Transcript Document

Introduction
A presentation by the Northwest Product Stewardship Council
on Product Stewardship & Electronics
Product Stewardship and How it Moves Costs from Local
Governments to Consumers and Manufacturers
Sego Jackson
NW HW Conference
June 2003
TOXICITY
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Toxic substances in electronics
Toxicity in all phases of product life
Production – mining and manufacturing
Use – off-gassing of flame retardants
Recycling and disassembly – potential for
worker exposure and toxic releases
Disposal – lead, copper, mercury, etc.
The Case for Product
Stewardship
Electronics Product Stewardship
Electronics
ProductGlobally
Stewardship
Manufactured
Product Management – The Old Edition
Manufactured
Globally
Manufactured Globally
No economic
incentive for
manufacturers to
minimize environmental
Impacts.
Product Management – The Old Edition
Disposed Locally
Disposed
Locally
GO DIRECTLY TO
LANDFILL.
DO NOT PASS GO.
Product Management – The Old Edition
Disposed Locally
Disposed
Locally
Should local governments
and rate payers cover the
costs of handling
electronic wastes?
Product Management – The Old Edition
Linear
Lifecycle
The Linear Lifecycle of Consumer Goods
The New Edition
Create Economic Incentives
Create economic
incentives for
manufacturers to
redesign products to make
them “greener.”
Closed Loop Lifecycle
The Closed Loop Lifecycle of Consumer Goods
Japanese Model
JAPANESE MODEL
Mandated Responsibility
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Manufacturers set front-end fees for
end-of-life management
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Retailers collect fees
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Manufacturers compete to lower fees
Fees cover orphan & historic waste
Consumers return products to
retailers or municipalities
Manufacturers and recyclers are
financially linked
Old/New Editions
 Local
governments
manage product
end-of-life.
 Rate payers and
local government
cover product
end-of-life costs.
 Manufacturers
responsible for
product take-back.
 Costs of product
end-of-life are
included in price.
Old/New Editions
 No incentives to
alter current
design.
 Continuing toxic
legacy.
 Incentives to
redesign products
to make them
“greener.”
 Upstream thinking.
Review Goals:
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Shift costs from Governments/Taxpayers to
Manufacturers/Customers
IN A WAY that drives product and system design
to be more environmentally sound
Government provides “free” collection
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Manufacturer, retailer and customer have no role
No design driver to reduce toxicity up or
downstream, make more recyclable.
No driver for industry to develop markets for
recovered materials
No driver for industry to assist in making system
function smoothly
Every government is on its own - very inefficient
Government Charges End of Life Fee
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Costs shifted to user instead of taxpayer.
Stockpiling continues, illegal dumping increases
All other problems remain, but funds are raised to
cover costs.
Manufacturer Charges End of Life Fee
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Shift costs from Governments/Taxpayers to
Customers
Governments still stuck with illegal dumping
Must be very convenient. Mail back programs
aren’t.
Manufacturer may have some incentive to reduce
costs of system
Visible Advance Recovery Fee
(pay $10 when buy computer,
government collects)
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Shift costs from Governments/Taxpayers to
Customers
Manufacturers/retailers have no role
No incentive for design or system efficiency
Invisible Advance Recovery Fee
(fee is passed from manufacturer to
retailer, included in price, but not
shown as stand-alone charge)
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This begins to bring about design drivers due to
price competition
Need to be alert to “cutting corners”
Full Cost Internalization
(fee is incorporated into price by
manufacturer. Manufacturer pays for
end of life management)
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Can create strong design drivers
Manufacturer concerned about functioning of
entire system
Need to be alert to “cutting corners”
Partial Cost Internalization
(fee is incorporated into price by
manufacturer for portion of system,
which manufacturer pays for.)
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This brings about design drivers due to price
competition
Manufacturer doesn’t care about functionality of
rest of system
Rest of system costs return to
governments/taxpayers
$$$ Scope of Issue
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$200,000 per year = Snohomish County
$210 million - National annual cost of collection,
consolidation, transport, processing of NEPSI
electronics (not including education, etc.)
EOL vs Front-end Financing
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Snohomish County television = $20 (losing $)
30,000,000 televisions sold annually
$210,000,000 /30,000,000 = $7 fee on new
televisions to pay for entire system for recycling
computers, monitors, tvs and more!
Instead of paying, governments and
other collectors get paid!
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Advanced Recovery Fee system includes
collection cost payment to collector on per pound
basis
Allows diverse and extensive collection
infrastructure including repair shops, charities
What to watch out for...
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Government pays all programs.
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“You don’t charge for HHW, why would you charge for
our electronic products!”
“You don’t make other producers pay for their product
management. This is unfair!”
Settling for any opportunity, no matter how
inconvenient, as good enough.
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“If one location in the county is good enough for really
hazardous things like pesticides, your politicians have
decided that’s all that’s needed. Why do we need more
convenient electronics drop-off!?”
“We already steward our products. We have a mail back
system where the customer pays.”
What to watch out for...
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Partial Cost Internalization (HP Model)
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“If you get full truck loads of our brand and transport it
to our recycler (in California), we’ll pay for the
recycling.”
Agreements without measurable goals and without
environmentally sound management requirements.
Customers and Citizens are the same. They are going
to pay one way or the other so what’s the difference!?
Take the Money and Run.
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Cost shifting that provides funding to governments but
doesn’t provide design and system incentives.
Introduction
THAT’S ALL FOLKS!