Adaptation of the EE-Regulations

The Norwegian system is considered to be successful because large volumes of EE-waste have been collected'", and handled in an appropriate manner (SFT 2004). However, challenges have been identified, which have required the authorities to revise the EE-Regulations". In particular, the following four challenges were identified (SFT 2004):

1. A large share of "free riders" among the Eli-companies'"

SFT has estimated that there are approximately 12,000 EE-companies in Norway, which account for all EE-products (SFT IllbDee, 2002). RENAS' estimated share of all the EE-companies is approximately 7,300 and the share of El-retur's members is approximately 4,700. The waste management companies report the number ofmemberships to the authorities each year. The table below sums up the different waste management companies, the collection systems, the number and share ofmembers, and the estimated share ofvolume:

Table 2.4: An overview of the waste management companies, collection systems and memberships

Eurovironment AS 0.5 %*

85%

RENAS AS 18%**

85%

Ra SeIlsAS 1.7%

*

*Share of 4,700 EE -companies.

**Share of7,300 EE -companies.

The volume of products is not equally represented across the companies. SFT has assumed that free riders account for approximately 15 % of the volume (Le. members account for approximately 85% of the volume).

17Compared tothe 80 % collection level.

18Comes into force in2005.

19 Afree.rider denotes EE-companies that import and/or produce EE-products but do not have a collection system or are members of one of the waste management companies. As a consequence, waste from these companies is collected by other collection systems, which are paid for by other EE-companies.

From the numbers, we can see that approximately 10,000 companies have not become members of any of the waste management companies. SFT assumes these to be the potential group of free riders. The value is not spread equally across the companies and it is assumed that free riders represent 10 % of the imported value. From this perspective, the problem is not large but it is still assumed to create some challenges. First, free riders are assumed to gain a cost advantage. It is assumed that free riders have the potential to save approximately NOK 40 million each year. Itis not possible to differentiate between the products being collected and, therefore, the members of the waste management companies pay for the free riders' waste handling. Second, the free riding might undermine the collection system, which could lead to hazardous waste not being taken care of, which could cause damage to the natural environment.

2. The information to the end-consumers is not satisfactory

Distributors and municipalities have been given the role of collection sites. As part of this task, they are obligated to provide the end-consumers of EE-products with information on where they can return products at end-of-life. However, from monitoring the 'collection sites', it is evident that this information is not provided (SFT Oct. 9th2002, Nov 19th2003, March 18th 2004). If the end-consumers do not get this information, the authorities fear that hazardous materials may go astray.

3. The operations are not performed according to the EE-Regulations

The authorities controlled a group of EE-companies and found that they did not operate according to the EE-Regulations (SFT Feb. 6th2001, Oct 8th2001). The controlled companies did not have systems that could cope with this responsibility. The retailers were also cheating on the Regulations to some degree in relation to the activities of collecting and handling returned EE-waste (SFT March 18th04). Retailers did not provide end-consumers customers with sufficient information about the collection systems, have proper storage areas for the collected material and some retailers did not receive products from end-consumers as was anticipated by the regulations.

18

4. The authorities have found it difficult to control the fulfillment of the EE-Regulations

As a result of working with the EE-Regulations and the industry agreements (i.e. the waste management companies and the collection systems), the authorities have identified difficulties in securing high quality control (SFT Jan. 14^th2003). The authorities have mainly focused on controlling the EE-companies. However, when EE-companies have become members of the waste management companies, it is also necessary for the authorities to control the collection systems to ensure that the obligations are fulfilled. To control a large number of companies is resource-demanding and rather controlling the collection systems than each EE-company increases the efficiency of control.

Based on these challenges, which arose from the 1998 EE-Regulations, revisions were suggested. The issues were linked to the fact that the obligations from the EE-Regulations were rather difficult to understand. As a consequence, different practices and understandings exist and, therefore, these make the systems difficult to control and follow up. In addition, the WEEE-directive20 from the EU needed to be incorporated into Norwegian law. The new EE-Regulations were implemented August 13th2005.

The revisions are expected to enable the following consequences (SFT 2004):

• Simplification of the regulation of importers and manufacturers. EE-companies are obligated to join a certified collection system, either an industry system or an individual system. As long as the systems are certified, the authorities are better placed to control free riders (the EE-companies need to provide a certification document).

• The authorities need to implement specific demands (specific criteria) on the collection systems (i.e. the waste management companies) rather than towards on the importers and manufacturers. The authorities expect that certification of the collection system will encourage compliance with the demands (specific criteria).

• The demands on distributors and municipalities are to continue as they are but they need to be made clearer and easier to understand. The mandate to control these actors is placed on the local authorities".

• Incorporation of the WEEE directive. The directive covers fewer products than the Norwegian regulation and, therefore, Norway has been allowed to keep the broad scope ofproducts in the EE-Regulations.

20Waste from Electrical and Electronic Equipment - directive 2002196.

o The directive demands a realistic possibility for the producers and importers of EE-waste to choose between an individual or collective system. Continuance of the industry agreements secures collection systems for all kinds of EE-waste. The industry is expected to provide a realistic possibility to set up competing and individual systems. The demand of an 80% collection rate is continued.

o The directive demands a register of all importers and manufacturers, which includes imported volume, collected volume, recycled volume and exported volume. Registration should make it easier to detect free riders and identify the correct volume statistics.

Reading between the lines of the EE-regulations, it sounds as ifthe collection systems and the waste management companies are to be the main focus for the future. The collection systems have been given a greater number of direct obligations, plus the responsibility of managing the cost of these obligations. At the same time, however, the WEEE directive provides an opening for importers and manufacturers to take greater individual responsibility. Such a development may cause a tension towards the collection systems, as these systems have a collective responsibility.

The authorities are demanding that collection system have certification, and are in this manner also increasing control. This means that indirect control is to replace direct control. The level of control is to increase in total because distributors and EE-companies that do not fulfill their obligations are given increased focus. The authorities argue that the new way of controlling makes it easier to control but also gives increased control (8FT Jan 14th2003).

The challenges with and adaptations of the EE-Regulations have shown that there is room for interpretation in the system. Therefore, the waste management companies have an important role in administrating the collection systems and stakeholders. The next section addresses the different sectors in the industry which we refer to as "the industry for the collection of EE-products at end-of-life".

21In Norwegian: Fylkesmannen.

20

2.4 The industry for the collection of EE-products at