member shops shall explain the e-waste collection procedures to their customers. E-waste collection member shops shall collect the e-waste from the customers who applied to the collection service. 12 Annex VII. Standard Operating Procedure for e-waste collection system

51 E-waste collection member shops shall manage the e-waste receipts and the transportation slips in an appropriate manner. E-waste collection member shops shall store the collected e-waste properly. E-waste collection member shops shall hand over the stored e-wastes to the full recovery companies in a predetermined procedure. E-waste collection member shops shall claim the used voucher to the full recovery companies as necessary in a predetermined procedure. (5) E-waste voucher member E-waste voucher member shops shall claim the used voucher to the full recovery companies as necessary in a predetermined procedure. 3. Standard Operating Procedure for e-waste collection system 13

52

53 Appendices

54

55 Appendix 1. Calculation method of cooperation rate (1) Raw data The raw data for calculating the cooperation rate are given as shown in the following table. The prevalence rate can be estimated by the market share of the participating retailers and the people s recognition rate. Voucher price (RM/unit) P(1) P(2) P(3) Amount of collected e-waste (Unit) X(1) X(2) X(3) Estimated prevalence rate (%) PR(1) PR(2) PR(3) The cooperation rates can be calculated by CR(Pi) = X(i) W 1 PP(i) Here the following table can be used as W. Table. Number of discarded e-waste in year 2012 Number of discarded e-waste (unit/year) Amount of discarded e-waste (ton/year) TV 83,307 2,610 R 14, WM 9, AC 30,996 1,385 PC 200,861 1,888 P 60, MP 89, (2) Function form The WTP curve can be expressed by CR = Where 1 1+e (a+b P) CR: Cooperation rate. The WTP curve can be linearlized as ln 1 1 = a + b P CC Here a, b can be regressed by the least square method. Appendix 1. Calculation method of cooperation rate 17

56

57 Annex VIII Factor A nalysis for an EPR R egulatory S ystem B ased on the EPR Systems in Asian C ountries

58

59 Contents Annex VIII 1 1. E-waste recycling systems in different countries HOME APPLIANCE RECYCLING IN JAPAN PERSONAL COMPUTER RECYCLING IN JAPAN MOBILE PHONE RECYCLING IN JAPAN E-WASTE RECYCLING IN KOREA E-WASTE RECYCLING IN TAIWAN E-WASTE RECYCLING IN CHINA E-WASTE RECYCLING IN AUSTRALIA E-WASTE RECYCLING IN GERMANY SUMMARY OF THE RECYCLING SYSTEMS Consideration of system options FUNDAMENTAL OBJECTIVES OF THE SYSTEM IN MALAYSIA FRAMEWORK TO CONSIDER THE COLLECTION SYSTEM OPTIONS SYSTEM OPTIONS EVALUATION OF THE SYSTEM OPTIONS TYPES OF SYSTEM OPTIONS IN OTHER COUNTRIES Recommendable regulatory framework (trial draft) RECOMMENDABLE OPTION AND POINTS TO CONSIDER TOWARD REALIZATION REGULATORY FRAMEWORK (TRIAL DRAFT) 24 Appendices 27 APPENDIX 1. DEFINITION OF TARGET COLLECTION RATES 29

60

61 Abbreviations DOE FRF IT MPPP SW SWM e-product e-waste Department of Environment Full Recovery Facility Information Technology Majlis Perbandaran Pulau Pinang (Municipal Council of Penang Island) Scheduled Waste Solid Waste Management Electrical and Electronic Product Electrical and Electronic Equipment Waste

62

63 1. E - WASTE RECYCLING SYSTEMS IN DIFFERENT COUNTRIES As the concerns about the treatment and disposal of e-waste grow internationally, more countries are introducing the e-waste legislation. This section will compare e-waste recycling systems developed in several countries and highlight particular features of them. It is to be noted, however, that this section does not intend to precisely describe the mechanisms of each recycling system but to clarify the fundamental variations and characteristics by simplifying the system frameworks. For the details of each system, the original legislative documents are to be consulted. 1.1 HOME APPLIANCE RECYCLING IN JAPAN (1) System outline Japan s e-waste recycling systems are threefold: one for home electric and electronic appliances including TVs, refrigerators, washing machines, air conditioners and clothes dryers by the Home Electric Appliance Recycling Law, one for personal computers and the last one for mobile phones (the latter two to be described later). The objectives of the Home Electric Appliance Recycling Law are waste reduction and effective resource utilization. In practice, the necessity to reduce the burden for the municipalities in e-waste handling was also an important background. (2) Roles of stakeholders The roles of stakeholders are as follows. a) Consumers Consumers are required to leave their e-waste to the recycling flow. It really means that they are required to hand over the e-waste to the retailers. They are also obliged to pay the cost for collection/transportation to the retailers and the cost for recycling to the producers. b) Municipalities The law does not specify any particular responsibility of the municipalities. As part of the public services, some of the municipalities may still provide paid collection services for orphan products. c) Retailers The retailers must take back e-waste when requested by the consumers and transport it to one of the collection points prepared by the producers. 1. E-waste recycling systems in different countries 1

64 d) Producers The producers must establish the collection points, take back e-waste from there and carry out material recovery. (3) Driving force The performance of the system largely depends on the regulatory force and the compliance of each stakeholder. The role of the consumers is especially important as they have to initiate the recycling flow with payment of about US$ per item. The continuous publication and instruction to the stakeholders are the vital part of system operation. Once e-waste reaches at the collection point, the material recovery target regulates the producers. The producers are also required to publicize the result of material recovery. For efficient recycling, the DfE (design for the environment) has been attempted by such means as the standardization of bolts, indication of material used, and reduction of the number of parts. (4) Limitations The limited system performance can be attributed to no obligation put on the producers to collect e-waste from consumers and the reluctance of the consumers to pay the recycling fee. Such limitation has raised a problem called an invisible flow. The invisible flow is a flow of e-waste which is supposed to be traded for a second-hand use purpose but whose fate cannot be actually detected. Some are considered to be exported and some dismantled into different materials, but a significant portion cannot be detected in a statistical data. Illegal dumping is also an issue as it had been pointed out even before the system introduction. 1.2 PERSONAL COMPUTER RECYCLING IN JAPAN (1) System outline The PC recycling in Japan is regulated by the Law on the Promotion of Effective Utilization of Resources. Under this law, PCs are categorized as the specified resources-recycled products, and the Ministerial Ordinance by Ministry of Economy, Trade and Industry under the Law requires the PC producers to voluntarily conduct collection and resource recovery. The items covered by the system only include PCs, either desktop, notebook, LCD or CRT, and exclude auxiliary products such as printers or scanners. The objectives of the law are waste reduction and effective resource utilization, and as in the case of home appliances, it is also expected to reduce the burden for the municipalities in e-waste handling. 2 Annex VIII. Factor Analysis for an EPR Regulatory System Based on the EPR Systems in Asian Countries

65 (2) Roles of stakeholders The roles of stakeholders are as follows. a) Consumers The consumers are required to discard their PCs to an appropriate recycling channel. They are usually instructed by the producers to use a courier service predetermined by the producers free of charge. b) Municipalities The law does not specify any particular responsibility of the municipalities. As part of the public services, some of the municipalities may still provide paid collection services for orphan products. c) Retailers The role of the retailers is limited to give instructions to the consumers for proper discarding. d) Producers The producers must voluntarily collect e-waste from the consumers and carry out material recovery at their expense. (3) Driving force The behavior of the customers is the first key for the good performance of the system and the regulatory force and their compliance play a big role. In comparison with the case of home appliances, however, the convenience for the consumers will be largely high as they are only required to pack their computers into carton boxes, place shipping tags and call the courier service. Such convenience for the consumers will be a result of the collection scheme designed by the producers voluntary initiative. Once e-waste is collected and transported to the producers, it becomes subject to the material recovery target set under the law. The producers must publicize the achievement of material recovery. (4) Limitations No collection target placed to the producers and economic value remaining in PCs allows some portion of PCs to leak to the invisible flow. The second-hand use is surely an effective solution of material utilization and raising its visibility will be the issue to be addressed. 1. E-waste recycling systems in different countries 3

66 1.3 MOBILE PHONE RECYCLING IN JAPAN (1) System outline Waste mobiles phones are designated as a Specified Reuse-Promoted Product by the Law on the Promotion of Effective Utilization of Resources, which also regulates the PCs as mentioned earlier. Specified Reuse-Promoted Products are those which contain materials to be effectively utilized after use. For the mobile phone recycling, however, the Law does not specifically impose legal obligations to any stakeholders and there is no ministerial ordinance to regulate the waste mobile phone. Nevertheless, the Waste Recycling Subcommittee, belonging to the Industrial Structure Council of Ministry of Economy, Trade and Industry developed the Guidelines for Waste Treatment and Recycling. The guidelines prescribe the expected recycling system of mobile phones, although they are not legally binding. (2) Roles of stakeholders The roles of stakeholders are as follows. a) Consumers The consumers are encouraged to bring their used mobile phones to any mobile phone shops participating in the Mobile Recycling Network, which is a mechanism managed by Telecommunications Carriers Association and consists of carrier companies and mobile phone manufacturers. b) Municipalities The law does not specify any particular responsibility of the municipalities. Some municipalities instruct the residents to bring their used mobile phones to the shops of the Mobile Recycling Network. c) Retailers Mobile phones are generally sold at shops run by the telecommunication carriers. They are encouraged to become a member of the Mobile Recycling Network and cooperate for the mobile phone recycling. d) Producers Most of Producers, as well as telecommunication carriers, are the member of the Mobile Recycling Network and work collaboratively, for the producers are expected to seek for DfE. Communication and Information Network Association of Japan (CIAJ) has developed product assessment guidelines to promote environmentally friendly production of easy-to-recycle products. 4 Annex VIII. Factor Analysis for an EPR Regulatory System Based on the EPR Systems in Asian Countries

67 (3) Driving force The number of shops that participate in the Mobile Recycling Network is growing up to about 10,000 shops at present. In order to promote the recycling activities by the Network, CIAJ also established three target figures, i.e. the rate of awareness among the general public, the rate of material recycling and the rate of collection. The commitment of the telecommunication carries and producers have been appealing gradually. (4) Limitations The fact that there is no legal obligation about waste mobile phone collection or recycling is the largest limiting factor. Also, the waste mobile phones may have intrinsic difficulties to be collected by their nature as they are small and some of their functions keep working even though they are old. 1.4 E-WASTE RECYCLING IN KOREA (1) System outline In Korea, the e-waste recycling systems have been developed through some restructuring. It firstly appeared as producer deposit-refund system in 1992, which was an attempt to employ economic incentives for recycling. In order to specify the responsibility of the producers more clearly, the system was replaced by the producer recycling system in 2003 in the reflection of the OECD s EPR manual of Its fundamental structure was integrated into a new Act for Resource Recycling of Electrical and Electronic Equipment and Vehicles of 2007, together with the requirement on the control over the use of hazardous substances in products. The factor behind such development of the e-waste recycling system includes the rapid increase of waste and insufficiency of landfill availability. The items to be recycled are 10 categories (TVs, refrigerators, washing machines, air conditioners, personal computers, audio equipment, mobile phones, printers, photocopiers and fax machines). (2) Roles of stakeholders The roles of stakeholders are as follows. a) Consumers The consumers are required to appropriately segregate and discharge e-waste to an appropriate route. 1. E-waste recycling systems in different countries 5

68 b) Municipalities The municipalities take proper measures to promote the recycling system. In practice, some municipalities provide paid e-waste collection service probably under the contract with the producers. c) Retailers The retailers collect e-waste upon the trade of the same kind of new products without any charge, and transfer the collected e-waste to depots provided by the producers. The retailers can also reuse e-waste independently or contract with others for recycling, as far as they inform the producers of their such operations together with the information of product categories and quantities. d) Producers The producers bear two important obligations; mandatory collection amount 1 standards including material recovery rate. and recycling Mandatory collection amount of a specific year is calculated by multiplying three items, namely, the mandatory recycling rate of the year, the average weight per product collected in the previous year and the amount of products released to the market in the year. The mandatory collection rate is announced by the Ministry of the Environment. The producers, or recyclers who execute recycling on behalf of the producers, must carry out recycling in consistent to the recycling standard prescribed in the related ordinance, which includes material recovery rates. (3) Driving force Recycling charge is imposed to producers for unfulfilled collection mandate amount and it is set sufficiently higher than the cost that would be spent for recycling. The mandatory collection amount is therefore considered to be adequately functioning to motivate the manufacturers for recycling. The manufacturers can flexibly explore their collection routes by making contract with retailers and municipalities and incorporating the conventional recycling routes into their collection systems. (4) Limitations The mandatory collection amount is the key factor to make the system functioning. Consequently, it will require careful consideration to ensure the appropriateness of the mandatory collection rate and the rational of the equation to calculate the mandatory collection amount. The calculation methodology of the mandatory collection amount may set 1 The Act for Resource Recycling of Electrical and Electronic Equipment and Vehicles defines recycling to mean reusing e-waste or renewing such wastes for reuse, or converting the condition of such wastes or vehicles into a reusable or recyclable condition, and the act sets mandatory recycling amount. It is considered to actually mean mandatory collection amount. 6 Annex VIII. Factor Analysis for an EPR Regulatory System Based on the EPR Systems in Asian Countries

69 hurdles with different significance to the producers whose product share is dropping (i.e. much e-waste but small production) and to the fast-growing producers (i.e. less e-waste but large production). The recycling standard allows export for a recycling purpose. Such export has to follow another legal arrangement based on the Basel convention, but it will be difficult to manage and control the entire flow of e-waste in the recipient countries. 1.5 E-WASTE RECYCLING IN TAIWAN (1) System outline E-waste recycling has been traditionally practiced in Taiwan and it was also a source of serious environmental pollution. To improve the recycling industry, and also to reduce waste and to efficiently use resources, the Recycling Fund Management Committee system was launched in The items to be recycled in this system include TVs, refrigerators, washing machines, air conditioners, electric fans, and IT products such as PCs, printers and keyboards. The Taiwan Environment Protection Agency has been executing Four-in-one policy, where community, local governments, recyclers and the Fund are coordinated for the recycling purpose. (2) Roles of stakeholders The roles of stakeholders are as follows. a) Consumers The consumers are required to act conscientiously according to the law as one of the agents in the four-in-one policy. In practice, they may discard the target items to the municipal collection, bring it to the second-hand market or hand it over to the retailers. b) Municipalities The municipalities collect e-waste from the residents and transport it to the e-waste collection point designated by the central government. c) Retailers The retailers bring the e-waste to the collection point designated by the central government. d) Producers The producers only bear economic responsibility. They must pay resource recycling fee to the recycling fund. 1. E-waste recycling systems in different countries 7

70 e) Central government The main roles of the central government are the collection of recycling fee from the producers and the allocation of the recycling fund as subsidy to the recycling-related enterprises that comply with a certain standard of performance. The government also arranges the e-waste collection points. (3) Driving force The economic contribution from the producers gives a momentum of the system to go forwards. The effective use of the Recycling Fund as a source of subsidy can promote environmentally friendly recycling industry. For this purpose, affiliated systems to register and control the recycling enterprises, to verify their recycling achievement and to review and adjust the amount of recycling fee and subsidy have been elaborated and carefully executed. (4) Limitations In spite of the thoughtful management of the system by the government, the appropriateness and fairness of the recycling fee will still be disputable. It is the matter of monetary conversion of EPR, which necessitates continuous adjustment. Similarly, setting the subsidy also requires the careful monitoring of the recycled resource market and technology development. There is in turn another fear of rising transaction cost in system operation. As the role of the producers is limited to payment, their participation in the system is minimal. It is a question if the system gives enough incentives to the producers to seek for DfE in anticipation of the reduced recycling fee. 1.6 E-WASTE RECYCLING IN CHINA (1) System outline A new State Council Decree Regulations for the Administration of the Recovery and Disposal of Waste Electrical and Electronic Products was passed by the State Council in 2008 and became fully effective on January 1, As the name of the decree implies, it regulates both material recovery and proper disposal as it clearly depicts the concerns of the country that requires efficient material use to sustain its economy and pollution reduction from primitive e-waste management. Several regulations related to the decree have been issued since then and the system looks on track to be shaped gradually. The items covered in the system are set out in the first catalogue, including TVs, refrigerators, washing machines, air conditioners and personal computers. 8 Annex VIII. Factor Analysis for an EPR Regulatory System Based on the EPR Systems in Asian Countries

71 (2) Roles of stakeholders The roles of stakeholders are as follows. a) Consumers There is no any particular requirement for the individual consumers in the system. Generation sources such as governmental agencies, social organizations, enterprises and institutions are required to deliver e-waste to the recycling/disposal enterprises which are qualified by the local environmental protection department. b) Municipalities The environmental protection department of the municipalities is the authority to examine the qualifications of recycling/disposal enterprises under the national licensing system. c) Retailers There is no any particular requirement for the retailers in the system. d) Producers The producers only bear economic responsibility. They must pay resource recycling fee to the recycling state fund. e) Central government The main role of the central government is the collection of recycling fee from the producers and the allocation of the recycling fund as subsidy to the recycling-related enterprises that are qualified by meeting a certain standard of performance. (3) Driving force The new state fund system is the heart of the China s recycling system, which officially started in July The fund is contributed by the producers, who pay the recycling fee according to their production volume of five product types in the catalogue, and the qualified recycling/disposal enterprises enjoy allowance for their e-waste treatment. As it has started only recently, it is too early to assess its effectiveness. One of the trends prompted by the fund system is the business extension of the producers to the recycling industry. The regulation on the recycling fund also mentions the possible reduction of the fee from the producers when the producers adopt technology for the environment and/or for resource utilization. (4) Limitations Setting the appropriate amount of fee and subsidy is the critical factor for the system to be successful. Considering the scale and liquidity of the market of the electric and electronic products in China, substantial effort will be required for the government to manage the system in a fare and efficient manner as well as to control transaction cost. 1. E-waste recycling systems in different countries 9

