E-waste Management in Canada. Current Topics White Paper Series

Transcription

1 E-waste Management in Canada Current Topics White Paper Series Harold Schroeder, MBA, FCMC, PMP, CHRP, CHE President, Schroeder & Schroeder Inc. January 2013

2 E-waste Management in Canada 1 Executive Summary E-waste management is one of the biggest environmental challenges of our time. Like other countries around the world, Canada is grappling with the challenge of reducing levels of unsafe disposal and processing of e-waste and increasing levels of reuse, recycling and recovery ( the three Rs ), while also encouraging manufacturers to design safer products. This paper provides a comprehensive overview and analysis of e-waste management in Canada, in the context of the global e-waste management challenge. It examines the progress that has been made in this sector in Canada and explores alternative approaches and business models for e-waste management and their strengths and weaknesses. Part descriptive and part analytical, the paper provides an overview of the main legislative and standards-related developments in Canada and its provinces, and compares the Canadian approach to e-waste management with that of the U.S. and the European Union. The paper also summarizes the current and emerging technologies being used in e-waste recycling. We observe that Product Stewardship or Extended Producer Responsibility is currently the dominant model in Canada and globally, and note some inherent weaknesses of this model that need to be addressed in order to ensure that programs can achieve their e-waste management objectives. The paper goes on to examine the e-waste management marketplace and the roles and responsibilities of the various stakeholder groups involved in this sector. Exploring the economics of e-waste management, we identify a number of factors that offer considerable business potential for market participants. The paper concludes that excellent progress has been made in recent years in addressing the e- waste management challenges in Canada, yet there is considerable room for improvement in order to ensure that volumes of e-waste are effectively controlled in future, and that the e-waste generated is managed in efficient and cost effective ways. Successful e-waste management offers the promise of economic as well as environmental benefits for Canada.

3 E-waste Management in Canada 2 CONTENTS Executive Summary 1 What is E-waste? 3 Definitions and Characteristics of E-waste 3 Major Concerns about E-waste 4 High Level E-waste Management Challenges 5 The Scale of the Challenges 5 Legislation and Regulations 6 Canada Federal Legislation and Standards relating to E-waste 6 Provincial Legislation and Regulations 10 Comparing the Federal Legislation 18 The International Context 20 The Stakeholder Impacts 24 Sources of E-Waste 26 Current and Historic Sources of E-waste 26 Product Types 27 Trends 28 Technologies 29 Overview 29 Current Technologies 30 New Technologies 33 The Market 34 Overview 34 Market Participants 35 The Economics of E-waste 36 Other E-waste Management System Considerations 38 E-waste Business Models 39 Product Stewardship Organisations in Canada A Few Examples 44 Other Initiatives and Organisations 46 Analysis and Conclusion 48 Positive Developments in E-waste Management in Canada 48 Areas for Improvement 50 What are the Business Opportunities? 52 Conclusion 53 References 54

4 E-waste Management in Canada 3 What is E-waste? Definitions and Characteristics of E-waste The term e-waste is generally used to refer to electrical or electronic items which have been discarded by their users, whether they are reusable, repairable, recyclable or destined for disposal in landfill sites. This is reflected in Environment Canada s definition of e-waste as: Electrical and Electronic Equipment (EEE) destined for disposal, recycling or reuse. 1 E-waste is also often referred to as WEEE (Waste Electrical and Electronic Equipment); the terms are interchangeable. It includes, for example, discarded products of the types shown in Table 1. Information and Communications Technology Household Appliances Entertainment and Consumer Electronics Electrical Components Other PCs Laptops Printers Scanners Monitors Mobile Phones Refrigerators Freezers Air conditioners Washing machines Driers Microwave ovens Toasters Hairdryers Televisions Radios DVD players Catalytic converters Processors Chips Motherboards Printed circuit boards Alarms Medical devices Electrical tools Batteries Toys Lighting equipment Photocopiers Table 1: Examples of E-waste by category E-waste is different from most other forms of household and industrial waste, because: E-waste consists of complex manufactured products, each containing a large number of different elements and materials. These typically include high levels of hazardous substances, including lead, mercury and cadmium. But e-waste products also often contain valuable and scarce materials such as gold, silver, platinum and copper. Overall, these features mean that the management and processing of e- waste is complicated and can be extremely hazardous, but also that e-waste 1 Environment Canada (modified 2010). Past Consultations - Updating the Regulatory Framework for the Transboundary Movement of Waste and Hazardous Recyclable Materials. Retrieved from

5 E-waste Management in Canada 4 recycling is a potentially lucrative activity, generating valuable materials which can be resold at high prices. The characteristics of e-waste mean that its management involves unique challenges and opportunities which are not generally involved in other areas of recycling and waste management. In this paper we discuss these features of e-waste management, and the ways in which they are being addressed, with particular reference to Canada, drawing on a range of sources to provide a comprehensive overview of this topic. Major Concerns about E-waste Around the world, the problem of e-waste is a growing concern for several inter-related reasons: Hazardous substances (some now banned) found in many electrical and electronic products include: Lead Cadmium Hexavalent chromium Mercury Americium Mercury Sulphur PBBs PCBs Beryllium oxide Polyvinylchloride First, volumes of e-waste are growing rapidly, as people use more and more electronic products and discard them once they are no longer needed; Second, the highly hazardous nature of this waste means that, if disposed of or handled inappropriately, it can have harmful effects on people, wildlife and the environment. Third, much of the e-waste from the industrialized world is still being exported to developing countries, where dismantling and recycling takes place in unregulated, unsafe conditions. 2 The U.S. Environmental Protection Agency reported that in one year alone (2005), 61% or 107,500 tons of CRT monitors and TVs were exported from the U.S. to developing countries for recycling. 3 The main risks of contamination from e-waste to humans and the environment arises from: Substances such as lead and mercury, contained within the e-waste products Toxic emissions (e.g. dioxins) generated from improper processing or treatments The use of hazardous agents in informal recycling, such as cyanide for leaching purposes. 4 2 Williams, E., Kahhat, R., Allenby, B., Kavazanjian, E. et al., (2008). Environmental, social, and economic implications of global reuse and recycling of personal computers. Environmental Science & Technology, 42(17), United States Environmental Protection Agency (2008). Fact Sheet: Management of Electronic Waste in the United States. Retrieved on October 10, 2012 from 4 BBC World News (2010, August 4). Europe Breaking Electronic Waste Export Ban. Retrieved on October 10, 2012 from

6 E-waste Management in Canada 5 High Level E-waste Management Challenges The main high level challenges that need to be addressed in managing e- waste, by Canada and other countries around the world, can be summarised as: There is growing evidence that toxins from E-waste have entered the Canadian food chain. A 2004 study by Indiana University researchers found West coast farmed and wild salmon to have elevated levels of polybrominated diphenylethers (PBDEs), a toxic flame retardant used in computers. 1. How to reduce the hazardous substance content of electrical and electronic products. 2. How to reduce levels of unsafe disposal and processing of e-waste and increase levels of reuse, recycling and recovery ( the three Rs ). Meeting these challenges is likely to require a number of inter-related measures, including: Promotion of environmentally friendly e-product design Enforcement of national and international legislation on export and disposal of hazardous waste Development and enforcement of e-waste management legislation and regulations Education and awareness raising Co-operation and compliance of producers Establishment of efficient and effective e-waste management systems, including collection, transportation and processing Technological developments to improve e-waste processing techniques Development of national and sub-national capacity for recycling and reuse Harmonization of legislation and regulations to reduce compliance burdens The Scale of the Challenges E-waste is the fastest growing waste stream in the developed world 5 and in many developing countries 6. It is increasing in volume around three times faster than other forms of municipal waste 7 and has been predicted to increase by up to 500% in some developing countries over the next decade 8. 5 Deathe, A.L.B., MacDonald, E. and Amos, W. (2008). E-waste management programs and the promotion of design for the environment: assessing Canada s Contributions. Review of European Community and International Environmental Law, 17(3) United Nations Environment Program & United Nations University (2009). Recycling - from E-waste to resources. Sustainable Innovation and Technology Transfer Industrial Sector Studies. Retrieved from Waste_publication_screen_FINALVERSION-sml.pdf 7 United Nations University, UN, Industry, Others Partner to Create World Standards For E-Scrap Recycling, Harvest of Valuable Components (ME/E04/07, 6 March 2007), available at < 8 United Nations Environment Program & United Nations University, op.cit

7 E-waste Management in Canada 6 The United Nations Environment Program (UNEP) reports that globally, we dispose of between 20 and 50 million metric tons of e-waste every year, accounting for 5% of all municipal solid waste. 9 It is predicted that, by 2015 we shall be disposing of between 40 and 70 million tons of e-waste annually. 10 In Canada, it was estimated in 2010 that the population was disposing of more than 5 million computer and monitor units per year. 11 Environment Canada reports that volumes of e-waste are increasing by 4% annually across the country. 12 Historically, 90% of Canada s e-waste has been disposed of in landfills and only 10% recycled or refurbished. 13 Even in Europe, where e-waste management is much more highly regulated, around two thirds is either sent to landfills or to sub-standard recycling or treatment facilities within or outside the EU. 14 A recent U.S. study found that only around 15 to 20% of e-waste is being recycled, with being 80 and 85% disposed of in landfills or incinerated. 15 Legislation and Regulations Canada Federal Legislation and Standards relating to E-waste In Canada there is no federal legislation directed specifically at e-waste management, although the Federal government does have an indirect impact on e-waste regulation through its toxic substance control legislation. E-waste legislation in Canada has been set mainly at provincial level, and has primarily taken the form of regulations requiring extended producer responsibility (ERP) or product stewardship for designated electrical and electronic products. By end 2011, eight provinces had legislation for the management of e-waste through ERP.16 The following provides an overview of the legislation as of November UNEP (2010). WEEE / E-waste management capacity building activities by IETC. Retrieved from 10 UNEP (2010), op.cit. 11 Deathe et al., op.cit. 12 Cited in Stothart, P. (2010). It s time for Canada to get serious about metals recycling. CIM Magazine, November Retrieved from 13 Manchen, K. (2008). Provinces tackle e-waste problem. Canadian Electronics 23(4), Buenker, M. (2007). The new frontier: e-waste. Environmental Policy and Law 37(1), United States Environmental Protection Agency (2008). Electronics Waste Management in the United States. Retrieved from 16 Blakes (2011). Summary of Electronic Waste Regulations in Canada. Retrieved from

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9 E-waste Management in Canada 8 Toxic Substance Control Legislation Under Part 5 of the Canadian Environmental Protection Act (1999), Canada s federal Environment Minister is given broad authority to enact regulations that prohibit or impose restrictions on products containing substances listed in the Act s Toxic Substances List. The legislation is intended to 1) Minimize the toxic materials used in manufacturing; and 2) Minimize the release of toxics from discarded products. Although not focused specifically on electronics, the Toxic Substances List includes a number of substances widely used in electronics manufacturing, including mercury, cadmium and polybrominated diphenylethers (PBDEs). 17 Canada s toxic substance control legislation also reflects international regulatory frameworks on international exports of hazardous waste as set out in the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal and the Canada-USA Agreement on the Transboundary Movement of Hazardous Waste, specifically the requirement for the prior informed consent of receiving countries. Canada is in the process of broadening its controls on the export and import of e-waste within these frameworks. 18 Electronics Product Stewardship Standards Although Canada s e-waste legislation has been set at provincial level, there has been strong federal involvement in standards setting. In 2004, the Canadian Council of Ministers of the Environment (CCME) endorsed a set of national principles for electronics product stewardship with the objective of promoting product stewardship as the main approach to e- waste management within Canada, and harmonizing e-waste management strategies between provinces. The CCME Canada-Wide Principles for Electronics Product Stewardship are shown in Figure 1. The CCME principles are supported by two e-waste product lists formulated to provide guidance to provinces in their design of e-waste legislation and to help ensure consistency of approaches to e-waste management. These lists consist of: 1. Common products recommended for e-waste management. These include information technology, audio-visual and communications equipment which are most likely to contain toxic and hazardous substances, and whose life span as well as rate of production and 17 Deathe et al, op.cit. 18 Environment Canada (modified 2010). Past Consultations - Updating the Regulatory Framework for the Transboundary Movement of Waste and Hazardous Recyclable Materials. Retrieved from

