WEEE/RAEE regulations in Nokia Siemens Networks...

WEEE/RAEE regulations in Nokia Siemens Networks Italia

Autori: Mario Castagna, Ilaria Di Bartolomeo,

Chiara Petrillo, Daniel Piana

Team Leader: Gianluca Sartori, Carlo Tamburello

Referenti Nokia: Paolo Redaelli, Raimonda Pettinella

Abstract As soon as the Italian legislative system has adopted the

European Directive 2002/95/CE, 2002/96/CE and 2003/108/CE it became necessary to evaluate some possible Matrixs of EEE waste management in order to be compliant with the new rules imposed by the law.

The aim of this document is to study a model to analyse a

solution and eventually confirm what Nokia Siemens Networks (NSN) has done in relation to the Waste Electrical and Electronical Equipment (WEEE) management issue.

The objective of the WEEE Adjustment Model (WAM) can

be summarized as a way to:

• Present information about normative fulfillments, concerning treatment processes, recycling and disposal

• Highlight the resources involved in the process and define reference scenarios

• Analyse opportunities and risks connected to any defined scenario

Summary Introduction .................................................................................................1 Nokia Siemens Networks ............................................................................2

Market share..............................................................................................................................................2 Products and services portfolio .................................................................................................................2

Waste Electrical and Electronic Equipment ................................................3 Directive 2002/96/CE................................................................................................................................3 Inspiring principles....................................................................................................................................5 Actors involved and their relationship ......................................................................................................6

Italian Assessment .......................................................................................7 Decree no.151 ...........................................................................................................................................7 Major differences of national legislation ..................................................................................................7 Current state ..............................................................................................................................................7 WEEE in EU countries..............................................................................................................................8

The WEEE Adjustment Model..................................................................12 The Kraljic Matrix...................................................................................................................................13 The WEEE Adjustment Model Layers....................................................................................................15 Layer 1 ....................................................................................................................................................15

The Nokia Siemens Networks Case ..........................................................18 Applying WEEE Adjustment Model.......................................................................................................18 Layer 1 ....................................................................................................................................................18 Layer 2 ....................................................................................................................................................19

The NSN Solution .....................................................................................19 Appendix ...................................................................................................20

DIRECTIVE 2002/95/CE (RoHS) ..........................................................................................................20 RoHS in EU countries .............................................................................................................................21 WEEE in not - EU countries ...................................................................................................................24

Bibliography..............................................................................................28 Webliography ............................................................................................29


Introduction The European Directives and the

Legislative Decree n.151/2005 confer to the electrical or electronic equipment producers a set of obligations and responsibilities whose importance depends on:

• The merchandising date of the

electrical and/or electronic equipment itself

• The function of the company in the merchandising chain: producer, retailer, importer

• The brand name exhibited on the equipment itself

The development of the model passed

through four different phases: 1. Study and comprehension of the

decree 2. Analysis and understanding of the

Reverse Supply Chain 3. Identification of impact areas 4. Use and adaptation of existing

theoretical models to the identified areas

First Phase: A prelimin

analysis of the Euro2002/95/CE, 2002/96/CE aPart of the analysis was aMinisterial Decrees and nDecree 151/2005 whichaforementioned directives in

In order to have the mostcurrent legislation was amember and not member E

dealt with WEEE issues directly or indirectly. Second Phase: The Reverse Supply Chain (RSC)

was the object of the second phase. The management process of the RSC is a complex issue due to the number of actors involved. During this second step we have drawn a schematic description of the Take Back process and its elements.

Third Phase: Identification of the major

problems introduced by the adaptation of the WEEE laws. In particular, the duties imposed by the directive created a set of critical points inside the firms. Some of them are administrative connected whereas some others are operative.

We identified some critical points classifying them in two macro-categories.

Fourth Phase: The last phase answered to the

criticalities introduced and explained in the previous phase. In particular we considered the decisional freedom allowed by the normative about the two macro-categories. While the first one only complies with the directives and must be adapted as-is, the second one gives some flexibility. Our proposal to use the Kraljic purchase

F

igure 1 - Phases of the WEEE Adjustment Model

ary step was the pean Directives nd 2003/108/CE. lso the Actuation ational legislative transpose the to a law. accurate view the nalysed for both U countries who

management model becomes a guideline in order to choose the best way to manage WEEE.

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Campus Vodafone/Nokia Siemens Networks

Nokia Siemens Networks Nokia Siemens Networks is a

telecommunications solutions supplier which was created as the result of a merger (by means of a 50-50 joint venture) between Siemens's COM division (except its Enterprise business unit) and Nokia's Network Business Group.

The new company was announced on June, 19th 2006, and it began operating on April, 1st 2007 and has its headquarters in Espoo, Greater Helsinki, Finland, while the European headquarters and three of its five divisions are based in Munich, Germany. Nokia Siemens Networks has operations in 150 countries.

It is foreseen that, with a combined 2005 revenue of more than € 15 billion, the new Company would be one of the largest telecommunications equipment makers in the world.

Market share

NSN is positioned to lead the development and implementation of revenue-generating and cost-saving products and services via its scale and global reach. NSN has one of the world’s best research and development team, with the ability to invest in next generation fixed and mobile product platforms and services. This company has a world-class fixed-mobile convergence capability, a complementary global base of customers, a deep presence in both developed and emerging markets, and one of the industry’s largest and most experienced service organization.

Based on the 2005 calendar year, the combined company had EUR 15.8 billion in pro forma annual revenues and is expected to start operations with 60,000 employees. Based on current market share data, it is the second largest company in mobile infrastructure, second in services, third in fixed infrastructure and the third largest in the overall telecommunications infrastructure market.

The transaction closing took place before January 1, 2007 and has been subjected to customary regulatory approvals, the completion of standard closing conditions, and the agreement of a number of detailed implementation steps. After closing, the financial results of Nokia Siemens Networks has been consolidated by Nokia and accounted

for at equity by Siemens.

Products and services portfolio

The products within the Business Units (BUs) of NSN represent a best-in-class industry communications portfolio. Combined with its Services offering, it puts NSN in a perfect position to help its customers address the challenges of a converging market.

The five products Business Units, sitting within the COO, are: Radio Access, Broadband Access, Service Core & Applications, IP Transport and Operations and Business Software. The Services BU, part of the CMO organization, reflects the regional structure and the strong customer focus with service heads for the seven regions and managers in charge of service for the four Customer Business Teams.

Radio Access: NSN provides leading edge multi-

radio solutions and by reducing operators’ total cost of ownership. With its portfolio, NSN supports all the key radio access technologies: GSM/EDGE, WCDMA, HSPA, I-HSPA, TD-SCDMA, WiMAX and LTE.

Broadband Access: NSN’s focuses is to meet the

increasing bandwidth demand to support Next Generation IP Networks. NSN’s portfolio includes DSLAM (DSL Access Multiplexer), PON (Passive Optical Networks), Metro Switching and Narrowband / Multi-service.

Service Core and Applications: NSN provides

innovative platforms for voice, data and multimedia - the service machinery - together with a complete set of middleware functionalities including, presence, exciting consumer applications such as mobile TV and IPTV.

IP Transport: NSN strives to help

communication providers promptly cope with services and traffic evolution with scalable, future-proof transport solutions at minimized cost. To this end, IP Transport provides the network connectivity infrastructure for both NGN mobile, fixed and converged networks both on air and on optical fiber. All NSN’s solutions allow for smooth and seamless migration to all-IP networks.

Operations and Business Software: NSN

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therefore provides software that automates operational and business processes and thus reduces the complexity for operators and improves their business performance.

Services: The Services BU comprises four

Business Lines: Network Implementation,

Consulting & Systems Integration, Care, and Managed Services. Service experts are assigned to Solution and Sales Management to support the acquisition of service contracts, and to the Customer Business Teams or Customer Teams to ensure high quality and efficient service delivery.

Waste Electrical and Electronic Equipment

Electronic Waste, “e-waste” or “Waste Electrical and Electronic Equipment” (“WEEE”) means electrical or electronic equipment which is waste within the meaning of Article 1(a) of Directive 75/442/EEC, including all components, subassemblies and consumables which are part of the product at the time of discarding. The definition of waste given in 2006/12/EC is “any substances or object the holder discards, intends to discard or is required to discard”, that means that is WEEE any EEE listed in annex 1 of WEEE Directive that the holder discards, intends to discard or is required to discard.