72 The role of the producers is limited to the economic contribution, but as stated above, several producers have been already engaged in recycling with their partner recyclers. This will be viewed as an intention of the producers not to merely remain a money payer but to become a core player in the system. In such a case, it can be expected for the producers to feedback the DfE concept to their production lines. 1.7 E-WASTE RECYCLING IN AUSTRALIA (1) System outline The government of Australia promulgated Product Stewardship Act in Product Stewardship (PS) is a similar concept with EPR, but it can be claimed that PS refers more widely to extended responsibility to be born by all the stakeholders involved in the product lifecycle. The PS Act introduces three recycling schemes (voluntary, regulatory and co-regulatory), and allows any derivative regulations to adopt one of the schemes for specific product types. Product Stewardship (Televisions and Computers) Regulations 2011 is one of such regulations and employs the co-regulatory scheme. Schedule 1 of the regulation lists product items subject to the regulation, including TVs, computers and computer-related products including printers, motherboards and keyboards. In the co-regulatory scheme, what the government does is only to set the outcomes to be met, while the industry funds and implements the scheme and has flexibility in determining how those outcomes are achieved. More specifically, the producers have to become a member of what is called a Co-Regulatory Arrangement (CRA), and CRAs have to meet the outcomes required in the regulation. A CRA should be composed of at least an administrator and membership of producers. A CRA can be established with approval by the government. At the time of writing this report, there are two CRAs which handle all the regulated products and one CRA only for TVs. (2) Roles of stakeholders The roles of stakeholders are as follows. a) Consumers The consumers are required to discharge e-waste in any methods instructed by the CRAs. The regulation ensures no payment by the consumers. b) Municipalities There is not any particular requirement for the municipalities in the system. 10 Annex VIII. Factor Analysis for an EPR Regulatory System Based on the EPR Systems in Asian Countries

73 c) Retailers There is not any particular requirement for the retailers in the system. d) Producers The producers must belong to one of the CRAs and follow the internal requirement of the CRAs by contributing to their finance and providing necessary data and information. The CRAs must achieve the three outcomes, which are as follows. - Reasonable access to be provided to the consumers by the end of Collection can be through collection points, take back events, mails, or any other forms. - Collection target. What the regulation actually set is the recycling target, where recycling is defined as processes such as dismantling and crushing for the purpose of material recovery. The recycling target will be interpreted as collection target as far as all the collected e-waste undergo recycling. - Material recovery target. This is the rate of the weight of material sent for further processing into useable materials to the weight that the CRA recycles. e) Central government The central government sets out the abovementioned outcomes. (3) Driving force The three outcomes required by the regulation are the principal tools of control. Substantial flexibility is given to the CRAs, and in turn, the producers. To encourage their progressing accomplishment in e-waste recycling, the regulation allows the CRAs to arrange reasonable access to the consumers by the end of It also set the stepwise recycling target which starts at 30% and reaches to 80% for FY (4) Limitations The extensive research works and public consultations had been carried out before the enactment of the regulation, and the collection target should have been established in a rational manner. As the system has just started, how the system performs and how the target values count for the CRAs and member producers will need to be kept watched carefully. 1.8 E-WASTE RECYCLING IN GERMANY (1) System outline EU issued Directive 2002/96/EC on waste electrical and electronic equipment in 2003, which is widely known as WEEE directive. It follows that the EU member states developed their 1. E-waste recycling systems in different countries 11

74 own domestic laws within the designated period. In Germany, Act Governing the Sale, Return and Environmentally Sound Disposal of Electrical and Electronic Equipment, or called ElektroG, was put into effect in ElektroG stipulates that its objectives are to prevent waste from e-waste and to promote reuse, recycling and other forms of recovery to reduce both the volume of waste for disposal and the inclusion of harmful substances from e-waste in the general waste. It will be interesting to note that at the beginning of ElektroG it states that the Act sets out producer responsibility requirements for such objectives, which signifies the EPR principle as a fundamental backbone underneath. Ten categories of e-waste are regulated in ElektroG, as listed in Annex IA of the WEEE directive, extending from home electric and electronic appliances regardless of their sizes and IT equipment to lighting equipment. (2) Roles of stakeholders The roles of stakeholders are as follows. a) Consumers The consumers are required to discard their e-waste at collection points arranged by the municipalities. They can also bring e-waste to the retailers on a basis of one piece of e-waste for one piece of new product. b) Municipalities The municipalities, as public waste management authorities regulated under the Closed Substance Cycle and Waste Management Act, must set up the collection points in their districts. c) Retailers The retailers accept e-waste brought by the consumers. The retailers can bring such e-waste to the collection points of the municipalities. d) Producers The producers had to establish a Clearing House within three months of the date the act entered into force, and Elektro-Altgeräte Register (EAR) was established as a Clearing House. The producers also have to register themselves to the Federal Environment Agency and bear obligation of e-waste collection from municipalities collection points and recycling at their expenses. The quantity of e-waste which each producer has to collect from the collection points is calculated by the Clearing House. For this purpose, the Clearing House has the right to gather all the necessary information for such calculation from the producers. In the recycling operation, the producers must meet the recovery rate and recycling rate 2 as defined 2 Recovery is interpreted as the combination of recycling and energy recovery. 12 Annex VIII. Factor Analysis for an EPR Regulatory System Based on the EPR Systems in Asian Countries

75 in ElektroG as well as in the WEEE directive. For the event of insolvency, the producers must provide annual guarantee to finance the management of their products placed on the market. The Clearing House has an advisory board which consists of representatives of the producers, distributors, municipalities, the federal and state governments, the waste management industry, and environmental and consumer protection associations. e) Central government The central government manages the registration of the producers. The central government can withdraw the registration of the producers who does not fulfill its obligation under ElektroG. In such management, the central government receives reports and information from the Clearing House. The achievement of e-waste collection target of 4kg/person/year established in the WEEE directive is the requirement for the central government as a member state of EU. (3) Driving force The cooperation of the consumers and retailers is the entry point of the system operation. The provision of the collection points in strategic locations, widespread publication of instruction on how to discard e-waste, and guarantee for no payment requirement have been encouraging their proper behavior. The arrangement of the collection points are the matter of the municipalities, but the cost for waste containers is borne by the producers. Once e-waste is collected at the collection points, the handling of e-waste from there are totally left to the producers. It is the discretion of the producers how to collect e-waste from the collection points and where to deliver e-waste for recycling. (4) Limitations The export of e-waste has been pointed out as a limiting factor for the system performance. The recent amendment of WEEE directive (July 2012), which will require the amendment of domestic laws in the member states during the coming 18 months, established higher collection rate. This will urge the German government to react for the improvement of collection systems and for the restriction of e-waste export. Before the introduction of ElektroG, it was the municipalities that managed e-waste. Due to such historical context, the municipalities still play an important role in e-waste collection and it imposes administrative and financial burden to them. The higher collection target which will be introduced in the amended act will need to re-examine the shared roles among the stakeholders. It is also pointed out that the incentive of the producers for DfE is not sufficient because the producers do not take-back e-waste from the collection points in a selective manner. 1. E-waste recycling systems in different countries 13

76 1.9 SUMMARY OF THE RECYCLING SYSTEMS The recycling systems described above are summarized in the following table. 14 Annex VIII. Factor Analysis for an EPR Regulatory System Based on the EPR Systems in Asian Countries

77 Table 1-1. Comparison of the E-waste Recycling Systems Japan (Home Appl.) Japan (PC) Japan (Mobile Phone) Korea Taiwan China Australia Germany Feature Deterministic system Voluntary activity of No legal bindings Various collection Formalization of recycling Formalization of recycling Interactive system Within the framework of producers channels sector sector between private and EU WEEE directive Consumers Cost bearing Appropriate discarding Appropriate discarding Appropriate discarding Appropriate discarding Generation sources such Appropriate discarding Appropriate discarding Appropriate discarding channel channel channel channel as governmental channel channel channel agencies and business entities discard e-waste to qualified enterprises. Municipalities Occasional collection for historical waste Occasional collection for historical waste No particular roles Facilitate the e-waste recycling (occasional collection upon request from manufactures/ residents) Collection Licensing Establishing the collection centers Retailers Collection Appropriate recycling channel established by manufactures Producers Collection points Appropriate recycling Central Gov. Set material recovery target. Recyclers Recover materials under the consignment with producers Regulation and compliance Cost borne by the consumers Material recovery target placed on producers Support to consumers Provide collection service Appropriate recycling Cost bearing Set material recovery target. Recover materials under the consignment with producers Regulation and compliance Voluntary collection by manufactures Material recovery target placed on producers (Carrier shops) Voluntarily participation to the recycling network and collect old phones (Producers and Carriers) Support to consumers Manage the recycling network Cost bearing Issue and review the recycling guidelines Recover materials under the consignment with the recycling network Regulation and compliance Voluntary collection by manufactures Material recovery target placed on producers Free of charge collection Appropriate recycling channel established by manufactures Establishment of collection system Appropriate recycling Cost bearing Set mandatory recycling rate and material recovery standard. Recover materials under the consignment with producers Collection target placed on producers in relation to the quantity released to the market in the previous year Monetary penalty Collection system designed by manufactures Reasonable collection target setting Collection Free of charge takeback Roles Driving force Limitation Invisible flow by fake secondhand use No collection target No obligation for manufactures for collection Invisible flow by fake secondhand use No collection target Invisible flow by fake secondhand use No collection target Recycling fee payment Recycling fee payment Become a member of CRA (Co-regulatory arrangement), which must meets recycling target and material recovery target. Collection point Allocation of recycling fee Set the requirement for Meet the requirement to claim for subsidy Payment from manufactures Subsidization to recyclers Audit to recyclers Adjustment in the recycling fee Fair recycling fee Effective subsidization Transaction cost Unreliable report Minimum manufactures' role Set the fee to the producers Allocation of recycling fee Meet the requirement to claim for subsidy Payment from manufactures Subsidization to recyclers Fair recycling fee Effective subsidization Transaction cost Minimum producers' role Set recycling target Set material recovery target Recover materials under the consignment with CRA Collection target and recovery target placed to CRAs CRA's autonomy in developing approaches towards targets Reasonable collection target setting Provision of containers for the collection points and collection from the collection point Appropriate recycling Cost bearing Achieving collection target Management of producer registration Recover materials under the consignment with producers Education for consumers and provision of convenient collection points Payment from manufactures Material recovery target placed on producers Restriction of e-waste export Limited DfE drive 1. E-waste recycling systems in different countries 15

78 2. C ONSIDERATION OF SYSTEM OPTIONS 2.1 FUNDAMENTAL OBJECTIVES OF THE SYSTEM IN MALAYSIA The objectives of the e-waste recycling system to be developed in Malaysia are to recycle e-waste at the licensed recyclers and to make such e-waste flow visible to monitor. This fundamentally poses a question of how to collect e-waste from household generators. Accordingly, the options of collection systems are to be considered. Current E-waste Generators Conventional Dismantling Scrapping flow to be diverted to FRF. E-waste flow Money flow FRFs Figure 2-1. Current E-waste Flow and the Future Flow to be Developed 2.2 FRAMEWORK TO CONSIDER THE COLLECTION SYSTEM OPTIONS Under the circumstances where the collection target is set out, the following questions will arise. These will serve as a framework to consider the collection system options. - Who is placed with the collection target? - Who designs the e-waste flow? - Who pays for the cost to collect e-waste? - Who allocates the money paid? (1) Who is placed with the collection target? The answers to this question will be as follows. - Government (The government can be motivated to achieve the collection target as part of their services for public welfare.) 16 Annex VIII. Factor Analysis for an EPR Regulatory System Based on the EPR Systems in Asian Countries

79 - Producers (The producers can be motivated to achieve the collection target in order to accomplish the producers extended responsibility.) - Full recovery facilities (FRFs) (The FRFs can be motivated to achieve the collection target in anticipation of business expansion.) (2) Who designs the e-waste flow? In the cases where the collection target is posed to any party (i.e. the cases of Japan (PCs), Korea and Australia), the party that is placed the collection target and the party that designs the flow are both the producers. The important implication here is that the e-waste flow should be designed by the party which is placed the collection target. There is a basic expectation that the one who is given a mandate should act to accomplish the mandate in the most efficient manner. It follows that the e-waste flow will be designed by the government, producers, or FRFs, depending on which of these is placed the collection target. Once one of these parties is allowed to design the flow, any possible collection routes will be explored at his/her discretion. The collection routes will include, but not limited to, the following. - Individual collection (Collection service is provided on demand from an e-waste generator.) - Separate collection (Collection service for e-waste is arranged on predetermined days.) - Point collection (E-waste collection points are established at places convenience for the access of the e-waste generators.) - Collection at events (An e-waste collection event is organized and widely publicized.) - Reverse distribution through retailers (Retailers exercise trade-in and/or accept walk-in of e-waste.) The design principles which the flow designer applies to change the behavior of the e-waste generator will be the following. - Public education and command and control - Economic incentives (3) Who pays for the cost to collect e-waste? In the Malaysian context, the available financial source for the system will include the following. - Consumers - Government - Producers - FRFs 2. Consideration of system options 17

80 (4) Who allocates the money? In case where the party who designs the flow also bears the collection cost, money allocation is self-explanatory. If those parties are different, there should be a third party to allocate money, and it will be the government. 2.3 SYSTEM OPTIONS In the consideration of the system options, the terms government-led, producers-led or FRF-led models are used, each of which implies who is motivated to collect e-waste in order to achieve the collection target. The system options for each model are tabulated as below. Table 2-1. System options of the government-led model Collection target placed to whom? Who designs the e-waste flow? Government Government Who pays the cost? Consumers Government Producers FRFs Who allocates the money? Government Government Government Government Table 2-2. System options of the producer-led model Collection target placed to whom? Who designs the e-waste flow? Producers Producers Who pays the cost? Consumers Government Producers FRFs Who allocates the money? Government Producers Government Producers Government Table 2-3. System options of the FRF-led model Collection target placed to whom? Who designs the e-waste flow? FRFs FRFs Who pays the cost? Consumers Government Producers FRFs Who allocates the money? Government Government Government FRFs 2.4 EVALUATION OF THE SYSTEM OPTIONS The following eight evaluation factors are used to evaluate each system option. - Is the equity among cost payers ensured? - Does the system encourage DfE (design for the environment)? - Does the system have a mechanism to minimize the social cost? - Is the cost for consensus building low? 18 Annex VIII. Factor Analysis for an EPR Regulatory System Based on the EPR Systems in Asian Countries

81 - Is the system flexible to the changes in conditions? - Is the system effective for e-waste collection? - Is the system applicable to the other hazardous waste from households? Evaluation results are expressed by four-level rating from 0 (zero) to +++, where +++ is the most affirmative. The results are shown in the following table. The Producer-led collection model has generally higher rates than other models, in particular when the producers also pay the cost and allocate the money by themselves. In this option, the autonomy given to the producers will result in their best performance although a question remains how to ensure the equity among the producers. 2. Consideration of system options 19

82 Table 2-4. Evaluation results of system options GOVERNMENT-LED COLLECTION MODEL PRODUCER-LED COLLECTION MODEL FRF-LED COLLECTION MODEL Collection target Government Producers FRFs obligator Flow designer Government Producers FFRs Cost payer Consumers Government Producers FRFs Consumers Government Producers FRFs Consumers Government Producers FRFs Money allocator Government Government Government Government Government Producers Government Producers Government Government Government Government FRFs Equity among cost payers ++ The fee paid by the consumers can be set in proportion to the quantity, size and type of their e-waste. ++ The amount of tax payment and the quantity, size and type of discarded e-waste show a certain correlation. + The fee paid by the producers can be set in proportion to the quantity, size and type of products released to the market, but it is practically difficult to impose the fee to all the producers uniformly. +++ The fee paid by the FRFs can be set in proportion to their business scale. As the number of FRFs is not large, it is easy to collect the fee. ++ The fee paid by the consumers can be set in proportion to the quantity, size and type of their e-waste. ++ The fee paid by the consumers can be set in proportion to the quantity, size and type of their e-waste. ++ The amount of tax payment and the quantity, size and type of discarded e-waste show a certain correlation. + It is practically difficult to impose the cost to all the producers uniformly. +++ The fee paid by the FRFs can be set in proportion to their business scale. As the number of FRFs is not large, it is easy to collect the fee. ++ The fee paid by the consumers can be set in proportion to the quantity, size and type of their e-waste. ++ The amount of tax payment and the quantity, size and type of discarded e-waste show a certain correlation. + The fee paid by the producers can be set in proportion to the quantity, size and type of products released to the market, but it is practically difficult to impose the fee to all the producers uniformly. +++ The fee paid by the FRFs can be set in proportion to their business scale. As the number of FRFs is not large, it is easy to collect the fee. DfE promotion + DfE can be promoted depending on hot to set the fee to the consumers. No any effect. + DfE can be promoted depending on hot to set the fee to the producers. No any effect. + DfE can be promoted depending on hot to set the fee to the consumers. + DfE can be promoted depending on hot to set the fee to the consumers. No any effect. ++ DfE can reduce the cost of the system. No any effect. ++ DfE can be promoted depending on hot to set the fee to the consumers. No any effect. ++ DfE can be promoted depending on hot to set the fee to the producers. No any effect. Social cost minimization ++ The politics can act to suppress the fee to the consumers and minimize the total cost. + The politics can minimize the total cost, but the selfcontrol will not fully function. + The adoption of EPR concept can mislead to the excessive burden to the producers. + The position of the government as a FRF regulator can mislead to the excessive burden to the FRFs. ++ The politics can act to suppress the fee to the consumers and minimize the total cost. The producers attempt to efficiently use the money allocated. +++ The producers attempt to minimize the fee imposed to the consumers and to maximize the financial efficiency. + The politics can minimize the total cost, but the selfcontrol will not fully function. The producers attempt to use the money allocated most efficiently. +++ The producers attempt to maximize the financial efficiency. + The producers attempt to use the money allocated most efficiently, but such attempt may not influence the fee setting or money allocation. + The politics can act to suppress the fee to the consumers, and the FRFs attempt to efficiently use the money allocated. Their collection may not be efficient enough as they have to build the interface with the consumers. + The politics can minimize the total cost, but the selfcontrol will not fully function. The FRFs attempt to efficiently use the money allocated, but their collection may not be efficient enough as they have to build the interface with the consumers. + The adoption of EPR concept can mislead to the excessive burden to the producers. +++ The FRFs attempt to efficiently use the money allocated, but their collection may not be efficient enough as they have to build the interface with the consumers. Low-cost consensus building As e-waste has trading value, it is difficult to make the consumers understand that the appropriate recycling causes social cost. + Strong political commitment is required. +++ The EPR concept has been prevailing and implemented in many countries. The rationale to impose the social cost to the FRFs is not clear. As e-waste has trading value, it is difficult to make the consumers understand that the appropriate recycling causes social cost. As e-waste has trading value, it is difficult to make the consumers understand that the appropriate recycling causes social cost. + Strong political commitment is required. +++ The EPR concept has been prevailing and implemented in many countries. The rationale to impose the social cost to the FRFs is not clear. As e-waste has trading value, it is difficult to make the consumers understand that the appropriate recycling causes social cost. + Strong political commitment is required. ++ The EPR concept has been prevailing and implemented in many countries, but the producers may raise objection for their limited participation in system design. The rationale to impose the collection target to the FRFs is not clear. + The rationale to impose the social cost to the FRFs is not clear. Flexibility of system design Effectiveness of system Applicability for other hazardous waste from households The system designed by the government cannot be flexible enough. The producers are sensitive to the business circumstances and can act flexibly. The FRFs are sensitive to the business circumstances and can act flexibly The experiences of waste collection can work effectively. The producers will be able to develop the collection routes through the retailers. The FRFs have to build the interface with the consumers. ++ It will be applicable ++ It will be applicable + The consensus ++ It will be applicable ++ It will be applicable ++ It will be applicable + The consensus + The efficiency of + The efficiency of + The efficiency of when the when the building with the FRFs when the when the when the building with the FRFs collection flow design collection flow design collection flow design hazardousness is hazardousness is will be difficult. hazardousness is hazardousness is hazardousness is will be difficult. by the FRFs will not be by the FRFs will not be by the FRFs will not be clear. clear. clear. clear. clear. high enough. high enough. high enough. +++ It will be applicable when the hazardousness is clear. The reduction of the use of hazardous material can be expected. +++ It will be applicable when the hazardousness is clear. The reduction of the use of hazardous material can be expected. + The efficiency of collection flow design by the FRFs will not be high enough. Total Annex VIII. Factor Analysis for an EPR Regulatory System Based on the EPR Systems in Asian Countries