10 E-waste Management in Canada 9 distribution and the general lack of appropriate environmental management systems call for a priority management approach. 2. Other electrical products recommended for consideration under e- waste management programs in addition to the priority items, e.g. large and small household appliances, tools and monitoring equipment. 19 In 2009 the Council of Ministers adopted a Canada-wide action plan for Extended Producer Responsibility, providing further guidance on the design and implementation of e-waste management regulation and strategies at provincial level. The plan was intended to strengthen the harmonization and consistency of EPR programs across the country and to promote the use of ERP as an environmental risk management tool. It requires Canadian jurisdictions to work towards the establishment of EPR programs within six years of adoption of the plan, in a number of areas including electronics and electronic products. 20 The development of federal guidance and standards on e-waste management in Canada has drawn heavily on the National Model for E- waste Stewardship published by Electronics Product Stewardship Canada in Electronic Product Stewardship Canada is an industry organization with a mandate to create a national electronics stewardship program and to work with provinces and territories on the development of their programs. Their national model has largely driven the harmonization of e-waste management legislation and programs across Canada. This document covers various aspects of product stewardship including roles and responsibilities; managing costs; managing collection and recycling and a proposed national cost model.the federal government has also produced other guidance relating to product stewardship, including an Environment Canada guide to the development of performance measures that is intended to help harmonize performance measurement and reporting on product stewardship programs across the country. 22 Implementation of standards and oversight of provincial programs is now the responsibility of the Electronic Products Recycling Association (EPRA), a national industry-led non-profit organization established in Canadian Council of Ministers of the Environment (2004), op.cit. 20 Canadian Council of Ministers of the Environment (2009). Canada-wide Action Plan for Extended Producer Responsibility. Retrieved from 21 Electronics Product Stewardship Canada (2004). National Model for E-waste Stewardship. Retrieved from 22 Stratos Inc. (2007). Performance Measurement and Reporting for Extended Producer Responsibility Programs: reporting guidance document prepared for Environment Canada Environmental Stewardship Branch. Retrieved from

11 E-waste Management in Canada 10 CCME Canada-Wide Principles for Electronics Product Stewardship 1. Responsibilities associated with management of E-waste are primarily borne by producers of the products, where producer(s) means the manufacturer, brand owner or first importer of the product who sells or offers for sale the product in each jurisdiction. 2. Costs of program management are not borne by general taxpayers. 3. Environmental and human health impacts are minimized throughout the product life-cycle, from design to end-of-life management. 4. Management of E-waste is environmentally sound and consistent with the 4R waste management hierarchy: a. Reduce, including reduction in toxicity and redesign of products for improved reusability or recyclability; b. Reuse; c. Recycle; d. Recovery, of materials and/or energy from the mixed E-waste stream. 5. Consumers have reasonable access to collection systems without charge. 6. Education and awareness programs ensure that consumers, retailers and other stakeholders have sufficient information on program design and knowledge of their roles. 7. Program design and implementation will strive for equity and consistency for consumers, particularly between those who live in adjacent jurisdictions and between those who live in small, rural and remote communities and large urban centres. 8. Adjacent jurisdictions will strive for consistency in E-waste products collected. 9. Programs will include residential, commercial, historic and orphan products. 10. Programs will report on performance, specify objectives and targets, and be transparent in financial management. 11. E-waste is managed in the most economically and logistically feasible manner, while striving to maximize local economic and social benefits. 12. E-waste is exported from Canada for recycling only at facilities with a documented commitment to environmentally sound management and fair labour practices. Figure 1. CCME Canada-Wide Principles for Electronics Product Stewardship (2004) 23 Provincial Legislation and Regulations Alberta In 1996 the Alberta Recycling Management Authority (Alberta Recycling), a not-for-profit organization was established under the Designated Material Recycling and Management Regulation (DMRMR) of the Environmental Protection and Enhancement Act. Alberta Recycling is regulated under the 23 Canadian Council of Ministers of the Environment (2004). Canada-wide Principles for Electronics Product Stewardship: Recommended E-Waste Products. Retrieved from

12 E-waste Management in Canada 11 Alberta Recycling Management Authority Bylaws, which are administered by Albert Environment. 24 Alberta Recycling was given responsibility for the establishment and administration of industry-operated recycling schemes for all materials designated under the regulations, including electronics. The legislation specifies that No person shall supply a designated material in Alberta unless the person is registered in accordance with the Bylaws and the registration is not under suspension, with suppliers being defined as manufacturers, distributers, wholesalers or retailers who supply new electronics into Alberta. 25 Alberta s e-waste management program, established in 2004, was the first province-wide program in Canada. It is based on the CCME Principles for Electronics Product Stewardship, and requires electronics suppliers to charge an environmental fee, called an Advance Disposal Surcharge, when selling designated electronic products to consumers. The program specifies these designated products and sets out the maximum advance disposal fees that may be charged for each category of electronics. Suppliers are required to remit the collected fees to Alberta Recycling, and these are used to fund the cost of collection, transportation and processing of the waste using approved companies. Alberta Recycling s Business Plan includes annual targets for the collection and processing of electronic waste. 26,27,28,29 British Columbia In 2002 British Columbia s environment ministry developed an Industry Product Stewardship Business Plan which provided the overall framework for the development of the province s product stewardship programs. This was based on the principle of producer responsibility, and recommended the development of consistent, performance-based regulation for all industry programs. British Columbia s Recycling Regulation (2004) was introduced under the Environmental Management Act (EMA) (2004); both are administered by the BC Ministry of Environment. Under the recycling regulation, all suppliers (manufacturers, distributors, importers and retailers) are held responsible for life-cycle management of their products and for financing the collection and recycling of discarded products. 24 Alberta Recycling Management Authority (website), 25 Electronics Product Stewardship Canada (2010). Overview of Canada's End-of-Life Electronics (EOLE) Stewardship Programs. Retrieved from 26 Environment Canada (2012). Electronic Waste Recycling Program. Retrieved from 27 Alberta Recycling Management Authority, op.cit. 28 Electronics Product Stewardship Canada (2010b). Overview of Canada's End-of-Life Electronics (EOLE) Stewardship Programs. Retrieved from 29 Environment Canada (updated 2007). Extended Producer Responsibility & Stewardship. Retrieved from

13 E-waste Management in Canada 12 In 2006 a schedule for the incorporation of electronic waste was incorporated under the Recycling Regulation. Since August 2007 it has been mandatory for all e-waste producers to operate an electronic stewardship program or to contract another organization to do so on their behalf. Producers are defined as product manufacturers or, if these are not located in B.C., the brand owner or the importer. Under BC s recycling regulation, product stewardship organizations in British Columbia are required to have not-for-profit status, and must establish and report on performance targets; beyond this, the details of operation are not specified and producers are free to design their own product stewardship plans and determine their method of funding; however, costs must not be incurred by government or taxpayers. The regulations require that a recovery rate of 75% is attained for all stewardship plans unless exceptions are granted by the Minister. The Electronics Stewardship Association of British Columbia (ESABC) was established in November 2006 and has operated its stewardship program since August Its Return-It Electronics recycling program is administered by Encorp Pacific and funded by a visible Environmental Handling Fee paid by end users and remitted by producers on the sale of designated products within B.C. In July 2012 the program was expanded to include recycling of additional products including telecommunications equipment, electronic musical instruments and video game systems, many of which are not yet included in other provincial programs. 30,31,32,33,34,35,36 Manitoba Stakeholder consultations on an electronic waste stewardship program for Manitoba were conducted in 2005 and regulations were passed in February 2010, originally with an April 2011 target date for implementation of an industry-led program. A document outlining the proposed structure and content of a product stewardship program for e-waste in Manitoba was jointly produced and published in July 2010 by the Electronics Product Stewardship Canada, Retail Council of Canada and Canadian Appliance Manufacturers Association. 30 Electronics Stewardship Association of British Columbia (website), British Columbia Ministry of Environment (2006). Recycling Regulation Guide. Retrieved from 32 Electronics Product Stewardship Canada (2010b), op. cit. 33 Deathe et al, op.cit. 34 Environment Canada (updated 2007), op.cit. 35 Electronic Products Recycling Association (2012). Stewardship Plan Retrieved from 36 Robicheau, S. (2012, October 29). Canada: A Survey Of Extended Producer Responsibility Programs For E-Waste In Canada. Davis LLP. Retrieved on November 2, 2012 from For+EWaste+In+Canada

14 E-waste Management in Canada 13 The provincial government agency, Green Manitoba was responsible for the development of the province s e-waste program based on this guidance. This was implemented in 2012 and is managed by the Electronics Product Recycling Association (EPRA). The general legislative framework for product stewardship initiatives in Manitoba is provided by the province s Waste Reduction and Prevention (WRAP) Act, which specifies the roles of an industry operated WRAP fund to include establishing and administering waste reduction and prevention programs; conducting waste reduction and prevention education programs; payment of costs related to waste reduction and prevention and related research, development and marketing activities. Although the Act authorizes the Minister to prescribe the amounts of WRAP levies and related penalties, the regulations have allowed stewardship programs in Manitoba to set their own financing structures. In August 2012 the province introduced environmental handling fees on the purchase of all 37, 38,39,40,41 new electronic equipment. Nunavut Waste management and control of hazardous substances are regulated under Nunavut s Environmental Protection Act. There is no legislation or regulations relating to e-waste at present. The territorial government is in the process of developing a Nunavut-wide Solid Waste Management Strategy. 42 Northwest Territories Waste management and control of hazardous substances are regulated under the Northwest Territories Environmental Protection Act. This has underpinned the territories Managing this Land Strategic Initiative based on the principle of environmental stewardship. 43 There is no legislation or regulations relating specifically to e-waste at present New Brunswick Under Section 21.1 of the New Brunswick Clean Environment Act a Multi- Materials Stewardship Board is authorised to oversee the manufacture, storage, collection, transportation, recycling, disposal or other handling of a designated material. In 2008 the Designated Materials Regulation was filed 37 Deathe et al, op.cit. 38 Electronics Product Stewardship Canada (2010b), op. cit. 39 Environment Canada (updated 2007), op.cit. 40 Blakes (2011). Summary of Electronic Waste Regulations in Canada. Retrieved from 41 CBC News, Manitoba (August 1, 2012). E-waste recycling fees take effect in Manitoba. Retrieved from 42 Nunavut Department of Environment (2010). Solid waste management in Nunavut: a backgrounder. Retreived from 43 Solid Waste and Recycling (November 15, 2010). Support for Northwest Territories recycling enormous. Retrieved from

15 E-waste Management in Canada 14 under the Clean Environment Act, to determine the waste materials to be managed by extended producer responsibility. To date, e-waste has not been designated for coverage by a product stewardship plan under New Brunswick legislation. However, it was reported in late 2011 that the New Brunswick government was drafting an addition to the Designated Materials Regulation in order to include electronics as a 44, 45,46,47 designated category. Newfoundland and Labrador In 1996 the Multi-Materials Stewardship Board was established as a Crown agency of the Government of Newfoundland and Labrador, under the Environmental Protection Act. The purpose of the board is to develop, implement and manage waste diversion and recycling programs across Newfoundland and Labrador. The Board administers the Newfoundland and Labrador Waste Management Trust Fund which supports the Waste Management Strategy of the province, and is also charged with developing and implementing education and public awareness campaigns in order to improve provincial e-waste management. There are currently no e-waste regulations or electronics product stewardship programs in the province, although it was reported in 2011 that the Multi-Material Stewardship Board and the Department of Environment and Conservation are developing a new electronic stewardship-based addition to the Waste Management Regulations. 48,49 Nova Scotia Section 102 of Nova Scotia s Environment Act authorizes the Environment Minister to introduce regulations regarding product stewardship programs. Under the Solid Waste-Resource Management Regulations, the Resource Recovery Fund Board was established to develop and implement such programs. Brand owners of designated products sold in Nova Scotia are required to operate an electronic stewardship program or contract another organization to do so on their behalf. Brand owners are defined as owners, licensees, manufacturers or distributors. In November 2007, Atlantic Canada Electronics Stewardship (ACES) was established by Electronics Product Stewardship Canada and the Retail Council of Canada as a not-for-profit organization to deliver an industry-led electronics stewardship program. 44 Deathe et al, op.cit. 45 Electronics Product Stewardship Canada (2010b), op. cit. 46 Environment Canada (updated 2007), op.cit. 47 Blakes (2011), op.cit. 48 Northwest Product Stewardship Council (2009). Product stewardship in Canada: Legislative Framework of Provincial Programs. Retrieved from 49 Blakes (2011), op.cit.

