Last Chance to Prepare for Waste Directive.

Originally published 14th September 2004

The European Union ("EU") has for some years been concerned over the level of waste produced within its borders and the small proportion that is recovered or recycled. Each year 1.3 billion tons of waste are produced of which 67% is incinerated or sent to landfill. On current estimates these figures will continue upwards. The EU is hoping to reverse the trend, and reduce the proportion of hazardous waste, by the introduction of two key Directives - one on Waste Electrical and Electronic Equipment ("WEEE")1, the other on the Restriction of the Use of Certain Hazardous Substances ("RoHS")2. With the DTI now consulting on their adoption into UK law, it is the last chance for producers and retailers of electronic and electrical goods to have their say and to assess the wide-ranging implications of the Directives before obligations start coming into effect early next year. Some of these implications and obligations are discussed below.

First, the definition of electronic and electrical equipment ("EEE") is broad comprising almost all goods running on mains or battery power up to certain voltage ratings3 and falling within one of 10 non-exhaustive categories of equipment4. This includes obvious articles such as PCs and less obvious ones such as sports and medical equipment and smoke detectors. The exclusions are limited - filament bulbs, household luminaries, large-scale stationary industrial tools, implanted and infected medical devices and equipment intended specifically for military purposes. Equipment that is part of another type of equipment not within the Directive's scope is also intended to be excluded but the application of this exemption is uncertain. For example, would an electric thermostat for a gas heating system be covered or not and what of the heating system itself? If these are excluded from the WEEE Directive, are they also excluded from the RoHS Directive? The Commission has recently requested legal opinions on these issues and is waiting for the responses.

Secondly, the term "producers" is also widely defined including manufacturers and sellers of own-brand EEE, businesses importing/exporting EEE into Member States, and re-sellers selling under their own brand. The WEEE Directive requires producers to set up and, from 13th August 2005, fund systems for the collection, treatment and recovery of electronic waste from private households and waste of similar nature and quantity from businesses. Placing funding obligations on producers is intended to encourage more environmentally friendly design practices. However, the Directive allows costs to be passed on to consumers through increased prices (though collection from consumers is to be free of charge). Minimum recovery rate targets are to be reached by 13th August 2006 - for most categories of goods these are between 70% and 80% by weight. New targets will be set by the end of 2008 and will raise the levels.

Producers will also have to register and to report 2004 sales data (so that their market shares can be calculated) between January 2005 and 12th August 2005. From 13th August 2005, all EEE will have to be marked so as to clearly identify the producer, production date and carry a symbol of a crossed-out wheelie bin.