83 2.5 TYPES OF SYSTEM OPTIONS IN OTHER COUNTRIES Following the comparative study in the previous section, it is found that four systems, namely systems of Japan (for PCs and mobile phones), Korea, Australia and Germany stipulate e-waste collection as a policy agenda and they will be comparable in considering the system option for Malaysia. The table below shows how their systems are expressed using the system framework used earlier. Table 2-5. Types of system options applied in different countries Japan (PC and mobile phones) Government-led Collection Producer-led Collection FRF-led Collection Collection target obligator Government Producers/Carriers* 1 FRFs Flow designer Government Producers/Carriers FRFs Cost payer C G P F C G P F C G P F Money allocator G G G G G P G P G G G G F Korea Government-led Collection Producer-led Collection FRF-led Collection Collection target obligator Government Producers FRFs Flow designer Government Producers FRFs Cost payer C G P F C G P F C G P F Money allocator G G G G G P G P G G G G F Australia Government-led Collection Producer-led Collection FRF-led Collection Collection target obligator Government Producers FRFs Flow designer Government Producers FRFs Cost payer C G P F C G P F C G P F Money allocator G G G G G P G P G G G G F Germany* 2 (Collection from households to the municipal collection points is concerned.) Government-led Collection Producer-led Collection FRF-led Collection Collection target obligator Government Producers FRFs Flow designer Government Producers FRFs Cost payer for collection C G P F C G P F C G P F Money allocator G G G G G P G P G G G G F Legend) G: Government; P: Producers; F: Full recovery facilities (FRFs). *1. In the recycling of PCs and mobile phones in Japan, collection targets are not numerically established, but collection is regarded as the responsibility of the producers/carriers. *2. In the table for Germany, collection from households to the municipal collection points is concerned. 2. Consideration of system options 21

84 3. R ECOMMENDABLE REGULATORY FRAMEWORK ( TRIAL DRAFT) 3.1 RECOMMENDABLE OPTION AND POINTS TO CONSIDER TOWARD REALIZATION (1) Recommendable option As estimated in Table 2-4, the option in Table 3-1 scored the highest score. Table 3-1 Recommendable option for trial draft Government-led Collection Producer-led Collection FRF-led Collection Collection target obligator Government Producers FRFs Flow designer Government Producers FRFs Cost payer C G P F C G P F C G P F Money allocator G G G G G P G P G G G G F Legend) G: Government; P: Producers; F: Full recovery facilities (FRFs). (2) Points to consider toward realization a) Primary responsibility of households In this option, producers will manage all matters related to e-waste recycling basically. However, it does not necessarily mean that any other stakeholders have to do nothing. E-waste related issues are the issues to be dealt with the social factors. It is too much and not efficient to push the responsibility only on manufactures. Households have a primary responsibility on e-waste recycling as discarders, because e-waste related issues cannot be improved without any change in behaviors of households. It is advisable that governmental agencies have a role to educated people. b) Coordination on an intersectorial group meeting Governmental agencies can help manufactures by establishing an intersectorial group meeting for smooth implementation of e-waste collection. This meeting will act as a consultation meeting among manufactures and other related bodies including governmental agencies. Such coordination by governmental agencies for establishing such a meeting will be very helpful for manufactures to share and manage e-waste collection system in collaboration. Many independent systems by brands will be inefficient and it is not easy to establish such a meeting by brands without any coordination by any governmental agency. In the Pilot Project, E-waste Alam Alliance Penang was established by coordination by the state government and the city council (MPPP). Brands were not invited to this alliance, but this could be a prototype of the intersectorial meeting by inviting brands. In the meeting, 22 Annex VIII. Factor Analysis for an EPR Regulatory System Based on the EPR Systems in Asian Countries

85 the initiative should be taken by manufactures so that they can perform the best. Also such alliance meeting in the national level is necessary to manage and coordinate the local e-waste collection systems in every state. c) Setting of target collection rates Setting of target collection rates is a must, because the collection system aims at shifting the current e-waste stream from the conventional recyclers to the licensed recyclers. The options for collection rate can be referred to Appendix 1. d) Target manufactures Normally, regulation on e-waste recycling is designed so as to cover all manufactures to make the regulation fair. However, 100% coverage may result in high rise of transaction costs. Here, voluntary participation is advisable. Manufactures can choose whether they participate in e-waste collection or not. Only participating manufactures will be regulated so as to achieve target collection rates which DOE may set through discussions with manufactures. Manufactures which will not participate will be evaluated in the market, if DOE publishes the list of participating manufactures. e) Independent collection by some brands Depending on market shares or other conditions in the market, some brands might like to participate in the common collection system coordinated by E-waste Alam Alliance and develop their independent systems by their own cost. Such independent systems are possible, because every brand is free as far as it can achieve the target. The brands which doubt the performance of the system of E-waste Alam Alliance can develop their independent system. 3. Recommendable regulatory framework (trial draft) 23

86 Invitation to participate Participate? Yes No Affection on competition in the market Commitment on target collection rate Possible to achieve? Yes No Independent collection system By their own cost E-waste Alam Alliance System By paying the additional cost * Kaizen Target achieved? No Target achieved? No Yes Yes Continue Continue Figure 3-1 Flowchart of the proposed regulatory system * The Pricing Model explained in the report of Evolutionary System Mechanisms of E-waste Alam Collection System with Planner s Notes can tell us the voucher prices so as to attain the target collection rates. If the price is higher than the prices of licensed recyclers, the difference can be paid by the participating brands. 3.2 REGULATORY FRAMEWORK (TRIAL DRAFT) (1) Types of e-waste - All types of e-wastes (2) Responsibility a) Discarders - Discarders are primarily responsible to proper handling of e-wastes. - To hand over their e-wastes to appropriate routes in which the e-wastes flow to any licensed full recovery facilities b) Responsibility of committed producers - To express their commitment of e-waste recycling to the state and local governments 24 Annex VIII. Factor Analysis for an EPR Regulatory System Based on the EPR Systems in Asian Countries

87 - To collect and recycle e-waste (or commission the FRFs to do so) to fulfill the target collection rate at their own expenses by their own system or by participating the E-waste Alam Alliance - To monitor the performance of the e-waste collection and report to DOE c) Responsibility of committed retailers - To hand over the e-waste from the discarders to appropriate recycling facilities d) Responsibility of DOE - To set the target collection rate obligation to the committed producers - To compile the collection data from the committed producers and consult with them in order to achieve the target collection rate - To educate people so that e-wastes discarded from households are dealt with appropriately - To publicize data/information on progress of e-waste recycling including list of committed producers - To introduce and manage any mitigation measures for committed producers so as to reduce unfairness between committed producers and uncommitted producers - To collaborate with other related governmental agencies including the ministry in charge of custom offices and manufacturing e) Responsibility of the state and local governments - To arrange a regulatory system and support the e-waste collection system. - To establish E-waste Alam Alliance (3) E-waste Alam Alliance a) Members - State and local governments, Member producers (committed producers which decided to participate the alliance, Member retailers (committed retailers which decided to participate the alliance) b) Roles - Inviting and managing participating retailers - Issuing and managing the vouchers - Designing and managing the pricing system - Establishing E-waste Collection Plan - Designing and managing the e-waste recycling system c) Member retailers - E-product retailers shall cooperate to the e-waste collection 3. Recommendable regulatory framework (trial draft) 25

88 - E-product retailers shall provide enough information to the customers including the prices of the e-wastes by displaying the prices. - The member retailers shall hand over the collected e-waste to the recycling facilities predetermined by the E-waste Alam Alliance.. d) Member producers - The property of the collected e-wastes may belong to the participating producers. - The member producers share the amount of e-waste collected by the E-waste Alam Alliance in proportion to their production scale and count their share as part of their collection achievement. 26 Annex VIII. Factor Analysis for an EPR Regulatory System Based on the EPR Systems in Asian Countries

89 Appendices

90

91 Appendix 1. Definition of target collection rates 1.1 Two types of definition Values of collection targets are not physical, because the physical value of e-waste discarded is unsure. Commitment on collection targets is often difficult due to this characteristic of collection rates. Governmental agencies have to consider carefully how to define collection rates by considering: - Data availability - Reasonability - Easiness to make consensus The definitions of collection targets used in the present EPR systems are: - Collection rate based on the past sales - Collection rate based on the current sales (1) Collection rate based on the past sales Collection rate can be defined by the volume of sales in the past year of average product life, if new products sold in a year are discarded in a year. But, of course, lives of e-products are different by users. If the assumption is too strict, it can be eased by using three years around the average lifetime. The definition of the target collection rate can be expressed below. - Rc(P) = Where W aaaaaaa S (cr avr) 1 +S (cr avr) 0 +S (cr avr)+1 (1 r) d - Rc(P): Collection rate based on the past sales - W: number of collected e-waste (NOS) - S i : past sales in the year of i - cr: current year - avr: average lifetime - r : repaired rate (%) (shown in the table below) - d: discarded rate (%) (shown in the table below) (=100% - dead stored rate) Ewaste Average lifetime (year) Weight (kg/unit) Repair Rate (%) Discarded rate (%) TV(CRT) TV(nonCRT) R WM AC PC(CRT) PC(LCD) Appendix 1. Definition of target collection rates 29

92 Ewaste Average lifetime (year) Weight (kg/unit) Repair Rate (%) Discarded rate (%) PC(NOTE) P MP (2) Collection rate based on the current sales This definition can be expressed below by replacing the year used in the above equation. - Rc(C) = where W aaaaaaa(s cr 3 +S cr 2 +S cr 1 ) (1 r) d - Rc(C): Collection rate based on the current sales 1.2 Comparison of the collection rates Table 3-2 is the comparison of two types of definitions. They have pros and cons. Either can be selected through discussions with brands. Table 3-2 Comparison of two types of collection rates Collection rate based on the past sales (Rc(P) Data availability ++ Data availability is lower than Rc(C) for products whose average lifetime is long such as TV which has 12 years as an average lifetime. Reasonability +++ The assumption that e-products sold in a year will be discarded in three years is reasonable. Easiness to make consensus + Shrinking brands have little affordability for recycling cost, if they are charged according to the sales in the past. Collection rate based on the current sales (Rc(C) ++ It is easy to collect data of the current sales, but emerging brands might have no sales data from 12 years ago. + It is not reasonable because the current sales distribution does not express the current e-waste distribution of brands. +++ The current sales express the current affordability. 30 Annex VIII. Factor Analysis for an EPR Regulatory System Based on the EPR Systems in Asian Countries

93 A nnex IX Record of Seminars and Workshops

94

95 Contents Annex IX 1 1. Record of Kickoff Seminar in Penang OBJECTIVE DATE & PLACE PARTICIPANTS OUTLINE RESULTS AGENDA SUMMARY OF PRESENTATIONS SUMMARY OF COMMENTS, QUESTIONS AND ANSWERS CLOSING 5 2. Record of Idea Sharing Workshop OBJECTIVE DATE & PLACE PARTICIPANTS OUTLINE RESULTS AGENDA SUMMARY OF PRESENTATIONS SUMMARY OF COMMENTS, QUESTIONS AND ANSWERS CLOSING Record of Pilot Project Launching Workshop OBJECTIVE DATE & PLACE PARTICIPANTS SUMMARY OF PRESENTATIONS Record of Pilot Project Launching Event OBJECTIVE DATE & PLACE PARTICIPANTS EXHIBITER OF BOOTH EVENT PROGRAM Pilot Project Progress Workshop and Site Visit OBJECTIVE DATE PARTICIPANTS AGENDA SUMMARY OF THE WORKSHOP Closing Workshop OBJECTIVE DATE & PLACE PARTICIPANTS 26

96 6.4 AGENDA SUMMARY OF THE WORKSHOP Farewell meeting OBJECTIVE DATE & PLACE PARTICIPANTS AGENDA SUMMARY OF THE MEETING 39

97 1. R ECORD OF K ICKOFF S EMINAR IN P ENANG 1.1 OBJECTIVE - To share the overall picture of the project and issues to be considered in the project. 1.2 DATE & PLACE - Date: 24 October Time: 9:00 am 2:00 pm including a coffee break and lunch - Venue: Ballroom of Vistana Hotel, Penang, Malaysia. 1.3 PARTICIPANTS The total number of participants is 71 as listed below. - DOE Headquarters 1 - DOE Penang 12 - MPPP 2 - JICA 1 - Other governmental agencies 4 - Recycling industry 25 - Manufacturers 7 - NGOs 7 - Other business sectors 3 - Individuals 3 - Press 2 - JICA Expert Team and external experts OUTLINE The kickoff seminar was held on 24 October 2011, in a ballroom of Vistana Hotel, Penang Island. The main objective of the seminar was to announce the commencement of this project and to draw interests into the project from relevant sectors including recyclers and manufacturers. Presentations were given by the representatives from DOE HQ, MPPP and JICA Expert Team and an external expert was invited from a university in Japan. 1. Record of Kickoff Seminar in Penang 1

98 1.5 RESULTS The attendants were mostly from recycling industry and their number was smaller than expected, but their comments implied their high awareness and understanding of the issue of e-waste. They largely appreciated technical assistance from Japan through this project. A question was also posed, however, in regard to the management of toxic non-recyclable e-waste as the proper treatment of cathode ray tubes and batteries is costly due to the monopolization of toxic waste treatment. Also, they expressed their interest in drawing lessons from Japan s experience in e-waste management. The seminar appeared to be of a promising start by providing a good opportunity to involve important stakeholders into the project. 1.6 AGENDA 9:10 Welcoming Speech by JICA Representative 9:25 Welcoming and Opening Speech, Y. Bhg. Dato Hassan Bin Mat, Director of Department of Environment Penang 10:00 Introduction For Implementation Of The Project Model Development For E-Waste Collections, Segregation and Transportation From Households For Recycling, By Encik Khiruddin Mohd Idris, Department of Hazardous Materials, Department of Environment (Headquarters) 10:30 Existing Municipal Waste (Including Electrical Waste) Management in Penang Island, By Haji Ibrahim B. Mohamed, Director of Municipal Services, Municipal Council of Penang (MPPP) 11:00 E-Waste Collection System in Japan and How It Can Be Implemented in Malaysia By Mr Hideki Wada, Penang E-waste Team 11:45 Extended Producer Responsibility (EPR) Policy and Its Applicability to Malaysia By Prof. Yoshifumi Fujii, Bunkyo University, Japan 12:45 Questions and Answers 1.7 SUMMARY OF PRESENTATIONS (1) Welcome Speech (Mr. Masayuki Hayashi, JICA Malaysia Office) - Among a range of environmental issues, e-waste has been drawing attention as it is listed as a scheduled waste. - The bilateral cooperation should be effectively started from this kickoff seminar, where all the relevant parties come together to well understand this issue. 2 Annex IX. Record of Seminars and Workshops

99 (2) Opening Remark (Y.Bhg. Dato Hassan Bin Mat, DOE Penang) - E-waste management is a growing concern as its volume is estimated to reach to as high as 1.17 billion units. - Malaysia had been improving the waste management system by a concept of cradle to grave, whereby hazardous waste is properly treated at Quality Alam. - We are, however, in a stage to shift from cradle to grave to cradle to cradle, in that usable resources in waste should be recovered to be a new product. - Japan has advanced experience in managing e-waste by a take-back system. We should develop a model by taking into account of Japan s experience, attempt to apply the model to the whole country, and enhance the e-waste legislation process. (3) Presentation Introduction For Implementation Of The Project Model Development For E-Waste Collection, Segregation and Transportation From Households For Recycling (Mr. Encik Khiruddin Mohd Idris, DOE HQ, Putrajaya) - Current legislative framework on e-waste management is explained. - The expected outcomes and activities are introduced. - The members and responsibilities of JCC are explained. (4) Existing Municipal Waste (Including Electronic Waste) Management in Penang Island (Mr. Abu Hassan Bin Mohamed Zain, MPPP) - For waste collection is carried out by dividing the island into 8 blocks. MPPP collects waste from one of the block, while contractors collect waste in other areas. - Waste generation rate is at kg/day/person and the final disposal amount is 683 tons/day. - Night collection of waste, which started as a result of a change in waste transportation mode to use a transfer station on the mainland, is inviting public complains. - From the view of waste management hierarchy, waste minimization is our keen issue and the contribution of this JICA project is expected in this light. - The PC recycling program started in 2004 to collect PCs and some other e-waste, and the total collection volume reached 120,931 kg. - Current issues include expansion of target e-waste items, competition against illegal collection and the involvement of manufacturers into the e-waste recycling. (5) E-Waste Collection System in Japan and How It Can Be Implemented in Malaysia (Mr. Hideki Wada, JICA Expert Team) - Waste collection system in Japan is introduced with an emphasis on the background of introduction of separate collection of recyclable waste. 1. Record of Kickoff Seminar in Penang 3

100 - The difference between Japan and Malaysia in terms of condition of recyclable waste should have very important implication for designing the e-waste management mechanism. - Such differences include: the extent of burden on municipalities in e-waste management, the economic value of recyclable waste, scale of roles of small recycling shops, popularity of trade-in and strength of communication between the government and manufacturers. - This project intends to collect real data through a pilot project and to design a system that is socially acceptable and financially sustainable. - Open and close discussion is very welcome and appreciated. (6) Extended Producer Responsibility (EPR) Policy and Its Applicability to Malaysia (Prof. Yoshifumi Fujii, Bunkyo University, Japan) - WEEE and RoHS in EU were developed against such background of the enforcement of Basel Convention, which had made the disposal of increasing e-waste difficult; reflexive modernity, which is a concept to modernize our foundations instead of something else objective; emergence of EPR; and the resolution of Lisbon Strategy, which encourages knowledge-based economy to be developed in EU. - WEEE regulations were developed in such countries as EU member states, Japan, China, Thailand, and Canada, and vary in the system design. - Developing countries face tri-lemma including rapid increase in SWM, NIMBY and international harmonization for sustainability. Their difficulty can be more serious than what the developed countries experienced. - The Malaysian original WEEE management system should be pursued by mobilizing existing hard and soft ware (social capital), developing Malaysian capacities and fostering intensive policy dialogue. 1.8 SUMMARY OF COMMENTS, QUESTIONS AND ANSWERS (1) Comment from a recycling company - The DOE and MPPP are doing a good job and the assistance of JICA should be very effective for their further bettering of waste management. However, we are afraid of a big trouble that will be caused by the decision of the company Samsung-Corning to stop receiving used CRT. (2) Comment from a full recovery factory in Penang - JCC should involve members from the private sector. Also, in related to the previous comment, the monopoly of Kualiti Alam is posing a risk on the recycling business. 4 Annex IX. Record of Seminars and Workshops

101 - DOE answered that JCC will have a meeting next month and will discuss on this matter. The matter of hazardous waste management is an important national agenda and will be further considered. (3) Comment from a PC manufacturer - The status of e-waste segregation and treatment should be more clearly understood. (4) Comments from NGO - The slides shown in today s seminar should be provided. The URL was given. - What about the responsibility for the recycling of e-waste imported? In Japan, the importers bear the responsibility. - The problems caused by the monopoly of Kualiti Alam should be examined. - What about the responsibility of the retailers for e-waste recycling in Japan? The explicit responsibility is only borne by the brand holders. - MPPP should promote the separate collection of recyclables by preparing sets of waste bins in different colors. As stated in a master plan, MPPP will attempt to introduce separate collection using specific plastic bags starting from a model area. It is also noted that the separate collection using colored bins require careful monitoring to be successfully utilized. (5) Comments from NGO - We have collected many bottles and tires for a recycling purpose but there is no place to sell them and it is getting difficult to store them. MPPP will collect them. (6) Comments from the general public - How should dry cell batteries be dealt with? The government considers a special program to properly treat dry cell batteries, but at this moment, sending them to Kualiti Alam or simply storing them are the only possible ways. 1.9 CLOSING The seminar was closed with the remarks by Mr. Wada, who requested continuous collaboration for this project and expressed his expectation to have another opportunity of opinion exchange in next January, when the current e-waste flow would be revealed and the next step of the project would be worked out. 1. Record of Kickoff Seminar in Penang 5

102 2. R ECORD OF I DEA S HARING W ORKSHOP 2.1 OBJECTIVE - To share ideas about the pilot projects to be implemented from June 2012 among relevant stakeholders. 2.2 DATE & PLACE - Date: 17 January Time: 9:00 am 2:00 pm including a coffee break and lunch - Venue: Ballroom of Cititel Hotel, Penang, Malaysia. 2.3 PARTICIPANTS The total number of participants is 92 as listed below. - DOE Headquarters 3 - DOE Penang 3 - MPPP 6 - Other governmental agencies 4 - Full recovery facilities 12 - Partial recovery facilities 7 - Scrap dealer 4 - Other recycling agents 7 - Manufacturers 19 - Solid waste contractors 2 - Individuals (consultants, researchers, etc.) 9 - NGOs 9 - Press 4 - JICA Expert Team OUTLINE The idea sharing workshop was held on 17 January 2012, in Cititel Hotel, Penang Island. The objective of this workshop was to share ideas about the pilot projects to be implemented from June 2012 among relevant stakeholders. It was in fact the first workshop to talk about how the pilot project was to be designed. The presentation from the JICA expert on the current e-waste flow with volumetric figures gave a good momentum to facilitate the attendants to develop their ideas. The presentation of DPPP 6 Annex IX. Record of Seminars and Workshops

103 and DOH helped the attendants to have a common image of the current recycling practices, and DELL and TES-AMM, the supposed key actors of the pilot project, presented their positive response to the pilot project. More details of the seminar are presented in Appendix RESULTS As stressed by Y. Bhg. Datin Paduka Che Asmah Ibrahim, Director of Hazardous Substances Division of DOE, the ideas and initiative from the manufacturers were expected, and the workshop actually provided an important opportunity to the manufacturers to show their presence and views. The manufacturers emphasized the shared responsibility and proposed that the system should have multiple channels and flexibility in order to allow the e-waste to be efficiently collected and the stakeholders to optimize their behavior to fulfill their responsibility. The participants left their ideas and opinions inspired by the speakers in Idea Sheets. Ideas collected addressed a range of subjects including public awareness raising, cost sharing, institutional set-up, and involvement of the informal sector. The willingness to take part in the pilot project was also expressed in many of the sheets. The workshop turned out to be successful in sharing ideas. They will be further examined in the next step of pilot project designing. 2.6 AGENDA 8.30 a.m. Registration 9.00 a.m. Arrival of Y. Bhg. Datin Paduka Che Asmah Ibrahim, Director of Hazardous Substances Division of DOE Putrajaya 9.05 a.m. Doa Recite 9.10 a.m. Opening Remark, by Y. Bhg. Datin Paduka Che Asmah Ibrahim, Director of Hazardous Substances Division of DOE Putrajaya 9.15 a.m. Break/ Media Conference 9.40 a.m. Planning Points for E-waste Collection System Based on The Results of the Surveys of Current E-waste Flow, by Mr. Hideki Wada, JICA Expert Team, Mr. Abu Hassan Bin Mohamed Zain, Majlis Perbandaran Pulau Pinang (MPPP) and Mr. Mohd. Fitri b. Mokhtar, DOE Penang 10:40 a.m. Ideas from E-waste Collection from Manufactures 11:50 a.m. Ideas from Full-recovery Facilities p.m. Questions and Discussion p.m. Collecting Idea Sheets from Participants 2. Record of Idea Sharing Workshop 7

104 12.55 p.m. Closing Remark 1.00 p.m. Lunch 2.00 p.m. Adjourn 2.7 SUMMARY OF PRESENTATIONS (1) Welcome Speech (Y. Ghg. Datin Paduka Che Asmah Ibrahim) - The government of Malaysia recognizes the growing needs to tackle with the e-waste problem. - Now, the sufficient numbers of e-waste recovery facilities were already developed, it is time to carefully consider the whole system including e-waste flow logistics, infrastructure, and regulatory arrangement. (2) Presentation Planning points for e-waste collection system based on the results of the surveys of current e-waste flow (Mr. Hideki Wada, Leader of the JICA Expert Team; Mr. Xavier Sebastian, MPPP; and Mr. Mohd. Fitri b. Mokhtar, DOE Penang) - The result of the surveys of current e-waste flow was summarized. Mr. Fitri presented the current e-waste management system with photos and highlighted their high commitment and issues to be dealt with. - From the survey, it was considered that used home appliances mostly go to junk shops and hardly appear at full recovery facilities, while mobile phones are actively resold/reused not going to either junk shops or full recovery facilities. PC shows a somewhat in-between path, in that some are reused, some go to full recovery and still the majority goes to junk shops. - The estimated amount of each type of e-wastes was calculated: the total weight was assumed to be 13,300 tons in The current e-waste flow is characterized by the dominant flow from consumers to dismantlers (junk shops and partial recovery facilities), and further to traders. This suggests requirement of a policy that leads e-waste to full recovery facilities directly from households or via dismantlers. - The three indicators were proposed to see the effect of the policy introduction: hazardousness, resource recovery and traceability. - Finally, some hints for the pilot project were provided, such as the increased number of collection points, provision of a service to take away e-waste upon new purchase, and economic incentives for the consumers. He added that the pilot project will be designed in March. 8 Annex IX. Record of Seminars and Workshops

105 (3) Presentation Ideas from e-waste collection from manufacturers (Mr. Bu Fan, Dell Singapore) Competition in recycling among different collection schemes can be a focal point of the system workability. - Responsibility should be shared among the entire value chain. - E-waste has different characteristics by item to item and multiple collection channels should be provided. - Informal sector can be engaged in a positive manner to contribute the e-waste management system if they are properly formalized. (4) Presentation Ideas from e-waste full recovery facilities (Mr. John Ashok, TES-AMM Malaysia) - Updates about e-waste management in different countries were introduced. He proposed to introduce the WEEE disposal fund and WEEE subsidy employed in the Chinese WEEE. - Some issues for discussion were raised including: 1. what household hazardous e-waste practically means while similar e-waste generated from industry and it was safely used until yesterday without posing any harms. 2. what the government really envisions as the results of the e-waste management system. 3. how reverse logistics should work. 2.8 SUMMARY OF COMMENTS, QUESTIONS AND ANSWERS (1) Questions from a home appliance manufacturer - How is the pilot project financed? And what are the target e-waste? The project will be financed by JICA but only to such an extent as to ensure project sustainability even after the project termination. Target e-waste will be TVs, washing machines, refrigerators, air conditioners, personal computers and mobile phones, but these are subject to change by discussion. - How is the government going to execute its initiative in the e-waste policy development? It is still a stage to look at and learn from the examples in other countries. We are also expecting useful outputs from this pilot project. (2) Question from a mobile phone manufacturer - What are the criteria to choose those six items? Various criteria were considered including dominance, hazardous materials contained, easiness to be mixed with general waste, etc. - In the presentation, the pilot project will collect 10% of e-waste generated in the island and it was meant that 20 tons of mobile phones are to be collected. From the experience of my company s voluntary take-back program, 20 tons seems to be extremely large. Global survey 2. Record of Idea Sharing Workshop 9

106 in 30 countries shows less than 3% of phones are recycled. Many are also dismantled and reused. Accurate information is important for DOE. The figure of 20 tons was calculated as reasonably as possible, but may still need reconsideration. Relevant information and data for the generation amount estimation are very much welcome. (3) Questions from a general public - A buy-back system should be better than a take-back system. Both have pros and cons. In the current Malaysian society, people require being paid when they give away e-waste, but they must be ready for paying as the economy develops. - Training for those who are engaged in e-waste recycling should be provided. Under the current legislation, e-waste is categorized in schedule waste and it must go to recycling facilities which are certified with their sufficient knowledge and skills. Recognizing the necessity to ensure their operation quality, we are going to implement benchmarking program to review the capacity of all the certified recyclers. - How are dry cell batteries handled? The only place that safely disposes of the dry cell batteries is Quality Alarm. We will need to prepare other possibilities, but this needs more discussion with producers. (4) Questions from a speaker - How can the manufacturers voluntary take back systems compete with the conventional e-waste recycling? It will depend on how the government can regulate their low cost operation with externalizing the health and safety issues. (comment from the floor) It will not be right to call it competition. The government can set up a new system. Manufacturers can operate their voluntary systems. There should be flexibility in deciding how manufacturers can contribute to e-waste management. (5) Comments from a full recovery facility - The process utilized in recyclers without license should be paid due attention. They often lack knowledge of chemistry and are not aware of how hazardous the chemicals that they use are. (6) Comments from a manufacturer - In regard to the selection of target e-waste, it must reflect the objective of the e-waste management system. I will propose to take an account of activity side, whereby undesired activities of causing environmental damage or illegally exporting e-waste are to be controlled. 10 Annex IX. Record of Seminars and Workshops

107 (7) Comments from a NGO - More batteries collection centers should be established and fluorescent lamps are also to be managed appropriately. Yes, we are concerned about the household hazardous waste, although we cannot manage all of them at once. At this moment there is no way other than paying to Quality Alarm for disposal, and who to pay is a question: economic instrument needs to be studied. (8) Comments from a junk shop - Junk shops are receiving 80% of household e-waste. We should not be ignored. We have less knowledge on hazardousness and need education. People expect being paid. We are not ignoring any sectors. Feedbacks from all sectors are welcomed. Training is not necessary from the government. As far as you are playing a role in e-waste recycling, you also bear shared responsibility. (9) Comments from a NGO - Government should have permanent secretariat function with dedicated officers and fund. We should look at the historical background of establishing Quality Alarm. Current condition is anyhow a consequence of an attempt to safely manage toxic waste in an environmentally and economically sound manner. The market will be opened in 2005??? and situation will change. - The government should address two things faced by the licensed recyclers. One is the high cost of Quality Alarm to which the recyclers have to pay for the disposal of residues. The other is the difficulty to receive enough input for recycling. Importation of e-waste should be considered. Importation of e-waste is not encouraged. Even exportation needs to be carefully controlled as we should follow the Basel convention. 2.9 CLOSING The seminar was closed with the remarks by Mr. Wada, who requested to fill out the idea sheets distributed to the audience to freely express their ideas. He also reminded them of the schedule of the pilot project design in March and requested continuous collaboration. 2. Record of Idea Sharing Workshop 11

108 3. R ECORD OF P ILOT P ROJECT L AUNCHING W ORKSHOP 3.1 OBJECTIVE - To celebrate and promote the commencement of the Pilot Project among relevant stakeholders. 3.2 DATE & PLACE - Date: 1 June Time: 9:00 am 12:00 pm including a coffee break and lunch - Venue: Ballroom of E&O Hotel, Penang, Malaysia. 3.3 PARTICIPANTS The total number of participants is 86 as listed below. - DOE Headquarter 5 - DOE Penang 10 - MPPP 4 - Other governmental agencies 7 - Full recovery facilities 15 - Partial recovery facilities 6 - Manufacturers 6 - Solid waste contractors 6 - Home Electric Appliance Shop 1 - Mobile Phone Shop 7 - NGOs 2 - Other organizations (private) 5 - Press 5 - Consulate-General of Japan in Penang 1 - JICA Malaysia 2 - JICA Expert Team SUMMARY OF PRESENTATIONS (1) Welcome Speech (Mr. Masayuki Hayashi, JICA Malaysia Office) - E-waste recycling is very important from two viewpoints: hazardousness and resource recovery. 12 Annex IX. Record of Seminars and Workshops

109 - Collaboration among related stakeholders is necessary for e-waste recycling. - Some policies are necessary to change life-cycles of products, as several laws/regulations were enforced early 2000 s in Japan. - The Pilot Project could be helpful for DOE to introduce some new policies. - Participation from manufactures as the official supports is deeply appreciated for the success of the Pilot Project. (2) Welcome Speech (Dr. Zulkifli Abdul Rahman, Deputy Director General (Operation), DOE) - Proper treatment of e-waste is very crucial as the volume of discarded e-waste is increasing. Heavy metals contained in e-waste might be leached from the final dumping site, if e-wastes are not properly managed. - The Pilot Project Model involving home electric appliance shops, mobile phone shops and supermarkets could be a model to be used nationwide. - Feedbacks from the Pilot Project are very informative for DOE introducing new policies for SW 110 (Scheduled Waste). - DOE puts importance on the prohibition of e-waste to be exported and imported illegally through collaboration with the custom bureau. (3) Explanation of the concept of the Pilot Project (Penang E-waste Project Team) - It is very important to shift the e-waste flow from the conventional recycling route to the Pilot Project route, because the conventional recyclers are unsure how to handle the e-waste and cannot be monitored by the governmental agencies. - Incentives are very important to change the e-waste flow, because e-wastes are traded as economic goods in Asian countries including Malaysia. Without any monetary incentives, the Pilot Project cannot compete with the conventional route. Not only monetary incentives but also labor saving to take out their e-wastes from their houses could be considered as one of the incentives, which makes the Pilot Project more attractive for households. - The money given to the households was designed to be paid by the full recovery facilities in charge of the Pilot Project. However, these prices are generally lower than the prices shown by the conventional recyclers. The data obtained from the Pilot Project will be used to describe the WTP (Willingness-To-be Paid) distribution function, which can be used to estimate the participation rate from the households when the prices shown to them are changed. - The money given to the households will be given by the voucher to be used commonly in the participating companies. - As of June 2, two home electric appliance shops and two mobile phone shops participated as e-waste collection centers. - Advertising tools and data monitoring sheets were developed and distributed. - The official supporters of the Pilot Project are EPSON, DELL and Toshiba as of June Record of Pilot Project Launching Workshop 13