16 E-waste Management in Canada 15 The Resource Recovery Fund Board is the local implementation partner for this program and sub-contracts collection, transportation and recycling services to service providers. The program is funded by environmental handling fees paid by brand owners, and set by ACES on the basis of third party research. The fees are charged to distributors at the point of purchase, and can be recovered by retailers through end-user charges. The RRFB is required to submit a report on the program to the Environment Ministry each year, including information on total number of electronic products collected, recycling processes used, and efforts to reduce environmental impacts of electronic products at the design stage. Nova Scotia has banned the disposal of televisions, computers and computer equipment from landfill since February 2008, the only Canadian province to 50,51,52, 53,54 have implemented an e-waste disposal ban to date. Ontario Ontario s Waste Diversion Act (WDA) was passed in 2002 with the objective of promoting reduction, reuse and recycling of designated waste products. Under the provisions of this Act, Waste Diversion Ontario (WDO) was created to develop and implement waste diversion programs for a range of materials. It has the authority to establish industry funding organizations (IFOs) for the purpose of waste diversion for particular types of products. The WDA sets out minimum requirements for product stewardship plans for waste management, which include activities to reduce, reuse and recycle the designated waste, research and development and education and awarenessraising. Under this legislation, stewardship organizations are not allowed to promote the burning or landfilling of waste. Under a regulation of the Waste Diversion Act, Waste Electronic and Electrical Equipment (WEEE) were designated as an eligible waste material in 2004 and WDO was requested by the Minister to develop an e-waste diversion program. Following a study by the WEEE Working Group, proposals were submitted to the Ministry and Ontario Electronic Stewardship (OES) was established in 2009 to develop a diversion program for Ontario s e- waste. OES is a not-for-profit organisation consisting of representatives of retail, IT and consumer electronics companies. The resulting WEEE Program Plan for the diversion and recycling of designated electronics was introduced in two phases, with full implementation completed in Atlantic Canada Electronics Stewardship (Nova Scotia) (website), 51 Northwest Product Stewardship Council (2009), op.cit. 52 Deathe et al, op.cit. 53 Electronics Product Stewardship Canada (2010b), op.cit. 54 Environment Canada (updated 2007), op.cit.

17 E-waste Management in Canada 16 The current e-waste plan relies largely on the voluntary participation of consumers, collectors and transports, but includes financial incentives for the collection and processing of WEEE. Collection, reuse and recycling targets have been set by OES. It is mandatory for e-waste producers to register with the program, pay fees and report on their e-waste management activities. Fees are based on product type, not brand. There are currently no penalties for missing reuse or recovery targets. In 2009 Ontario introduced an Environmental Levy Fee - as a new funding mechanism for its waste diversion programs but this proved controversial and was repealed in ,56,57, 58,59 Prince Edward Island Under Prince Edward Island s (PEI) Environmental Protection Act (1992), the Lieutenant Governor in Council is authorized to regulate hazardous substances and waste management fees. PEI introduced end-of-life electronic product disposal regulations on July 1, 2010, which designated a range of products that must be diverted from landfill for recycling. The province subsequently entered into an agreement with Atlantic Canada Electronics Stewardship (ACES) to develop, implement and administer an End-of-life (EOL) Electronics Stewardship Program throughout PEI. The ACES plan was approved on May 14, 2010, requiring designated brand owners to register with ACES, pay environmental handling 60, 61,62 fees and submit monthly reports to ACES. Quebec The Société Québécoise de Récupération et de Recyclage, or Recyc-Québec, is a crown corporation, established in 1990 under the Société Québécoise de Récupération et de Recyclage, to be responsible for the reduction, reuse and recovery of a range of waste products in Quebec. In 1999, the Environment Quality Act was amended to allow for the development of a residual materials management policy, which introduced Greater Producer Responsibility as one of its five fundamental principles. Draft e-waste regulations were released for consultation purposes in November 2009, and the Recovery and Reclamation of Products by Enterprises Regulation, under the Environment Quality Act, came into force on July 14, 2011, making it mandatory for the electronics industry to collect and recycle designated products within the province. 55 Ontario Electronic Stewardship (website) Northwest Product Stewardship Council (2009), op.cit. 57 Deathe et al, op.cit. 58 Electronics Product Stewardship Canada (2010b), op.cit. 59 Environment Canada (updated 2007), op.cit Northwest Product Stewardship Council (2009), op.cit. 62 Blakes (2011), op.cit.

18 E-waste Management in Canada 17 The stewardship program is managed by The Association pour le recyclage des produits électroniques du Québec (ARPE-Québec) and is being introduced in two phases. Environmental handling fees on new and regulated electronic products sold in Quebec were introduced on October 1, 63,64, 65, Saskatchewan Developed under the Environmental Management and Protection Act (2002), Saskatchewan s Waste Electronic Equipment Regulations came into effect in February The regulations require all first sellers of electronic equipment within Saskatchewan to develop a product management plan that is approved by the Minister, or to contract with another organization to provide this on their behalf. First sellers are defined as manufacturers, distributors, owners or licensees, importers or those who purchase electronic equipment outside the province for use in Saskatchewan.67 The regulations require that product management plans include recycling options listed in order of priority, a funding plan and an education and public awareness strategy. An advisory committee must also be established for the program, with representation of provincial interests. Annual reports must be submitted to the Environment Minister, with information about types and amounts of waste collected and recycled in various ways. Collection, recycling or reuse targets are not required. Financial incentives to encourage the collection and processing of e-waste are not required. The Saskatchewan Waste Electronic Equipment Program (SWEEP) was launched in 2007 in partnership with SARCAN recycling, and currently forms the only approved plan that enables first sellers in Saskatchewan to meet their legal obligations under the Waste Electronic Equipment Regulations. This program was North America s first industry-led electronics stewardship program. 68,69 Yukon Yukon s Department of Environment regulates solid waste management within the territory. A solid waste action plan was published in Northwest Product Stewardship Council (2009), op.cit. 64 Electronics Product Stewardship Canada (2010), op.cit. 65 Association pour le recyclage des produits électroniques (July 19, 2012). Electronic Products Industry Offers Quebeckers a Program for End of Life Electronics. Retrieved from 66 Solid Waste & Recycling (September 24, 2012). Electronics eco-fees hit Quebec. Retrieved from Saskatchewan Waste Electronic Equipment Program (website), 69 Environment Canada (updated 2007), op.cit.

19 E-waste Management in Canada 18 There is currently no E-waste management strategy in the territory, but the government has been involved in national-level talks on e-waste, and has reportedly expressed interest in working in partnership with ESABC. 70,71,72 Comparing the Federal Legislation The preceding overview of e-waste legislation and associated programs in Canada s provinces and territories reveals a number of commonalities and some significant differences relating to the definitions of e-waste and how it is to be managed. These can be summarised as follows: Type of Legislation or Regulations Alberta is the only province that has comprehensive waste management legislation, which relates to a range of product types including e-waste. Within this framework, however, participation in the e-waste recycling prog ram is voluntary and producers are not legally required to establish an e- waste management program. British Columbia s Recycling Regulation is very similar, but does not take the form of legislation. In the case of other provinces, regulations have been enacted within the scope of environmental legislation which relate to single or multiple product types including e-waste, with specific waste management requirements set out for each product type. 73 Where an extended producer responsibility program has been implemented under provincial legislation or regulations, it is mandatory for suppliers of designated products to develop and implement an approved e-waste management plan, or to contract a third party organization to do so on its behalf. The minimum requirements for plans vary somewhat between provinces but generally include proposals for financing, recycling options, collection and processing, and education and awareness-raising. Only British Columbia has implemented an e-waste management plan which includes restrictions on the use of hazardous substances on products assembled in BC. Nova Scotia is the only province to date to have implemented a ban on landfill disposal of designated electronics. 70 Yukon Government (2009). Yukon Sold Waste Action Plan. Retrieved from 71 Electronics Product Stewardship Canada (2010b), op.cit. 72 CBC News Canada (2009, Nov 6). Whitehorse eyes E-waste handling fee. Retrieved from 73 Northwest Product Stewardship Council, op.cit.

20 E-waste Management in Canada 19 Product Coverage The scope of provincial programs varies in terms of the electronic and electrical items that are covered by the legislation and regulations. In several provinces, programs have been introduced in phases. In general, the early stages of each province s e-waste management plans have focused on computers and related products, followed in most cases by televisions, audio-visual products and mobile telephones. The main emphasis has been on electronic waste from private households. Relatively few of the plans currently include battery recycling. Finance Arrangements The basic e-waste management financing model established under current legislation and regulations is very similar between provinces, and based on the principle of shared responsibility between consumers, producers and government. In eight provinces, producers now charge an advanced recycling fee (Environmental Handling Fee) at the point of purchase, and these fees are remitted to the stewardship organization to cover the costs of collection, transportation and processing of e-waste. Some regulations require the setting of specific fees for certain products, and where this is the case, these are generally harmonized across Canada. However, not all provinces specify point of purchase fee requirements. In Saskatchewan, producers have the options of reducing production costs or raising product prices in order to cover e-waste stewardship fees, as alternatives to the use of environmental handling fees. Ontario is currently the only province known to be considering the implementation of brand variable fees, intended to encourage environmentally-friendly electronic product design. Some provinces such as Ontario include financial incentives to encourage consumers, collectors, transporters and processors to participate in their program. Administration and Monitoring With the exception of British Columbia, all provinces with product stewardship plans have appointed a single organization to develop and manage their plans. British Columbia currently has two separate plans and with different program requirements and eligibility criteria, operated by different administrative bodies. In Saskatchewan, British Columbia and Nova Scotia, the electronics stewardship programs are industry-led, whereas in other provinces such as Alberta and New Brunswick, non-profit organizations reporting to the environmental ministry operate the program.

