1996 Electronics Industry Environmental Roadmap - Civil and ...

Appendix J
Appendix J. European Disposition Initiatives
This appendix discusses several initiatives to develop an infrastructure for the collection and processing
of post-consumer electronics, focusing on public and consortial systems. Models from
five Northern European countries are presented, including Austria, Switzerland, France,
Germany, and the Netherlands. Based on several years of discussions and experience, these
models represent industry’s ideas on how to best manage the recycling of post-consumer goods
given the constraints imposed by government. Whether “voluntary” or mandated, each of these
models was spawned as a result of legislative activity, or in an effort to preempt mandates.
Collection systems that are fully operational (Austria and Switzerland) will be discussed first,
followed by the proposals of the French, German, and Dutch electronics industries.
Austria: A Reserve Distribution Model
Austrian producers and importers established a country-wide recycling network for refrigerators,
freezers, and air conditioners in response to a 1993 directive from the Austrian Environment
Ministry. Managed by the Umweltforum Haushalt on behalf of 40 producers and importers, the
system principally operates through a series of competitive partnerships among retail
establishments, transportation firms, and recyclers. Additionally, in some regions of Austria—
including Vienna, which accounts for almost 25% of Austria’s population—the local authorities
participate in the private system.
Customers return old refrigerators or freezers to retail establishments when they purchase a new
unit, or to participating local authorities. Under contract with Umweltforum Haushalt,
transportation firms privately negotiate with retail establishments for the collection of used
equipment. The transportation firms in turn negotiate agreements with recycling firms.
Competition between the nine transportation partners and the recycling firms ensures competitive
prices.
In the Austrian scheme, consumers pay a fee of 100 schillings (approximately U.S. $10) at the
time of product purchase, as a “down payment” for collection and recycling at the end of product
life. As proof of payment, the customer receives a prepaid coupon that is affixed to the unit. At
the end of life, the consumer returns the equipment to a retail establishment at which time he/she
must pay a disposal fee equivalent to the current market price for recycling minus the down
payment of 100 schillings. Five percent of the total recycling costs (down payment plus disposal
fee) are turned over to Umweltforum Haushalt for administrative costs (currently 25 schillings, or
U.S. $2.50 per unit). Total recycling costs are capped at 500 schillings/unit, which includes 10%
sales tax.
Although under contact to Umweltforum Haushalt, transport and recycling firms are free to negotiate
recycling rates with retail establishments. For example, lower recycling fees may be negotiated
for higher volume retail outlets, similar to new product sales. Depending on the region of
Austria, recycling a refrigerator or freezer currently costs 400 to 450 schillings, or U.S. $40 to
$45. Recycling costs have dropped over 40% in 2 years as a result of both increased competition
and experience. In fact, two months after switching from a monopoly with fixed prices to a competitive
system, recycling fees plummeted 28%.
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