110 - The Pilot Project will be evaluated in next November. (4) Speeches from the participating local businesses - Loo Soon Seng Electrical (LSS) and Channel Communication &Electronics Centre gave the celebrating speeches for the commencement of the Pilot Project. (5) Question and Answer - IRM (Full recovery facility) More attractive incentives seem to be needed. Is any contribution from manufactures possible? - DOE It will be discussed with the manufactures as part of EPR policies, as introduced already in the whole world. - Wada Importance of EPR among the manufacturers is significant. But what kind of EPR policy is suitable for Malaysia is unique and need to be explored. Discussions will be continued under this project to find the best solutions. - NGO Door-to-door collection from households should be arranged, for example, once a week? Are there any possibilities to collect batteries from households. - DOE collection for other e-wastes could be expanded in the future, started with the e-waste surveyed at the moment. Handphone batteries promotional activities is ongoing, some recyclers are willing to take it for recycling. 14 Annex IX. Record of Seminars and Workshops

111 4. R ECORD OF P ILOT P ROJECT L AUNCHING E VENT 4.1 OBJECTIVE - To celebrate and promote the commencement of the Pilot Project among citizens - To publicize the start of the pilot project to the citizens through the launching event and the press reports 4.2 DATE & PLACE - Date: Saturday 2 June Exhibition hours: 12:00 pm 9:00 pm - Venue: Floating Stage, Straits Quay Marina Mall. 4.3 PARTICIPANTS The total number of visitors to the event was more than 500 people. The event organizers and contributors were 115 people as listed below. - DOE 5 - State government of Penang 7 - MPPP 52 - Full recovery facilities(tes-aam, SHAN POORNAM METALS) 14 - Manufacturers(Dell, Epson Malaysia) 9 - EEE-Retailer (Ban Hin Bee, Loo Soon Seng Electrical) 5 - Press 17 - Consulate-General of Japan in Penang 1 - E-waste Project Team 5 - Press: China Press New Strait Time Guang Ming NHK Harian Metro Sin Chew Kwong Hwa The Star Nan Yang As shown above, the press teams were present at the launching event, and some articles have been reported in the newspaper. Therefore this pilot project is considered to be publicized to the citizens. 4. Record of Pilot Project Launching Event 15

112 4.4 EXHIBITER OF BOOTH EPSON Participated as an official supporter DELL with IRM INDUSTRIES SHAN POORNAM Participated as a full recovery facility TES-AMM Ban Hin Bee (BHB) Participated as an EEE-retailer Loo Soon Seng Electrical Sdn Bhd (LSS) 16 Annex IX. Record of Seminars and Workshops

113 MPPP MPPP was carried out the reception, and VIP escort. DOE E-waste project team 4.5 EVENT PROGRAM 12.00pm Exhibition Begins 4.10pm 4.15pm 4.25pm 4.30pm Stamp Rally Offer a free gift to the first 500 people who get stamps at all booths at the venue. Lucky Draws accept 1,000 people (from 16:00PM) Start of launching event Welcoming Speech by Mr Tetsuro Kai, Consul-General, Consulate-General of Japan in Penang Speech by Yg Bhg Puan Patahiyah Binti Ismail, Yang Di-Pertua Majlis Perbandaran Pulau Pinang Speech by YB Tuan Chow Kon Yeow, Penang State Executive Councilor for Local Government & Traffic Management 4. Record of Pilot Project Launching Event 17

114 4.40pm 4.50pm 5.05pm 5.25pm 5.30pm Ribbon Cutting Ceremony Souvenir Presentation and tour of exhibition Opening Performance by Penang State Cultural Troupe Press Conference <Participants> State government Consulate-General of Japan in Penang MPPP Full recovery facilities(tes-amm (Malaysia), Shan Poornam Metals, Reclaimtech) Manufacturers(Dell, Epson Malaysia) EEE-Retailer (Ban Hin Bee, Loo Soon Seng Electrical) E-waste Project Team Lucky Draw The prizes of Lucky Draw From Dell * Dell 22 Full HD LED Monitor * Dell All In One Wireless Printer From Epson * Multi Function Printer (ME340) x 2 units From Toshiba * Notebook From E-waste project team * ipod Nano 8GB Blue * Sony Digital Camera DSC W610 From MPPP * Voucher of Hotels x 3 Start of launching event Tape cut 18 Annex IX. Record of Seminars and Workshops

115 Tour of Exhibition Press Conference Lucky Draw present by EPSON Lucky Draw present by Dell Lucky Draw present by Toshiba and MPPP Lucky Draw present by E-waste project team 4. Record of Pilot Project Launching Event 19

116 Standing banner-1 Standing banner-2 Standing banner-3 Lay out 20 Annex IX. Record of Seminars and Workshops

117 4. Record of Pilot Project Launching Event 21 Floating Stage, Straits Quay Marina Mall Back drop Canopy Aluminum aarquee Canopy B o o t h B o o t h Canopy B o o t h B o o t h Canopy B o o t h B o o t h Canopy B o o t h B o o t h Canopy B o o t h B o o t h Canopy B o o t h B o o t h

118 5. P ILOT P ROJECT P ROGRESS W ORKSHOP AND S ITE V ISIT 5.1 OBJECTIVE - To share ongoing experiences of the Pilot Project among relevant stakeholders 5.2 DATE - Thursday, 1 November, PARTICIPANTS Participants were as listed below. - MPPP 4 - Other governmental agencies 3 - Full recovery facilities 19 - Manufacturers 20 - Home Electric Appliance Shop 3 - NGOs 8 - Press 6 - Consulate-General of Japan in Penang 1 - JICA Malaysia 1 - JICA Expert Team AGENDA (1) Workshop 8:30 a.m. Registration 9:00 a.m. Arrival 9:05 a.m. Doa Recite 9:10 Opening Remark Expectations to Pilot Project by DOE 9:20 Expectations to Pilot Project by Mr Foo Kok Beng (MPPP) 9:30 Break/ Media Conference 10:00 Concept of Pilot Project and Progress by Mr. Hideki Wada, JICA Expert Team 10:45 Relay talking from official supporters Expectation to Pilot Project (Dell, Epson, Panasonic, Toshiba) 11:00 Relay talking from participating retailers (LSS, BHB, TC Electrical Centre, Wah Lee Chain, CSH, CCEC, Sun Win Phone Shop, Innomax Telecommunication 22 Annex IX. Record of Seminars and Workshops

119 Centre, Impian Communication, Multi Communication Enterprise, Gadgetzone, NC Computer / Nanyang Digital, Mind Maker, E-Tech Computer) Relay talking from Full Recovery Facility (Tes-AMM, Shan Poornam) 11:30 Questions and Discussion 12:00 Closing Remark 12:00 Lunch 13:00 Adjourn (2) Site Visit to the Retailers Collecting E-wastes 13:30 Site visit to Ban Hin Bee 14:15 Site visit to Sun Win Phone Shop 14:45 Site visit to Gadgetzone 15:00 Site visit to NC Computer 15:30 Site visit to CCEC 16:15 Site visit to CSH 17:15 Site visit to LSS 18:00 Adjourn 5.5 SUMMARY OF THE WORKSHOP (1) Presentations a) Dato Hassan (DOE) - Role of DOE in the pilot project - Concept of the pilot project for collection of e-waste b) Mr Foo (MPPP) - Role and responsibility of MPPP in the pilot project for collection of e-waste, such as - Commitment of MPPP by sending the e-waste for proper recycle - Development of the annual e-waste collection plan - Advertisement of the e-waste collection for public awareness c) Dato Ong (PEWOG) - Permanent structure for collecting e-wastes by all stakeholders d) Mr Wada (Project Team) - Concept of the pilot project - Progress of the pilot project - Raw data of the collected e-wastes 5. Pilot Project Progress Workshop and Site Visit 23

120 - Data interpretation by using Cooperation Rate Expectations from the official supporters and the participating local businesses were presented. (2) Question and Answer a) Mr Lim (Toshiba) - MPPP benchmarking price? Mr. Foo (MPPP): The prices will be used for considering the proper voucher prices. b) Ms. Puan Rose (PEWOG) - There are some economic difficulties regarding printers. The value cannot cover the transportation cost. - Some PC shops may dismantle the old PCs and take out harddiscs and some parts that can be reused. How to get the full set of Pcs is important. - Private conventional recyclers show the higher prices than the e-waste project. How to compete with the private conventional recyclers? - This project has organized someone to travel around to collect the e-waste? ( PEWOG is doing now) Mr Foo (MPPP) - MPPP do not want to have the conventional recycler stop their business. - MPPP will try to promote the public the importance of e-waste problem. Dato Ong (PEWOG) - We can invite the conventional recyclers to the e-waste project - Consumers should pay the social cost through prices of new products, while social cost should also be cover by government for a short time. Anyway, some mechanisms are necessary. - Governments should have the regulation to control the conventional recyclers. Mr Wada (JICA) - Subsides from the government may spoil the sound market mechanism. c) Mr Bu Fan (Dell) - Cooperation rates that have been shown by Mr. Wada seem a little bit higher than expected. - How about putting the tax on the e-waste? - Some of the conventional recycler exports the e-waste to overseas? Mr Khiruddin (DOE) - Export or import the e-waste is illegal under the Malaysia regulation. However, we should tackle with them more. Dato Ong (PEWOG) - The health cost has been increased. 24 Annex IX. Record of Seminars and Workshops

121 - DOE should help the FRF to provide the e-waste collection from businesses, communities and governmental agencies. Puan Rose (PEWOG) - Surely, it is hard to get the data from PC shops, because PC shops commonly dismantle the PC and reuse some parts that can be used. 5. Pilot Project Progress Workshop and Site Visit 25

122 6. C LOSING W ORKSHOP 6.1 OBJECTIVE - To share the result of the Pilot Project and the lessons learnt from the Pilot Project with the stakeholders 6.2 DATE & PLACE - Date: 5 February Time: 9:30 16:30 - Venue: Hotel Equatorial Bangi Putrajaya 6.3 PARTICIPANTS Participants were as listed below. The total number of the participants was Local authority 32 - NGO 9 - Licensed recyclers 9 - Consultants 13 - DOE local office 37 - University 15 - Other governmental agencies 4 - Industry 71 - Manufacture 34 - Embassy of Japan in Malaysia 2 - JICA Headquarters 2 - JICA Malaysia 3 - JETRO 1 - JICA Expert Team AGENDA 8:30 a.m. Registration 9:30 a.m. Arrival of Natural Resources and Environment Minister Dato Sri Douglas Uggah Embas Doa Recite Welcoming Remark by Director General, Department of Environment Y.Bhg. Puan Halimah Hassan 26 Annex IX. Record of Seminars and Workshops

123 Speech by Minister, Deputy Chief of the Mission, Embassy of Japan Mr. Hiroshi Matsuura Opening Remark and Launching by Natural Resources and Environment Minister Dato Sri Douglas Uggah Embas Launching of Toshiba Voluntary E-Waste Takeback Program by Natural Resources and Environment Minister Dato Sri Douglas Uggah Embas a.m Break/ Exhibition 11:00 a.m Achievements of the Penang E-Waste Project and Further Recommendations by Mr. Hideki Wada, JICA Expert Team 12:00 noon Way Forward for Household E-Waste Recycling by Datin Paduka Che Asmah Ibrahim Director of Hazardous Substance 12:30 pm Collection of Household E-Waste by Dato Nadzri Yahya Director General, National Solid Waste Management Department 1:00 p.m Lunch 2:30 p.m Significance of the System Developed in the Penang E-Waste Project in Worldwide E-Waste Policy Trend by Prof. Yoshifumi Fujii, Advisor of JICA Expert Team 3:30 p.m Proposal of Toshiba Voluntary E-Waste Takeback Program by Mr. Lim Joo Peng, Toshiba 4:00 p.m Dialogue/Questions 4:45 p.m Wrapping up Remarks, Mr. Hideo Noda, Director, Environmental Management Div. 1, Environmental Management Group, Global Environment Dept., Japan International Cooperation Agency 5:00 p.m Closing Remarks/Tea Break/ Adjourn 6.5 SUMMARY OF THE WORKSHOP The workshop started with invitations of VIPs on the stage, namely: - Dato Dr. Abdul Rahim Hj Nik, Deputy Secretary General, Ministry of Natural Resource and Environment (NRE) Malaysia - Puan Halimah Hassan, Director General, Department of Environment (DOE) Malaysia - Dr. Zulkifli Abdul Rahman, Deputy Director General (Operation), Department of Environment (DOE) Malaysia - Hiroshi Matsuura, Deputy Chief of Mission, Embassy of Japan in Malaysia - Ms. Kyoko Okubo, JICA Malaysia Office (1) Welcoming remarks by Puan Halimah Hassan (Director General, Department of Environment) - Puan Halimah welcomed all the participants and various stakeholders especially to delegates from Japan. 6. Closing Workshop 27

124 - She also expressed a note of appreciation from the Government of Malayia to the Government of Japan, on the grant support of the project on e-waste in Malaysia, through JICA. - She informed that a total of 250 participants were registered to participate at the workshop, from various sectors: Governments, Local Authorities, manufacturers, recyclers, NGOs and consultants. She was impressed and happy with the participations from all, showing high interests of various parties. - The DG further elaborated that the pilot project in Penang was successfully implemented. And DOE expressed sincere thanks to the contributions from the JICA Expert Team headed by Mr. Wada, MPPP, and also the Hazardous Substance Division of DOE HQ. - She also informed that throughout the project implementation from September 2011 to March 2013, some central government agencies were also involved and participated including Ministry of Housing and Local Government (MHLG) and Economic Planning Unit (EPU). - The DG provided some basic information about e-waste in Malaysia as follows: E-waste is classified as scheduled waste in Malaysia (Code SW110). To date, DOE regulates 146 e-waste recovery facilities countrywide, with total capacity of 24,000 tonnes/month. Out of this, 128 are partial recovery facilities and 18 are full recovery facilities. Estimated total of 700,000 tonnes per year of e-waste is generated in Malaysia. - The DG commented that due to increasing amount of e-waste generation, therefore it is an urgent need to have a proper handling system. The pilot project in particular, is very important to provide information for policy formulation. - She further added that the pilot project has significantly enhanced various stakeholders to contribute towards e-waste management, and also conducted capacity buildings to various stakeholders. - She concluded the remarks with words of appreciations to all the stakeholders and participants, and wished for a fruitful discussion to be achieved in the workshop to improve household e-waste management in particular. (2) Speech by Mr. Hiroshi Matsuura (Deputy Chief of Mission, Embassy of Japan in Malaysia) - Mr. Matsuura expressed that he was impressed with the progress of Malaysia as a developing country. However, a developed nation should focus not only on economy, but also the country s environmental status. - He emphasized that the findings from the project on e-waste in Malaysia is very important and useful to formulate a proper model for Malaysia overall e-waste management. - In addition, he also elaborated that the project outcomes are a big assets for the stakeholders involved, because it clarifies the roles and responsibilities of each party. Good relationships between the stakeholders are particularly important. - He also said that the Japanese private companies also play important roles because of the following reasons: 28 Annex IX. Record of Seminars and Workshops

125 Many Japanese electronics and electrical companies in Malaysia These companies have the knowledge on recycling of e-waste In particular, the launching of e-waste take-back system by Toshiba in Malaysia - Mr. Matsuura ended his remarks with words of wishes to all participants for a successful workshop discussion. (3) Opening remarks by Dato Dr. Abdul Rahim Hj Nik (Deputy Secretary General, Ministry of Natural Resource and Environment (NRE) Malaysia) - Dato Dr. Abdul Rahim Hj Nik started his remarks with words of apologies from the Minister of Natural Resource and Environment, who was not able to attend the workshop. - He expressed his warm welcomes to all the participants of the workshop, and special thanks to the Government of Japan for supporting the 18-month project in Malaysia. His appreciations were also dedicated to all the private and public agencies for their contributions to the project. - The DSG said that Malaysia is an economic-mass production country, therefore we are facing issues of increasing amount of waste generation, lack of disposal sites and also inappropriate waste disposal of wastes. - He further added that the promotion of 3R is very important, and this project on e-waste is particularly crucial because many other countries are looking at Malaysia model now for proper e-waste management in developing countries. - He emphasizes that waste is now a potential opportunity and no more regarded as unwanted materials. E-waste in particular, is an increasing global issue because of the growth of technologies, increased of complexity and hazardous components. - Subsequently, the DSG shared some figures of e-waste generation in Malaysia as follows: From commercial, industries and institutions (2009) 134,000 tonnes/year From commercial, industries and institutions (2010) 163,000 tonnes/year From households (2006) 652,000 tonnes/year From households (2008) 688,000 tonnes/year - He also shared that Malaysia was ranked 57 in year 2010 following the Global Environmental Performance Index (EPI), which was conducted once every 2 years. The ranking was improved in 2012 at rank The DSG also informed that a study was completed by Universiti Teknologi Malaysia (UTM) to establish an Environmental Performance Index (EPI) for each state in Malaysia, which will cover 3 main aspects: environmental health; eco-biodiversity and socio-economy. Waste is categorized under the first aspect on environmental health, looking at the waste per capita and hazardous waste per capita GDP. He added that this system will be presented to the Cabinet of Malaysia soon for endorsement and implementation. - In relation to the pilot project, the DSG said that the pilot project on collection of e-waste is expected to be a model and data collected from the project is useful for policy development. 6. Closing Workshop 29

