State Secretariat for Economic Affairs e-Waste Management in Developing Countries: Donor’s Motivation and Expectation Mathias Schluep (Empa), Stefan Denzler (SECO) E-Waste Management Forum: “Green Business Opportunities” (E-waste 2010), November 2010, Marrakech, Morocco

Table of Contents SECO‘s Economic Development Cooperation Knowledge Partnerships for e-Waste Recycling Sustainable Industries for Secondary Resources Future Challenges & Expectations

Economic Dev. Cooperation SECO = Swiss Competency Center for  Sustainable Economic Dev. of Developing and Transition Countries  Sustainable Integration of Partner Countries into Global Economy Objective Trade Promotion  Trade Promotion along Value Chains (Goods and Services!)  Framework Conditions for Trade (WTO; MEAs etc.)  Market Access for Developing Countries to Switzerland and Europe In-house competency within SECO  Trade Agreements Switzerland (WTO and bilateral)  Labour Conditions in Switzerland, and focal point for ILO  Swiss Focal Point for OECD Guidelines on MNE  Close Contact to Swiss Industry, Retailers, Traders (e.g. Commodities)  Location Switzerland, Regional Economic Promotion incl. Tourism Objectives of SECO‘s Economic Development Cooperation

Economic Development Cooperation Geographic Focus Framework Credit VII (approved by Swiss Parliament in December 2008): Seven Priority Countries – Colombia, Peru, Egypt, Ghana, South Africa, Vietnam, Indonesia. (50% of funds) Cooperation with Transition Countries: Central Asia; Balkan Cohesion Funds: 10 new EU Members; pending Romania and Bulgaria. Sustainable Trade and Climate Issues: Emerging markets China and India Operational Units / Instruments (total 60 staff; 220 million CHF/year) Macroeconomic Support Private Sector Promotion (Investment Promotion) Trade Promotion Infrastructure Financing

Cooperation Approach: Value Chains

Examples of Trade Promotion Projects Cleaner Production Centers (CPC): Information, Assessement, Trainings for Industry and Local Consultants Regarding Eco-Efficiency (UNIDO); Green Credit Lines: Colombia, Peru, Vietnam Core Labour Standards at company level (Better Work ILO) CDM Capacity Building: DNAs; CDM Methodologies (World Bank) Commodity Sustainability Standards: Multi Stakeholder Processes for Tropical Timber, Coffee, Soya, Sugar, Cotton, Biofuels Biotrade (Biodiversity Management and Exports), UNCTAD International Trade Center, Geneva SIPPO = Swiss Import Promotion Program Knowledge Partnerships for e-Waste Recycling

Why e-waste Recycling? Information Technologies: Dynamic sector with increasing waste flow; enviromental and health problems when recycling informally International Regulation (Basel Convention) but difficult to control – what is second hand for use, what is waste? Economic opportunities: Refurbishment; precious metals, copper; in the long term: Commodity supply problem for certain metals Switzerland has been pioneer in e-waste recycling: Initiated by the OEM and run through private system operators (SWICO and SENS)

Challenges and opportunities e-Waste is valuable... creates jobs … can be hazardous! Copper sludge sorting of plastics desoldering of components

History e-Waste Programme July 2003 concept clearance SECO for entire 3-phase programme and funding for Phase 1 (Assessment). Decisions in Aug'04 for Phase 2 (Planning) and in Aug'05 for Phase 3 (Implementation). Phase 3 completed in China, India (3Q05 -Dec'08) and South Africa (Dec’09). Latin America extension Peru and Colombia (assessment/planning in 2007/2008). Activities in both countries officially started in Jul'09 for 3 years. Currently investigating for a possible Phase 4: widening the focus from “e- waste only” to “Sustainable Industries for Secondary Resources”

Sink control input GHG emissions feedback / indicators e.g. Metals refine, process manu- facture use & consume recycle mine Energy Technology, Economics, Politics, Legislation, Society Sustainable Industries for Secondary Resources Source e.g. Waste

Sustainable Industries for Secondary Resources A considerable and fast growing share of essential non renewable natural resources end up in end-of-life consumer products in developing and transitional countries There, if at all, they often are recovered inefficiently and at great external costs by an informal sector / industry and hardly can compete with established primary resources. Improvements in capacities and efficiencies for the recovery and return of secondary resources as well as the participation of the aforementioned industries in the global commodity trade is paramount refine, purify, enhance, certify,... recycle, recover, dismantle, segregate, sort,...

Private Corporate Informal Scrap Delaer Rag Pickers Middlemen (Auction) Informal Sector Informal Disposal & Burning Consume Collection Recycling Disposal Auction and donation as a cheap disposal option Insufficient handling of critical fractions, Burning of plastics, Recovery of gold with cyanid und mercury Emissions to the environment through leaching and burning Example: Pilot Bangalore

Informal sector Bangalore only  20% gets recovered > 60% loss due to the manual dimantling process > 50 % loss due to the wet-chemical leaching process Emissions are dramatic: up to 400x European thresholds State of the art smelter Recovery rate of up to 95% Plus other metal, e.g. paladium, silver, copper etc, High – tech off-gass control and treatment system

Example: Pilot Bangalore Idea: Combination of the strengths = “Best of 2 Worlds: participation of the informal sector in the global commodity trade Using the strengths –local: collection, „intelligent“ sorting and dismantling (traditional strengths) –International: High Tech Recycling in Europe of the critical fractions (especially printed circuit boards & batteries) Solution: –Development of a cooperative structurer for buying from the familiy businesses and accumulating critical volumes –When critical volumes are reached (container size) export to hight tech refinery –Financial return goes back to the informel sector via the cooperative structure -> income should be higher than before and still pay for the transport Pilot currently enters the crucial phase (export licence for shipping the first container) with internat. partnership with Empa, Umicore, GTZ & StEP

Future Challenges & Expectations Scaling up/ consolidation of current achievements Multiplication in other developing countries Adaptation to local/national circumstances, find the most efficient way E-waste recycling is a Public Private Partnership! Regulation is needed; but public sector does not need to run recycling facilities Extended producer responsibility: „buy-in“ from the IT industry International cooperation/trade with specialized recycling companies International Standards for safe and efficient e-waste recycling E-waste / Secondary Resources sustainability standard?

Contact Swiss Federal Laboratories for Materials Science and Technology (Empa) Technology and Society Laboratory Mathias Schluep, Program Manager Tel.: Fax: Empa Web Site: State Secretariat for Economic Affairs (SECO) Trade Cooperation Stefan Denzler, Program Manager Tel.: Fax: SECO Web Site: