Presentation 17 George Tang SIRIM 20060817

Emerging Environmental Requirements for Electrical & Electronic Products - Strategies and Technical Solutions for Compliance and Business Benefits Penang, Malaysia Sep. 4-8, 2006: 

Emerging Environmental Requirements for Electrical & Electronic Products - Strategies and Technical Solutions for Compliance and Business Benefits Penang, Malaysia Sep. 4-8, 2006 Developing the Best Practices and Business Benefits through the APEC Cleaner Production Seed Team of Green Electronics Mr. George Tang Project Manager, Energy and Environment Laboratories, Industrial Technology Research Institute (ITRI) Hsinchu, Taiwan E-mail: georgetang@itri.org.tw Tel: 886-3-573-2663

Outline: 

Outline Industrial Technology Research Institute (ITRI) APEC and EU The Two Planned Task of The APEC Seed Team of Green Electronics The Engagement of the The APEC Seed Team of Green Electronics Conclusions

The Industrial Technology Research Institute - ITRI: 

The Industrial Technology Research Institute - ITRI a non-profit R&D organization engaging in applied research and technical service. founded in 1973 by the Ministry of Economic Affairs (MOEA) to attend to the technological needs of Taiwan's industrial development. ITRI has played a vital role in the transformation of the economy from an agriculture-based model to an industrial one. By year 2001 it has grown to a 6000 people operation, and serves as the technical center for industry and an unofficial arm of the government's industrial policies in Taiwan. Backed by its broad research scope and close industrial ties, ITRI is becoming an increasingly active member in the global industrial R&D community.

Slide4: 

Electronics and Optoelectronics Research Laboratories Center for Measurement Standards Industrial Economics and Knowledge Center Nanotechnology Research Center Creativity Laboratory Technology Center for Service Industries Core Lab Focus Center Linkage Center Business Development Unit Biomedical Engineering Research Laboratories Energy and Environment Research Laboratories Material and Chemical Research Laboratories Information and Communications Research Laboratories Mechanical and Systems Research Laboratories Display Technology Center SoC Technology Center Photovoltaics Technology Center Medical Electronics and Device Technology Center RFID Technology Center ITRI HQ staff Technology Transfer and Service Center International Business Center Office of Strategy and R&D Planning (Draft as of August 2006)

Slide5: 

Pollution Control wastewater treatment air pollution control waste treatment and recycling Green Production and Consumption ISO-14000 and industrial EMS cleaner production life cycle assessment(LCA) eco-labeling Industrial Safety process hazard analysis and risk assessment cleanroom smoke hazard control microcontamination control open-path FTIR design and assembly Sustainable Development energy efficiency and renewable energy natural resources preservation policy support geographic information system ITRI and the Development of a Sustainable Future ITRI and the Development of a Sustainable Future

What is the APEC?: 

What is the APEC? Established in 1989 to further enhance economic growth and prosperity for the region Seek for “a community of Asia Pacific economies,” Adopted 1994 Bogor Goals: free and open trade and investment in the Asia-Pacific by 2010 for industrialized economies and 2020 for developing economies Now APEC has 21 members - referred to as "Member Economies"

Slide7: 

Source: APEC, APEC at a Glance (Singapore: APEC Secretariat, 2005).

The Importance of APEC: 

The Importance of APEC accounts for approximately 40% of the world's population, accounts for approximately 56% of world GDP and accounts for about 48% of world trade. APEC's 'Three Pillars', focusing on three key areas: 1. Trade and Investment Liberalizations 2. Business Facilitation 3. Economic and Technical Cooperation

The Importance of EU Directives on Green Electronics: 

The Importance of EU Directives on Green Electronics REACH (Registration, Evaluation, and Assessment of Chemical Hazards); EuP （The Energy using Products) RoHS (Restriction of Hazardous Substances); and WEEE (the directive on Waste Electronic and Electric Equipment). All are complex pieces of legislation that will have an impact on a vast spectrum of products, particularly electronics, that are made, sold, used, and disposed of.