21 E-waste Management in Canada 20 Under the e-waste legislation or regulations, administrators of product management plans are required to report annually on program progress to the provincial government. The detailed reporting requirements vary between provinces, but generally include amounts and types of designated waste collected and recycled. There is considerable variation between provinces in relation to the use of collection, reuse and recycling targets. In British Columbia, there is a requirement to set and report on performance targets. Targets have been set, but are not legally enforced, in Ontario. The International Context International Standards The main international legislation which has an impact on e-waste management is the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal (and the subsequent Basel Ban Amendment). The Convention is intended to reduce transnational movements of hazardous waste, especially from the industrialized world to developing countries. Since e-waste has historically been exported to developing countries in large quantities for recycling purposes, signatories to the Treaty are being obligated to replace this practice with safer, more environmentally-friendly e-waste management strategies, although the Convention is not legally binding. A September 2012 meeting of the Convention s Open-ended Working Group made progress on the development of technical guidelines relating to the export of e-waste. 74 In 2007 a major international public/private initiative entitled Solving the e- waste Problem (StEP) was launched by the United Nations University (UNU), the UN Environment Program (UNEP) and the UN Conference on Trade and Development (UNCTAD), in partnership with a wide a range of governmental, academic and private sector organizations. These include the world s leading IT and electronics companies such as Hewlett-Packard, Microsoft, Dell, Ericsson and Philips. The StEP initiative is intended to provide guidance and input to the formulation of e-waste management legislation and policies worldwide Secretariat of the Basel Convention (October 4, 2012). UN experts consider new measures for end-of-life goods destined for recycling or recovery. Retrieved from 75 United Nations University (2007). UN, Industry, Others Partner to Create World Standards For E-Scrap Recycling, Harvest of Valuable Components (ME/E04/07, 6 March 2007), available at <

22 E-waste Management in Canada 21

23 E-waste Management in Canada 22 U.S.A. E-waste regulation within the U.S. is carried out within the legislative framework of The Resource Conservation and Recovery Act (RCRA), passed in 1976 and amended in 1986, which is the federal law that governs the disposal of solid and hazardous waste. This authorizes the U.S. Environmental Protection Agency (EPA) authority to regulate the disposal of environmentally sensitive waste, and requires that states meet minimum management and disposal standards, while allowing the flexibility for them to implement more stringent policy measures. 76 As a result, the legislative approach to e-waste management in Canada is broadly similar to that in the United States, although the U.S. lags behind Canada in its development and implementation of e-waste management legislation and programs. As in Canada, the U.S.A. has no federal legislation which directly relates to e- waste management. Instead, there has been a growing trend for state governments to implement framework legislation, under which the right is reserved to introduce product stewardship for various types of products over time. Attempts to introduce a nationwide financing system for electronics product stewardship have not been successful, and among states that operate e-waste management programs there is considerable variation in methods of financing the programs as well as other details such as product coverage. As at October 2012, thirty-four U.S. states had introduced product stewardship legislation and twenty-three had implemented product stewardship programs for electronics. 77 Among the U.S. states with e-waste management legislation, California and Maine have introduced the point of purchase environmental handling fees of the type that are generally used in Canadian electronics product stewardship programs. In Maine, these fees vary depending on individual manufacturers market share, an approach which is not currently used in Canada. Most of the other U.S. programs are based on the concept of extended producer responsibility, but impose different types of requirements on suppliers for the generation of finance for recycling and for the fulfilment of their extended producer responsibilities. A number of U.S. states, including those with and without recycling legislation, have imposed bans on the disposal of used electronic items from 76 Goodwill Industries, Inc. (2010). E-waste and the Environment: the Case for Electronics Recycling Legislation. Retrieved from 77 Product Stewardship Institute (2012). Extended Producer Responsibility State Laws as of October Retrieved from

24 E-waste Management in Canada 23 landfills, a measure which in Canada has only been implemented in Nova Scotia. 78 The European Union E-waste management in Europe is more highly regulated than in North America, and is mandatory under two EU Directives: 1. The Directive on the Restriction of Hazardous Substances in Electrical and Electronic Equipment (RoHS) Directive (2003). Under this Directive, from July 2006, the use of mercury, cadmium, hexavalent chromium, polybrominated biphenyls or polybrominated diphenyl ethers has been prohibited in new electrical and electronic equipment in the EU Directive 2002/96/EC on Waste from Electrical and Electronic Equipment (WEEE) (2003). Under this Directive, manufacturers and importers of electrical and electronic products are legally responsive for their take-back and recycling once discarded by consumer. Member states were required to implement this Directive into national law within 18 months of its implementation, with producer responsibilities coming into force a year later in August The financial responsibilities of producers for historic waste are based on current market shares. For new products, manufacturers or importers are individually responsible for treatment and recovery of e-waste arising from their products, but can operate either individually or in collaboration with others for the financing of collection, transportation and treatment of WEEE. The legislation allows flexibility regarding types of fees within some jurisdictions separate, visible environmental handling charges are imposed; in others there are invisible fees which are included in product purchase prices. A collection target of 4 kg per person annually was set under the original legislation, and collection points are provided for consumers to 80 81,82 return their e-waste free of charge. Proposals were submitted in 2008 to revise the EU Directives, including: The introduction of mandatory collection targets of 65% of the average weight of electrical and electronic equipment placed on the market over the two previous years in each Member State. Recycling and recovery targets covering re-use of whole appliances and weight-base targets to increase by 5%. 78 Atasu, A., Van Wassenhove, L.N.& Sarvary, M. (2009). Efficient take-back legislation. Production and Operations Management 18(3) Deathe et al, op.cit. 80 European Commission Environment (updated 2010). Recast of the WEEE and RoHS Directives Proposed. Retrieved from 81 WEEE Forum (2008). WEEE Forum guidance document on compliance with Directive 2002/96/EC on Waste Electrical and Electronic Equipment (WEEE). Retrieved from 82 Deathe et al, op. cit.

25 E-waste Management in Canada 24 Targets to be tailored to individual countries based on their average consumption of electronic and electrical equipment. 83 Further, in February 2011 EU MEPs proposed new targets for the collection, recycling and use of e-waste, which were adopted by parliament. In particular, it was agreed that, for all categories of e-waste: Member States should collect 85% of the waste they produce from In 2012, Member States should collect 4 kg of e-waste per inhabitant or the weight of e-waste collected in 2010, whichever is greater. EU states should work towards a recommended 50-75% recycling target (depending on category) and a new 5% re-use goal. In general, e-waste management in EU member states is therefore much more highly regulated than in Canada. In practice, however, the nature of e- waste management varies considerable across Europe, since the Directives do not apply directly to manufacturers and there is considerable flexibility available to national governments in the adoption and implementation of the Directives into national laws. The Stakeholder Impacts E-waste management legislation has various impacts on stakeholders. In general, the main stakeholders in any e-waste management system can be defined as: Government authorizing body (federal, provincial/state) Administrative body/stewardship organization Producers/suppliers (manufacturers, brand owners, importers) Distributors/Retailers Service providers (collectors, transporters, processors) Consumers (private individuals and households, businesses) The actual impact of e-waste legislation or regulations on these groups will depend on the specific nature of the legislation or regulations. Some key differences between Canadian provinces and international legislation have been discussed in preceding sections. Focusing on the Canadian context, examples of the main types of legislative influences or potential influences on stakeholders, as well as the potential impacts arising from these are shown in Table 2: 83 European Commission Environment (updated 2010), op.cit.

26 E-waste Management in Canada 25 Stakeholder Group Provincial Governments Administrative Organization Impact Influenced Mainly by: Nature of legislation/regulations (e.g. framework; multi-product; specific to E-waste; product coverage) Provisions for establishment of an administrative organization Relevant federal and international legislation (e.g. on hazardous substances) Nature of legislation/regulations Any prescriptive requirements for finance structure Existence of recycling and reuse targets Outcomes of any stakeholder consultation on the legislation Provisions regarding harmonization of program details with other provinces Reporting requirements Requirements for education/awareness raising Potential Impact Requirement for the monitoring and enforcement of specific e-waste management requirements, including performance against targets Need to establish administrative organization to oversee implementation Need to enforce reporting requirements and apply penalties if appropriate Need to incorporate relevant provisions of federal or international legislation Requirement to designate eligible products, when not specified in legislation Requirement to identify and enforce obligations on all eligible suppliers Requirement to collect fees from eligible producers Requirement to establish e-waste collection, transportation and processing facilities by contracting with service providers Requirement to report to the authorizing government body in accordance with specifications Requirement to meet targets Need to take account of stakeholder interests and concerns in designing program, e.g. harmonization across provinces Requirement to establish a finance structure which reflects any legislative requirements Need for management information systems to monitor and report on program operations and compliance Distributors/ Retailers Service Providers Consumers/ general public Requirements to collect a separate fee or distribute information at point-ofsale Legislative restrictions on sale of noncompliant products Scope of market determines relevance of multi-province or international laws Any requirements for mandatory participation Provision for use of financial incentives for participation Product coverage Requirements for or bans on specific e-waste management processes or techniques Inclusion of targets or standards for collection, reuse and recycling Financing system and requirements for use of environmental handling fees Existence of disposal bans Requirements/provision for education/awareness raising Need to establish mechanisms to collect and remit fees Need to establish information systems to collect and submit relevant financial/operational information Potential need to comply with multi-province (or international) e-waste legislation Requirement to develop or adopt and implement educational/promotional material Requirement to participate in program New business opportunities Need to develop, strengthen or cease use of specific processes or techniques, e.g. landfill use. Need to provide appropriate facilities (e.g. for collection, transportation, recycling) Need to collect and submit relevant operational data as required by administrative body Requirements to meet any relevant operational targets Level of awareness of and active participation in program Higher electronic product costs Requirement for payment of environmental handling fees Table 2: Potential Influences on E-waste Management Legislation on Key Stakeholders

27 E-waste Management in Canada 26 Sources of E-Waste Current and Historic Sources of E-waste The main sources of e-waste are as defined in the CCME standards as: Residential This category consists of a wide range of household appliances and electronic or electrical items, often categorized in Canadian product stewardship programs as white goods, portables (e.g. small kitchen appliances such as toasters and kettles; hairdryers etc.) and floor care (e.g. vacuum cleaners). Sometimes, household appliances are sub-divided for the purposes of classification into wet (laundry), cold (refrigeration) and hot (cooking). Additionally, this category includes the large sub-groups of computer, telecommunications and audio-visual equipment (televisions etc.) discarded by private households. It has been estimated that around 80% or four fifths of all e-waste is produced by private households 84. Commercial This category mainly consists of computer and telecommunications equipment, and includes computers, hard drives, mainframes, monitors, telephones, pagers, cell phones, fax machines and photocopiers. It has been estimated that only around 20% of all e-waste is produced by commercial organizations. 85. Historic Historic e-waste can only be defined in the context of an e-waste program or regulation, and consists of the products that were sold prior to a specific date (for example, the date from which WEEE was designated as a waste material within the relevant jurisdiction). Often, when a product stewardship program commences, all or a hi gh proportion of e-waste can be defined as historic. One of the key issues to be addressed by e-waste program designers is the allocation of producer responsibility for historic waste: this might for example be shared among producers on allocated to specific producers on the basis of historic or current market shares. Orphan products Orphan products are those e-waste items for which a manufacturer cannot be identified (due to the poor condition of the product, for example) or which 84 ewaste.com.au (2011, February 25). Electronic Waste by Numbers: Recycling & the World. Retrieved from 85 ewaste.com.au (2011, February 25), op. cit.