The annex includes computers, entertainment electronics, mobile phones and many other items. It is important to underline that as waste these types of equipment are a considerable category of secondary resource due to their significant suitability for direct reuse, refurbishing and material recycling of its constituent raw. Otherwise, if they are not treated properly, they are the major source of toxins. It is a point of concern considering that many components of such equipment are considered toxic and they are not biodegradable. Toxicity is due in part to lead, mercury, cadmium and other substances. The Waste Electrical and Electronic Equipment Directive (WEEE Directive) is the European Community Directive 2002/96/EC on waste electrical and electronic equipment which, together with the RoHS Directive 2002/95/EC, passed by the European Parliament in Brussels on 27th January 2003, setting collection, recycling and recovery targets for all types of electrical goods.

Directive 2002/96/CE

Legal base: Annex IA of the WEEE

Directive contains a list of categories of products covered, and Annex IB contains a list of products falling into these categories. Since this list is non-exhaustive, Member States, implementing the WEEE Directive in national legislation, could include other products. This Directive was subsequently amended by 2003/108/EC on 8th December 2003 and became law on 2nd January 2007.

Objectives: The objectives of the Community's

environment policy are, in particular, to preserve, protect and improve the quality of the environment, protect human health and utilise natural resources prudently and rationally. This policy is based on the precautionary principle and principles that preventive action should be taken, that environmental damage should be rectified and that the polluter should pay. The purpose of the WEEE Directive is the prevention of waste electrical and electronic equipment and, in addition, the reuse, recycling and other forms of recovery of such wastes so as to reduce the disposal of waste.

Definitions: • electrical and electronic equipment or EEE

means equipment which is dependent on electric currents or electromagnetic fields in order to work properly and equipment for the generation, transfer and measurement of such currents and fields designed for use with a voltage rating not exceeding 1000 Volt for alternating current and 1500 Volt for direct current

• waste electrical and electronic equipment or WEEE means electrical or electronic equipment which is waste within the meaning of Article 1(a) of Directive 75/442/EEC, including all components, subassemblies and consumables which are part of the product at the time of discarding

• prevention means measures aimed at reducing the quantity and the harmfulness to

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the environment of WEEE and materials and substances contained therein

• reuse means any operation by which WEEE or components thereof are used for the same purpose for which they were conceived, including the continued use of the equipment or components thereof which are returned to collection points, distributors, recyclers or manufacturers

• recycling means the reprocessing in a production process of the waste materials for the original purpose or for other purposes, but excluding energy recovery which means the use of combustible waste as a means of generating energy through direct incineration with or without other waste but with recovery of the heat

• treatment means any activity after the WEEE has been handed over to a facility for depollution, disassembly, shredding, recovery or preparation for disposal and any other operation carried out for the recovery and/or the disposal of the WEEE

Scope: The WEEE Directive shall apply

to electrical and electronic equipment falling under the categories set out in the attachments to the directive:

1. Large household appliances 2. Small household appliances 3. IT and telecommunications

equipment 4. Consumer equipment 5. Lighting equipment 6. Electrical and electronic tools (with

the exception of large-scale stationary industrial tools)

7. Toys, leisure and sports equipment 8. Medical devices (with the exception

of all implanted and infected products)

9. Monitoring and control instruments 10. Automatic dispensers

This directive shall apply without

prejudice to Community legislation on safety and health requirements and to specific Community waste management legislation. Equipment which is connected with the protection of the essential interests of the security of Member States such as arms,

munitions and war material shall be excluded from this Directive. However, this does not apply to products which are not intended for specifically military purposes.

WEEE products are categorised depending on when they were placed onto the market:

• products placed on the market before 31

December 2007 are called ‘historical WEEE’ • products placed on the market after 31

December 2007 are called ‘future WEEE’

There is another classification of WEEE:

• ‘household WEEE’ means WEEE that comes from private households and from commercial, industrial, institutional and other sources which, because of its nature and quantity, is similar to that from private households

• ‘non-household WEEE’ means waste which is not included in previous category

Product design: Member States should

encourage the design and production of electrical and electronic equipment, which take into account and facilitate dismantling and recovery, particularly the reuse and recycling of WEEE, their components and materials.

Treatment: Specific treatment for WEEE is

indispensable in order to avoid the dispersion of pollutants into the recycled material or the waste stream.

Member States shall ensure that producers, according to Community legislation, set up systems to provide for the treatment of WEEE using best available treatment, recovery and recycling techniques. Separate collection is the precondition to ensure specific treatment and recycling of WEEE and is necessary to achieve the chosen level of human health and environment protection in the Community.

Producers of Equipment: EEE producers must

join a producer compliance scheme that will: • register the producer with the environmental

regulator • report information to the environmental

regulator on the amount of EEE put on market, by category and type of user

• provide information from environmental regulator

• take responsibility for separately collected WEEE

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Information on new EEE must be

provided to assist treatment and reuse. This includes information on the components and materials in the EEE, and the location of any hazardous substances.

Also all goods must be marked with the producer’s identification mark and the crossed out wheeled bin symbol shown in Figure 2.

Figure 2 - WEEE crossed out wheeled bin symbol

Collection and treatment of WEEE: In

order to give maximum effect to the concept of producer responsibility, producers are financially responsible for collecting, treating, recovering and disposing of an equivalent amount of WEEE that is calculated according to the amount of EEE that they produce. Responsibility for historical WEEE will be shared out between all producers, depending on their market share. The collective producer responsibility for historical WEEE will end in 2013.

Provide Information: distributors must

provide their customers with information on: • environmental impacts of EEE and

WEEE • reasons for separating WEEE from

other waste • meaning of the crossed out wheeled

bin symbol • how they can safely deposit WEEE for

proper treatment and recycling free of charge

Take-back systems: distributors must set

up a system that customers can use to dispose of WEEE free of charge and clearly explain this system to customers.

There are two types of take-back system:

• ‘in-store take-back scheme’, to accept a waste item from customers in-store when selling them an equivalent new item

• ‘distributor take-back scheme’, designed to work through a network of designated collection facilities (DCFs)

The in-store take-back scheme must:

• accept all types of EEE that is sold by the distributor

• record the amount and category of items received (keeping these records for 4 years)

• arrange the removal of separately collected WEEE

Inspiring principles

Main aims of the Community's environment policy are to preserve, protect and improve the quality of the environment, protect human health and utilize natural resources prudently and rationally. In order to achieve these goals, WEEE directive is based on five principles:

1. Producer responsibility: the principle of

producer responsibility bestows on producer the responsibility for damages caused by his product until ten years since its product sale. Product means every mobile goods included the electricity

2. Principle of preventive action: this

principle imposes that the safeguard of the environment must be preventive because prevent is less burdensome than pay reparation, and because some damages cannot be repaired. So the best preservative environmental action consists of avoiding pollution creation and ecological balance damage

3. Principle of ambient damage correction:

this principle is the direct consequence of the failed fulfilment of the previous principle. It imposes to the producer to pay reparations for the damage created by his own products and components of his own products

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4. Principle of precaution: this principle regards a policy of precautionary conduct concerning political and economic decisions about controversial scientific topics. The precaution principle is respected following two main rules:


• Complete scientific evaluation managed by an independent authority to determine the scientific degree of doubt

• Risks and consequences evaluation in absence of an European action

5. Restriction of hazard substances:

this prohibition imposes the progressive reduction or the defection of use of substances dangerous for health and environment

Actors involved and their relationship

Main actors involved in WEEE treatment laws are:

• Producer: any person who,

irrespective of the selling technique used, including by means of distance communication:

i. manufactures and sells electrical and electronic equipment under his own brand

ii. resells under his own brand equipment produced by other suppliers, a reseller not being regarded as the producer if the brand of the producer appears on the equipment, as provided for in subpoint (i); or

iii. imports or exports electrical and electronic equipment on a professional basis into a Member State

• Collection Systems: usually they are

no profit consortia of company specialized through productive chain. They manage operatively the logistic flows of WEEE

• Clients: who has bought and used the product

• Distributor: any person who provides

electrical or electronic equipment on a commercial basis to the party who is going to use it. The Directive establishes that clients buying a new product can give back the dismissed one for free, only if its weight is less than double of the new one

• Local authorities: they are local institutions

that manage points of collection i.e. garbage dumps where citizens can bestow voluntarily and for free their own dismissed products

• Coordination Centre: once the WEEE

legislation comes in force, the Coordination Centre will obtain the responsibility of some operative tasks in order to optimize the activities of Collection Systems:

- To guarantee an homogeneous service concerning the recovery, recycling and treatment of WEEE all over the country, making sure the homogeneity of operative conditions and methods managed by Collection Systems

- To establish the different distribution of collection facilities among Collection Systems

- To manage logistic and informative flows between the actors involved in WEEE treatment

- To supervise Collection Systems activities , guaranteeing their efficiency all over the country, managing assigned collection facilities

- To provide updated information to control organizations about the amount of WEEE collected, reused and treated by Collection Systems

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Italian Assessment

The Italian government is gradually strengthening environmental laws not only in response to public opinion, but also as a result of the country’s obligations as a member of the European Union. Italy faces many problems in terms of pollution, but waste management represents one of the most serious.