Slide10: 

All these rules apply obviously also to IMPORTED PRODUCTS As they require product re-design, And since EU is significant market for global exports = DE FACTO GLOBAL STANDARD The Importance of EU Directives on Green Electronics (Continued)

The major trade partner of EU : 

The major trade partner of EU Source: DG Trade

The Timely and Relevant Strategies in View of the Current EU and APEC: 

The Timely and Relevant Strategies in View of the Current EU and APEC Build up the the APEC Cleaner Production Seed Team of Green Electronics Tasks Build up the APEC involvement in the EU decision-making processes for favarable WEEE/RoHS (revised), EuP, and REACH Build up the APEC to become the “ privileged partner” with EU as other influential international organizations on EU’s policy and legislations

The First Planned Task of APEC Seed Team of Green Electronics: 

The First Planned Task of APEC Seed Team of Green Electronics Build up the APEC involvement in the EU decision-making processes for favarable WEEE/RoHS (revised), EuP, and REACH to APEC

Two concrete opportunities : 

Two concrete opportunities EuP Consultation Forum EC call to join EuP Consultation Forum EuP is currently only a framework Detailed implementing measures still need to be decided upon Consultation Forum will play a crucial role in helping determine these measures ITRI Taiwan initiative to apply for Consultation Forum membership! RoHS / WEEE Review process End June 2006 launched by European Commission Will allow you to give detailed input and comments for upcoming amendments of RoHS / WEEE Basically everything is open for discussion

Slide15: 

Concrete involvement, and a regular/permanent effort will allow APEC To regularly express its opinions & positions To defend its interests To have guaranteed access to information (not publicly available) To take on a leading role within APEC on these issues To promote its innovative work in this field And to further stimulate this innovative drive APEC can galvanise/translate the key role which it already has in the supply chain And claim a voice and influence by leveraging this key role Broader involvement of APEC in the EU decision-making processes

ITRI Taiwan’s Experiences on the involvement in the EU decision-making processes : 

ITRI Taiwan’s Experiences on the involvement in the EU decision-making processes Applying for EuP Eco-design Consultation Forum (Jan-Mar 2006) in response to Call for applications in the context of Directive 2005/32/EC (EuP: Eco-design of Energy using Products) establishing a group of experts called “Eco-design Consultation Forum”

Difficulties of Taiwan Industries In Response to WEEE/RoHS: 

Difficulties of Taiwan Industries In Response to WEEE/RoHS Deficient awareness of high level management of business Incapable to control the extent of impact and effect Not easy to control the green supply chain system Deficient coordination ability of supplying companies Not easy to acquire and manage EU immediate information Deficient involvements in EU and negotiations with international large scale enterprises

Eco-design Consultation Forum: 

Eco-design Consultation Forum Define and review implementation measures Monitor the efficiency of the established market surveillance Assess voluntary agreements and other self-regulatory measures taken in EuP consulted by the Commission during the periodic modification of the working plan. Basis Tasks Directive 2005/32/EC (Article 18) establishes a group of experts called “Consultation Forum” allow stakeholders to be informed and provide their contribution on the implementation of the Directive.

Eco-design Consultation ForumMemberships: 

Eco-design Consultation Forum Memberships composed of maximum 50 members including one representative from each Member State and acceding country; open for observers from candidate and EFTA countries Candidate including SMEs, craft industry, trade unions, traders, retailers, importers, environmental protection groups and consumer organizations.

Eco-design Consultation ForumCriteria of Selection: 

Eco-design Consultation Forum Criteria of Selection proven competence, experience and representativity, at European level, in the areas relevant for Directive 2005/32/EC the representatives participating in the expert group meetings must be nationals of a Member State of the EU or, if appropriate, of an acceding state or of an EFTA country. All applicant organisations must describe in full their experience, expertise and representativity.

ITRI’s application documents for the EuP Eco-design Consultation Forum: 

ITRI’s application documents for the EuP Eco-design Consultation Forum I. Taiwan and the EU II. Industrial Technology Research Institute ITRI Western Europe Office I. Representativity ：7 letters of support The EU Economic and Trade Office Taiwan EPA Department of Industrial Technology, Ministry of Economic Affairs Taiwan Electrical and Electronic Manufacturers' Association Taiwan Semiconductor Industry Association Taiwan TFT LCD Association Taipei Computer Association

ITRI’s application documents for the EuP Eco-design Consultation Forum (Continued): 

ITRI’s application documents for the EuP Eco-design Consultation Forum (Continued) IV. Experience and Expertise 1. Energy saving technologies 2. Resource Usage 3. Waste Treatment 4. Industrial Safety V. Expertise on Eco-design Life cycle assessment technology Green Product design technology

ITRI’s application documents for the EuP Eco-design Consultation Forum (Continued): 

