A study on developing a National Household E-Waste

Policy for Malaysia

Zaipul Anwar ZainuMalaysia Japan International Insitute of Technology

Universiti Teknologi Malaysia7th November 2015

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Structure of this presentation

1. E-Waste is a pressing environmental issue2. Economic opportunity on e-waste3. E-waste lifecycle in Malaysia4. The need to have a national e-waste strategy5. Three approach on e-waste management6. Current challenges for Malaysia7. Ingredients for success

E-Waste: Is A Pressing Environmental Issue like a time

bomb waiting to explode

E-Waste: Environmental Issue

• Inappropriate end-of-life management of e-waste can create toxic environmental impacts:– Manual dismantling: people dismantling electronic

and electrical equipment manually may suffer health impacts

– Landfill: toxic substances in e-waste can contaminate water sources and ground soil with cadmium, mercury & lead, and release CFCs

– Incineration of e-waste plastics generates harmful dioxins and furans

Nevertheless there is an Economic Opportunity on E-waste

E-Waste: Economic Opportunity

• The growing e-waste economic opportunity is driven by:• Valuable components and materials contained in

electronic waste (e.g. gold, copper, silver, palladium, indium)

• Regulatory approaches such as Extended Producer Responsibility (EPR) schemes that ensure additional financing for collection and recycling activities.

The E-Waste Life Cycle

in Malaysia

Collection

Consumption

Transport

Sorting

Secondary processing

Depollution DismantlingShredding

Landfill Reuse

E-Waste Import

Collection

Treatment

Secondary raw materials Output

Generation& Stockpilling

The need to develop a national household e-waste strategy

• At the moment no laws specific to household e-waste. A national strategy implemented by regulation may have the objective to:

• Determine the basis on which the market is organized – and make it profitable to enter the market

• Mitigate health and environmental risks from toxic substances in e-waste.

• Reduce pressure on primary commodities in a world with dwindling resources.

Based on my study there are 3 approaches to E-Waste Management in the world

• Extended Producer Responsibility (EPR)– European

• Consumer Pays – Japan

• Mixed Model– US

Extended Producer ResponsibilityEurope: Producers and importers are responsible for their products Advantages:•New industry created in collection, dismantling & processing of e-waste•Better design of products to reduce compliance costs •Encourage high and growing collection rates

Disadvantages:•Higher product costs born by consumers •Enforcement costs

Consumer Pays Japan: Retailers are responsible for collecting end-of-life products.But consumers pay at the time of disposal, between $20 - $80 (USD)

Advantages:•Strong and achievable targets, including focus on harmful wastes (CFCs)•Up-front payment by user ensures finances recycling

Disadvantages:•Weak producer incentive to improve product design•Weak monitoring and frequent violations by retailers•Illegal dumping by consumers to avoid paying the fee

Mixed Model

The US: No consensus of industry & government on financing, therefore no federal regulations:

– Patchwork of state regulations, mostly based on limited or full Extended Producer Responsibility

Advantages:•Low cost to manufacturers & distributors & space for different approaches to flourish

Disadvantages:•Low and patchy e-waste recycling activities•Patchwork of regulations hinders industry development nationally•No national awareness of e-waste issues

What are other emerging economies doing?

• The big question for larger economies is whether & how to do smelting and processing domestically or focus on dismantling and initial processing for export

• India

• South Africa

India

• Still working on draft law to:

• Introduce extended producer responsibility • Define and include stakeholders • Ban the import of used electrical and electronic

equipment for charity in the country.• Formalize the very large informal sector

South Africa

• 2009 Waste Act makes manufacturers and importers must define an Industrial Waste Management Plan (IWMP) before they can sell products in South Africa

• Producers and importers gathered in the e-Waste Association of South Africa (eWASA) to implement their IWMP

• Consumer Protection Act forces retailers to accept take-back from consumers buying a new product

Study on what is the best system/policy for Household E-waste Management in Malaysia

Objective: whichever approach is chosen, the national strategy should aim to:•Clear roles and responsibilities among e-waste actors •Definition implementation mechanisms and institutional support, as well as enforcement measures

Current challenges for Malaysia

• Importing & lack of control over producers• ‘Donations’ and dumping• Size of economy and e-waste feedstock• Transport infrastructure• Informal sector competes for feedstock• Smelting & processing is highly capital-

intensive• Enforcement, Enforcement, Enforcement

Essential ingredients for successNational strategy should include:•Discussion with all stakeholders: producers, importers, retailers, consumers, refurbishes, recyclers, dismantlers, scavengers, NGOs, academics, environment & other enforcement agencies•Financial scheme that allocates costs of collection & treatment•Reasonable and progressive targets to keep the momentum going•Public awareness - raising•Enforcement measures

Thank you for your attention!