At present, Italy has the capacity to properly manage and dispose of only 30 percent of the waste it generates, and has not been able to develop adequate waste treatment and disposal programs yet. Waste recovery and recycling practices, despite their growing importance, still have a minimal impact on the waste management. Landfills have continued to represent the primary means of disposal of solid waste.

Italian industrial firms have slowly decreased the quantity of produced waste, mainly due to waste minimization policies and waste recovery practices implemented by most manufacturers in their product processes. In the medium term, potential market is particularly promising for waste recycling and hazardous waste management equipment, technologies and services.

Decree no.151

The Italian government, with the decree of July 2005 no.151, has converted into law the WEEE Directive 2002/96/CE, the RoHS Directive 2002/95/CE and the Directive 2003/108/CE. The Directive on Waste Electrical and Electronic Equipment (WEEE) imposes on producers to recycle waste of electronic equipment from August 2005; the Directive on the Restriction of Hazardous Substances (RoHS) bans certain hazardous substances in electrical and electronic products from July 2006. Producers are defined as companies that manufacture electrical or electronic equipment, resell equipment produced by other manufacturers, or import such equipment. The Italian Decree came into force on August, 13th 2005, but is expected to become completely operational in January 2008. It’s worth to mention that the Actuation Ministerial Decrees were signed by the Ministry of Economy on September, 27th and not published yet into the Official Journal.

On June 28th, 2007, the effectiveness of the decree was postponed until December 31st, 2007 at the latest. Within the new date, that shall not be changed further, all the sub-decrees/by-laws needed for the Italian WEEE management system running shall be fully operative as well.

The Italian Ministry of Environment is responsible for implementing the Decree and is currently still drafting the laws required to fully implement the EU Directive. The ministry is to establish a Supervision and Control of WEEE Management Committee which is to set up and oversee a central Italian register and clearing house. The operating costs of the Committee are to be financed by producers according to their market share.

Once set up, producers will be obliged to register with their local Camera di Commercio, which will pass on details to the Registro Nazionale. Producers will have 90 days to register after the Registro Nazionale is published.

A list of the electrical and electronic equipment is provided in the Attachment 1A of the Legislative Decree July, 25th 2005, no.151, as required by the European WEEE Directive.

Major differences of national legislation

Italian legislation requires additional information to be supplied to consumers. In Article 13 of Decree 151/2005 WEEE producers have to inform end-users about penalties for incorrect disposal of WEEE.

Furthermore, as regards recovery obligation, producers must ensure recovery of at least 80% of some of the end-of-life goods listed, e.g., toys, automatic dispensers and computers.

Current state

Over the past years, processing of industrial and urban waste has become a serious environmental and political issue for Italy. Recycling and disposal of waste in a safe, cost-effective way has become very difficult. Many landfills are working at full potential and cannot process the waste they receive according to environmental laws.

Electrical and electronic waste in Italy has reached critical proportions also as a result of its peculiar characteristics. Today, the average life of a cellular phone is 18 months. Cellular phone use in Italy is among the highest ones in Europe and

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will represent the e-waste with the greatest rate of growth.

The Italian Ministry of Environment has the responsibility for implementing the EU Decree and is currently still drafting decrees to fully implement the EU Directive. Italy Government has introduced a landfill tax, which is reducing the amount of waste material that is dumped in

landfills. On June 28th, 2007 the Council of Ministers

issued an urgent Decree delaying the entry into force of the WEEE management system to 31 December 2007. The entry into force still requires the implementing Decrees to be issues. The Decrees are ready and have been approved by the permanent State-Regions Conference.

WEEE in EU countries

According to Directive 2002/96/EC (WEEE), as amended by Directive 2003/108/EC, and Directive 2002/95/EC (RoHS), Member States had to bring into force the laws, regulations and administrative provisions necessary to comply with these EU Directives.

The transposition of all three Directives was due before 13 August 2004. However, several countries have been late with the

transposition of the Directive and many of the countries that did create a timely transposition did so by simply translating the EU Directive, without specifying how the legislation would be applied in practice. Further secondary regulations and clarifications are thus needed.

Here follows the implementation methods employed in UK, France, Germany, Netherlands, Spain.

UK

NAME AND DATE OF THE NATIONAL LEGISLATION

WEEE - On 12/12/2006 the Waste Electrical and Electronic Equipment Regulations 2006 (SI 3289/2006) (the "WEEE Regulations") were laid before Parliament and they came into force on 02/01/2007.

EFFECTIVE/ IMPLEMENTING DATES

WEEE - The headline dates for WEEE Implementation are as follows: - 2 January 2007 - WEEE Regulations to enter into force - 1 July 2007 - Full Producer Responsibility Begins

WEEE PROCEDURES

The WEEE Regulations include the following main features: • the introduction of approved compliance schemes for retailers, establishing a network of

designated collection facilities; • the obligatory registration for producers through the approved compliance scheme with the

appropriate UK agency and the subsequent duty to submit data reports to that UK agency; • the introduction of a duty to submit annual declarations of compliance for each calendar year, by

01/06 of the following year, together with evidence notes from treatment facilities of the amount of WEEE treated;

• producers shall keep records of compliance for at least four years; • a system for calculating producers' obligations under the WEEE Directive and a system for

allocating WEEE to compliance schemes; • a network of approved treatment facilities which will process WEEE and provide evidence of this

to producers.

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MAJOR DIFFERENT REQUIREMENTS OF NATIONAL LEGISLATION FROM THE DIRECTIVES

WEEE- There are 13 categories used in the WEEE Regulations to calculate the obligations of producers (3 more than in the WEEE Directive). The additional categories are:

• products containing refrigerants; • TVs and computer monitors; and • gas discharge lamps.

France


WEEE - Decree 2005/829 of 20/07/2005 relating to the composition of electrical and electronic equipment and to the elimination of waste from such equipment was published in the Official Journal of the French Republic on 22/07/2005. A new Article L.541-10-2 was included in the Environment Code by a law of 30/12/2005. Article 23 of Decree 2005/829 provides for the setting-up of a producers' register. A ministerial order of 13/03/2006 was published in the Official Journal of the French Republic on 22/03/2006 in order to implement this provision.A ministerial order of 09/08/2006 granted authorizations to four collective organizations. A ministerial order of 13/07/2006 includes certain lamps within the scope of the Decree 2005/829.


WEEE - Obligations in the Decree apply from 13/08/2005. However, effective implementation of some of these obligations may take some time as implementing provisions of the Decree (ruling on individual and collective schemes, etc. - please see below) have only been adopted recently. The new Article L.541-10-2 of the Environment Code provides that as of 01/01/06, persons who manufacture, import or put household EEE on the national market for commercial purposes must contribute to the collection, removal and treatment of household WEEE.

