1. 0 Japan's Legal Scheme for Establishing the Sound Material-Cycle Society Mitsuo Matsumoto Ministry of Economy, Trade and Industry Japan APEC/SCSC/TFTF 24 June 2007, Cairns

2. 1 Basic Environment Law Basic Environment Plan Regulations in accordance with the characteristics of specific products Green Purchasing Law Containers and Packaging Recycling (CPR) Law Home Appliance Recycling (HAR) Law Construction Material Recycling (CMR) Law Food Recycling (FR) Law End-of-life Vehicles Recycling (ELVR) Law Waste Management Law Law for Promotion of Effective Utilization of Resources Fundamental Law for Establishing a Sound Material-Cycle Society Legislation and Policies to Promote the Sound Material-Cycle Society

3. 2 Legislative System in Line with the Life Cycle of Products Designing Production Consumption Use Collection Recycling Waste Law for Promotion of Effective Utilization of Resources (PEUR) Green Purchasing Law CPR Law HAR Law CMR Law FR Law ELVR Law PEUR Law Waste Management Law Businesses - Environment Conscious Design - Reuse and Use of Recycled Material - Material Labeling Gov. Organizations - Purchase Environmentally Friendly Products Businesses - Self Collection Consumers - Proper Disposal Businesses Municipalities - Proper Handling and Management of Waste

4. 3 2001 1991 Law for Promotion of Utilization of Recycled Resources （ Recycle Law ） Recycle of recovery products as raw materials （ recycled waste-paper 56%, recycled waste-glass bottle 65% ） Recycle conscious design: use of recyclable materials, design for easy dismantlement (automobile, TV, refrigerator, etc. ） Labeling for separated collection （ steel can, aluminum can, PET bottle, NiCd battery ） Promotion of recycling of by-products generated at factories （ slag, coal ash from power plant ） 1999 Sound Material-Cycle Economy Vision Promotion of waste reduction measures in addition to recycling: - Lesser use of resources, adoption of long-life design (Reduce) - Reuse of products/parts (Reuse) １Ｒ Reinforcement of recycling measures Adoption of reducing, reusing measures Promotion of effective resource utilization at every aspects of business activities ３Ｒ History of Law for Promotion of Effective Utilization of Resources Law for Promotion of Effective Utilization of Resources （ 3R Law ）

5. 4 I. Measures on products: Specified Resources- Saved Products Reduce Reuse Recycle Reduce Recycle Design for Reduce [Raw materials] ・ Distribution and Service Specified Reuse- Promoted Product Designated Resources- Reutilizing Industry Use of Recyclable Resources and Reusable Parts Outline of Law for Promotion of Effective Utilization of Resources Consumption Reduction of by-products generation and promotion of recycling measure II. Measures on by-products: Manufacture [Product design] Separation and Collection Reuse, Recycle Design for Reuse and Recycle Specified Resources-Recycled Product Execution of Self- collection and Recycling Specified Labeled Product Labeling to Facilitate Separated Collection Designated Resources- Saving Industry Specified By-product J-MOSS

6. 5  Personal Computer  Unit Air-conditioner  Television set  Refrigerator  Washing machine  Microwave  Clothes dryer Specified Products  Lead and lead compound  Mercury and mercury compound  Cr 6+ compound  Cadmium and cadmium compound  Polybromobiphenyl  Polybromodiphenylether Specified Materials Inclusion Mark To be labeled on products, packages, catalogues, etc. Utilization of Law for Promotion of Effective Utilization of Resources  Materials (lead, etc.) required to be controlled in designing/manufacturing processes of products are specified  Manufacturers/importers of specified products are obliged to provide information on any of such materials if included in their products  Inclusion mark is to be labeled on product/package  Inclusion mark as well as detail information (e.g. indication of relevant parts, quantity of materials/substances) to be provided on product’s catalogue/brochure, operation manual and web-site J-MOSS: Information Provision of Materials Included in Products

7. 6 Equipment name ： Television receiver Type designation : ○○-AAA Specified Materials PbHgCdCr(VI)PBBPBDE Circuit BoardExceeding 0.1wt% ○○○○○ Cabinet ○○ Exceeding 0.1wt% ○○ Exceeding 0.1wt% Cathode-ray tube Exemption○○○○○ Speaker ○○○ Exceeding 0.1wt% ○○ JIS C 0950 Detail Information to be Provided on Product’s Website

8. 7 How effectively chemical control can be conducted in a supply chain. Does Japan need to establish a regulatory regime similar to the EU? Leading activities by industries should be well recognized. No needs for restriction of use of certain chemical substances similar to the EU. New measures should facilitate the future development of environment conscious designing. High Recycling Rate Promotion of Environment Conscious Design Basic Concept of J-MOSS