28 E-waste Management in Canada 27 had a manufacturer which has since ceased business. It has been estimated on the basis of a number of studies that orphan products often account for at least 10% of some categories of WEEE, especially IT products. 86 In general, producers are not required to take responsibility for the cost of recycling or disposing of historic and orphan waste in Canada, as set out in the EPS Canada s National Model for E-waste Stewardship. 87 In some countries such as Japan, industry associations are accountable for the management of orphan products. 88 Product Types The composition of the e-waste stream can also be examined by product type using categories which cut across those described above and are often defined as household appliances, information technology equipment, telecommunications equipment and audio visual equipment. In Ontario in 2004, the percentage breakdown of discarded e-waste (based on number of units) by four main types of e- waste product was as shown in Figure 3. This shows that household appliances are the biggest single category of products within the household stream. Although such items have a relatively long lifespan, typically around 7 to 15 years, the very high market penetration of these items means that high numbers are discarded every year. Audio visual equipment, mainly televisions, represents the second largest category of discarded units. Figure 3: Units discarded in Ontario in Waste Diversion Ontario (2005). Waste Electronic and Electrical Equipment Study. Retrieved from 87 Electronics Product Stewardship Canada (2004), op.cit. 88 Ministry of Environment (MoE) (2009). WEEE/E-Waste Business Model. Retrieved from

29 E-waste Management in Canada 28 Overall, the e-waste stream typically divides into 50% electrical items and 50% electronic items 89, and comprises the specific types of products shown in Figure 4, which relates to the European Union. At present, it is reported that less than 20% of each main category of e-waste is recycled. Global percentages for recycling of e-waste are even lower; one source reports that, only 5% of cell phones worldwide are recycled. 90 Figure 4: Breakdown of electrical and electronic waste in the European Union 1 Trends To a large extent, it is possible to predict future trends in sources, types and volumes of e-waste. The two main drivers likely to influence e-waste trends in the near future can be identified as technological change, and increasing regulation: Technological Change and Innovation There is increasingly rapid change and innovation in most areas of technology, which are influencing the rate of consumer take-up of new computer and telecommunications equipment. Prices are falling and leading to increased market penetration; products are becoming smaller and more portable in nature, with a growing proliferation of hand-held devices, smart phones etc. that integrate information and communications technology. Overall, this will increase the overall volumes of e-waste generated. Smaller and cheaper electronic items are reported to be increasingly accounting for a high proportion of e-waste. 91 Planned obsolescence and product innovations on the part of manufacturers often lead to the replacement or upgrading of devices by consumers within a year or two of purchase. 92 The large 89 EMPA Swiss Federal Laboratories for Materials Testing and Research, cited in BBC World News (online), 2010, retrieved from 90 Huang, E.M. & Truong, K.N. (2008). Situated sustainability for mobile phones. Interactions, 15(2), Davis, G. & Herat, S. (2010). Opportunities and constraints for developing a sustainable E-waste management system at local government level in Australia. Waste Management & Research, 28(8), Thilmany, J. (2010). E-waste warning. Mechanical Engineering,132(7),14-15.

30 E-waste Management in Canada 29 software industry also drives computer obsolescence rates, with consumers often needing the latest computer technology and higher computing speeds to take advantage of new software developments. Another key development affecting the volume and composition of the e-waste stream relates to audio-visual technology, specifically the migration from analog to digital technology and the widespread take-up by consumers of flat-screen TVs and LCD monitors 93. This is resulting in a very high rate of discarded televisions, which have little or no reuse potential. In the U.S. it was estimated that there were 99 million discarded TVs still in storage at the end of Government Intervention While technological developments are driving increases in the overall volume of e-waste, as well as the changing composition of the e-waste stream, the actual amounts of e-waste which are subject to management are largely determined by government policies and regulations, and particularly the designation of particular types of products for e-waste management. Globally, there is increasing involvement of governments and intergovernmental organisations in e-waste management, from direct intervention through the implementation of regulations relating to the disposal hazardous waste or e-waste recycling requirements, to the more subtle setting of standards and the promotion of recycling and environmentally friendly e-waste disposal. Within Canada, the majority of provinces have already introduced legislation or regulations requiring e-waste management. The overall impact will be significantly increased volumes of e-waste for domestic processing. Technologies Overview The nature of the technology used in e-waste processing is largely determined by the objectives of the specific process involved - reuse, recycling or recovery. Reuse generally requires little use of technology, since it involves products being transferred to new users with little or no modification. At most, some upgrading (e.g. of computer software) may be 93 Dalrymple, I., Wright, N., Kellner, R., Bains, N. et al. (2007). An integrated approach to electronic waste (WEEE) recycling. Circuit World, 33(2), Electronics TakeBack Coalition (2012). Facts and Figures on E Waste and Recycling. Retrieved from

31 E-waste Management in Canada 30 necessary. In general, however, the effectiveness of reuse as an e-waste management strategy relies more on organizational rather than technological approaches. E-waste recycling and recovery processes, on the other hand, involve the growing use of various forms of technology, especially due to the complex nature of most e-waste, which consists of a large number of different parts and materials some of which are hazardous and some valuable. Traditional methods of recycling and recovery have been highly labourintensive, with automated methods used if at all only after humans have dismantled and sorted the e-waste and extracted valuable components. Such methods are no longer desirable or practical, given the increased concerns about and legislation on the export of waste products to developing countries; the ever-growing volumes of e-waste and the introduction of increasing numbers of laws and programs requiring the recycling of designated products. There is a pressing need, therefore, for improved technology to increase the efficiency, cost-effectiveness and safety of e-waste recycling and the recovery of materials and energy from e-waste. It has been reported that 72% of the materials from e-waste can be recycled and 25% can be recovered 95 ; yet Canada like most countries currently recycles only a small proportion of e-waste, with most of the valuable substances and components being lost. There is also a need for improved methods of disposal of e-waste which is unsuitable for recycling or reuse, particularly in view of the emerging evidence of the adverse environmental impacts of current disposal methods, through leaching of hazardous materials into soil and water supplies. The remaining sections of this chapter describe the main technologies currently being used in the processing of e-waste, as well as emerging technologies and related research into new methods of e-waste recycling. Current Technologies Disposal Methods At present, the majority of Canada s e-waste is disposed of rather than recycled or reused, as in most other countries. In general, disposal methods are relatively low-tech, compared with recycling processes. 95 We Recycle (n.d.) Facts and Figures. Retrieved from

32 E-waste Management in Canada 31 Screeners are sifting units that are rotated as powder is fed into their interior. Air classifiers, cones or cyclones using the spiral air flow action or acceleration within a chamber to separate or classify solid particles 1 Concentrating tables or density separators screen bulk materials or minerals based on the density (specific gravity), size and shape of the particles. Electrostatic separators using preferential ionization or charging of particles to separate conductors from dielectrics (non-conductors). Floatation systems separate hydrophobic particulates from hydrophilic particulates by passing fine air bubbles up through a solidliquid mixture. The fine bubbles attach to and lift or float the hydrophobic particles up where they are collected. Magnetic separators use powerful magnetic fields to separate iron, steel, ferrosilicon or other ferromagnetic materials from nonmagnetic bulk materials. The magnetic field may be generated by permanent magnets or electromagnets. Rake, spiral and bowl classifiers use mechanical action to dewater, deslime or separate coarse bulk materials from finer materials or liquids. Trommels are large rotary drums shaped with a grate-like surface with large openings to separate very coarse materials from bulk materials, e.g. coarse plastics from fine aluminium. Water classifiers such as elutriators and classifying hydrocyclones use settling or flow in water or a liquid to separate or classify powdered materials based on particle size or shape. Figure 6: Separation/Segregation Methods, source: Dalrymple et al., 2007 Landfilling is frequently used in the disposal of e-waste; this involves excavating soil from trenches and burying the waste, usually covered with a liner of plastic or clay. However, it is virtually impossible to prevent some leaching of hazardous substances which contaminate soil and water resources, even from the most technologically-advanced facilities. 96,97 Another commonly used method of e-waste disposal is incineration; a controlled combustion process in which waste is burned at high temperature in specially designed incinerators. This method enables volumes of waste to be reduced and some energy to be recovered from the combustion process. However, incineration also involves the release of hazardous substances into the atmosphere and leaves hazardous waste in the form of slag for disposal. 98,99 Recycling and Recovery Methods E-waste processing for recycling and recovery purposes is generally divided into two main phases: a) Sorting, disassembly (often by hand) to remove harmful substances or useful components, and mechanical treatment b) Bulk recycling (or end-processing) to recover valuable substances such as ferrous and non-ferrous metals. 100 These can be further broken down into the following processes: Disassembly and Sorting: This involves the manual identification and removal of any hazardous components (e.g. batteries) and sorting into categories of waste, such as low or high grade material. Under current methods, this is important for the efficient recovery of valuable materials and re-useable parts (chips, transistors etc.), and relies on human ability to recognize these. However, the process is highly labour-intensive and therefore cheapest in countries with low health and safety standards. 101 Comminution: In this process, which may involve impaction, shredding, fragmentation and granulation, mechanical methods are used to break down products into smaller parts, for sorting into different categories with similar processing requirements. This method is widely used, for example, in the recycling of printed circuit boards, but efficiency is low e-wasteguide.info (2009). Hazardous Technologies. Retrieved from 97 Department of Environment, Government of Maharashtra (n.d.). E-Waste Treatment and Disposal Methods. Retrieved from op.cit. 99 Department of Environment, Government of Maharashtra, op.cit. 100 United Nations Environmental Program & United Nations University (2009). Recycling: from E-waste to Resources. Retrieved from Wikipedia.org (updated 2012). Electronic Waste. Retrieved from Wikipedia, op.cit.

33 E-waste Management in Canada 32 Separation/Segregation: Various technological methods are currently used to separate e-waste products once high-value components or valuable substances have been removed. Some examples are provided in Figure 6, extracted from Dalrymple et al., (2007). 103 Automated disassembly is being used by new company Sims Recycling Solutions in Mississauga, Ontario. The company has capacity to process 75,000 metric tons of E-waste every year, using automated techniques to spread and separate different types of materials. After shredding, waste will be spread out on conveyor belts and automated techniques will be used to identify and collect materials such as plastics, glass and metals. The techniques will involve magnets to collect metals, transparency sensors to separate glass from plastics, an x-ray machine to distinguish glass with lead, and optical sorters to identify various materials such as printed circuit boards, and an eddy current machine to extract non-ferrous materials. However, manual methods are still necessary at the initial sorting stages to identify and extract toxic material such as fluorescent bulbs containing mercury. (information from LaMonica, 2011) Figure 7 contrasts the loss of precious metals in the pre-treatment and recycling stages of processes, for traditional manual recycling methods and the current use of mechanical separation/modern smelters respectively. Overall, it can be seen that there is a gain in the recovery of precious metals of at least 20% and up to 70% when using modern processes compared with traditional processes. Nevertheless, current mechanical methods of recycling and recovery are neither cost-efficient nor environmentally friendly, and the cost of capital, power, operating and maintenance frequently exceeds the value of materials recovered. 104 There is a need to improve both the efficiency of processing and the levels of material recovery through technological advances. 105 Figure 7: Precious Metal Losses in Treatment, reproduced from Deubzer, n.d Dalrymple, I., Wright, N., Kellner, R., Bains, N. et al. (2007). An integrated approach to electronic waste (WEEE) recycling. Circuit World, 33, (2), Hester, R.E. & Harrison, R.M. (eds.) (2009). Electronic Waste Management: Design, Analysis and Application. Cambridge: Royal Society of Chemistry. 105 Dalrymple et al., op.cit. 106 Deubzer, O. (n.d.) The Global Perspective on E-waste. United Nations University. Retrieved from

34 E-waste Management in Canada 33 New Technologies The following descriptions of emerging techniques draw mainly on content from Dalrymple et al. (2007). 107 Disassembly Intelligent technologies that can replace human intervention are required for the complex disassembly process needed to remove hazardous materials from e-waste. These may include, for example, imaging and recognition methods, or robotic techniques. Comminution It is not expected that major technological advances will take place in this phase of recycling. However, it has been acknowledged that improved matching of fragment sizes to sorting processes is likely to improve efficiency, since processing costs are inversely related to particle size. Separation A considerable body of research is being conducted to improve separation processes, in order to improve levels of valuable materials retained in this phase of recycling. For example, one area of study relates to the separation of different plastic types, which is important since plastic accounts for around 50% of e-waste by volume. Currently, plastics are separated from metallic substances, but further refinement by types of plastics has not been achieved, and the resulting mixed plastics can only be reused in low-grade applications. The ability to recover pure polymers will be an important technological development in e-waste recycling. One of the main challenges is how to remove toxic brominated flame retardant plastics, which currently account for around a quarter of all plastic waste from WEEE. 108 The use of sensors is one method being developed to discriminate between polymer types in e- waste processing. Thermal treatment When recycling metals, thermal treatments can help to avoid the liquid effluent disposal issues involved in current chemical extraction methods. Thermal methods are already being used in the recovery of metals from printed circuit boards, and continuing research is going on into their wider potential in e-waste recycling. Hydrometallurgical extraction A large body of research is being conducted into the potential for applying 107 Dalrymple et al., op.cit. 108 Realff, M., Raymond, M. & Ammons, J. (2004) E-waste: an opportunity. Materials Today, January 2004.