WEEE PROCEDURES

The ministerial order of 13/03/2006 and published in the Official Journal of the French Republic on 22 March 2006 sets out the registration procedure and the information which will be contained in the French producers' register. The authority responsable for the register is the ADEME (l’Agence de l Environnement et de la Maltrise de l Energie). All producers within the meaning of Decree 2005/829 have to be registered with the national register of producers. Producers have from 01/09/2006 until 30/11/2006 to register. After this registration period, any new producer will have to register himself before putting EEE on the market. Producers (or a collective system on their behalf) must also declare annually to the ADEME (by 01/03 at the latest) the tonnage of WEEE collected and treated during the previous year, distinguishing between WEEE which was reused, reused in part or recycled, recovered, or destroyed. The declaration also distinguishes between the tonnage of WEEE treated in France and that treated abroad, indicating the country where treatment has taken place. The first declarations are to be made by 01/03/2007 at the latest for the period from 01/01 to 31/12/2006 . Thereafter, the declarations will have to be made every six months or annually, as specified.

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MAJOR DIFFERENT REQUIREMENTS OF NATIONAL

LEGISLATION FROM THE DIRECTIVES

WEEE- Visible fee obligation for producers and distributors. A ministerial order of 13/07/2006 which has been published in the Official Journal of the French Republic on 29/08/2006 clarifies that waste coming from all lamps covered by category 5 of Annex I of Decree 2005/829 is considered to be household WEEE within the meaning of Article 2 of the Decree.

Germany


WEEE - Act Governing the Sale, Return and Environmentally Sound Disposal of Electrical and Electronic Equipment (Electrical and Electronic Equipment Act, or ElektroG), published on 23/03/2005. Cost Ordinance to the Electrical and Electronic Equipment Act (ElektroGKostV), with list of fees for administrative acts, published on 12/07/2005.


WEEE - entry into force of the ElektroG on 13/08/2005. Producer registration, guarantee, reporting of EEE put on market: obligations were suspended until 23/11/2005. In order to give stakeholders more time to prepare for the new legislation, the application of certain obligations of the ElektroG was suspended until 23/03/2006 . Entry into force of ElektroGKostV: 13/07/2005.

WEEE PROCEDURES

All producers have to be registered with the Clearing House and provide a guarantee as from 24/11/2005.



WEEE - different and special provisions in the ElektroG: • Clearing House entrusted with the exercise of sovereign acts such as registration, the issue of

collection orders, etc. • Local public waste management bodies are obliged to operate local collection sites where end-

users and distributors can dispose of their WEEE (drop-off system). However, producers do have to provide the containers for the local collection sites.

• Distributors may voluntarily accept returned WEEE. Producers may set up individual or collective take-back systems for WEEE from private households.

• For new household WEEE (placed on the market after 13/08/2005) producers may opt for their obligation to be based on either :

- their market share in the previous year, - their share of WEEE identified at each collection point through sorting or application of

scientifically recognized statistical methods. All producers have to provide a guarantee for household EEE.

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Netherlands


WEEE - On 19/7/2004, the EEE Management Regulation was adopted.


WEEE - Entry into force- 13/08/2004 but Directive's provisions such as marking, 13/08/2005.

WEEE PROCEDURES

WEEE and RoHS - The producer has 13 weeks in which to notify the Minister of Environment about implementation of the legislation after the EEE Management regulation has become applicable to him.



WEEE - No major differences.

Spain


WEEE - Royal Decree 208/2005, of 25/02/2005, on electric and electronic equipment and the management of waste thereof.


WEEE - Entry into force of legislation- 26/02/2005. Certain obligations start applying at a later date (e.g. obligations to set up management systems for each producer's WEEE put on the market, obligation to supply information to treatment facilities and obligation to mark products- 13/08/2005).

WEEE PROCEDURES

WEEE - First, producers must make a declaration to the regional authorities as to the fact that they are producers of EEE (the form for Madrid is available on-line). Second, individual/collective schemes must obtain authorization from regional authorities (there is no authorization form for Madrid). Third, producers/collective schemes must register with a National Register (this registration is a two step procedure).



WEEE - Distributors are not prevented from agreeing to bear (at least in part) the financial burden of collecting WEEE from private households.

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The WEEE Adjustment Model

A depth analysis of current situation about

WEEE issue in our country, allowed to create an accurate description about legislative obligations that NSN has to accomplish.

These obligations can be branched into two categories:

1. Financial and management obligations 2. Informative and administrative

obligations

WEEE Directives remark the responsibility of electrical and electronic equipment producer. Some critical issues emerged from the analysis of regulation in force. They map directly with the correspondent obligation in two issues sets:

1. Financial and management issues 2. Informative and administrative issues

Reorganization and reassessment of

involved processes induce a set of benefits and opportunities for the company and need different kinds of costs at the same time: financial, organizational, checking and

operating, logistical and proceFacing coherently the

criticalities we have just maximizing model effectconvenient to proceed as follo

1. Understand Flows

along the chain whichThe actors involved dismissed productsproducers, logistic operators

2. Cost Analysis: after the involved volumes assessment, the study of average good lifecycle is expected. The quantification of the market share as well as the tweakment of a method to accurately count costs depending on their different nature

3. Knowledge Acquisition about own

responsibilities and own duties

4. Model Application, analysis and definition of alternative possibilities. Spotting of technical and operative solutions for the chosen alternative

5. Definition of the most appropriate

information, communication and marketing strategies

Considering the importance of the impact on

business processes and the structural differences between the two classes of criticalities, it is opportune focus our attention on financial and management problems.

In order to identify the best strategy for WEEE management, we have studied and adapted to NSN’s

l

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Figure 3 - The WEEE Adjustment Mode

ssing costs. obligations and

presented and iveness it is ws:

and Relations NSN belongs to. in the flow of

are owners, and treatment

specific situation a purchasing strategy model known in literature as the Kraljic Matrix. The Kraljic Matrix is mainly used to understand how to handle suppliers portfolio.

The proposed model, called WEEE Adjustment Model, is a qualitative model. Before to go deep into it, we are going to briefly describe what the Kraljic Matrix is.


The Kraljic Matrix

The Kraljic Matrix is a scheme who allows to branch in four categories the purchases of a company based on the complexity of the supply market and on the strategic importance of purchasing in terms of its impact on producing context and business economics.

This division enables the company to define purchasing strategies to achieve competitiveness from the supply markets.

Here follows a description on principles to select market typology.

Supply Market Complexity

The Complexity of Supply Markets considers whether obstacles in supplying goods are present on the market or not by evaluating the equilibrium among demand and offer. It also evaluates the presence of a monopoly condition or entry barriers.

The considered variables are:

• Descriptive Complexity: describes the complexity of the specifications that a customer has to define in order for the supplier to offer the correct product/service

• Specificity: measures the entity of the

investments required by the customer in order for the supplier to provide the product/service

• Uncertainty: measures the volumes

variability tied to the developments of the final market

• Market Concentration: measures the

number of potential suppliers in relation to potential customers and their bargaining power

• Productive Capacity: measures

suppliers saturation level

Strategic Importance

Strategic importance describes the contribution of the product/service to the competitive performance of the company. It depends on its incidence on producing context

and business economics (costs and profitability) in terms of the value added by the product line, the percentage of row materials in total costs and their impact on profitability.

Dimensions of Strategic Importance are:

• Impact on Costs: measures the cost of the product/service on the company total costs

• Contribution on Quality: measures the value

added by the purchased product/service on the product performance

• Contribution on Competitive Advantages:

establishes if the additional product/service increases the value perceived by customers and/or gives any competitive differential respect to competitors products

Classes of articles and relations with suppliers

The Kraljic Matrix allows to branch the company purchases in four categories. Considering the complexity of the supply market and the strategic importance of purchasing we have:

• Bottleneck Items: products/services that can

only be acquired from one supplier. Their delivery could be otherwise unreliable and has a relative low impact on the financial results

• Not-Critical Items: easy to buy

products/services that also have a relative low impact on the financial results. The quality is standardized

• Leverage Items: products/services that

represent a high percentage of the profit of the buyer with many suppliers available. Suppliers could be easily replaced

• Strategic Items: products/services crucial to

the process or strategic for the buyer. They are characterized by high supply risk caused by scarcity or not easy delivery

For the bottleneck items it is convenient to aim at increasing buying power and/or developing new opportunities, reducing the dependence on a supplier to an acceptable level.

