Producer Responsibility:

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1 Producer Responsibility: Circular Economy Turning Waste into Resources Dr. Alain Lam 1 April 2016

2 Where we stand Limited land but sizeable waste burden Construction waste ~3900 tpd In 2014, ~14800 tpd of solid waste disposed of at landfills in Hong Kong Municipal solid waste ~9800 tpd

3 From landfill surveys Waste or resource!? We dump into our landfills: 3648 tpd of food waste 435 tpd of newsprint 378 tpd of cardboard 258 tpd of glass bottles 155 tpd of office paper 129 tpd of PET bottles and etc. At this cost

4 New day, new challenge Evolving objectives as the city develops 1980s 1990s 2000s Earlier years: Proper control of pollution Present days: Effective management of waste Future generations: Sustainable use of resources 2010s

5 Use less, waste less A key to resource sustainability

6 Ends and means Blueprint for sustainable use of resource

7 We need to change Producer responsibility is a tool to drive behavioural change WHO? Can be: manufacturers, importers, wholesalers, retailers, consumers or any other parties to bear WHAT responsibilities? Financial responsibility as polluter pays Physical responsibility to follow compliance system for WHAT environmental benefits? Ultimately achieving prevention, recycling and proper disposal of waste

8 We need to change Producer responsibility is a tool to drive behavioural change WHO? Can be: manufacturers, importers, wholesalers, retailers, consumers or any other parties to bear WHAT responsibilities? Importers Manufacturers Shared Financial responsibility responsibilities to pay recycling fee Physical responsibility to follow compliance system for WHAT environmental benefits? Consumers Retailers Recyclers Ultimately achieving prevention, recycling and proper disposal of waste Government

9 Producer Responsibilities

10 Producer Responsibility: Plastic shopping bags (PSB) First-ever PRS in Hong Kong $0.5 levy for each plastic bag provided Implemented mainly in supermarkets, convenience stores and other chain stores Starting from 9 July 2009 Effective until 31 March 2015

11 PSB: PRS concept illustrated Consumers and retailers to share eco-responsibility 90% PSB use Consumers to bear financial responsibility to pay levy, or to bear physical responsibility to practise BYOB Retailers to bear financial responsibility to absorb compliance cost, and to bear physical responsibility to follow compliance system

12 Producer responsibility Plastic bag charging already started from

13 Producer responsibility Two new mandatory schemes in the pipeline Glass beverage bottles Bill introduced into LegCo Collection network expanding Waste electrical and electronic equipment (WEEE) Bill enacted on Treatment facility under development 13

14 PRS version 2.0 for WEEE Circular economy to turn waste into resource NEW PRODUCTS In line with the polluter pays principle, recycling fee levied on new products manufactured in or imported into Hong Kong to help finance the PRS. SUPPLY CHAIN STAKEHOLDERS GOVERNMENT CONSUMERS PRS CONTRACTOR(S) PRS contractor(s) are appointed by the Government to coordinate collection of used products discarded from consumers and proper treatment by competent recyclers until they become resource again. COLLECTION AGENTS USED PRODUCTS

15 Producer responsibility Waste Electrical & Electronic Equipment (WEEE) Existing Problems Annual generation of 70,000 tonnes of WEEE in Hong Kong, mostly exported to developing countries rather than locally landfilled Progressive economic development and tightening of import control over WEEE in the developing countries, and an expected decline in the demand for secondhand products in markets outside Hong Kong Sole reliance on export as a major outlet may not be sustainable in a long run 15

16 Producer responsibility Waste Electrical & Electronic Equipment (WEEE) Policy Objective Introduce legislation for producer responsibility scheme in line with polluter pays Coupled with new treatment plant to be developed, to ensure proper treatment of locally generated e- waste in Hong Kong Commitment under the Blueprint for Sustainable Use of Resource 16

17 Producer responsibility WEEE legislative framework Major Amendments (I) Impose recycling levy on eight types of regulated electrical equipment (REE)* Washing machine, refrigerator, air conditioner and television Computer (i.e. desktop, laptop and tablet), printer, scanner and monitor Levy level to be determined on full-cost basis after ascertaining all costs * The above categories of REE account for about 85% of all WEEE generated in Hong Kong 17

18 Producer responsibility WEEE legislative framework Major Amendments (II) Recycling levy payable by importers and manufacturers, recoverable from other stakeholders by market mechanism Only for new products distributed in Hong Kong for the local market Fee collection mechanism broadly reflecting consensus with the trades 18