126 - The DSG mentioned the Toshiba Take-back system to be launched as a good example of shared responsibility between the Government, Corporate and Private sectors. Private sector in particular, is very important and EPR concept is often used to emphasize on producers responsibility at all stages of generation, recycling and disposal. He added that the EPR can be achieved by 3 necessary approaches, namely the design of products; the materials used; and implement a take-back system. - He concluded his remarks by saying that the public-private-partnership (PPP) is important and should be enhanced, in order to promote sustainable development in a long run. - The DSG subsequently announced opening of the Wrap Up Workshop, and launched the Toshiba Voluntary E-waste Take-Back System with the representatives from Toshiba Corporation in Malaysia. (4) Presentation by Mr. Wada, JICA Expert Team - The project started to study on the current e-waste flow and discovered: The e-waste is traded as economical goods. The repair activities are very active. The major e-waste stream is to the scrap dealers through the conventional recyclers. - The project set the agenda to shift the e-waste flow to the licensed recyclers. - The current e-waste flow might be changed if the project can use the competitive prices to the conventional recyclers prices. The project uses the price which the licensed recyclers could show, even though they were basically lower than the conventional recyclers prices. - WTP (Willingness to be paid) curves were described. This can be used as the communication tool between the regulators and regulatees. - The total required budget to achieve the expected cooperation rate can be calculated by using the WTP curve, even though the curves should be revised by updating the data. (5) Presentation by Datin Paduka Che Hasmah: - Datin Paduka Che Hasmah (the Director) started her presentation by showing the evolution on waste management worldwide, where the pyramid or waste management hierarchy is shifted now to have less disposal and more on reduction. - She added that a paradigm shift is required to turn waste into potential resource. And there are 3 main reasons for proper e-waste management to take place, namely: It poses risks to human health The amount growing rapidly Certain valuable materials are available as secondary resources - The Director shared some basic information about e-waste management in Malaysia as follows: Regulatory requirements (i) Environmental Quality Act (2005) started 15/8/2005; (ii) Basel Convention started 5/5/ Annex IX. Record of Seminars and Workshops

127 E-waste is classified under EQA with code SW110, and A1180 under Basel Convention. Sources of e-waste are categorized from 2 categories of sources: (i) households; (ii) Industries, commercials and institutions (ICI) DOE has endorsed a total of 146 recovery facilities in the country, in which 128 are full recovery facilities and 18 are partial recovery facilities. A lot more can be done due to high generation of e-waste in the country. E-waste generation: From ICI: 134, tonnes/year (2009) From ICI: 163, tonnes/year (2010) From ICI: 152, tonnes/year (2011) From households: 652,909 tonnes/year (2006) From households: 695,461 tonnes/year (2007) From households: 688,068 tonnes/year (2008) - The Director further elaborated the issues and challenges of e-waste management in Malaysia as summarized below: Collection, segregation and transportation Environmentally sound management recycling facilities Disposal fees Legislations and policy Tran boundary movement of e-waste Management of informal sectors - She particularly emphasized that the Environmentally sound management recycling facilities could potentially be an opportunity for the players - The Director progressed her presentation by sharing the way forward of DOE to achieve 3 main objectives: To have environmentally sound management e-waste recycling facilities To prevent illegal import and export of e-waste Promote resource recovery of e-waste - In relation to these objectives, the Director emphasized that the recycling principles of DOE are to follow the concept of EPR, LCA and PPP. - She particularly emphasized on the importance of stakeholders in contribution to achieve environmentally sound management of e-waste, including the roles of manufacturers, retailers, recyclers, the Authority as well as the community. - In addition, she mentioned that the expected outcomes from the project should be measurable and sustainable, in which it addresses the project objectives, e-waste flows, and the concept of PPP. - The Director wrapped up her presentation by sharing the way forward of DOE after the project. She explained that the end of this project is indirectly another beginning of bigger task for DOE. It is the plan of DOE to bring together all stakeholders and come out with a 6. Closing Workshop 31

128 system which is comfortable to all parties. It is the plan of DOE in the future to formulate and implement policies or laws in addition to creation of awareness, especially the consumer s awareness and behavior change, which is much needed. - E-waste management is a shared responsibility, she also urged the private sector to come forward either looking it as a commercial interest or CSR. (6) Presentation by Dato Dr. Nadzri bin Yahaya: Dato Dr. Nadzri bin Yahaya (The DG of JPSPN) presented his paper entitled household e-waste collection through existing household waste collection service system. - The DG of JPSPN explained in brief the background and scopes of the Solid Waste and Public Cleansing Management Act (Act 672) as detailed below: Act 672 was gazetted on 30/8/2007 Act 672 was enforced on 1/9/2011 Under the Act 672, the power of solid waste management was transferred from the hands to Local Authorities to the Federal Government The Act 672 is applicable to only Peninsular Malaysia and Federal Territories of Kuala Lumpur, Putrajaya and Labuan. However, some states such as Penang, Perak and Selangor are not following the Act 672 at the moment due to political difference. Definitions of Controlled Solid Waste is clearly defined in the Act 672, which not included scheduled waste clear demarcation of power Act 672 empowers the Government to enter into agreement with anyone who carry out solid waste management services Under licensing condition, only licensed players can carry out solid waste management services Act 672 empowers the Government to direct mandatory segregation of waste (including e-waste) at source, as well as the handling and storage methods Act 672 empowers the Government to establish take back system / deposit refund system To date, a total of 8 regulations were drafted by the Government under the Act Although e-wastes as defined as scheduled waste in Malaysia are not subject to the Act 672, the DG of JPSPN explained that the JPSPN is possible to come into involved in the collection of e-waste due to the following factors: Various kinds of hazardous wastes coded SW103, 110, 404, 425 are commonly found from household solid waste including e-waste. Types of household wastes handled by the JPSPN under the Act are residue waste, recyclable, garden waste and bulky waste, which may also consist of e-waste The 2+1 collection of solid waste from the households by the Concessionaire companies include collection of recyclable materials and bulky wastes, which may also consist of e-waste The collection service covered is expected to be as high as >85% 32 Annex IX. Record of Seminars and Workshops

129 - The DG of JPSPN further explained about the Concessionaire Agreements with the 3 Concessionaire Companies as follows: Concessionaire period 22 years A list of 24 Key Performance Indicator (KPI) needs to be fulfilled A total of 113 scheme areas delineation is in place The Concessionaire companies are paid RM14.80 per household per month (considered if all KPI are fulfilled) The Local Authorities will pay part of the fees required, while the balance will be top up by the Federal Government The Concessionaire companies are required to perform 2+1 scheduled collection system, in which 2 times per week collection of residue waste, and one time per week collection of recyclable materials and bulky waste - The DG of JPSPN concluded that although e-waste is not under the jurisdiction of JPSPN, the collection of e-waste from the households can be done because: It is not feasible for DOE to engage separate collection just for e-waste or household hazardous waste The JPSPN has existing collection mechanism, therefore it makes sense for JPSPN to collect e-waste from the households The plan of 2+1 collection system is in line with the objective of collecting e-waste from households. Agreements with the Concessionaire companies are long terms to ensure stability and continuity The Concessionaire companies are already collecting e-waste at the moment - However, he emphasized few issues to be seriously considered for the coordination between JPSPN and DOE: Specifications for vehicle required for e-waste collection Design for storage area for e-waste collected Determination of treatment method for e-waste collected Who pay all the costs incurred for e-waste collection (These include collection costs, long hauling costs, additional tools / equipment required / disposal costs to Kualiti Alam can be as high as RM400 per tonne of tipping fee) - He wrapped up his presentation by saying that collection of e-waste from households can easily be performed by JPSPN under the existing collection mechanisms and future plans. However, negotiations and closed coordination between the JPSPN and DOE is needed. (7) Presentation by Professor Dr. Fujii (Advisor of Expert Team) Prof. Fujii started his presentation by sharing his thoughts on policy circumstances around the Asian countries on e-waste. 6. Closing Workshop 33

130 - He mentioned that most of the Southeast Asian countries in particular, are facing the following problems: Constructing solid waste management facilities under low budget Cope with NIMBY syndrome Realization of sustainable solid waste management - Therefore, he found out that Southeast Asian countries may need super ability to solve the problems / challenges, as these conditions are very different from EU or Japan. - He added that the e-waste policy of Malaysia may be the pioneer or original that addresses the common challenges in Southeast Asian countries. - Prof. Fujii continued his presentation to explain the difference between the concepts of EPR and PPP. He defined EPR as a strategy to decide who should pay at socially least costs, while PPP is simply who cause the problem should pay for it. - In relation to the pilot project in Penang, Prof. Fujii commented that the project has shown a workable e-waste collection scheme, and managed to address some issues found, with suggested with recommendations to overcome. - He however, shared the following recommendations as the future / further discussion needed for the setup of the e-waste policy in Southeast Asia: The policy should be extended nationwide Target setting should be done (who, when and how) The physical producer responsibility of EPR should be fixed To recommend strategies on how to deal with free rider those who refused or not cooperative Controllability of target by price signal To establish a complete take back system Governance structure to organize awareness and education is required Dynamics in the recycling industries and e-waste producers should be created - Prof. Fujii concluded his presentation by highlighting that a feasible and workable scheme for e-waste collection in Malaysia and Southeast Asia has been established. The project shows a fruitful collaboration between the Government of Malaysia and the Government of Malaysia. However, he emphasized that discussions with the stakeholders are still required in a long run. - He ended his presentation with words of wishes for successful implementation of e-waste policy and regulations in Malaysia. (8) Presentation by Mr. Lim Joo Peng (Toshiba): Mr. Lim made a presentation to show the details of the proposed take-back scheme by Toshiba Corporation in Malaysia. - He started his presentation by sending appreciations to Mr. Wada and Mr. Hirata for their guidance towards the implementation of the take-back scheme. 34 Annex IX. Record of Seminars and Workshops

131 - He briefly explained the background of the company, and highlighted the company s Environmental Vision 2050, which aims to: Mitigate impacts of global environmental issues Reduce environmental impacts Create rich values - Mr. Lim explained that simple system for collection of e-waste was already in place even before the JICA project started, in which used notebooks are collected and sent to recyclers. - He further explained the 4 main reasons for the company to run the take-back scheme: As part of the product stewardship to provide a safe and affordable recycling of e-waste for the stakeholders To support the Government s initiative to properly collect e-waste from households and to treat properly in a safe manner To promote resource recovery To put into practice the lessons learnt from JICA Penang e-waste project - Mr. Lim further explained that there will be 14 outlets operating the take-back scheme, located in Penang, Petaling Jaya, Kuala Lumpur and Johor Bahru. Free collection will be provided for bulky goods upon delivery of new products, while small items such as IT goods will be delivered to the outlets by the users. Other brands are also acceptable under this scheme in addition to Toshiba. - In terms of driving force towards the take-back scheme, Mr. Lim explained that the main drivers required will be the Government regulations, in addition to increasing environmental awareness, CSR and EPR. - On the other hand, he further added that the take-back scheme however, have the following restraints: Competitive with informal sectors Volume is low Reverse logistics Lack of co consumer awareness Lack of regulations - He also mentioned that the take back scheme will be successful if strong supports are given by the Government, to reduce the volume of e-waste reaching the informal sectors by regulating the informal sector. Additionally, safe and proper handling and disposal of ODS for refrigerators and other hazardous substances in e-waste will also secure further opportunities. - He also hoped that the Government can provide more supports to promote e-waste awareness to the public, and to increase the number of participating shops and hypermarkets in the scheme. - Mr. Lim ended his presentation with words of thanks to DOE and JICA Expert team. 6. Closing Workshop 35

132 (9) Dialogue / Q&A Session: The dialogue session was held by Datin Paduka Che Hasmah as the facilitator, and other members on stage are Mr. Wada of JICA Expert Team, Mr. Mubarak of MPPP, Prof. Fujii as the Advisor of the JICA Expert Team, Mr. Lim from Toshiba Corporation and Mr. Faisal from JPSPN representing Dato Nadzri bin Yahaya. a) Questions from Francis (Nokia): - How many location of the pilot project are receiving only handphone? - The figures shown by the study shows that only 96 phones are collected, is this result representative or good enough to come out with a model? Wada: There are 5 shops collecting only handphone in the pilot project areas From the evaluation, the collection rate for handphone is as high as 60% b) Question from Mr. Abdul Razak (DOE Sabah): - For the State of Sabah, there are no recyclers, collectors and producers who do EPR, is there any other model available under such condition? Wada: When collection takes place, market dynamics may be created, and therefore opportunity may also be created in the future. Datin Paduka: Sabah is not the only state with such conditions, some other states such as Kelantan is also the same. The conditions may be improved step by step. c) Questions from Dato Abu Bakar (AECCOM): - Without buying a new product, is there any collection done for the e-waste? - Value of the voucher presented by Toshiba is rather low as compared to market prices, why? Mr. Lim: Some white goods have very low value, collection is labour intensive and they need to pay contractors for disposal It is more important to instill the culture, to understand the shared responsibility or CSR. The prices are derived from negotiation with the recovery facility. Recovery facility needs higher volume to offer a higher price. Hope is able to offer higher price in the future when volume increased. Total solution needs interventions from the Government. d) Questions from Mr. Wee (Electrolux): - How to sustain the model? - How to resolve the mind-set which is not ready for this? Wada: 36 Annex IX. Record of Seminars and Workshops

133 The model runs on monetary incentive from the recovery facilities to the consumers, no other inputs from outside are required, therefore it is financially sustainable. Datin Paduka: The model was developed by taken into consideration the sustainability The pilot project shows that 24% of the vouchers issued were not claimed, this is another way for sustaining the costs For Toshiba take-back system, an expiry date will be added on the voucher, this will help to manage the model better. In the future, collaboration with JPSPN is also possible to further support the model e) Question from A resident association president in Shah Alam: - There are many collectors who are collecting, dismantling and even burning of e-waste in housing areas in Shah Alam, are they licensed? Datin Paduka: Illegal disposal and activities are not limited to only e-waste, and it is happening in all the local authorities, not only Shah Alam. The Government is taking continuous efforts to solve the problem by more stringent enforcements. f) Question from Madam Tan (CETDEM): Is political views in Penang a successful factor for the project? Mr. Mubarak: Not related to political view, but NGO and communities also very active in Penang The model developed by JICA emphasizes networking and no political view is involved. Datin Paduka: Penang Society is ready for such project, other states are probably ready too such as Selangor Civil society play significant roles and readiness of the peoples to participate Hope other Local Authorities attended the Workshop can come out with ideas and proposed to DOE if any feedback. Also to call upon recyclers who participated the Workshop, to be more active and proposed feedback. g) Comment from Mr. Wee (DBKL): - Will be in communication with Shampoornam to discuss about possible project in DBKL areas Sharing from Mr. Mubarak (MPPP): Since 2008, some works on e-waste has been started in Penang, in collaboration with Dell, and PEWOG. Penang already achieved now about 25% recycling rate, and target to achieve 50% in year Closing Workshop 37

134 JICA came in to make the system more structured and feasible. Key successful factors are the commitments from the players. Although the retailers involved now are only 25, it is optimistic to increase it to more retailers in near future. (10) Wrapping up remarks by Mr. Noda (JICA Headquarters) Mr. Noda from JICA HQ was invited to wrap up the Workshop. He expressed sincere thanks from JICA to all the sharing in the Workshop. - He summarized important points presented by every presenters, and concluded some with some comments from the JICA HQ office: A lot of works have been done by JICA over the project duration of 1.5 years. The way forward by DOE is clearly presented, i.e. to work closely together with the stakeholders, civil society and private sectors. This workshop serves as a good platform to gather all stakeholders. Stakeholders are no doubt crucial to ensure successful implementation of an e-waste policy, good example is the establishment of E-waste Alliance Penang. Hope for collaboration between the DOE and JPSPN. Welcome the new take-back scheme launched by Toshiba in Malaysia, and wish to achieve successful implementation. - Mr. Noda concluded the Workshop by words of thanks to everyone participating the Workshop, and hope the contributions from everyone will be continued towards a proper management of e-wastes in Malaysia. 38 Annex IX. Record of Seminars and Workshops

135 7. F AREWELL MEETING 7.1 OBJECTIVE - To share the future formation to support the e-waste collection after the Project among the participating local businesses such as the retailers and the full recovery facilities. 7.2 DATE & PLACE - Date: 8 February Time: 15:30 17:00 - Venue: g hotel in Penang 7.3 PARTICIPANTS Participants were as listed below. The total number of the participants was DOE Penang 9 - MPPP 10 - NGO 1 - Licensed recyclers 10 - Retailers 14 - Printing companies 3 - JICA Expert Team AGENDA - Future formation to support the Project by DOE Penang - Future formation and expansion of the Project by MPPP - Expectation to the expansion of the Pilot Project by Project Team - Others 7.5 SUMMARY OF THE MEETING (1) Future formation to support the Project by DOE Penang - DOE Penang will support the Pilot Project in the future together with MPPP. - The name of the Pilot Project will be changed to the regular name such as E-waste Alam Collection. 7. Farewell meeting 39

136 - Also E-waste Alam Alliance Penang will work as the decision making bodies. Under the alliance meeting, the local business meeting will be held for managing the daily matters. (2) Future formation and expansion of the Project by MPPP - MPPP will support the Pilot Project with DOE Penang. - MPPP will expand the participating retailers. The business licensing role of MPPP can be utilized when being expanded. (3) Expectation to the expansion of the Pilot Project by Project Team - The Pilot Project was the first trial to design e-waste collection under EPR policy. - In the workshop held on 5 th Feb., DOE emphasized the Pilot Project was successful but it also opened the door to another very wide world. Also DOE promised to tackle this important issue to be solved continuously. (4) Others - (Comment from LSS) LSS is one of the members of the business association which have over 300 members. This association might be used when MPPP expands the system. 40 Annex IX. Record of Seminars and Workshops