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A better deal is made by concentrating regular supply to one supplier. A better bottleneck-position is pursued by reducing supply risk on the one hand and obtaining a better negotiating position on the other hand. Other possibilities within the bottleneck quadrant are: insourcing of the item’s production, keeping stocks, hedging, Internet buying, broadening the specifications, searching for alternative sources, risk analysis

in combination with contigency planning.The main products in the non-cr

category are office supplies and servickey question with respect to these production orientated purchases is whstandardization and pooling are pooptions or not. A framework agree(master contract) with a preferred suppliecontractual possibility. These arrangemennowadays replaced by e-procurement anelectronic catalogue and ordering syAlmost the entire purchasing procedure ccompleted by automated ordering and handling process. For other commopooling is not an option, for example wheproduct is in some respect unique to a spbusiness unit/group or when busunits/groups make a reasonable case fowanting to pool their purchases. Thesecritical products, then, are purchased transactional basis.

With regard to leverage items it should be

opportune to distinguish between strategic partnerships and partnerships of convenience. Detailed assessment of the supplier's profile indicates what kind of relationship is possible and desirable. The assessment implies the identification of key buying criteria and the performance of the supplier on these criteria. Strategic partnerships are considered whether sufficient trust in the supplier is

F

14

igure 4 – Kraljic Matrix

itical es. A non-ether

ssible ment r is a ts are d an stem. an be order dities n the ecific iness r not non-on a

present at different levels of the organisation. When a supplier does not qualify as a strategic partner, the firm will focus on efficiency and cost reductions. Leverage is sought in efficiency and supply chain optimization, not in design optimization. A partnership of convenience is not usually considered as a 'strategic partnership', but as an tactical solution to operational problems (quality, logistics, efficiency).

Partnership relationships with suppliers can be technology driven (joint venture, co-development, concurrent engineering) or driven by logistics (JIT management).

With regard to strategic items it should be

opportune a strategic partnerships, even though, in the course of time partnerships may become unsatisfactory. A position in the 'strategic' segment means a high mutual dependence between the parties involved. Even in the case of a strategic partnership it should be convenient to try to restrict or reduce the dependence on the supplier involved.


The WEEE Adjustment Model Layers

Layer 1

We focus our attention on WEEE management in order to support NSN with an operative tool that allows the company to confirm its own choice. We compared the different alternatives in the Kraljic Matrix, analysing most of the risks and opportunities. In particular we present two alternatives for the REEE management according with the Directives.

Financial and management issues

EEE producers must: a) organize and manage, individually or

collectively, appropriate separate collection systems. Producers can make use of collection points managed by municipalities or other ad hoc organizations

b) take back and send separate collected

WEEE to authorised treatment facilities (excluding reused products that technically are not waste)

c) set up individually and/or collectively

WEEE treatment systems with the best available treatment, recovery and

recycling techniques. Treatment facilities must be set up according with the Directive

d) set up individually and/or collectively

recovery systems compliant with the normative promoting the reuse of EEE

e) finance the transport operations from public

collective points, the treatment, recovery and the disposal operations

Figure 5 – WEEE Adjustment Model Layer 1

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Kraljic Matrix in WEEE management

Kraljic Matrix can be applied on different levels to evaluate the WEEE management market: in particular it’s possible to consider each take back process step separately or as integral part of the WEEE management system considered as a whole.

The Kraljic Matrix appli

WEEE management processpossible options:

• Integrated Individual

producer handles the ovein-sourcing system gainininvesting on necessary teoption has not been emphis implausible for a comwhose core business is noWEEE management. Riskthis option, in relation tostructure, are too high binfrastructural costs and the required knowledgdispose and recover the E

• Individual System: the p

WEEE management addressing each step of thdisposal process with the supplier. In regards to hthis solution is possible oto business market. Thskilled third parties and rthe management of theThis outsourcing manaforces the producer to gu

costs and activities outcomes.

- Opportunities and Risks: this solution implies a considerable economic risk for the producer especially in the initial stage. This mainly because of scouting

16

Figure 6 – Kraljic Matrix in WEEE Management

ed to the whole indicates three

System: the rall process as an g knowledge and chnologies. This asized because it pany like NSN t correlated with s associated with NSN corporate

oth in regards to to acquisition of e to optimally EE waste

roducer performs autonomously,

e processing and aid of an external istoricalal waste, nly for business

e producer uses elays on them for overall system. gement solution arantee for both

costs to find an appropriate supplier portfolio that assure a suitable national covering and to establish an information management system. Otherwise this solution brings about some flexibility to producer due to a remarkable decrease in ownerships costs.

• Collective System: a partnership with collective

system is mandatory for the management of historicalal household WEEE but it is possible to use it also in other contexts. In this case, producers join a cooperative organization which fulfils all obligations mandated by law. A collective system is a closed-loop system: it carries out every provided operative and financial activities.

- Opportunities and Risks: this option

suggests to assign WEEE management to a self-sufficient organization which offers its competence for both setting-out stage and subsequent management stage.

This solution permits to efficiently manage

the productive chain, the relations between the different actors involved to achieve the best compromise among costs and service. At the same time the negotiation about economical


aspects and the involvement conditions are important aspects to consider.

The effectiveness of every stage involved in the process it’s foreseen due to the presence of each actor involved. There are some counter-indication though, in particular:

Coexistence may be difficult due to the heterogeneous characteristics of the involved actors

Low flexibility in the decisional

process for operative solutions

Layer 2

NSN as EEE producer has to comply with the 151 Decree by the end of the expected deadlines. Legislation impositions can be subdivided in five points:

1. Information to the users 2. Information to the WEEE treatment

providers 3. Marking of electrical and electronic

equipment 4. Subscriprion to the Camera di

Commercio and to the Registro Nazionale

5. Report of volumes to the Registro Nazionale

Figure 7 – WEEE ADJUSTMENT MODEL Layer 2

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The Nokia Siemens Networks Case

Applying WEEE Adjustment Model

As previously stated we will analyze NSN WEEE management solution tackling two main issues. At first we will explain which kind of commercial relationship is suggested by the Kraljic Matrix. Subsequently we will confirm the chosen relationship by considering the informative and administrative obligations required by the law.

Layer 1

The evaluation of the Kraljic Matrix confirmed the choices and decisions taken by NSN about its suppliers for the provisioning of WEEE management services.

Supply Market Complexity

The Supply Market Complexity in the case of WEEE management is medium to low due to the fact that the demand is balanced with the offer.

There is no presence of a monopoly, the market is dynamic and is characterized by free competition so the provision of this service is not considered to be a risk.

The variables taken in consideration to define the Market Complexity are the follows:

• Descriptive Complexity: the service

required by NSN is a standard one, so the descriptive complexity is quite null

• Specificity: the service asked by NSN is a

standard one, so specific investments are not request at the supplier

• Uncertainty: the scenario is uncertain

because trend of treatment volumes will be discontinuous (peaks presence)

• Market Concentration: this dimension is

not critical because the number of suppliers is enough to cover completely the potential demand, so there is equilibrium between demand and offer

• Productive Capacity: productive capacity

of supplier does not appear critical because the logistic system has been created according with the evaluations declared by producers, however there is not certainty about the exactness of these data

Strategic Importance

At the moment, management processes of WEEE do not contribute to improve company performance. The purchase of WEEE management service has a little impact on firm’s productive and economic assets. Regarding profitability there are not considerable effects because of the low take back cost of 0.30 €/Kg .

The considered variables are:

• Impact on Cost: the mark up on the product cost caused by WEEE management service is paltry

• Contibution on Quality: WEEE management

service does not add value to products performance

• Contribution on Competitive Advantages: WEEE

management is a duty for every producer therefore there is no difference between competitors. However, in the future, every producer could enforce additional services customizing their own commercial offers

Positioning in the Kraljic Matrix

The complexity of WEEE treatment supply market is rated at a mean level because there are aspects that make it accessible and other aspects that make it precarious. Treatment and transport services required by NSN can not be customized: the disposal of the equipment doesn’t need particular treatment or transport tecniques. Therefore every qualified logistic company could be consider as a potential suppliers.

It’s worth to underline that the low saturation in the transport market decreases the complexity of the market itself. It’s not possible to estimate volumes about treatment and disposal. That is why it is not possible to track down volume flows. The uncertainty of the future background is a relevant aspect that must be considered.

