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Regulatory Update E-waste Activity in Canada:

1 IEEE & Recycling Summit May 13, 2004 Scottsdale, AZ Michael VanderPol Environment Canada Regulatory Update E-waste Activity in Canada

Overview:

2 E-waste in Canada Extended Producer Responsibility (EPR) Provincial Update of EPR activity Environment Canada EPR activity National EPR Program for E-waste Overview

E-waste in Canada:

3 E-waste in Canada Concern over hazardous content & growing quantity 158,000 tonnes (~ 5.0 kg per capita) of e-waste disposed in 2002 e-waste disposal projected to increase by 30% by 2010 May pose risks if improperly managed at end-of-life landfill, incineration, recycling Canada’s e- recycling infrastructure is inadequate Growing public concern considerable press & media interest Growing emphasis on environmentally sound management

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4 Quantities of IT, Telecom & Other E-waste Recycled & Disposed in Canada Environment Canada, June 2003. Baseline Study of End-of-Life Electrical and Electronic Equipment in Canada Environment Canada, October 2003. Draft 2003 Update of IT & Telecom Waste in Canada Telephone / Fax Equipment Household Appliances Kitchen Appliances Audio / Visual Monitors (CRT) Scanners and Printers Computers Televisions 0 k 50 k 100 k 150 k 200 k 250 k Recycled Disposed Recycled Disposed Year 2002 Year 2010* Quantity of End-of-life Product (tonnes) * Projected Quantities

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5 Estimated Quantities of Toxic Substances Found in Select E-waste Disposed in 2002 Environment Canada, June 2003. Baseline Study of End-of-Life Electrical and Electronic Equipment in Canada Environment Canada, October 2003. Draft 2003 Update of IT & Telecom Waste in Canada Microelectronics and Computer Technology Corporation (MCC), 1996. Electronics Industry Environmental Roadmap . Austin, TX Quantity of Toxic Substance (tonnes) VCRs Stereo Receivers Microwave Ovens Televisions (CRT) Computers (CRT) Mercury Cadmium Lead 0 2 4 6 2 k 4 k 6 k

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6 Material Composition of Personal Computers Silica/glass 26% Plastics 23% Ferrous metal 20% Zinc 2% Aluminum 14% Mercury 0.002% Copper 7% Cadmium 0.009% Lead 6% Other 2% 2002 Disposal in Tonnes Pb 3,100 Cd 4 Hg 1 Fe metal 10,000 Al 7,000 Cu 3,400 Plastics 11,300 Microelectronics and Computer Technology Corporation (MCC), 1996. Electronics Industry Environmental Roadmap. Austin, TX

E-waste processing capacity in Canada:

7 E-waste processing capacity in Canada Refurbishing: Computers for Schools (60,000 units/yr; >50 facilities) Private facilities Shredding: Traditional shredding & separation equipment Results in ferrous, non ferrous, and other reduced electronic scrap Maxus Technology (Alberta) Noranda (Ontario) Inadequate capacity – Noranda facility can process 20k tonnes/year Other small scale processors & brokers (some transshipment) Reduced (& non-reduced) e-waste is generally transported to Noranda, Rouyn to recover precious/non-precious metals

Extended Producer Responsibility: A response to e-waste :

8 Confers financial or physical responsibility for managing end-of-life products to the producers that made them Recognizes that producers control how products are designed & marketed Internalizes the life cycle costs (i.e. environmental & other impacts) of a product in the product price May provide an incentive for producers to design products with environmental considerations in mind Extended Producer Responsibility: A response to e-waste size & material content longevity & durability hazardous & toxic materials repairability reusability recyclability

EPR & Product Stewardship Initiatives in Canada:

9 EPR & Product Stewardship Initiatives in Canada Authority over solid waste generally rests with provinces Provinces support EPR approaches

Environment Canada Generic EPR Activity:

10 Promote & facilitate national approaches to EPR (e.g. CFCs) Participation in OECD EPR Work Programme (since ’95) Developed tools to support EPR development in Canada Guidance Manual for Establishing, Maintaining & Improving PROs Assessing When to Implement EPR EPR & Stewardship Website (www.ec.gc.ca/epr) Co-hosted 3 rd national EPR Workshop in Halifax (Mar ‘04) Exploring how to position EPR as a risk management tool for products containing toxic substances under CEPA 1999 Environment Canada Generic EPR Activity

Environment Canada Fostering National EPR for e-waste:

11 EC, IC & NRCan jointly approached industry in 2001 Industry committed to developing a national approach EC studies: baseline studies survey of toxic substances in select electronics hazard risk assessment of e-waste processing (summer ‘04) EC chair & secretariat to national steering committee Participating in NA CEC voluntary industry challenge Environment Canada Fostering National EPR for e-waste

Electronics Industry Response:

