Submission to the Waste Management Policy Group of the Environmental Protection Department on "A New Producer Responsibility Scheme for Waste Electrical and Electronic Equipment"

1. The Consumer Council ("CC") is pleased to submit views to the Waste Management Policy Group of the Environmental Protection Department regarding the consultation on "A New Producer Responsibility Scheme for Waste Electrical and Electronic Equipment" ("Scheme").
2. CC appreciates the environmental concerns of waste electrical and electronic equipment ("WEEE") and therefore recognizes the importance of shared responsibility by various parties towards proper management of WEEE.
3. Concerning the current Government proposal, CC has the following comments:

The Scheme

4. CC notes from the consultation document the objectives, aims and targets of the proposed Scheme. CC considers that the current proposal focuses primarily on collection and handling of WEEE. As WEEE contains hazardous components and a growing trend of WEEE generation is expected in Hong Kong, apart from recovery and recycling, it is equally important for the Government to devise measures and targets for reduction of WEEE. CC therefore invites the Government to review the scope of the Scheme to address also the issue of WEEE reduction.

Product Coverage

5. The current proposal is for bulky electrical and electronic equipment and computer products to be regulated under the new Scheme. CC notes the Government reckons that 86% of WEEE in Hong Kong comes from these two categories and they generally contain more hazardous substances than other WEEE products. However, with the growing use of small household appliances or fast moving products e.g. lighting equipment and other products such as mobile phones, digital cameras and video game equipment, consumers are more inclined to change rather than to repair the product. Such behaviours emerge as an environmental concern. For effective reduction of WEEE, it is therefore recommended that the Government should review from time to time the scope of products to be managed under the scheme or otherwise.

WEEE Management Contractor (WMC)

6. It is stated in the consultation document that at present about 60 kilotonnes (~80%) of WEEE generated in Hong Kong is sold through second-hand dealers to developing countries for recycling and 10 kilotonnes (~20%) goes to the three strategic landfills in Hong Kong. Alongside permit controls for the import and export of used regulated products and regulated WEEE, landfill disposal ban, and licensing for the handling and storage of WEEE, the Government proposes to appoint by open tender one or multiple WEEE management contractors (WMCs) to provide WEEE collection and self-sufficient recovery and recycling services locally.
7. CC supports the proposals aimed at protecting our environment and health. However, CC is of the view that more thorough analysis (such as financial, economic, technical and physical analysis) will be needed in assessing the feasibility of local WEEE processing and its impact on the trades and the public. Moreover, as the fewer the market participants the greater the risk that competition will not evolve to its fullest extent, CC considers that monitoring conditions must be imposed as terms of the WMC tender to ensure efficiency and cost-effectiveness and to safeguard against anti-competitive conduct.

Producer Responsibility

8. Consumers along with manufacturers, importers, brand agents, distributors and retailers are all stakeholders in the ultimate production of WEEE. For that reason, justification is imperative if costs of the WEEE Scheme are to be borne in full by consumers. As a matter of fact, if manufacturers, importers, brand agents, distributors and retailers do not have to bear the costs involved, there may not be sufficient incentive for them to design, produce, distribute or market more environmentally preferable products. Without desirable and competitive greener options, the WEEE problem will persist or even accelerate. CC therefore re-iterates the view set out in paragraph 4 above that measures and targets must be devised for effective reduction of WEEE.
9. The Government proposal is intended to promote producer responsibility. CC therefore considers that all stakeholders in WEEE production should be responsible for some of the costs of the Scheme.

Charging Method

10. As the level of contribution is yet to be determined, CC is of the view that which of the three charging methods suggested by the Government is preferable over the others is not immediately apparent. For instance, a visible fee collected from consumers as a separate payment on top of the retail price could serve as a useful reminder of environmental responsibility or conversely as a source of resentment depending on whether the fee is considered reasonable. An inclusive fee incorporated into the retail price might realize the concept of shared producer responsibility through cost internalization along the supply chain, but whether the purpose could be served depends on whether the costs involved are wholly or partially passed on to consumers. CC considers that an appropriate charging method should observe certain basic principles:
    1. the fee should be reasonable;
    2. the charging method must be fair;
    3. there should be clear accountability of the fee collected and it should be seen to be invested on WEEE reduction or environmental education; and
    4. the charging system should be subject to review / monitor to take account of changing circumstances.

Role of Government

11. Dumping WEEE in landfill not only wastes resources some of which may be recyclable but also creates toxic substances which will remain for generations to come. CC therefore supports the introduction of an environmentally sustainable system to ensure that WEEE is reduced and processed in a responsible way. However, the success of the system depends on many factors. Apart from active participation of relevant industries and consumers, the WEEE system should be subject to overseeing, enforcement and monitoring measures, and it may be necessary for the Government to assist at the initial stage, both financially and technically, for development of the recycling industry in Hong Kong.