ITRI’s application documents for the EuP Eco-design Consultation Forum (Continued) VI. Interest in the Eco-design Consultation Potential contribution of ITRI to the eco-design of the EuP products Note book computer (Lot No.3 laptops computer) LCD computer monitors (Lot No.3) and LCD TV (Lot No.5) Information and Communication (IC) products

ITRI’s application documents for the EuP Eco-design Consultation Forum (Continued): 

ITRI’s application documents for the EuP Eco-design Consultation Forum (Continued) Taiwanese Information products that make up the highest percentage of total global Production

Taiwanese Communication products that make up the highest percentage of total globalproduction: 

Taiwanese Communication products that make up the highest percentage of total global production

Slide26: 

EuP Directive 14 lots of products for preparatory study Final report Draft of implementation measure Proposed by EU Commission Impact assessment, amendment Vote by Regulatory Committee Approved Disapproved Raised to Council Approved Disapproved Amendment by EU commission Or re-submission Industry EuP Eco-design Consultation forum The Role of EuP Eco-design Consultation Forum In the Decision Making Process

EuP Timeline: 

EuP Timeline EuP Directive (2005/32/EC): July 2005 Build up of Consultation Forum: End of 2006 Regulatory Committee: The third quarter of 2007 EuP Working Plan: By July 2007 Transposition of EU in EU member country: By August 2007 The First version of Implementing measures: End of 2007

The Second Planned Task of APEC Seed Team of Green Electronics: 

The Second Planned Task of APEC Seed Team of Green Electronics Build up the APEC to become the “ privileged partner” with EU as other influential international organizations on EU’s policy and legislations

Influential international organizations on EU’s policy and legislations : 

Influential international organizations on EU’s policy and legislations ECITA ( European Information & Communications Technology Industry Association) ORGALIME (The Voice of Europe Digital Technology Industry) AeA (American Electronics Association) JBCE (Japanese Business Council in Europe)

EICTA: 

EICTA EICTA European Information, Communications and Consumer Electronics Technology Industry Association 36 national digital technology associations from 27 countries 57 direct corporate members Including many Japanese companies (Sony, NEC, Toshiba, Epson, ..) Work focusses on 4 key policy groups, incl. Environmental Policy Has official ‘partnership’ links with other associations Incl. JBCE, EU car industry, EU chemicals industry, …

Slide31: 

AeA Europe EU offshoot of broad US technology association Direct EU membership of approx. 50 companies (Microsoft, Sun, Dell, Intel, HP, ..) Acts in close cooperation with other US interest groups & EU trade associations Are supported by the economic power of their member companies But being ‘American’ does not always work in their favour with sometimes nationalistic MEPs Also applied for EuP Consultation Forum membership AeA Europe

Slide32: 

Orgalime European Engineering Industries Association (mechanical, electrical, electronic, and metalworking) Its members are national associations Represents +/- 130 000, 7 million employees Claim to represent more than a quarter of the EU’s manufactured output Is not very accessible, and not very transparent in its decision-making Used to have tendency to be rather conservative in its positions Is usually part of the broader ad hoc EEE coalition Orgalime

Japan Business Council in Europe: 

Japan Business Council in Europe Established in 1998 Secretary General is METI official (Director level) Co-locates with JMCTI – also share staff and financial resources (total between 8 – 10 staff, including adminstrative) Growing membership Currently 60 companies with operations in the EU (Sony, Hitachi, Toshiba, Nissan, .) 8 committees Environment, CSR, Public Affairs, Trade, Consumer Policy, Corporate Policy, Information Society, Standards & Conformity Most active since 1998: environment committee But: growing membership is creating internal conflicts of interst e.g. REACH – chemical users vs chemical manufacturers

The Key Objectives of JBCE: 

The Key Objectives of JBCE contribute to EU policy issues in a positive way by utilizing the expertise developed in specific fields, such as environmental protection and technological innovation, drawing upon the experience gained in Japan and other countries. JBCE wishes to become one of the business-based organizations contributing to the achievement of EU goals.