9. 8 Handling of Materials and Chemical Substances in Products Appropriate separation and management of materials/substances at the stage of reuse and recycling: -> Effective emission control, improvement of reuse/recycling processes, improvement of quality of reused/recycled materials Information on specific (rare, useful or hazardous) materials/ substances should be disclosed, monitored and managed throughout a supply chain. Expanded Application of Law for Promotion of Effective Utilization of Resources Designation of specific materials/substances to be controlled during designing and manufacturing of products Obligation to manufacturers and importers to provide information on the specific materials/substances contained in their products Basic Concept of J-MOSS

10. 9 I. Measures on products: Specified Resources- Saved Products Reduce Reuse Recycle Reduce Recycle Design for Reduce [Raw materials] ・ Distribution and Service Specified Reuse- Promoted Product Designated Resources- Reutilizing Industry Use of Recyclable Resources and Reusable Parts Outline of Law for Promotion of Effective Utilization of Resources Outline of Law for Promotion of Effective Utilization of Resources Consumption Reduction of by-products generation and promotion of recycling measure II. Measures on by-products: Manufacture [Product design] Separation and Collection Reuse, Recycle Design for Reuse and Recycle Specified Resources-Recycled Product Execution of Self- collection and Recycling Specified Labeled Product Labeling to Facilitate Separated Collection Designated Resources- Saving Industry Specified By-product J-MOSS

11. 10 A: Some Parts Exempted B: Containing Specified Materials Information provision through the internet Information provision through the internet Information provision is necessary for separation of hazardous materials and substances under the sophisticated recycling system in Japan To be labeled on products, packages, catalogues, etc. Basic Concept of J-MOSS

12. 11 ●Self collection/recycle systems established by manufacturers 【 Self collection rate 】 Business appliances: 0.45M (2001) -> 0.67M (2005) Home appliances: 0.23M (2004) -> 0.32M (2005) 【 Recycling rate 】 Business desktop PC: 78.9% （ 2005 ） Home desktop PC: 69.5% （ 2005 ） Products with Reduce Requirement Products with Reuse requirement Reduce Reuse Recycle [Product Designing] ●Weight saving of Note PC: 1,650g -> 1,199kg ●About 1.5 times longer-life for hard-disc drive ●About 60,000 hours longer-life for back-light of liquid-crystal display panel [Separation/ Collection] [Reuse/ Recycle] ●Materials selection Using recyclable materials such as PS, PC, ABS ●Design for easy dismantlement - Number of parts reduced by 50% - Number of screws reduced by 46% - Dismantling time reduced by 15% ●Material labeling for separated collection Distribution and service Consumption Some Outcomes of Law for Promotion of Effective Utilization of Resources

13. 12 ◇ Ongoing ◇ Ongoing Surveys 1. Market Survey 2. Survey on Internet 1. Market Survey 2. Survey on Internet ◇ Market Survey Specified Products Number of Samples Personal Computer6 Unit Air-conditioner1 Television set3 Refrigerator2 Washing machine2 Microwave2 Clothes dryer1 Total17 Specified Products Number of Samples Domestic Products Imported Products Personal Computer2,3991,972427 Unit Air-conditioner4674661 Television set37630868 Refrigerator18412064 Washing machine1289731 Microwave36333 Clothes dryer312110 Total3,6213,017604 ◇ Survey on Internet Follow-up (Surveys) of J-MOSS

14. 13 Challenges to Law for Promotion of Effective Utilization of Resources  Increasing demand/price of natural resources  Changing supply and demand structure of recycled resources Lesser usage of natural resources in manufacturing Popularization of sound recycling system in different countries International standardization of environment conscious design Improvement of recycling systems in accordance with the changing supply and demand structure Proper handling of used products containing useful metallic resources Changing Circumstances

15. 14 Respond to new recycling systems based on market mechanism Increase collection rate and reduce cost for collection by streamlining existing recycling systems Promotion of voluntary collection of mobile phones that include high rate of useful metallic resources Resource reduction in the total supply chain Reuse of collected and recycled parts in the same type of new products Facilitation of international standardization of DFE technology Raising awareness of consumers on 3R conscious products Improvement of recycling systems to cope with changing resource market Further promotion of reduced usage of natural resources and environment conscious design with lifecycle thinking Solutions? Challenges to Law for Promotion of Effective Utilization of Resources

16. 15  Japan’s resource productivity, including specified products covered by the J-MOSS, is improving  Survey on J-MOSS is planned to be conducted every years from 2007  Results of the survey will be used for possible improvement of J-MOSS and other schemes to further promote establishment of the Sound Material-Cycle Society  Japanese government will continue to provide support for international standardization activities to cope with EU- RoHS like regulations through IEC/TC 111 Establishing Sound Material-Cycle Society After one year of implementation of J-MOSS (enforced 01/07/2006)