12 Electronic Product Stewardship formed in Mar 2003 16 major brandowners ($400K investment) 90% of laptop, printer & TV market; 50% of PC market Industry support for regulation to level playing field Awaiting regulations before program implementation Suggest PCs, laptops, TVs & printers be targeted initially Financed through voluntary industry product levies PCs & Televisions: $20 - $25 Laptops & Printers: $2 - $7 Regulations will determine full scope of products covered Ongoing consultation with provinces & other stakeholders Electronics Industry Response

Regional activity concerning e-waste:

13 EPR regulations signalled Other types of engagement (working groups, studies, etc.) Regional activity concerning e-waste No activity at this time

Regional activity on e-waste British Columbia:

14 2002-2005 Industry Product Stewardship Business Plan Lays out principles: producer responsibility, level playing field, results-based, transparency & accountability Identifies shift towards “results-based” regulation Drafting generic EPR regulation to target multiple products Modeled on Post-consumer Residual Stewardship Regulation Regional consultation workshops held Mar ‘03 Sep ‘03 intentions paper lays out vision for regulation (electronics id) 75% recovery rate established as a milestone target for all products info: wlapwww.gov.bc.ca/epd/epdpa/ips/reg_review.html Draft EPR regulation will undergo BC WLAP executive committee approval (May ‘03) before proceeding to Cabinet Regional activity on e-waste British Columbia

Regional activity on e-waste Alberta:

15 Province-wide voluntary computer take-back began 2002 2002-2005 Waste Action Plan Expand EPR to include other product streams Ministerial commitment to resolve e-waste problem Regional consultation workshops held Dec ‘03 (program proposals) Will have consensus on path forward by mid May ’03 Drafting EPR regulations targeting e-waste (initial focus PCs & TVs) Tire Stewardship Board will likely become a multi-material board visible fees collected on products will be remitted to dedicated fund no cross subsidization of product streams info: gov.ab.ca/env/waste/ewaste Regional activity on e-waste Alberta

Regional activity on e-waste Saskatchewan:

16 Consultations launched Feb ‘04 mailed consultation package to specific stakeholders media release to general public concluded early May Reviewing comments Preparing position paper for Cabinet decision (Summer ‘04) Approval to draft EPR regulations for e-waste is anticipated Will prepare drafting instructions, promulgation by 2005 Regulations will initially target PCs, laptops, printers & TVs Possible use of existing bottle depot network for collection Regional activity on e-waste Saskatchewan

Manitoba:

17 2001 Draft Household Hazardous Waste (HHW) Regulation Prohibits supply of products/packaging designated as HHW unless industry operates/subscribes to a stewardship program Targets 11 categories of HHW including consumer e-waste such as TVs, PC, laptops, monitors, printers & scanners Regulation currently on hold E-waste collection pilot (Oct 2002) 92.5 tonnes collected cost $448 per tonne little in condition for resale Manitoba

Ontario:

18 Waste Diversion Ontario Regulation adopted Jun 2002 Companies that introduce packaging & printed paper into Ontario must pay 50% of net costs for municipal Blue Box Minister may also designate other products for stewardship No “cap” on industry funding for non-Blue Box materials Electronics identified as a possible candidate product for regulation in a Jun 14, 2002 press release Ontario

Quebec:

19 1998-2008 Waste Management Policy EPR a principle for waste managing waste Environmental Quality Act provides authority for EPR Draft packaging regulations Requires companies that introduce packaging & printed paper to pay 50% of net municipal costs for curb-side recycling Draft regulation posted in Mar ’04; finalization by Fall ‘04 E-waste identified as a priority issue in Quebec Recyc-Quebec (Crown Corp) affiliare working with industry & other stakeholders to recommend strategy (Fall ‘04) E-waste likely to be targeted by new generic EPR regulations Interest in cell phones, PCs, laptops & printers Quebec

Nova Scotia, New Brunswick, Prince Edward Island & Newfoundland:

20 NS the lead for a Maritimes e-waste management strategy Conducting a feasibility study examine collection, transport, infrastructure, markets & costing $100K project funded by Atlantic provinces, NRCan, EPSC & others To be completed Dec ‘04 Collection pilot in NB (West Morland, Moncton) Nova Scotia, New Brunswick, Prince Edward Island & Newfoundland Northwest Territories, Yukon, Nunavut Limited EPR activity largely due to smaller waste streams No activity concerning e-waste at this time

Next Steps:

21 Governments & industry will continue to work together Ongoing development of provincial EPR regulations Industry will be obligated to develop programs for e-waste Regional implementation strategies will be developed Planning for collection & recycling infrastructure Industry programs will likely be funded by product levies Program implementation, monitoring & reporting Next Steps

Challenges to Overcome:

22 Regulatory framework (national, regional or provincial) Collection challenges (e.g. municipal roles) Building recycling capacity in Canada Application of product levies (e.g. phone & internet sales) Stimulating Design for Environment Ensuring ESM of recycling operations Challenges to Overcome

Summary:

23 Quantities of e-waste disposed is on the rise in Canada EC continues to promote & facilitate national EPR Canadian electronics industry sector is engaged Authority over solid waste generally rests with provinces Provinces support Extended Producer Responsibility Several regions are drafting regulations affecting e-waste Summary

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