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F

Nowadays the stratWEEE take back and treNSN product portfolio isthere is no startegic reaswaste management, exceof the italian law. The intreatment services in NSgive a competitive difproducers because evemanage its own waste. costs, they are affordstrategic importance of service is definitely not re

Supply of WEEE trfallen between the Non-Cand the Bottleneck itebecause market complexstrategic importance of relevant.

NSN had to choose bwith a trusted supplier ancompetitive market. Fabetween two quadrantsconsider further variablesportfolio of possible supphas stipulated a short-termEcosol Consortium to bedevelopment of this scedecisions bounder to Therefore according to thKraljic Matrix for the service, NSN has opteSystem which matches both Integrated IndiviCollective Systems.

igure 8 – WEEE Management service in Kraljic Matrix

egic importance of atment services over not relevant. In fact on to be a leader in pt for the obligations tregration of WEEE N portfolio doesn’t

ferential respect to ry competitor must With regards to the able therefore the WEEE management levant. eatment service has ritical items quadrant ms quadrant. This ity is not high and the service is not

etween a partnership d contracting within a lling at borderline

, NSN has had to , as well as product liers. Consequently it partnership with the

able to evaluate the nario prior to make economical aspects. e placement into the WEEE management

d for an Individual the main features of dual Systems and

Layer 2

The Kraljic Matrix has not defined a unique solution. In particular it is still possible to chose between the establishment of a partnership with a supplier or the entrustment of the competitive market. Consequently NSN has considered a set of other variables such as informative and administrative obligations. The NSN Solution

Competitive markets could guarantee shortened

switching costs, high flexibility and low fixed costs. However only extra investments for a take back informative system module could have solved informative and administrative obligations.

On the other hand, the partnership contracted with the Ecosol Consortium, thanks to the web platform specifically made up for its customers, enables the effective management of the informative flow of the WEEE treatment and the consequent production of all the reports requested by the law. Partnership with the Ecosol Consortium ensures in addition:

• economic and financial advantages like

containment costs induced by suppliers economy of scale;

• the flexibility that characterized competitive

markets. In fact this partnership reduces the impact of waste volumes variability and the impact of waste geographic dispersion.

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Appendix DIRECTIVE 2002/95/CE (RoHS)

Legal base & Objectives: The RoHS Directive 2002/95/EC was adopted in 27 January 2003 by the European Union. The RoHS Directive took effect on July 1, 2006, but is not a law; it is simply a directive. This Directive restricts the use of six hazardous materials in the manufacture of various types of electronic and electrical equipment. It is closely linked with the Waste Electrical and Electronic Equipment Directive (WEEE) 2002/96/EC.

Gaps between the laws or administrative measures adopted by the Member States as regards the restriction of the use of hazardous substances in electrical and electronic equipment could create barriers to trade and distort competition in the Community and may thereby have a direct impact on the establishment and functioning of the internal market. The Commission Communication of 1996, 30th July on the review of the Community strategy for waste management stresses the need to reduce the content of hazardous substances in waste and points out the potential benefits of Community-wide rules limiting the presence of such substances in products and in production processes. Restricting the use of these hazardous substances is likely to enhance the possibilities and economic profitability of recycling of WEEE and decrease the negative health impact on employers in recycling plants.

Prevention: Member States shall ensure that, from 1 July 2006, new electrical and electronic equipment put on the market does not contain lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls (PBB) or polybrominated diphenyl ethers (PBDE). National measures restricting or prohibiting the use of these substances in electrical and electronic equipment which were adopted according with Community legislation before the adoption of this Directive may be maintained until 2006, 1st July.

In order to comply, producers may need to

change product design specifications and mandate alternative production processes for

the components and subassemblies used in these products.

RoHS holds the end product manufacturer, re-brander, or importer (producers) responsible for product content. Since the burden of compliance lies with producers, they must direct the actions of component, PCB fabrication, assembly, materials, and other suppliers to ensure all contribute appropriately to end product compliance.

Typical Producer Compliance Sequence: While

specifications for new product designs can be prepared early in the product development process to ensure RoHS compliance at launch, producers must also revisit all existing product designs and specifications and take steps necessary to bring those products into compliance.

Penalties: Member States shall determine

penalties applicable to breaches of the national provisions adopted pursuant to the RoHS Directive. The penalties thus provided for shall be effective, proportionate and dissuasive.

Major different requirements of Italian legislation from the ROHS Directive

RoHS: Notice adopted in Italy concerning the concept of "put on the market" for RoHS products. On 23/06/2006, the Italian Ministry adopted a notice providing guidelines in relation to the term "put on the market". According to the Notice:

• goods are put on the market if on 25/06/2006

(and not, as provided in Legislative Decree No 151/2005, 01/07/2006 ) they are finished products which are already stocked by the producer or importer;

• with a view to identifying goods already put on

the market, operators must send a list of the goods in question (specifying the type of product and quantity) to the Ministry for Environment by 01/07/2006;

• goods which are not RoHS complaint, but which

have been put on the market prior to 01/07/2006 in accordance with the new Italian notice must have been sold by 31/10/ 2006. Practicalities: An official at the Ministry of the

Environment has stated, in relation to the notification

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of non-RoHS compliant stock, that it is sufficient to specify the product types and the quantity. In particular producers should provide the following information:

• the category and the number of units of

electrical and electronic equipment as indicated in Annex 1A of Legislative Decree 151/2005 (the same as in Annex 1A of the WEEE Directive);

• the sub-category and the number of units of

electrical and electronic equipment as indicated in Annex 1B (the same as in Annex 1B of the WEEE Directive) of Legislative Decree 151/2006.

RoHS in EU countries

UK


RoHS - On 07/10/2005, The Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment Regulations 2005 was adopted.


RoHS - Implementation date- 01/07/2006.



RoHS - The national legislation sets out requirements for keeping technical documentation, details penalties for breach of the regulations including liability for persons other than the principal offender, sets out a limitation period for bringing an action, provides a statutory defence and states what constitutes the service of documents. It also details the manner in which an enforcement authority will be selected and that authority's right to use compliance notices and make test purchases.

France


RoHS - Decree 2005/829 of 20/07/2005 relating to the composition of electrical and electronic equipment and to the elimination of waste from such equipment was published in the Official Journal of the French Republic on 22/07/2005. A ministerial order of 06/07/2006 which was published in the Official Journal of the French Republic on 12/08/ 2006 updates the list of exemptions to the RoHS Directive.


RoHS - 01/07/2006.

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RoHS - None.

Germany


RoHS - Act Governing the Sale, Return and Environmentally Sound Disposal of Electrical and Electronic Equipment (Electrical and Electronic Equipment Act, or ElektroG), published on 23/03/2005.


RoHS - Implementation date- 01/07/2006



RoHS - In Germany , surveillance of the substance bans under RoHS forms part of the competences of the German Lander (Federal States). As regards the term "placed on the market" under RoHS, the BMU (Federal Ministry for the Environment, Nature Conservation and Nuclear Safety) explains that this is supposed to mean that new EEE is made available for the first time on the Community market with the purpose of distribution. This occurs generally when the goods are handed over by the producer from the producing factory to the first trading level in the Community market whereby the goods have to be ready to be traded (i.e. packed etc.). In case an importer imports the goods, they are generally "made available" in that sense when the goods are customs cleared and transported to the first importer warehouse in the Community market. As regards the interpretation of the term "spare part" for the purpose of the exemption from RoHS (spare parts for the repair or reuse of EEE placed on the market for the first time before 1 July 2006 ), the BMU stresses that the exact wording of the Directive has been reproduced in the German law. It is therefore decisive whether the part is actually used as a spare part for the repair or reuse of a complete EEE which had already been placed on the Community market for the first time before 1 July 2006 .

Netherlands


RoHS - On 06/7/2004, the EEE Management Decree was adopted.


RoHS - The general prohibition of the 6 substances will enter into force 01/07/2006



RoHS - Military equipment is included in the scope of the Decree. It is still be possible to have or to make available non-compliant products for export outside of the EU after 01/07/06, as long as the products concerned have not been customs cleared and put on the market in the EU.