How JBCE became “a player”: 

How JBCE became “a player” Intensive discussions on draft WEEE/RoHS proposals started in 1998 Was the first big issue for JBCE, and actually still is JBCE was surprised by the extent to which you can actually have access to decision-makers (MEPs, EC, national officials) If you are a representative organisation With a valid interest/concern Developed a focussed campaign on a limited number of key issues (3-5) and Drafted amendments around those issues Drafted position papers & targeted communication for various audiences Set up programme of meetings with MEPs during EP 1st reading Focussed on opinion formers within political groups, committees Looked for “champions” on our issues Did not work together closely with other associations at this stage

Consequences for JBCE: 

Consequences for JBCE In 1998 it was not easy to get access to information But now: JBCE is almost automatically invited to Commission seminars, working groups, and has priveleged access to officials and key MEPs Is closely involved in the cooperation between the leading trade associations in the electronics sector This ensures immediate access to all the information on new developments (positive & negative) JBCE will work with the other associations if it can achieve its goals this way If this is not possible, JBCE will push for its position on its own

Position paper proposed by the Environment Committee of JBCE: 

Position paper proposed by the Environment Committee of JBCE JBCE-response RoHS exemption Consultation No.l & 7 Consultation No.4 Consultation No.5 Consultation No.6 Consultation No.6 PDP Attachment

Consultation No. 1 Lead in tin whisker resistant coatings for fine pitch applications No.7 Lead in connectors, flexible printed circuits, flexible flat cables : 

Consultation No. 1 Lead in tin whisker resistant coatings for fine pitch applications No.7 Lead in connectors, flexible printed circuits, flexible flat cables JBCE(Japan Business Council in Europe) 11 February 2005 We, JBCE, support the following two comments concerning items No. 1 and No. 7, both of which belong to the category of tin whisker problems in electronics areas.

Consultation No.5：Hexavalent chromium (CR Ⅵ) passivation coatings: 

Consultation No.5：Hexavalent chromium (CR Ⅵ) passivation coatings Title：Hexavalent chromium as an anti-corrosion in black color Zinc plated parts. JBCE(Japan Business Council in Europe) 11 February 2005 － Do feasible substitutes currently exist in an industrial and/or commercial scale?

The JBCE’s role for European Countries: 

The JBCE’s role for European Countries Because Japan has had constraint on natural resources and has faced with severe international competition, we have gained advanced experience on technological developments for environmental concern (e.g. Non-F gas refrigerator, Hybrid car “Prius” ). Such technologies directly solve the conflicts between price and environmental requirements in the market and have been favorably accepted. In case of creating new regulations in EU, we can support policy makers on workability of schemes using our practical experience (e.g. waste management for electronics). We acted as “supplements”. We also share this European value with European and US Industrial Associations (UNICE, EICTA, Amcham etc.) because business sector was much globalized and therefore we had been put in a similar situation. As a result, we managed to build a constructive relationship with consumers, business organizations and policy makers. Source: Nobuyuki HIRATSUKA

The JBCE’s role for Asian Supply Chain: 

The JBCE’s role for Asian Supply Chain Even in case of SMEs in developing country, once involved in the global supply chain, quick adjustment is required because final products checked by European market consists of their parts. The part of our Asian business partners sometimes reaches a high level. On the other hand, our adequate support for them is really needed because they are unaware of European affairs. In this case, “Check-box” approach should be avoided because it never contributes to our partners’ and their society’s socio economic development. Rather, we should make use of our long-term relationship with our partners through quality control process (mainly human development) and patiently deal with this issue. By doing so, we can finally deliver reliable and sustainable solution for the engagement of our Asian partners. Source: Nobuyuki HIRATSUKA

The Engagement of APEC Seed Team of Electronics to the Planned Tasks: 

The Engagement of APEC Seed Team of Electronics to the Planned Tasks APEC Forum on Eco-design and Green Supply Chain (Tentatively) Date: 7-9 November, 2006 Venue: Taipei, Taiwan Speakers: key-note/panel Official of DG TREN, European Commission Senior Researcher, Fraunhofer IZM Representatives of JABCE, ECITA, AeA, Orgalime Representatives of APEC economies Theme EuP, Eco-design, Green supply chain Eco-design Consultation Forum APEC Seed Team of Green Electronics

Conclusion:Supply chain and regulation: 

Conclusion: Supply chain and regulation WEEE, and in particular RoHS, can not work without the supply chain EuP is about the impact of a product throughout its entire useful life Including obviously design, production & marketing = supply chain REACH requires constant and intensive information sharing and communication up and down the supply chain Active role of APEC is not only required, it’s a tremendous opportunity, The APEC Seed Team of Green Electronics will facicltate the sucess of this mission!