The price of electrical and electronic equipment has risen by an average of 2.19 per cent since the implementation of the Waste from Electrical and Electronic Equipment (WEEE) Directive. This was reported in the Journal of Industrial Ecology after researchers investigated the price of e-products across 27 EU member states. As from 1st September, Malta will introduce strict rules on the implementation of the WEEE Directive and impose hefty fines on sellers of electrical and electronic products who do not take up recycling of WEEE.
Calculated at €750 per tonne, which is equivalent to just 15 washing machines, the fines are seen as a good deterrent for companies to take action. But what action?
Companies would need to pick up fridges, old television sets and any other appliances they sold years ago. Then they have to recycle what they collect. Industry sources say that, excluding collection costs, recycling large appliances would cost at least €400 per tonne. This translates into a cost of €26.60 per appliance when recycling one tonne of washing machines. With the cost of a new washing machine starting from around €350, the WEEE Directive would introduce an added charge of 7.6 per cent. Apart from having to pay these costs, companies also have also to provide a bank guarantee calculated at another €210 per tonne, just in case they fail to succeed in their recycling efforts.
But there is also good news for companies in this business. Two thirds (65 per cent) of global consumers say they are willing to pay more for electronic products that have been responsibly produced, according to CNN International’s ‘Consumer Connect – Consumer Electronics 2012’ survey. A quarter (26 per cent) of respondents said that they were not willing to pay more with a further nine per cent saying that they did not care at all how the product is made or what happens to it. Whether Maltese consumers are prepared to pay higher prices to ensure proper and safe disposal of electrical and electronic products when they become e-waste, is yet to be seen.
E-waste is increasing in quantities and the hazardous components they contain. The WEEE Directive is based on the principle of extended producer responsibility, which shifts the responsibility for end of life of products away from local councils toward producers. This led some researchers to state that, in theory, the costs of waste treatment are passed on to consumers in terms of higher prices.
Higher prices for consumers would mean that local businesses would lose out. Buying online has become so commonplace, that sellers of consumer electronics need to be extremely aware of the cost implications introduced by the requirement to recycle electrical and electronic waste. Not only will local businesses suffer if customers start buying online from foreign-based mega stores, the environment will face difficulties too. It is not clear how foreign based online shops will be recycling electronic waste dumped in Malta. If they don’t, the Maltese taxpayer has to foot the bill.
What seems certain is that the prices for electrical and electronic products are set to increase. Whether this will remain close to the 2.19 per cent European average or whether consumers are prepared to pay an even higher cost knowing that they are doing so to preserve the environmental, or whether consumers will simply flock to the cheapest online store will be answered in the coming months. Meanwhile, both consumers and businesses need to understand the cost implications on recycling WEEE as it could have very serious implications.
John Bonello