137 A nnex X Program Guide for Study Tour in Japan for Policy Makers Training Program funded by JICA for E- waste Recycling Project in Malaysia February 18 29, 2012 Sustainable System Design institute

138 Stay Tokyo International Center (TIC) , Nishihara, Shibuya-ku, , Tokyo Tel: URGENT PHONECALL Masami Yamamuro (JICA Coordinator) (Handy phone) HIDEKI WADA (Handy phone) CURRENCY 1RM=25.128JPY

139 Abbreviation AEHA EEE HARL JEITA JEMA LPEUR METI MOE MRC PC3R SSDi TIC Association for Electric Home Appliances Electric and Electronic Equipment Home Appliance Recycling Law Japan Electronics and Information Technology Industries Association Japan Electrical Manufactures Association Law for Promotion of Effective Utilization of Resources Ministry of Economy, Trade and Industry Ministry of the Environment Mobile Recycle Center PC 3R Center Sustainable System Design institute Tokyo International Center

140

141 Contents Annex X 1 1. Program OBJECTIVE SCHEDULE DIMENSIONS OF THE RELATED ORGANIZATION WHERE WE ARE VISITING2 2. Regulatory framework in Japan WHOLE REGULATORY SYSTEM GENERAL CHARACTERISTICS HOME APPLIANCE RECYCLING LAW LAW FOR EFFECTIVE UTILIZATION OF RESOURCE (INCLUDING PC RECYCLING) RECYCLING GUIDELINE DIMENSION OF THREE RELATED LAWS EEE retailers and designated storage space EEE RETAILING MARKET DESIGNATED STORAGE PLACES Tokyo Eco Recycle Co., Ltd COMPANY PROFILE RECYCLING BUSINESS Future Ecology Co., Ltd PROFILE RECYCLING BUSINESS Chuo Municipality PROFILE SOLID WASTE MANAGEMENT FLOW INCINERATION PLANT MANAGEMENT Task for the presentation on the final day GROUPING TASK PRESENTATION PROGRAM 24

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143 1. P ROGRAM 1.1 OBJECTIVE - To know the e-waste recycling system in Japan - To know how the regulations regulate the e-waste flow - To know how important roles the industrial sector plays in e-waste recycling - To know how the regulatory system was developed, especially through the communications among the governmental sector and the industrial sector 1.2 SCHEDULE Date a.m. p.m. Feb. 18 (Sat.) Departure for Japan Feb. 19 (Sun.) Arrival in Japan Feb. 20 (Mon.) Briefing about the study tour by JICA at TIC Lecture Program Orientation by Hideki Wada at TIC 15:00-17:00 Lecture Home Appliance Recycling Law by Mr. Shigeyoshi Sato, Ministry of the Environment at Hosokaikan in Kasumigaseki Feb. 21 (Tue.) Lecture PC recycling based on Law for Promotion of Effective Utilization of Resource by Mr. Kazuhiro Yano, Ministry of Economy, Trade and Industry at TIC Courtesy visit to JICA Feb. 22 (Wed.) Lecture Discussion on e-waste related laws by Mr. Shin-ichi Sakuma, Dynax Urban Environment Research Institute at TIC Feb. 23 (Thu.) Lecture Operation of PC recycling by Mr. Takashi Unno, PC 3R Promotion Association at TIC Feb. 24 (Fri.) Lecture Mobile Phone Recycling by Mr. Yasuo Yabashi, Telecommunications Carriers Association at TIC Site visit to EEE shops and mobile shops in Shinjuku attended by Hideki Wada Site Visit to an e-waste recycling factory Tokyo Eco-Recycle in the east of Tokyo (see chapter. 4) Site visit to a mobile phone recycling factory Future Ecology in the south-east of Tokyo (see chapter. 5) Feb. 25 (Sat.) Lecture and Discussion EPR Policy Trend in the Asian countries and regulation design in Malaysia Lecture 1: EPR Policy Trend in the Asian countries by Dr. Michikazu Kojima, 1. Program 1

144 Date a.m. p.m. Institute of Developing Economies Lecture 2: WEEE regulations in some Asian countries by Dr. Rie Murakami Presentation for discussion What we discussed in Malaysia so far and some proposals for the next steps by Mr. Hideki Wada Discussion facilitated by Prof. Yoshifumi Fujii, Bunkyo University Feb. 26 (Sun.) Data/Information arrangement Feb. 27 (Mon.) Lecture Policy and services of solid waste management in Chuo-ku, Tokyo by Ms. Noriko Sonoda, director of solid waste management department, Chuo-ku (see chapter. 6) Site Visit to Chuo Incineration plant Feb. 28 (Tue.) Preparation of presentations Presentations from the participants Feb. 29 (Wed.) Departure for Malaysia 1.3 DIMENSIONS OF THE RELATED ORGANIZATION WHERE WE ARE VISITING (1) Points of the figure a) E-waste flow - PCs from households are collected by the conventional post parcel service. - Mobile phones are collected in the retailers. - Four items are collected by the retailers when purchased. b) Regulatee - Four items, PCs and mobile phones have various industrial business associations respectively, including ones which are in charge of e-waste recycling. c) Regulator - MOE is the ministry which is in charge of environmental issues, while METI is in charge of industrial development. - MOE and METI collaborate with each other for e-waste recycling. 2 Annex X. Program Guide for Study Tour in Japan for Policy Makers

145 Figure 1-1. DIMENSIONS OF THE RELATED ORGANIZATION WHERE WE ARE VISITING (Legend) The filled squares in the regulatees and regulators will make lectures in this study tour. 1. Program 3

146 2. R EGULATORY FRAMEWORK IN J APAN Basic information for MOE on 22th and METI on 21th. 2.1 WHOLE REGULATORY SYSTEM Figure 2-1. Whole regulatory system in Japan 2.2 GENERAL CHARACTERISTICS (1) Legislative hierarchy Any law will work first with orders or ordinances, as any law has the following hierarchy. 4 Annex X. Program Guide for Study Tour in Japan for Policy Makers

147 Figure 2-2. General legislative hierarchy. 2.3 HOME APPLIANCE RECYCLING LAW (1) Background a) Complain from municipalities The technical committee of Tokyo Metropolitan Government proposed the government in 1974 to specify the following 5 items as TEKISEI SHORI KONNNANBUTU (products which cannot be disposed appropriately by municipalities) by considering the too much load from the products when disposing, and requested to the industries to develop the disposal systems. - Plastics - Home electric appliances - End-of-life vehicle and motorbike - Tire - Piano b) Acceptance by the central government i) Waste Management Law The central government amended Waste Management Law in 1991 and added an article so that the minister can specify TEKISEI SHORI KONNNANBUTSU nationwide. Under the article, the following four items are specified as TEKSEI SHORI KONNNANBUTU. - Lubber tire for four wheel vehicle - Television set with larger than 25 inch display - Refrigerator with larger than 250 liter capacity - Mattress with spring inside 2. Regulatory framework in Japan 5

148 ii) Recycling Promotion Law (upgraded to LPEUR in 2001) A new law Recycling Promotion Law (1991) proposed by METI had some classifications for products which need environmental consideration. The four e-wastes were categorized as the first product category which requests the manufactures environmentally friendly product designs. But here the obligation of collection of post-consumer products was not mentioned. c) Objection from the manufactures In 1990, KEIDANREN (Japan Business Federation) made a statement that it is improper to have manufactures take the responsibility to dispose post-consumer products, although manufactures are willing to take some responsibilities for the environment. KEIDANREN also added that it is not difficult to define what TEKISEI SHORI KONNNANBUTSU is, because the performances of the municipal solid waste plants are quite different. d) Discussion in the official technical committee The law was started to be discussed in Waste & Recycling Working Group, Environmental Sub-council, SANKOSHIN (The Industrial Structure Council). The working group made a statement in Based on the statement, the law was proposed. Figure 2-3. Organization of SANKOSHIN e) Background of the law The major purpose was the following first one based on the history regarding TEKISEI 6 Annex X. Program Guide for Study Tour in Japan for Policy Makers

149 SHORI KONNNANBUTSU, and the second one also added to justify the law. - To avoid too much load to municipalities - To recover more resources from home appliances which cannot be recovered in facilities of municipalities (2) Stipulation of the law a) Target products and numerical target The target products were selected by considering the bulky characteristics which may be an obstacle for municipalities when disposing. The numerical targets were proposed by considering the best available technologies. - Television set 55% - Refrigerator 50% - Washing machine 50% - Air conditioner 60% b) Responsibilities i) Consumers - Handing over their e-waste to retailers etc. appropriately - Payment of the recycling cost required to collection, transportation and recycling ii) Retailers etc. - Taking back home appliances, which they have sold, from businesses that dispose of them - Taking back home appliances at the request of consumers who buy new ones to replace old ones and proper delivery of collected home appliances to the manufacturers, etc. - Issuing home appliance recycling coupons 1 to manufacturers and the designated body and sending copies to dischargers - Displaying the costs of collecting and transporting in shop windows iii) Manufactures and importers - Taking back home appliances, which they have manufactured or imported, from retailers - Recycling these home appliances - Publishing the costs for recycling these home appliances (recycling fees) iv) Designated body (AEHA: Association for Electric Home Appliances) - Recycling home appliances whose manufacturers are unknown or those entrusted by specific manufacturers (manufacturers whose production volume is less than 900,000 units for air 1 The Association for Electric Home Appliances operates the home appliance recycling coupon system, which is convenient for paying and collecting recycling fees. Recycling fees may be paid and collected via retailers or by postal transfer. 2. Regulatory framework in Japan 7

150 conditioners, 900,000 units for televisions, 450,000 units for refrigerators, and 450,000 units for washing machines) v) Municipalities - Measures to promote collecting, transporting and recycling c) Cost sharing - Borne by consumers - The price is different from manufactures in principle. It is considered that the recycling cost by manufactures will compete with each other. (3) E-waste flow realized by the law a) Points of the figure - The system is very robust because the recycling cost is ensured. - The recycling factories are partial recovery facility in terms of the definition of Malaysia. - The disposal fee which was requested by municipalities before the law was cheaper than the fees shown under the law. After enforcement of the law, many small collectors appealing lower fees than the fees under the law appeared in towns. Figure 2-4. E-waste (four items) flow realized by Home Appliance Recycling Law 8 Annex X. Program Guide for Study Tour in Japan for Policy Makers

151 2.4 LAW FOR EFFECTIVE UTILIZATION OF RESOURCE (INCLUDING PC RECYCLING) (1) Structure of the law The law defines two specific categories in terms of industries and five specific categories in terms of products. The industries or the products specified in these categories should meet the requirements which the cabinet orders or ministry ordinances define. Law - Two categories for industry - Five categories for products Cabinet Order - Target industries and products (10 industries and 69 products) - Responsible Ministry and mandates - Technical committees Ministry Ordinance Details by each specified/designated industries/products (62 ordinances) Figure 2-5. Basic structure of Law for Promotion of Effective Utilization of Resource Table 2-1. Two industrial categories and five product categories Category Requirement Designated industries and specified products 1. Designated resources-saving industries 2. Designated resources-reutilizing industries 3. Specified resources-saved products 4. Specified reuse-promoted products Required to reduce generation of by-products (by ensuring rational use of raw materials and promoting use of by-products as recyclable resources) Required to use recyclable resources and reusable parts Required to ensure rational use of raw materials, prolong product life and reduce generation of used products Required to promote the use of recyclable resources or reusable parts (designing and manufacturing products that can be easily reused or recycled) - Pulp and paper - Inorganic chemical manufacturing and organic chemical Manufacturing - Iron-making and steel-making/rolling - Primary copper smelting and refining - Automobile manufacturing - Paper manufacturing - Glass container manufacturing - Construction Rigid PVC pipes and pipe fitting manufacturing - Copier manufacturing - Automobiles - Home appliances - Personal computers - Pachinko machines - Metal furniture - Gas and oil appliances - Automobiles - Home appliances - Personal computers - Pachinko machines - Copying machines - Metal furniture - Gas and oil appliances - Bathroom units and kitchen systems - Devices using compact rechargeable batteries 5. Specified labeled Required to be labeled to facilitate - Steel cans, aluminum cans 2. Regulatory framework in Japan 9

152 Category Requirement Designated industries and specified products products separated collection - PET bottles - Paper containers and packaging - Plastic containers and packaging - PVC construction materials - Compact rechargeable batteries 6. Specified resources-recycled products 7. Specified by-products Required to promote voluntary collection and recycling Required to promote the use of by-products as recyclable resources - Compact rechargeable batteries - Personal computers - Coal ash generated by the electricity industry - Soil and sand, concrete lumps, asphalt-concrete lumps or (2) PC recycling a) Definition of Specified resources-recycled products Specified resources-recycled products is defined by the article 2 of the law. The definition is: - Products economically possible to be collected by the producers, - Products technologically and economically possible to be recycled, and - Products necessary to be recycled. b) Target PCs PCs are specified as one of the Specified resources-recycled products by the article 6 of the cabinet order. The criteria of the target PCs are: - PCs (more than 1kg) or - Producers who produced PCs more than pieces in a year c) Obligation of Specified resources-recycling business operator defined by the article 26 of the law - Voluntary collection of the products by the producers (the article 1 of the ministry ordinance) - Recycling target (the article 2 of the ministry ordinance) - Receiving manner from municipalities d) Voluntary collection requested to PCs designated by the article 1 of the ministry ordinance - Voluntary collection of the PCs from the places designated by the producers - Monitoring by consignment notes - Public guidance for smooth collection - Publication of the information on the collection e) Targets requested to PCs designated by the article 2 of the ministry ordinance - PC (excluding display and notebook) : 50% - PC (notebook) : 20% 10 Annex X. Program Guide for Study Tour in Japan for Policy Makers

153 - CRT : 55% - LCD : 55% (3) Realized collection system developed by the manufactures a) The points of the figure - The recycling fee is paid by consumers when purchased. - The parcel service by the traditional post office is used for transportation. Collection/recycling fee (when purchasing) Recycling fee Household PC Post office Recycling factory Metal Recycling fee - Main Unit: about 3000JPY - CRT: about 4000JPY * Recycling plants established for the home electric appliances recycling law deal with PCs as well. Targets - Notebook 20% - Others 50-55% Plastic CRT Glass Parts Figure 2-6. PC flow realized by the manufactures under Law for Promotion of Effective Utilization of Resource 2.5 RECYCLING GUIDELINE (1) Outline a) Objective Promotion of recycling by the voluntary implementation by the industries b) Activity Monitoring and discussing the recycling implementation by the industries c) Discussed in Waste Prevention and Recycling Subcommittee, Environmental Committee, Industrial Structure Council, Ministry of Economy, Trade and Industry (METI) (see Figure 2-3) 2. Regulatory framework in Japan 11

154 with members: academics, industrial associations, media, local governments, NGOs d) Nature A communication tool between industries and the government (2) Target businesses and products Table 2-2. Target businesses and products of Recycling Guideline By businesses By products 1. Iron and steel industry 1. Paper 2. Paper/pulp manufacturing industry 2. Glass bottles 3. Chemical industry 3. Steel cans 4. Glass sheet manufacturing industry 4. Aluminum cans, etc. 5. Textile industry 5. Plastic 6. Nonferrous metal manufacturing industry 6. Automobiles 7. Electric industry 7. Motorbikes 8. Automobile manufacturing industry 8. Tires 9. Car parts manufacturing industry 9. Bicycles 10. Electronic/electric device manufacturing industry 10. Home electric appliances 11. Oil refinery industry 11. Spring mattresses 12. Distribution industry 12. Large furniture 13. Leasing industry 13. Carpet 14. Cement manufacturing industry 14. Futons 15. Rubber products manufacturing industry 15. Dry cell batteries 16. Coal mining industry 16. Small secondary batteries, etc. 17. Gas industry 17. Storage batteries for automobiles and two wheel vehicles 18. Factory-made housing industry 18. Cassette gas cylinders 19. Aerosol cans 20. Small gas cylinders 21. Fire extinguishers 22. Pachinko game machines, etc. 23. Personal computers and peripherals 24. Copiers 25. Gas and kerosene equipment 26. Textile products 27. Lubrication oil 28. Electric wires 29. Construction materials 30. Bath tubs and bathroom units 31. Kitchen components 32. Cellular phones and PHS 33. Fluorescent tubes 34. Vending machines 35. Single-use cameras (3) Provision on mobile phone a) Promoting collection and recycling of used units - Collection of used units shall be promoted at approx. 8,500 cellular phone shops nationwide. 12 Annex X. Program Guide for Study Tour in Japan for Policy Makers

155 - Shops providing free-of-charge collection services shall be advertised through an identification sticker (designed by the industry) which each participating shop is required to post to notify consumers. - A survey shall be conducted to collect fundamental data including the volume of dead stock. Collected data will be used for determining an appropriate collection target. A collection target is planned to be set by the end of FY2004. b) Promoting product assessment c) Promoting measures for easy removal of small-sized secondary batteries used inside cellular phones. - Easy removal features shall be developed. It is important that instruction manuals of cellular phones clearly mention that all small-sized secondary batteries inside the product should be disposed in a designated way. - Product development for battery saving shall be promoted. - Information on manufacturers 3R efforts in the stages of designing and manufacturing shall be released to the public. (4) Realized collection system by the manufactures under Recycling Guideline a) Points of the figure - Mobile phones are collected at mobile phone shops. - Collected mobile phones are recycled by carrier companies independently. - Consumers like to hold the old mobile phones which results in small collection rate. 2. Regulatory framework in Japan 13

156 (Source) Recycling Guideline Figure 2-7. Common collection system for mobile phone 2.6 DIMENSION OF THREE RELATED LAWS The three laws/regulations can be arranged dimensionally as shown in the following figure by considering the mandatory power of the laws/regulations. It is understood that the range of mandatory power is affected by the economical feasibilities of recycling for the target 14 Annex X. Program Guide for Study Tour in Japan for Policy Makers