35 E-waste Management in Canada 34 hydrometallurgical methods to metals recovery, building on techniques used in primary metal extraction processes. However, a drawback of these methods is the need to use toxic and corrosive chemicals such as cyanide in the recovery process. Design for the Environment / Design for Recycling There is a growing emphasis on the improved design of electrical and electronic products to reduce the use of hazardous waste and improve recyclability. Technological developments in product design techniques and processes include the reduction of lead content in computer screen monitors and the use of shape memory alloys, or metals and plastics that automatically return to their original shapes when reheated to a certain temperature. 109,110 Life-cycle analysis is a technique which contributes significantly to effective Design for the Environment. This involves measuring the ecological footprint of electronic products through detailed consideration of all the materials and processes involved in its manufacture. 111 Another important technique that can help inform improvements in recycling technology was developed by researchers at Delft University in the Netherlands, and involves weighting of the environmental recyclability of electronic products in monetary terms. This can be used to demonstrate the economic benefits of recycling and the relatively cost-effectiveness of different recycling methods and techniques, so that the most cost-effective can be adopted and improved over time. 112 The Market Overview This chapter considers what might be referred to as the e-waste management marketplace. It first identifies the various participants or potential participants in this marketplace, who are responsible for or can benefit in various ways from the management of e-waste. There are various options and business models available for e-waste management, and in order to determine which is most appropriate or beneficial in any national, provincial or local context it is important to 109 Peel Scrap Metal Recycling, Ltd. (2010, December 29). Memory Metals the Intelligent Alloys. Retrieved from Fantastic Plastic (2009). Shape Memory Polymers. Retrieved from Deathe et al., op.cit. 112 Huisman, J. & Stevels, A. (2003). Eco-efficiency of Take-back and Recycling, a Comprehensive Approach. Presentation to IEEE International Symposium on Electronics and the Environment.

36 E-waste Management in Canada 35 consider a range of factors. The chapter identifies some of these, focusing first on the economics of e-waste management or the factors that inform the relative cost-effectiveness of different systems as well as the business opportunities inherent in them, and next on other considerations in e-waste management system design. Following this, the chapter provides an overview of the main business models which have been applied to date in e-waste management globally, and provides examples of specific organizations and systems that have been developed in Canada and in other jurisdictions, to show how these models operate in practice. Market Participants The main stakeholders in an e-waste management system were identified in chapter 2, where examples were given on the types of impacts of e-waste management on each group. Here, we look more closely at the composition of the e-waste management marketplace into participant categories within a typical extended producer responsibility scheme. This is shown graphically in Figures 8 and 9 which depict, respectively, the participants in the e- waste generation process and the participants in the e-waste management process. Blue boxes represent participants and pink boxes represent e- waste outputs. Figure 8: Participants in the E-waste Generation System

37 E-waste Management in Canada 36 Figure 8: Participants in the E-waste Generation System The Economics of E-waste Consideration of appropriate business models for the design of an e-waste management project will generally take account of the unique economics of e-waste, as well as the environmental aspects. There are potential economic benefits as well as costs in e-waste management and processing, and market participants will need to consider these in relation to their own interests and/or the overall efficiency and cost-effectiveness of the e- management system. In particular, the following factors may be taken into account: Many metals and other substances found in electronic products have high and increasing market values. In addition to precious metals

38 E-waste Management in Canada 37 such as gold, silver and palladium, the value of other materials used widely in electronics have been rising rapidly in recent years. For example the price of Indium, widely found in mobile phones and flatscreen computer monitors, increased six-fold in a recent five-year period, making it more expensive than silver. 113 There is a potentially lucrative market in the recycling of household white goods, because of the accessibility and high value of their metal content, and their high market penetration. 114 The profitability of reuse and refurbishment in e-waste management is greater when large volumes of units are involved and when they are not too old to be of continuing use. In general, commercial e-waste reuse programs have been more economically successful than residential e-waste reuse programs, since household products are often older or in poor condition when discarded and less likely to have resale value, whereas businesses often replace equipment that is still in good working order. 115 Although e-waste disassembly processes have traditionally required costly labour-intensive methods to identify and extract hazardous waste; growing restrictions on the use of hazardous substances in manufacturing as well as the impact of product stewardship on e- product design, are likely to bring down recycling costs as more automation becomes possible. As advances in technology improve the efficiency of recycling and recovery processes, the high value aspects of e-waste recycling are likely to outweigh the overall costs of collection, transportation and processing. Within e-waste management systems, various types of fee and tax regimes can be used to allocate costs and benefits to various market participants (individual/collective producers, consumers, governments etc.) in different ways, as described later in this chapter. There are costs associated with the management of historic e-waste and orphan products which must be borne by current market participants. In some systems, the ways in which these are allocated between participants can create market distortions which increase the overall costs of the e-management system. For example, if producers are required to share all e-management costs equally, there is little incentive for them to design products which have long lifespans and are easy to recycle; moreover, the cost burden on 113 United Nations University, op.cit. 114 Dalrymple et al., op.cit. 115 U.S. Department of Commerce, Technology Administration, Office of Technology Policy (2006). Recycling Technology Products: An Overview of E-Waste Policy Issues. Retrieved from

39 E-waste Management in Canada 38 small manufacturers is increased, creating deterrents to market entry. Alternatively, systems which costs more fairly among producers, for example by market share or environmental design criteria, may encourage more efficient life-cycle product management and bring about overall cost reductions. Recycling fees can be used to distribute the costs of collection and recycling of e-waste among those who benefit from the products, but if not built into product prices are generally regarded as environmental taxes and do not influence product design. Other E-waste Management System Considerations In addition to the economic factors that influence the design of e-waste management systems, a number of other factors must be taken into consideration. Although not a fully comprehensive list, the following are examples of factors been identified from a review of existing literature on e- waste management: E-waste management administration and oversight: There is a need to design and implement appropriate governance and administration arrangements and determine which stakeholders should be included in these. In Canada, most provincial e-waste management organisations are non-profit entities, established by government, which operate product stewardship programs on behalf of producers. In some cases, these are industry-led, with producers playing an active role in the e-waste management process. Various community representatives may also be involved to represent local or provincial stakeholder interests. Monitoring and compliance: Determined to a large extent by the relevant legislation or regulations, there is a need to decide what specific management information should be collected from system participants (producers, retailers, collectors, transporters, recyclers etc.). Additionally, the management organisation must implement methods for identifying all producers of designated e-waste products and monitoring their compliance. Extent of public/private sector involvement in processes: There is a need to decide whether public (e.g. municipal councils) or private commercial organisations will be given responsibility for various stages of the e-waste management process (e.g. collection, transportation, reuse programs, recyclers) Use of standards and certification for processes: Recyclers, processors and other system participants will generally be required to meet specified minimum standards to ensure that they have relevant technical expertise and suitable facilities and can comply

40 E-waste Management in Canada 39 with relevant regulations and program requirements. Appropriate standards and certification schemes will need to be developed and implemented. Use of goals and targets: Recycling or reuse targets may be determined by the requirements of legislation; if not, there will be a need for program designers to consider whether to incorporate formal goals and targets and how to monitor performance against these. If used, goals and targets might be based on various criteria such as numbers of units, weight, or hazardous content. Education and awareness-raising: Most Canadian programs include a requirement for the e-waste management organisation to educate the general public, retailers, producers and other system participants about their responsibilities under the program and the importance of appropriate e-waste management. There is a need, therefore, to design and implement education and awareness raising campaigns, publicity and other educational strategies. Use of incentives: There is a need to decide whether to offer financial (e.g. tax privileges) or other (e.g. marketing and technical support) incentives 116 to encourage commercial enterprises to participate in the e-waste management system. Harmonization: When e-waste management system requirements differ widely between jurisdictions, it can be difficult and costly for producers to meet their obligations. It is generally advisable, therefore, for e-management system designers to try to harmonise their programs, an objective which the CCME principles are intended to promote. 117 Allocation of costs among market participants: A number of prominent business models have been commonly used for cost allocation and the design of fee-collection systems. These are discussed in the following section. E-waste Business Models General Tax Base Funding One e-waste management business model involves the imposition of a tax on all taxpayers within a specific jurisdiction, with the funds used to cover the cost of the whole system or components of it. Traditionally, this model has been widely used to cover household waste collection and transportation costs, and in some countries has been extended to the recycling of e- 116 Yang, L. & Wang, H. (2009). Institutionalization design in the establishment of recycling and logistics systems for household electronic waste: experience and inspiration from Hangzhou Pilot Residential Communities. Transportation Journal, 48(3), U.S. Government Accountability Office (2010). Electronic Waste - Considerations for Promoting Environmentally Sound Reuse and Recycling, GAO , July Retrieved from gao.gov/new.items/d10626.pdf.

41 E-waste Management in Canada 40 waste. 118 In Denmark, a local household waste tax is used to fund the cost of collection, transportation and recycling of e-waste by local authorities. Other European countries such as the Netherlands and Norway use a variation on this model, to fund parts of the e-waste management system, such as collection and transportation. Levels of tax vary between municipalities. 119 This system is relatively easy and straightforward to administer. However, it has been criticized as an e-waste management business model because it does not encourage manufacturers to design environmentally friendly products in order to reduce their taxation burden; neither does it differentiate between different consumers in terms of the amounts of e- waste they generate. Overall, therefore, this system provides no incentives for reducing volumes of e-waste. Additionally, under general taxation schemes it can be difficult to ensure that the funds raised are used for their intended purpose. Deposit/Refund System This business model has been successfully used to encourage recycling in the case of other types of lower-value household waste, such as beverage containers. Consumers are required to pay a deposit on purchase of a product, and receive a refund of this fee when returning the item after use to a designated recycler or collector. The deposits held are used to fund the costs of collection, transportation and recycling. In relation to e-waste management, the likely difficulties with this system include: The relatively long life span of electrical/electronic items, and the likelihood they may have several owners over time. The challenge of determining an appropriate deposit amount that would not deter consumers from purchasing products but would also provide a sufficient incentive for them to recycle the product. The heterogeneous nature of e-waste and the widely varying recycling costs of different products. Advanced Disposal/Advanced Recovery Fees In this form of business model, producers are required to collect a disposal fee from the consumer at the time of purchase, with the funding raised used to pay for recycling programs. A number of jurisdictions operate this type of system under recycling legislation, including the Netherlands and 118 U.S. Department of Commerce, Technology Administration, Office of Technology Policy, op.cit. 119 U.S. Department of Commerce, Technology Administration, Office of Technology Policy, op.cit.