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Article 2 (1) of the EEE Management Decree goes further than Article 4 of the RoHS Directive. Article 4 of the RoHS Directive only prohibits the placing of EEE on the market in certain circumstances, while the Dutch EEE Management Decree also prohibits the possession of non-compliant products for commercial purposes, the placing of non-compliant products at the disposal of third parties and the export out of the Netherlands of non-compliant products which have been customs cleared and put on the market.

Spain


RoHS - Royal Decree 208/2005, of 25/02/2005, on electric and electronic equipment and the management of waste thereof.


RoHS - Entry into force of obligation- 01/07/2006.

MAJOR DIFFERENT REQUIREMENTS OF NATIONAL LEGISLATION FROM THE DIRECTIVES

RoHS - None.

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WEEE in not - EU countries

Switzerland

As Switzerland is not a member of the EU or a signatory to the EEA Agreement, it is not required to implement EU legislation. However, Switzerland follows EU environmental legislation, often due to pressure from industry which seeks to avoid barriers to trade being erected as a consequence of different legislation in Switzerland and the EU.

The Swiss WEEE law, the "Ordinance on the Return, the Take-Back and the Waste Management of Electric and Electronic Equipment" (VREG), as last amended in June 2005, has been in place since 1998. However, in Switzerland, well-functioning collection and recovery schemes, founded by producers, importers and retail chains, existed on a voluntary basis even before this legislation was enacted.

RoHS provisions are regulated by the Ordinance on the Reduction of Risks from Chemicals (ChemRRV). Under the ChemRRV, on 1 July 2006 the same restrictions on the six hazardous substances as in the RoHS Directive entered into effect.

The responsibility for implementing the VREG and for supervising the prohibitions under the ChemRRV falls to the Swiss Cantons.

The three private organisations, Swiss Association for Information, Communication and Organisational Technology (SWICO), Swiss Foundation for Waste Management (S.EN.S) and the Swiss Association for Illumination (SLG), founded by producers, importers and retail chains, share responsibility for the management of WEEE. The three collective schemes share the work according to product categories as established by the VREG: SWICO takes care of entertainment electronics and office, IT and communication appliances, appliances from the graphics industry and dental appliances, and S.EN.S. is responsible for household appliances (including fridges and freezers), tools, sports and leisure equipment and toys, and, together with SLG, for luminaires and illuminants.

The main difference with the WEEE Directive is that in Swiss system it is the buyers who finance WEEE collection and treatment by way of an advanced recycling fee. Buyers of EEE (private users and industry

alike) pay an advanced recycling fee on top of the price of the product. This fee finances the collection and treatment of WEEE. Retailers, distributors, producers and importers have to take back WEEE of the kind of goods they market, manufacture or import. SWICO and S.EN.S have published lists with the advanced recycling fees payable for different EEE categories.

The VREG itself does not contain specific provisions on sanctions in case of infringement. In such cases, it is the responsibility of the Swiss Cantons to take administrative action to enforce the obligations set out in the VREG. The same applies with regard to the implementation of the relevant provisions of the ChemRRV.

Bosnia-Herzegovina

Waste is one of the most important environmental problems in Bosnia-Herzegovina. In the field of waste management, there have been some improvements on the legislative front. Current legislation is being implemented according to the Waste Management Strategy. In 2005, the Federation of Bosnia-Herzegovina adopted a considerable amount of implementing legislation in this area.

The Solid Waste Management Strategy suggests the establishment of multi-municipal solid waste management districts. A project of the World Bank, planned to start in 2002, is intended to help mitigate environmental problems caused by inadequate past waste policies, and to improve services and capacities for solid waste management in the country.

Exact data on the quantities of waste generated in Bosnia-Herzegovina does not exist. Huge quantities of waste accumulated during the war, part being electronic wastes. In Bosnia-Herzegovina, there are no facilities for the treatment of this type of waste. An inventory of hazardous waste exists only for the Sarajevo Canton. Practices of waste re-use and recycling are poorly developed.

Current waste disposal sites are insufficient in comparison with the amount of waste generated. As a consequence, considerable quantities of waste have been dumped at illegal sites, such as roadsides, village dumps, rivers, or abandoned mines. These places represent a threat to the groundwater that supplies water to the population and consequently a risk to public health caused by run-off and leaching of pollutants.

Waste dumps often burn, releasing air pollutants; dumps are usually not fenced, so animals and people can come in, which increases the risk of the spread of

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infectious diseases. The corresponding cantonal ministries are

responsible for the same policy at cantonal levels.

Waste collection, disposal, and collection of rates from customers are the responsibilities of the local communal enterprises. Waste collection in urban areas is mostly satisfactory (approximately 45% of municipalities). Rural areas, however, do not have organized collection of waste, so the inhabitants dump their waste at illegal dumps that pose major threats to public health and the environment.

In most cases the communal fee covers waste management, water supply, and street cleaning, all in one invoice. In some towns, the bill collection rates are satisfactory.

The State Government has identified the waste management problem as one of the priorities in the country’s development.

The main focus of the Strategy is household waste management. The Strategy suggests that multi-municipal waste management districts be formed, each serving a minimum of 200,000 people. There would be multi-municipal landfill sites to store the waste. This means that several urban and rural municipalities would use one disposal site. This recommendation is based on the estimate that maintaining a large number of smaller landfills would cost more than having a small number of very large landfills.

The implementation of the Strategy is in doubt because funds are limited. As a consequence, Government has decided to implement the Strategy in three phases, lasting five years each. The first phase 2002-2006 has been supported by the World Bank, and the aims are chiefly the rehabilitation of existing landfills, public awareness programs, and introduction of waste collection into those areas where it does not exist yet. Kosovo

The present waste management system in Kosovo does not record data on waste generation, collection, treatment, recovery and disposal in a comprehensive and structured way.

At July 1999 there were no operational solid waste disposal systems in Kosovo. Generation of domestic waste, based on the recent data, is approximately 2kg/per capita/day.

At this moment, European Agency for Reconstruction (EAR) and other donors have supported the reconstruction or construction of 9 sanitary landfills in Kosovo.

In Kosovo no appropriate waste classification, recycling or treatment is taking place, although some small projects for waste separation have been conducted in Prishtina. It is trying to establish a system for classification of waste for recycling purposes.

Major problems are not only related to household waste. There is no system for collection and disposal of used oils, batteries, accumulators, waste tyres, electrical equipment, vehicles, agricultural waste (animal and plants), medical waste, expired medicines, pesticides and similar end-of-life products.

Issues related to hazardous waste are connected to industries and are marked as “environmental hot spots”.

Relevant data on generated hazardous waste do not exist. To manage expired medicaments, medical waste, and chemicals from industry is recognized as a priority problem. Therefore, at the present, a provisional assessment is being carried out to select the optimal location for hazardous waste landfill.

Albania

Albania lacks a hazards and industrial waste policy, and is in need of a policy governing the proper handling and use of chemicals. The mishandling of polychrinated biphenyls may be allowing the evaporation or leakage of these chemicals into the environment, with consequences for human health. The legal framework however does exist, in law n. 9108, which aims to facilitate the management of chemical substances and preparations to protect human health and the environment.

A centre for cleaner production was set up in 2005. A project has started to develop training programs on introducing cleaner production particularly in small and medium sized enterprises. The main goal would be to reduce waste generation at source and make technological processes more efficient economically and environmentally.

According to data from the Ministry of Environment (2002) municipal waste generation stood at 0.7 kg per inhabitant per day, or 255 kg per inhabitant per year in the four main cities of the country. The disposal of municipal waste needs to be solved. In most cities waste is collected and transported by a municipal or privatized waste management service company. Rural areas are not yet covered by municipal waste management

25


services. The main components of municipal waste in the big cities are inert materials, plastics and vegetable scraps and all municipal waste is deposited at uncontrolled dumpsites, along with industrial and hospital waste and hazardous waste and there is no inventory of such sites. Waste is also burned in open areas. Even urban waste is not treated in an environmentally and sanitary way.

A law on environmental management of solid wastes was approved in 2003 and sub laws are underway. A feasibility study was done on a landfill for hazardous waste. Environmental Impact Assessment is underway to select the site. A draft law on hazardous wastes is in the adoption process.

In the last few years, the Environmental Centre for Administration and Technology in Tirana has prepared a strategic plan for managing hospital waste for the capital city, which will serve as a model. Measures should be taken to increase public awareness on environmental health impacts, which at the moment is not sufficient.