157 products. Figure 2-8. Dimensional arrangement of the three related laws/regulations 2. Regulatory framework in Japan 15

158 3. EEE RETAILERS AND DESIGNATED STORAGE SPACE 3.1 EEE RETAILING MARKET (1) Points of the figure - The status of oligopoly is high in Japan. - Apart from this figure, there is a big market in the internet shopping sites, such as amazon.com. Yamada Denki Edion K's BIC Camera Kojima Joshin Denki Best Denki Nojima Kitamura Makiya PC Depo Applied Sekido ZOA Laox OA System 32,633 25,812 23,444 17,439 15,345 13,754 6,642 5,603 2,455 1,779 1, ,233 MillionRM Share in top 16 companies (%) Figure 3-1. Share of EEE retailers in Japan in top 16 companies (Source) DESIGNATED STORAGE PLACES The storage places for four items are designated by the producers under Home Appliance Recycling Law. There are about 200 spaces. 16 Annex X. Program Guide for Study Tour in Japan for Policy Makers

159 4. T OKYO E CO R ECYCLE C O., LTD. A recycling company which deals with four items and PCs (visit on 22th) 4.1 COMPANY PROFILE a) Founded date Dec. 22, 1999 b) Capital 1.7millionRM (420millionJPY) c) Major shareholders - Hitach Plant Technologies Ltd. 67.2% - Ariake Kogyo 21.5% - Hitachi Appliance 1.8% - Mitsubishi Electric 1.8% - Sharp 1.8% - Sanyo 1.8% - Sony 1.8% - Fujitsu General 1.8% d) Location e) Website 4. Tokyo Eco Recycle Co., Ltd. 17

160 4.2 RECYCLING BUSINESS (1) Target e-waste - Dismantling of home electric appliances (four items) for recycling - Dismantling of personal computers for recycling - Dismantling of other electric and electronic equipment for recycling 18 Annex X. Program Guide for Study Tour in Japan for Policy Makers

161 5. F UTURE E COLOGY C O., LTD. A recycling company which deals PCs and mobile phone (visit on 24th) 5.1 PROFILE a) Founded date Dec b) Capital 7millionRM (176millionJPY) c) Shareholders - Apple Japan - Canon Marketing Japan - Sanyo Electric - Sharp Electronics Marketing - Sony Marketing - Hitachi Consumer Marketing - Toshiba Consumer Marketing - hp Japan - Japan Victor - Fuji film - Fujitsu General - Fujitsu Personals - Panasonic - Mitsubishi Electric Life Network - Toshiba Carrier - Ricoh - Bic Camera 5. Future Ecology Co., Ltd. 19

162 d) Location e) Website RECYCLING BUSINESS - Dismantling of home electric appliances (four items) for recycling - Dismantling of personal computers for recycling - Dismantling of mobile phones for recycling - Repair of personal computers 20 Annex X. Program Guide for Study Tour in Japan for Policy Makers

163 6. C HUO M UNICIPALITY Visit on 27th 6.1 PROFILE a) Population 122,762 in 2010 (67,981 households) b) Location 6.2 SOLID WASTE MANAGEMENT FLOW (1) Source segregation system - Waste to be incinerated - Waste not to be incinerated - Plastics - Recyclables 6. Chuo Municipality 21

164 (2) Waste disposal and recycling (3) Other various recycling activities - Excursion to the incineration plant - Education to children in kinder gardens and primary schools - Patrol to designated places for waste discarding - Support to voluntary recyclable collection in communities - Drop off centers for milk carton, PS foam tray, dry battery, cloths, food oil, PET bottle - Recycling of soil for gardening - Paper recycling from offices called as Eco Office - Educational facility called as Recycle House - Promotion of waste minimization to large scale business entities 6.3 INCINERATION PLANT - Start operation July Site area 29,000 m2 - Construction cost 1.17billionRM (29.4billionJPY) - Operation hour 24hours - Designed max heat value 13,400KJ/kg - Capacity 600ton/day (300ton/day*2) - Electricity generation 15,000kW - Vapor utilization in the next welfare facility managed by the governnment 22 Annex X. Program Guide for Study Tour in Japan for Policy Makers

165 6.4 MANAGEMENT (1) Master plan on municipal solid waste management in Chuo-ku (2) Municipal code Chuo-ku municipal code on solid waste management and recycling 6. Chuo Municipality 23

166 7. TASK FOR THE PRESENTATION ON THE FINAL DAY 7.1 GROUPING - Group 1: National Group DOE, EPU, MHLG - Group 2: DOE Penang - Group 3: MPPP 7.2 TASK (1) For Group 1 Please propose appropriate e-waste recycling policies including any regulatory systems. (2) For Group 2 and Group 3 Please propose appropriate e-waste collection systems in Penang Island including cost sharing rules 7.3 PRESENTATION Each group will have a one speaker who can use the power point presentation tool. One speaker will have 45 minutes for his/her presentation and 15 minutes for discussion. Computers are available in TIC. 7.4 PROGRAM Presentation from Group Questions for Group Presentation from Group Questions for Group Presentation from Group Questions for Group 3 * Filling up the evaluation sheet 24 Annex X. Program Guide for Study Tour in Japan for Policy Makers

167 A nnex X I Program Guide for Study Tour in Japan for Recyclers Training Program on E-waste Recycling Techniques funded by JICA for E- waste Recycling Project in Malaysia September 9 15, 2012 Sustainable System Design institute

168 Stay (Yokohama) Washington Hotel Yokohama Sakuragicho , Sakuragicho, Naka-ku, Yokohama, , Kanagawa Tel: (Kakogawa) Kakogawa Plaza Hotel 527, Mizonokuchi, Kakogawa-cho, Kakogawa, , Hyogo Tel: (Tokyo) Tokyo Green Palace 2, Nibancho, Chiyoda-ku, , Tokyo Tel: CURRENCY 1RM=25.014JPY

169 Abbreviation EEE HARL LPEUR METI MOE MRC PETEC YIC Electric and Electronic Equipment Home Appliance Recycling Law Law for Promotion of Effective Utilization of Resources Ministry of Economy, Trade and Industry Ministry of the Environment Mobile Recycle Center Panasonic Ecotechnology Center Yokohama International Center

170

171 Contents Annex XI 1 1. Program OBJECTIVE SCHEDULE 1 2. Regulatory framework in Japan WHOLE REGULATORY SYSTEM FOUR ITEMS UNDER HOME APPLIANCE RECYCLING LAW PC RECYCLING UNDER LAW FOR PROMOTION OF EFFECTIVE UTILIZATION OF RESOURCE MOBILE PHONE RECYCLING UNDER RECYCLING GUIDELINE 6 3. Panasonic Eco-Technology Center COMPANY PROFILE RECYCLING BUSINESS 9 4. Kimura Metal Industry Co., Ltd COMPANY PROFILE RECYCLING BUSINESS Future Ecology Co., Ltd PROFILE RECYCLING BUSINESS 13

172

173 1. P ROGRAM 1.1 OBJECTIVE - To know the current recycling system regarding e-wastes from households in Japan - To know the know-how to dismantle e-wastes from households in Japan 1.2 SCHEDULE Date a.m. p.m. Stay Sep. 8 (Sat.) Departure for Japan - Sep. 9 (Sun.) Arrival in Japan - Yokohama Sep. 10 (Mon.) Briefing about the study tour by JICA at YIC Lecture Program Orientation and E-waste Recycling System In Japan by Mr. Hideki Wada Kakogawa Sep. 11 (Tue.) Lecture Home Electric Appliance Dismantling Technique by Panasonic at PETEC at YIC Practice to dismantle home electric appliances at PETEC (see chapter. 3) Sep. 12 (Wed.) (Mobilization) Business Matching Workshop at JICA HQ Sep. 13 (Thu.) (Mobilization) 13: Lecture and Practice PC dismantling technique by Kimura Metal Industry at Kimura Metal Industry (see chapter.4) Sep. 14 (Fri.) Lecture and Practice Mobile Phone Dismantling Technique by Future Ecology at Future Ecology Evaluation by JICA at JICA HQ (see chapter. 5) Sep. 15 (Sat.) Departure for Malaysia - - Kakogawa Tokyo Tokyo Tokyo 1. Program 1

174 2. R EGULATORY FRAMEWORK IN J APAN 2.1 WHOLE REGULATORY SYSTEM Figure 2-1. Whole regulatory system in Japan 2.2 FOUR ITEMS UNDER HOME APPLIANCE RECYCLING LAW (1) Background The major purpose was the following first one based on the history regarding TEKISEI 2 Annex XI. Program Guide for Study Tour in Japan for Recyclers

175 SHORI KONNNANBUTSU 1, and the second one also added to justify the law. - To avoid too much load to municipalities - To recover more resources from home appliances which cannot be recovered in facilities of municipalities (2) Stipulation of the law a) Target products and numerical target The target products were selected by considering the bulky characteristics which may be an obstacle for municipalities when disposing. The numerical targets were proposed by considering the best available technologies. - Television set 55% - Refrigerator 60% - Washing machine 65% - Air conditioner 70% b) Responsibilities i) Consumers - Handing over their e-waste to retailers etc. appropriately - Payment of the recycling cost required to collection, transportation and recycling ii) Retailers etc. - Taking back home appliances, which they have sold, from businesses that dispose of them - Taking back home appliances at the request of consumers who buy new ones to replace old ones and proper delivery of collected home appliances to the manufacturers, etc. - Issuing home appliance recycling coupons 2 to manufacturers and the designated body and sending copies to dischargers - Displaying the costs of collecting and transporting in shop windows iii) Manufactures and importers - Taking back home appliances, which they have manufactured or imported, from retailers - Recycling these home appliances - Publishing the costs for recycling these home appliances (recycling fees) iv) Designated body (AEHA: Association for Electric Home Appliances) - Recycling home appliances whose manufacturers are unknown or those entrusted by specific manufacturers (manufacturers whose production volume is less than 900,000 units for air 1 Bulky waste which is difficult to treat properly by the municipalities 2 The Association for Electric Home Appliances operates the home appliance recycling coupon system, which is convenient for paying and collecting recycling fees. Recycling fees may be paid and collected via retailers or by postal transfer. 2. Regulatory framework in Japan 3

176 conditioners, 900,000 units for televisions, 450,000 units for refrigerators, and 450,000 units for washing machines) v) Municipalities - Measures to promote collecting, transporting and recycling c) Cost sharing - Borne by consumers - The price is different from manufactures in principle. It is considered that the recycling cost by manufactures will compete with each other. (3) E-waste flow realized by the law a) Points of the figure - The system is very robust because the recycling cost is ensured. - The recycling factories are partial recovery facility in terms of the definition of Malaysia. - The disposal fee which was requested by municipalities before the law was cheaper than the fees shown under the law. After enforcement of the law, many small collectors appealing lower fees than the fees under the law appeared in towns. Figure 2-2. E-waste (four items) flow realized by Home Appliance Recycling Law 4 Annex XI. Program Guide for Study Tour in Japan for Recyclers

177 2.3 PC RECYCLING UNDER LAW FOR PROMOTION OF EFFECTIVE UTILIZATION OF RESOURCE (1) Law for promotion of effective utilization of resource (LPEUR) a) Definition of Specified resources-recycled products Specified resources-recycled products is defined by the article 2 of the law. The definition is: - Products economically possible to be collected by the producers, - Products technologically and economically possible to be recycled, and - Products necessary to be recycled. b) Target PCs PCs are specified as one of the Specified resources-recycled products by the article 6 of the cabinet order. The criteria of the target PCs are: - PCs (more than 1kg) or - Producers who produced PCs more than pieces in a year c) Obligation of Specified resources-recycling business operator defined by the article 26 of the law - Voluntary collection of the products by the producers (the article 1 of the ministry ordinance) - Recycling target (the article 2 of the ministry ordinance) - Receiving manner from municipalities d) Voluntary collection requested to PCs designated by the article 1 of the ministry ordinance - Voluntary collection of the PCs from the places designated by the producers - Monitoring by consignment notes - Public guidance for smooth collection - Publication of the information on the collection e) Targets requested to PCs designated by the article 2 of the ministry ordinance - PC (excluding display and notebook) : 50% - PC (notebook) : 20% - CRT : 55% - LCD : 55% (2) Realized collection system developed by the manufactures a) The points of the figure - The recycling fee is paid by the manufatures. 2. Regulatory framework in Japan 5

178 - The parcel service by the traditional post office is used for transportation. Figure 2-3. PC flow realized by the manufactures under Law for Promotion of Effective Utilization of Resource 2.4 MOBILE PHONE RECYCLING UNDER RECYCLING GUIDELINE (1) Recycling Guideline a) Objective Promotion of recycling by the voluntary implementation by the industries b) Activity Monitoring and discussing the recycling implementation by the industries c) Discussed in Waste Prevention and Recycling Subcommittee, Environmental Committee, Industrial Structure Council, Ministry of Economy, Trade and Industry (METI). with members: academics, industrial associations, media, local governments, NGOs d) Nature A communication tool between industries and the government 6 Annex XI. Program Guide for Study Tour in Japan for Recyclers

179 (2) Target businesses and products Table 2-1. Target businesses and products of Recycling Guideline By businesses By products 1. Iron and steel industry 1. Paper 2. Paper/pulp manufacturing industry 2. Glass bottles 3. Chemical industry 3. Steel cans 4. Glass sheet manufacturing industry 4. Aluminum cans, etc. 5. Textile industry 5. Plastic 6. Nonferrous metal manufacturing industry 6. Automobiles 7. Electric industry 7. Motorbikes 8. Automobile manufacturing industry 8. Tires 9. Car parts manufacturing industry 9. Bicycles 10. Electronic/electric device manufacturing industry 10. Home electric appliances 11. Oil refinery industry 11. Spring mattresses 12. Distribution industry 12. Large furniture 13. Leasing industry 13. Carpet 14. Cement manufacturing industry 14. Futons 15. Rubber products manufacturing industry 15. Dry cell batteries 16. Coal mining industry 16. Small secondary batteries, etc. 17. Gas industry 17. Storage batteries for automobiles and two wheel vehicles 18. Factory-made housing industry 18. Cassette gas cylinders 19. Aerosol cans 20. Small gas cylinders 21. Fire extinguishers 22. Pachinko game machines, etc. 23. Personal computers and peripherals 24. Copiers 25. Gas and kerosene equipment 26. Textile products 27. Lubrication oil 28. Electric wires 29. Construction materials 30. Bath tubs and bathroom units 31. Kitchen components 32. Cellular phones and PHS 33. Fluorescent tubes 34. Vending machines 35. Single-use cameras (3) Provision on mobile phone a) Promoting collection and recycling of used units - Collection of used units shall be promoted at approx. 8,500 cellular phone shops nationwide. - Shops providing free-of-charge collection services shall be advertised through an identification sticker (designed by the industry) which each participating shop is required to post to notify consumers. - A survey shall be conducted to collect fundamental data including the volume of dead stock. Collected data will be used for determining an appropriate collection target. A collection target is planned to be set by the end of FY Regulatory framework in Japan 7

180 b) Promoting product assessment c) Promoting measures for easy removal of small-sized secondary batteries used inside cellular phones. - Easy removal features shall be developed. It is important that instruction manuals of cellular phones clearly mention that all small-sized secondary batteries inside the product should be disposed in a designated way. - Product development for battery saving shall be promoted. - Information on manufacturers 3R efforts in the stages of designing and manufacturing shall be released to the public. (4) Realized collection system by the manufactures under Recycling Guideline a) Points of the figure - Mobile phones are collected at mobile phone shops. - Collected mobile phones are recycled by carrier companies independently. - Consumers like to hold the old mobile phones which results in small collection rate. Figure 2-4. Common collection system for mobile phone 8 Annex XI. Program Guide for Study Tour in Japan for Recyclers

181 3. PANASONIC E CO- T ECHNOLOGY C ENTER A recycling company which deals with four items and PCs (visit on 11th) 3.1 COMPANY PROFILE a) Founded date April 2000 b) Capital 16 million RM (30 million JPY) c) Location d) Website RECYCLING BUSINESS - Dismantling for TV, Air-conditioner, Refrigerator, Washing machine under Home Electric Appliance Recycling Law 3. Panasonic Eco-Technology Center 9

182 4. K IMURA M ETAL I NDUSTRY C O., LTD. A recycling company which deals with four items and PCs (visit on 13th) 4.1 COMPANY PROFILE a) Founded date April 1982 b) Capital 1.2 million RM (30 million JPY) c) Factory network - HQ factory in Aichi - Second factory in Aichi - Eco-technology center in Gifu - Second eco-technology center in Gifu - Kanto Factory in Saitama d) Location e) Website (Japanese only) 10 Annex XI. Program Guide for Study Tour in Japan for Recyclers

183 4.2 RECYCLING BUSINESS - Collection, processing and sales for non-ferrous metals - Dismantling, recycling and reuse for OA equipment 4. Kimura Metal Industry Co., Ltd. 11

184 5. F UTURE E COLOGY C O., LTD. A recycling company which deals PCs and mobile phone (visit on 14th) 5.1 PROFILE a) Founded date Dec b) Capital 7millionRM (176millionJPY) c) Shareholders - Apple Japan - Canon Marketing Japan - Sanyo Electric - Sharp Electronics Marketing - Sony Marketing - Hitachi Consumer Marketing - Toshiba Consumer Marketing - hp Japan - Japan Victor - Fuji film - Fujitsu General - Fujitsu Personals - Panasonic - Mitsubishi Electric Life Network - Toshiba Carrier - Ricoh - Bic Camera 12 Annex XI. Program Guide for Study Tour in Japan for Recyclers

185 d) Location e) Website RECYCLING BUSINESS - Dismantling of home electric appliances (four items) for recycling - Dismantling of personal computers for recycling - Dismantling of mobile phones for recycling - Repair of personal computers 5. Future Ecology Co., Ltd. 13