42 E-waste Management in Canada 41 California. 120 Usually, a clearly visible fee is shown on purchase receipts, separate from the sales price. In California, Advanced Recovery Fees are used to finance the entire e-waste management system, including the cost of recycling orphan products. Recyclers are paid directly by the state, and are encouraged to enter the market by a guaranteed payment per pound of products recycled. The system is supported by California s stringent laws restricting the use of hazardous substances in product design. The main advantages of this type of business model for e-waste management is that it offers a clear source of immediate and sustainable funding, and it can be used to recycle all designated products, whether or not they have an identifiable manufacturer or brand owner. Point-of-sales fees also provide an opportunity to educate or remind consumers about the importance of recycling. This type of system is often regarded as fair since it can allow responsibilities for recycling to be divided between producers, governments, consumers and retailers. One of the main criticisms is that advanced recycling fees can be difficult to enforce on internet sales, which increasingly account for a high proportion of certain types of electronic product sales, especially computers. The system also offers little incentive for producers to modify their product designs to reduce the cost of recycling. 121 End of Life Fees This model requires consumers to pay a fee when disposing of items at the end of their useful lives to cover the cost of recycling, with the fees often subsidized by manufacturers or retailers. 122 Like advance disposal fees, these provide an immediate source of funding for recycling, can be used to cover the cost of recycling orphan products for which no producer is identifiable; the system is also fair in that only the users of products are charged the fees, not all taxpayers. Moreover, an End of Life Fees business model can help reduce the overall costs of e-waste management by encouraging consumers to prolong the life of their electronic and electrical items to avoid paying the fee, and some have argued that it can encourage recyclers to compete for business, bringing down the fees. In theory, therefore, this model offers a range of economic benefits. In practice, it can be difficult to enforce, and can encourage the use of illegal and dangerous disposal practices, as consumers seek to avoid paying the recycling fees. Additionally, since electronics often have several owners before being recycled, it will fall to the final owners, often with the lowest-incomes to fund the program Pearce, J. A. II (2009). The profit-making allure of product reconstruction. MIT Sloan Management Review, 50(3). 121 U.S. Department of Commerce, Technology Administration, Office of Technology Policy, op.cit. 122 Pearce, op.cit. 123 U.S. Department of Commerce, Technology Administration, Office of Technology Policy, op.cit.

43 E-waste Management in Canada 42 In Japan, which has largely focused its e-waste management efforts on improving system logistics and management, retailers are required to collect an EOL fee from consumer for a range of designated appliances such as televisions. The fees cover the costs of collection, transportation and recycling, which are set by product manufacturers. There has been a high level of harmonization of fees among leading electrical appliance manufacturers. In Belgium, the e-waste management system is financed by a combination of End of Life fees and Advanced Disposal fees. Producer Take-Back Programs A model which requires manufacturers to take back their own products for recycling is potentially the most effective in reducing the overall costs of e- waste management, since producers will be encouraged to introduce environmentally-friendly designs in order to reduce e-waste management costs. However, such programs can be difficult to implement and enforce, and can have harmful economic effects by deterring small manufacturers from entering the market due to the prohibitively expensive e-waste management costs. A number of large electronics manufacturers, particularly multinational computer firms such as Hewlett-Packard, IBM and Dell, have voluntarily established North American recycling facilities and take-back schemes for their own products. These types of brand specific facilities have the potential to vastly increase the costeffectiveness of recycling since the composition of the e-waste scheme is less heterogeneous and can be largely anticipated. Extended Producer Responsibility Extended producer responsibility (ERP) is the business model which is being widely adopted across Canada and in many other countries including those of the European Union, and which has the potential to be the most cost effective way of managing e-waste, depending on its specific design. The objective of extended producer responsibility, often also known as product stewardship, is to make manufacturers accountable for the whole life-cycle of their products, including recycling or safe disposal. 124 Under this business model, manufacturers are required to fund the cost of recycling or disposal, either by implementing their own take-back programs (see above) or by paying fees to a third party to administer an e-waste management scheme on their behalf, which is the most common variation on this business model. The concept of extended producer responsibility was first developed by Lindhqvist & Lidgren (1990) in a report to the Swedish environmental ministry as: 124 Pearce, J.A., op.cit.

44 E-waste Management in Canada 43 An environmental protection strategy to reach an environmental objective of a decreased total environmental impact from a product by making the manufacturer of the product responsible for the entire life cycle of the product and especially for the take back, recycling, and final disposal of the product. The extended producer responsibility is implemented through administrative, economic and informative instruments. The composition of these instruments determines the precise form of the extended producer responsibility. 125 The Organization for Economic Co-operation and Development (OECD) has described ERP in the following terms, which underpin the principles underlying most of the product stewardship programs that have been developed in Canada and globally: Producers of products should bear a significant degree of responsibility (physical and/or financial) not only for the environmental impacts of their products downstream from the treatment (recovery) and/or disposal of the product, but also for their upstream activities inherent in the selection of materials and in the design of products. The objective of EPR is to reduce the volume and hazard from products at the post-consumer stage. 126 ERP is intended to shift responsibilities for e-waste recycling and disposal, which have traditionally been borne by governments and taxpayers, to the producers of the products. In this way, the costs of e-waste management are intended to be internalized in the product costs. Producers often have the option within such programs of taking responsibility for establishing their own recycling program, or by joining with other manufacturers in a collective system, in which a third party (stewardship association) manages e-waste on their behalf. There are a number of variants on ERP. In full cost internalization programs, producers are responsible for the cost of all e-waste management, and can decide whether to cover these costs themselves or pass them onto consumers in the cost of their products. In partial cost internalization programs, producers are responsible for the cost of some stages of e-waste management, such as recycling, while the government pays for the remaining stages, such as collection and transportation. In some ERP programs, producers are required to charge a standard environmental handling fee or advanced recycling fee to consumers at the point of purchase, which is shown separately to the product price. In others, there is no separate charge or visible cost to the consumer, although this may be incorporated in product prices. 125 Lindhqvist, T, & Lidgren, K. (1990). Modeller för förlängt producent ansvar [Models for Extended Producer Responsibility]. In Ministry of the Environment, Från vaggan till graven - sex studier av varors miljöpåverkan [From the Cradle to the Grave - six studies of the environmental impact of products] (7-44). Ds 1991: OECD (2001). Extended Producer Responsibility: A Guidance Manual for Governments. Paris, France

45 E-waste Management in Canada 44 A further variation relates to the system of administration. Within Canada, one commonly-used model requires that producers register with a not-forprofit stewardship organisation appointed by the provincial government. The second main model found in Canada is industry-led, with the regulation requiring businesses to form their own product stewardship programs. 127 The main advantage of ERP is that, if appropriately designed, it provides a direct incentive to encourage product manufactures to incorporate environmental considerations into product design, to enable them to keep product costs low and maintain their market competitiveness. This should reduce the overall volume of e-waste that is generated and improve rates of reuse and recycling. ERP also reduces the cost of e-waste management to governments and consumers. Moreover, it has been argued that ERP, by generating a direct and sustainable source of funding for e-waste management, can stimulate the development of competitive e-waste management and recycling systems. They also offer flexibility in the design of specific collection and processing systems to suit the needs of different jurisdictions and their market participants. 128 The ability of ERP systems to achieve improved environmental design of products, however, depends on the design of the system and the ways in which costs are allocated between producers. In many programs, there is no differentiation between producers by market share or product design and producers may be required to take responsibility for a share of the cost of recycling historic or orphan products. In this situation, there is may be little economic incentive to improve the design of their products in order to reduce the overall cost of recycling that is incurred by the company. However, manufacturers can improve their brand image by promoting their participation in the program and highlighting their environmentally-friendly design practices. Moreover, supporters of ERP also argue that the collective nature of most ERP programs encourages producers to work together to improve the environmental aspects of product design. 129 Product Stewardship Organisations in Canada A Few Examples Alberta Recycling Management Authority Unlike many other Canadian provinces, Alberta does not have a product stewardship organization that is led by industry. The Alberta Recycling and 127 Northwest Product Stewardship Council (2009), op.cit. 128 U.S. Department of Commerce, Technology Administration, Office of Technology Policy, op.cit. 129 U.S. Department of Commerce, Technology Administration, Office of Technology Policy, op.cit.

46 E-waste Management in Canada 45 Management Authority ( Alberta Recycling ) is a non-profit, quasigovernment entity established by the provincial government in 1992 to manage the province s tire recycling program, and subsequently expanded to include electronics as well as paint. It reports direct to the Minister of Environment and is managed by a Board of Directors which represents many stakeholder groups. The Board appoints members to relevant Alberta industry councils, including Electronics Recycling Alberta. In return, these councils provide guidance and input into the respective waste management programs. In this model, therefore, there is joint industry and government involvement in e-waste management decision-making. 130 Alberta Recycling has separate divisions to manage each of its programs. Waste management is funded by the use of Advance Disposal Fees collected from consumers at the point of purchase. Flat fees are used for all products within designated categories, controlled by the maximum charges as set out in the Alberta Electronics Designation Regulation. Retailers remit the fees direct to Alberta Recycling, which uses them to fund the cost of collection, transportation and processing of e-waste. 131 Ontario Electronic Stewardship In contrast, Ontario Electronic Stewardship (OES) is an industry led not-forprofit stewardship organization. It was formed in 2009 by Ontario s leading retail, IT and consumer electronics companies in order to fulfil their obligations under the Waste Diversion Act (2002), at the instigation of Waste Diversion Ontario (WDO), the body established by Ontario s Minister of the Environment to develop and implement waste diversion programs to meet the requirements of the legislation. Ontario Electronic Stewardship arose from the recommendations of a WEEE working group, involving industry representation, for the development of a diversion program for Ontario s e-waste and arrangements for the implementation and management of this plan. The organisation is governed by a volunteer Board of Directors comprising representatives of producers that supply designated e-waste to Ontario, with measures in place to ensure that there is adequate representation for all relevant products. 132 Fees are collected from producers and brand owners to fund the program and all relevant industry stewards are required by law to register with OES, submit monthly reports on products supplied to Ontario and make relevant payments to the organization. 133 Although OES sets goals and targets for 130 Alberta Recycling Management Authority website, Deathe et al., op.cit. 132 Electronics Product Stewardship Canada (2010), op.cit. 133 Ontario Electronic Stewardship website,

47 E-waste Management in Canada 46 recycling and reuse of WEEE, it does not currently impose penalties if these are missed 134. Electronics Product Recycling Association (EPRA) The Electronic Stewardship Association of British Columbia (ESABC) represents major multinational electronics manufacturers. 135 It operates a stewardship plan in which e-waste management is funded through the use of harmonized flat-rate advanced recovery fees, charged to electronics producers. ESABC has a contract with a private sector company, Encorp, which covers 60% of all collection, transportation and processing activities, with a proportion of collection services operated by municipalities and the Salvation Army (35%). Under the Stewardship Plan submitted by ESABC, all obligations and responsibilities for the e-waste program will be assumed by the newly formed Electronics Product Recycling Association (EPRA), a national stewardship organisation. 136 Other Initiatives and Organisations Electronics Product Stewardship Canada (EPA) Formed in 2003, EPS Canada is a not-for-profit organization created as a result of collaboration between the Information Technology Association of Canada (ITAC) and the Electro-Federation Canada (EFC). Its founding members represent leading electronics manufacturers: Apple Canada Inc.; Brother International Corporation (Canada) Ltd.; Canon Canada Inc.; Dell Canada; Epson Canada Ltd.; Hewlett-Packard (Canada) Co.; Hitachi Canada Ltd.; IBM Canada Ltd.; Lexmark Canada Inc.; LG Electronics Canada; Panasonic Canada Inc.; Sanyo Canada Inc.; Sharp Electronics of Canada Ltd.; Sony of Canada Ltd.; Thomson Multimedia Ltd.; and Toshiba of Canada Ltd. EPS Canada works with various partners and stakeholders throughout Canada in order to help design, promote and implement sustainable solutions for Canada's electronic waste problem. 137 E-waste Management in the Federal Government Under its Sustainable Development Strategy, Public Works and Government Services Canada (PWGSC) implemented a government-wide strategy to reduce the environmental impact of electronic and electrical equipment, through a lifecycle management approach. 134 Electronics Product Stewardship Canada (2010), op.cit. 135 Deathe et al., op.cit. 136 Electronic Products Recycling Association, op.cit. 137 Electronics Product Stewardship Canada website,