19 Producer responsibility WEEE legislative framework Major Amendments (III) Consumer purchasing new equipment may have an equivalent used item removed free of charge; sellers to make arrangements for removal service Collector to deliver the used item to a licenced recycler who has to undertake proper treatment in accordance to licence terms Ensure availability of convenient and reliable removal service at consumer s choice 19

20 Producer responsibility WEEE legislative framework Major Amendments (IV) Eight types of regulated electrical equipment subject to new provisions for disposal control when abandoned to become waste Storage, treatment, reprocessing or recycling to be licensed; Permit required for import and export Landfills no longer accepting regulated e-waste 20

21 Producer responsibility WEEE Implementation timetable First reading at LegCo on 18 March 2015 WEEE Bill enacted on 17 March 2016 Work actively to formulate operation details with members of the trade and prepare for the necessary subsidiary legislations Treatment facility to commission service in mid 2017 Full implementation within

22 Sustainable use of resource: An Illustration New products 1. Importers and manufacturers to pay recycling levy In line with the polluter pays principle, a recycling levy is levied on new products to help finance PRS. SUPPLY CHAIN STAKEHOLDERS GOVERNMENT CONSUMERS PRS CONTRACTOR 2. Recycling levy deposited in General Revenue with resource allocated to hire PRS contractor 3. PRS contractor to provide service to consumers in accordance to contract and statutory requirements (to be continued) 4. Consumers to share out recycling levies by market mechanism

23 Sustainable use of resource: An Illustration 1. Consumers entitled to free removal services and sellers required to make arrangements 2. Other means of collection available for convenient participation in e-waste recycling 3. New statutory control in place for storage, treatment, import/export and landfilling of regulated e-waste Used products CONSUMERS PRS CONTRACTOR A PRS contractor is appointed by the Government to coordinate collection of spent products from consumers and proper treatment by competent recyclers. COLLECTION AGENTS

24 Circular economy is requisite to effective recycling Source separation Reuse/recycling outlets Waste Resource Efficient collection Proper treatment

25 Producer Responsibility : Key Considerations Source separation Reuse/recycling outlets Efficient collection Proper treatment All aspects require coherent development PRS transform waste into resources to form a circular economy

26 PRS transform waste into resources All aspects require coherent development Source separation Reuse/recycling outlets Efficient collection Proper treatment

27 Enhancing WEEE Collection Service A hotline (Tel: ) was launched in Nov 2015 to provide a one-stop service CNY WEEE Recycling programme - to arrange free collection service for housing estates/ buildings that have registered for the service Schools Recycle WEEE programme to encourage recycling of computer products and other electrical or electronic products that are retired from use at schools

28 Community green stations One for each of the 18 Districts, operated by non-profit organizations to enhance green education & recycling support

29 Community green stations One for each of the 18 Districts, operated by non-profit organizations to enhance green education & recycling support

30 Sha Tin Mun, previously a temporary car park

31 Sha Tin Mun, beautified as a green public place

32 Eastern Kei Wan, underneath Island Eastern Corridor

33 Eastern Kei Wan, with improved public facilities

34 Eastern Kei Wan, night view

35 Green station in action Initial success in rebranding recycling

36 Green station in action Multi-purpose room for green activities

37 Green station in action Gathering place for community engagement

38 Green station in action Outreaching to local residents

39 Green station in action Vehicles to collect low-value recyclables

40 PRS transform waste into resources All aspects require coherent development Source separation Reuse/recycling outlets Efficient collection Proper treatment

41 Pilot Projects on WEEE Funding non-profits to operate voluntary recycling programmes to accumulate experience and to facilitate environmental education Electrical Appliances St James Settlement operates the WEEE Go Green project in EcoPark with funding from the Govt. Computers and CRT Monitors & TVs Caritas Hong Kong in Kowloon Bay recycles and donates computer products 41

42 WEEE Treatment & Recycling Facility 3 ha of land reserved at EcoPark for a treatment facility with a capacity of 30,000 tonnes per annum Design-Build-Operate (DBO) contract arrangement to hire one single WEEE Management Contractor to operate the treatment facilities for 10 years 42

43 WEEE Treatment & Recycling Facility Input Secondary raw materials Plastics Refridgerators Air Conditioners Proven Refrigerator Line, Air Conditioner Line, E- Scrap Line, 4 TV Monitor Lines Technology Alumina Copper IT / Household Iron Monitors and TVs

44 Producer Responsibility: Circular Economy Turning Waste into Resources Dr. Alain Lam 1 April 2016