FYROM (Former Yugoslav Republic of Macedonia)

As a relatively small and recently independent country recovering from the effects of regional conflicts, and whose economy is in transition, the FYR of Macedonia finds itself in a particularly complex and rapidly evolving situation.

Collection and disposal of solid waste remains one of the most serious environmental problems facing the country. Since independence, economic transition has brought exponential growth of plastic, electric and other environmentally persistent waste. With only one official landfill site in the country, illegal dumps have proliferated. Many of these dumps are in areas likely to cause pollution of surface and groundwater bodies, including those used for drinking water. Burning is typically used as the means of reducing the volume of material in these dumps, leading to the release of potentially hazardous air-borne pollutants. Although some initiatives have been taken at local level, there is no national program for recycling of solid waste.

The Government is giving high priority to improvements in waste management, with the preparation of feasibility studies to realize some of the proposals of the EU-funded

strategy published in 1999, notably establishment of fully equipped regional solid waste facilities. As an interim measure, Ministry of Environment and Physical Planning (MEPP) is investigating the possibility of creating well-managed, small-scale, landfills at local level, though care will be needed to ensure that these do not become de facto substitutes for longer-term, environmentally secure regional disposal sites. The Government is also preparing new waste management legislation, in conjunction with the EU approximation process. Furthermore, waste is one of the areas of competence likely to be devolved to municipalities under the new Law on Local Self Government.

In spite of these positive trends, the Government has yet to adopt a national solid waste management strategy.

Problems relating to hazardous waste are perhaps even more acute. FYROM has so far introduced only limited policy controls on the safe disposal of hazardous waste, and relevant cooperation between MEPP and the Ministry of Transport and Communications appears to be lacking. Donors have also largely neglected this issue to date.

However, MEPP is moving forward with plans to site a secured hazardous waste landfill. It will be essential to ensure that this facility, and any future hazardous waste landfills, are built to the highest environmental standards, properly managed and treated as part of an integrated solid waste system covering the whole country.

Safe disposal of medical waste presents a specific challenge, and one that appears manageable with relatively modest resources. To date, medical waste from most of the country is being disposed of and burned in illegal landfills. Drisla landfill, near Skopje, currently incinerates medical waste from the city, but only one-third of the incinerator's capacity is being used. Investment in transportation of medical waste to Drisla would seem a practicable solution.

Serbia

Inadequate waste management is one of the most serious environmental problems in the Republic of Serbia. This conclusion has resulted from numerous environmental assessments that have been carried out in the territory of the Republic over the recent years.

The problems related to waste management date far back and, as in most countries of East and South Europe, may be connected with periods of accelerated urbanization, which was not accompanied by appropriate environmental protection policy. It was therefore necessary to draw up the National strategy to develop a framework for waste

26


management in our country which would, in the long term, enable European standards to be achieved.

The establishment of a legislative-legal and institutional framework, the hierarchy of management of all kinds of waste, and economic instruments, and the implementation of the proposed framework will contribute to harmonization with EU standards in the future, which is an objective and intention of Serbia.

On the basis of preliminary inventory of hazardous wastes (data from 1994) National Strategy for Wastes on Republic of Serbia level is adopted in 2003. National Strategy is basic document providing conditions for the rational and sustainable republic waste management. In the following phase, the Strategy has to be supported by several implementation plans for collecting, transport, treatment and disposal of controlled waste. The strategy covers waste management legal framework, policy analyses, waste management options, strategies, priority activities and instruments (2003-2015).

Wastes are in Serbia collected by Public communal enterprises, founded by municipalities. The collected waste is directly transported to usually inadequate disposal sites (dumps), where it is just thrown away, in an uncontrolled way, neither covered nor pressed, that is without minimal measures of health protection for population or the environment.

Communal waste in urban zones is usually well organized, despite the lack of modern waste-collecting vehicles, and inadequate number of trash containers, together with financing problems. Route organization and directions (patterns) are mostly based on free estimate and previous experience, but not on adequate analyses based on container filling frequency and vehicle capacity.

Public communal enterprises in Serbia collect waste in an organized way from about 60% of Serbian territory, mostly from municipalities with more urban zones; less in zones with more rural areas. Rural zones are usually left out from the waste collection cycle, resulting in local dumps in many villages, often sited at inadequate locations (river valleys, near houses and farms).

Communal waste is deposited to sites without any previous treatment. In spite of an option of composting (large percent of organic waste), it is not done. There is no special storage site in Serbia, or regular site of hazardous waste, while temporary storage is

mostly done inside the company fence, most often in an inadequate manner. There is no single waste-incinerating device in Serbia, nor is it used as an alternative fuel in cement-factories or iron-factories. Communal waste recycling is not organized either. There is only industrial waste recycling, mostly privately initiated. Presently, waste recycling capacities are not organized. There are some production capacities grouped in organizations which has started recycling several years ago, but stopped or almost stopped the activity.

Hazardous waste treatment centres are non-existent on the territory of the Republic of Serbia. There are mostly small, individual installations, usually designed for the generator’s purposes.

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Bibliography [1] Commettee of the Regions, Official Journal of the European Communities, (2001/C 148/01),

2001

[2] Commission of European communities, Proposal for a: Directive of the European Parliament and of the Council on waste electrical and electronic equipment, COM (2000) 347 final, 2000

[3] Commission of European communities, Proposal for a: Directive of the European Parliament and

of the Council on the restriction of the use of certain hazardous substances in electrical and electronic equipment, COM (2000) 347 final, 2000

[4] COMMON POSITION (EC) No 19/2002 adopted by the Council on 4 December 2001 with a

view to adopting Directive 2002/…/EC of the European Parliament and of the Council of . . on the restriction of the use of certain hazardous substances in electrical and electronic equipment (RoHS) Official Journal of the European Communities (2002/C 90 E/02), 2002

[5] DIRETTIVA 2002/95/CE DEL PARLAMENTO EUROPEO E DEL CONSIGLIO del 27

gennaio 2003 sulla restrizione dell'uso di determinate sostanze pericolose nelle apparecchiature elettriche ed elettroniche

[6] DIRETTIVA 2002/96/CE DEL PARLAMENTO EUROPEO E DEL CONSIGLIO del 27

gennaio 2003 sui rifiuti di apparecchiature elettriche ed elettroniche (REEE)

[7] DIRETTIVA 2003/108/CE DEL PARLAMENTO EUROPEO E DEL CONSIGLIO dell'8 dicembre 2003 che modifica la direttiva 2002/96/CE sui rifiuti di apparecchiature elettriche ed elettroniche (REEE)

[8] Decreto Legislativo 25 luglio 2005, n. 151, "Attuazione delle direttive 2002/95/CE, 2002/96/CE e

2003/108/CE, relative alla riduzione dell'uso di sostanze pericolose nelle apparecchiature elettriche ed elettroniche, nonché allo smaltimento dei rifiuti", Gazzetta Ufficiale n. 175 del 29 luglio 2005 - Supplemento Ordinario n. 135

[9] Spina G., La Gestione dell'Impresa - Organizzazione, Processi decisionali, Marketing, Acquisti e

Supply Chain, 2006, Etas Libri

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Webliography

[10] en.wikipedia.org [11] http://ec.europa.eu [12] http://eescopinions.eesc.europa.eu [13] http://esteast.unep.ch [14] http://eupolitics.einnews.com [15] http://eupolitics.einnews.com [16] http://eur-lex.europa.eu [17] http://ipsnews.net [18] http://kos.rec.org [19] http://www.12manage.com [20] http://www.asbis.com [21] http://www.consorzioremedia.it [22] http://www.electronicsweekly.com [23] http://www.enhesa.com [24] http://www.enviro-l.com.mk [25] http://www.environet-interreg.gr [26] http://www.europarl.europa.eu [27] http://www.frost.com [28] http://www.globe-net.ca [29] http://www.greenpeace.org [30] http://www.nokiasiemensnetworks.com [31] http://www.pwc.com [32] http://www.srbija.sr.gov.yu [33] http://www.tdctrade.com [34] http://www.technologynewsdaily.com [35] http://www.weeedirectory.com [36] http://www.weee-forum.org

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