48 E-waste Management in Canada 47 World-class E-waste Processing and Research Facilities Canada has many state-of-the art e-waste processing facilities, and is leading the world in many aspects of e-waste management research. For example, the Edmonton Waste Management Centre (EWMC) and associated Centre of Excellence is reported to be North America s biggest waste management and research facility, including a Materials Recovery Facility, the GEEP Electric and Electronic Waste Recycling Facility, a leachate treatment plant, a landfill gas to electricity system, and a research facility. Areas of active research include a waste-to-biofuels project. 138 Producer Take-Back and Buy-Back Programs Many Canadian and multinational electronics manufacturers and industry associations operating in Canada have their own take-back or buy-back schemes, in addition to participating in collective product stewardship programs. For example, the following schemes have been reported in the literature 139, although it is not known if they are still active: Apple Canada offers product take-back for a small shipping fee IBM Canada Ltd offers commercial organisations over a certain size free disposal for obsolete equipment and a buy back scheme for products with remaining market value Canon Canada Inc. offers free disposal of equipment. Sony Canada has a trade-in scheme in which consumers can receive a discount on the price of a new notebook when returning their old one. Sony also has collection points across Canada for all end-of-life Sony products, or they can be mailed back to the company with only the shipping charge to be paid by the customer. HP Canada offers a recycling service for any brand of computing hardware, for a small fee. The Canadian Wireless and Telecommunication Association has a Recycle my Cell program under which all types of cell phones can be taken to drop-off locations for free recycling, or mailed free of charge. Bell Canada has a Mobile Take-Back program, under which all mobile phones and accessories can be returned to its outlets across the country or mailed to Bell free of charge using a pre-paid label printed from the company website. Electronic Product Environmental Assessment Tool (EPEAT) Developed in the U.S. under a grant from the Environmental Protection Agency (EPA), this internationally applicable tool rates computer equipment 138 Anonymous (2009, July 7). Enerkem Announces World-Class Advanced Energy Research Center in Edmonton, Alberta, Canada. PR Newswire. 139 Wehner, J. (2008). New uses for old computers. Manitoba Business, 30(3),

49 E-waste Management in Canada 48 by environmental criteria covering a range of categories, including end-oflife management, and enables consumers to make informed purchase decisions. Although designed mainly for use by businesses, the tool is available for public use on its website. 140 To qualify for EPEAT registration, manufacturers must meet various requirements including the provision of a take-back or recycling service that meets specified guidelines. The EPA is in the process of developing similar tools to rate other electronic equipment such as televisions. Standards and Guidance Electronics Product Stewardship Canada (EPSC) is active in the development of standards and guidance and has recently produced: The Recycler Qualification Program for End-of-Life Electronics Recycling, which defines the minimum requirements for EOLE Processors and Recyclers to be considered for use under the provincial electronics recycling Stewardship Programs Design for Environment Report, which highlights the technological advances that are creating change in electronics design. 142 Analysis and Conclusion Positive Developments in E-waste Management in Canada As this paper has shown, significant progress has been made in recent years in e-waste management in Canada. Some of the main achievements and positive developments have been as follows: Policy and Program Development In Canada, as in many other countries there has been growing emphasis in recent years on the regulation of e-waste and e-waste management, in recognition of the environmental hazards resulting from rapidly growing volumes of waste Electronics Product Stewardship Canada (2010). Recycler Qualification Program for End-of-Life Electronics Recycling. Retrieved from Electronics Product Stewardship Canada (2012). Design for Environment Report Retrieved from

50 E-waste Management in Canada 49 Most provinces have already enacted legislation requiring the development and implementation of e-waste diversion programs, in order to reduce levels of disposal and increase reuse and recycling rates. Extended Producer Responsibility Extended producer responsibility is being adopted as the dominant business model in e-waste management, with this development driven largely by national and international standards and guidance which recommends the use of extended producer responsibility, or product stewardship. In Canada, this is the approach recommended in the CCME standards. The major benefit of this policy approach is that, by making producers primarily responsible for the costs of recycling e-waste, it provides an incentive to improve the environmental design of products in order to reduce these costs. ERP has also provided provinces with the flexibility to tailor e-waste management programs to the specific needs and interests of their communities and e-waste system stakeholders, through the use of different forms of fee collection. In parallel, many manufacturers of electrical and electronic products have, on their own initiative, implemented e-waste management programs such as take-back schemes, which are intended to facilitate the process of returning end-of-life products for recycling and to encourage consumers to do so. Harmonization Although e-waste management strategies and legislation are determined mainly at provincial level in Canada, programs have been harmonized to a large extent. This is largely due to the strong influence of the CCME standards and guidance on provincial legislation and guidance, as well as the efforts of Electronics Product Stewardship Canada. This producerled organization plays an active role in helping provinces design and implement e-waste management programs, and has developed a national electronics product stewardship strategy. The alignment of these standards with international regulations and guidance such as the European Union s WEEE Directive helps ensure that Canada is adopting global best practice in the management of e-waste, and eases the burden on multi-national producers of having to comply with different national systems and regulations. Growing Awareness Virtually all provincial programs have included education and awareness-raising components, in order to help ensure that

51 E-waste Management in Canada 50 consumers, manufacturers and e-waste service providers participate actively and meet their own responsibilities under the program. It can be expected that overall levels of awareness of the importance of e-waste management, and the environmental hazards of unsafe disposal, will have increased as a result. The issue of waste management more generally has been quite high profile in the media in recent years, for example there has been considerable press coverage of the introduction by provinces of environmental handling fees. Though some of the reporting has been critical, the media attention has at least helped to raise awareness among the general public of the importance of recycling. Technological Developments Considerable technological advances are being made which are likely to improve the efficiency and safety of e-waste recycling and disposal, and make e-waste management a more profitable business opportunity in future. Canada has world-class e-waste recycling and research facilities, such as the Edmonton Waste Management Centre, and is expected to lead the way in many areas of technological development. Outcomes Provincial programs have reported significant achievements in e- waste recycling and management. For example: - The Electronics Stewardship Association of British Columbia (ESABC) reported that between its establishment in August 2007 and June 2010, 35,000 metric tonnes of electronics were diverted from landfills, with an average monthly diversion of metric tonnes In its first year of operations (2009/10) Ontario Electronics Stewardship collected 17,303 tonnes of electronic waste, or 1.31 Kg per capita.144 Areas for Improvement Despite these considerable advances and achievements, a number of opportunities for continuing development and improvement in e-waste management in Canada can also be identified. Increasing Coverage and Harmonization of Programs A minority of Canadian provinces and territories have not yet Ontario Electronics Stewardship (2010) Annual Report. Retrieved from

52 E-waste Management in Canada 51 established formal regulations or programs for e-waste management. Although some degree of program harmonization has been achieved between provincial programs, there are also notable differences between them, as discussed in Chapter 2. This can complicate e-waste management compliance and increase costs for manufacturers and service providers operating in multiple provinces. Increasing Incentives for Improved Product Design Though one of the main objectives of Extended Producer Responsibility is to encourage improved environmental design of products to increase recyclability, the types of programs introduced in Canada to date are not optimized for this effect. In most cases, the costs of e-waste management are shared between producers equally, including the cost of recycling historic and orphan products. In order to encourage improved product life cycle management, Canada s electronics stewardship organisations and provincial environmental ministries might consider the adoption of fee regimes which reward producers for improved environmental design. Use of Recycling and Reuse Goals and Targets Although Canada s electronics stewardship organisations are required to monitor and report on performance to their provincial governments, there is currently little use of formal goals and targets for e-waste management, or enforcement of these by legislation. The absence of these is likely to represent a disincentive to improve performance over time. Improving Outcomes Despite good progress in e-waste management, a high proportion of recyclable e-waste is still being sent to landfill in Canada, as in most other countries. More extensive educational and awareness-raising efforts, enforcement of e-waste management regulations, improved technology and increased recycling capacity are all among the factors likely to be needed to improve rates of e-waste recycling. Promoting the Business Opportunities Most e-waste management programs have focused mainly on a) establishing and enforcing arrangements for recovery of e-waste management costs from producers, and b) raising awareness of collection arrangements and responsibilities among consumers and product distributors. Less evident from the programs established to date are efforts to

53 E-waste Management in Canada 52 increase e-waste management capacity and efficiency by promoting the business opportunities and encouraging commercial providers to enter the e-waste management marketplace. Some provinces such as Ontario have incorporated schemes offering financial support to processors, in the form of collection and transportation incentive payments per tonne of e-waste. This type of model might usefully be adopted by other programs. However, as discussed in this report, the e-waste management business is increasingly likely to become a lucrative business opportunity in its own right, without the need for direct incentives, and program administrators might usefully promote the emerging business opportunities on offer. Some examples are provided in the following section. What are the Business Opportunities? The active participation of a range of stakeholders is crucial to the future success and expansion of e-waste management in Canada. Present capacity is too limited to ensure that the majority of recyclable or reusable e-waste is collected, transported and processed. At the same time, trends for increasing volumes of e-waste in future call for improved product-life cycle management and environmentally-friendly product design to reduce overall requirements for recycling. Additionally present and future e-waste management programs and their participants will need the support of a range of business support services. Some examples of the many types of business opportunities relating to e- waste management include: Opportunities Related to Product Life Cycle Design and Waste Management Technology Design and engineering of electronics and electrical appliances Environmental consultancy Research and development into recycling and waste disposal technologies Opportunities Related to Product Stewardship and Legal Compliance Consultancy and advice on program design and performance measurement systems Development of, and marketing and support for, business tools and software (enterprise information, accounting, compliance reporting etc.) Education and awareness campaign development and marketing Customer information and advice services

54 E-waste Management in Canada 53 Distributor information and advice services Opportunities Related to e-waste Processing Product reuse schemes Product reconstruction and sales Collection services Transportation services, Design and sales of e-waste transportation vehicles Recycling services Specialised processing services for specific types of e-waste Construction of recycling facilities Construction of safe landfill sites/incinerators Manufacturing/sales of e-waste management materials and equipment Health and safety consultancy Conclusion The issue of e-waste management presents environmental and logistical challenges for Canada and its provinces and territories. As this paper has shown, excellent progress has been made in recent years in addressing these challenges, yet there is considerable room for improvement in order to ensure that volumes of e-waste are effectively controlled in future, and that the e-waste generated is managed in efficient and cost effective ways, with little or no adverse impact on the environment. If this is accomplished, there are good prospects for Canada to become a world leader in product stewardship and e-waste management. Inherent in this opportunity are potentially lucrative business opportunities in many professional, technical and service areas, as illustrated above. What s good for the Canadian environment can also be good for the Canadian economy, where e-waste management is concerned.

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