number 6, 2013
Overview ZeroWIN (Towards Zero Waste in Industrial Towards Zero Waste in Networks) is a five-year project (2009–2014) under the European Commission’s Seventh Research Framework Programme. The Industrial Networks: ZeroWIN project has developed effective strategies for waste prevention through industrial networks. Ten industrial case studies Policy Recommendations from in the automotive, construction, electronics and photovoltaic industries form the core of the project and exchange energy, water and the ZeroWIN Project materials in such a way that waste from one industry becomes raw material for another. This brief suggests what can be done to Industrial networking in European legislation advance the implementation of industrial networks in practice, based on first outcomes The ZeroWIN project has identified four key strategies for the realization of zero of the ZeroWIN project. The research lead- waste in industrial networks: industrial symbiosis, supply chain management ing to these results has received funding from (including collaboration of actors along the supply chain), product stewardship and the European Community's Seventh Frame- eco-design. A review of the current European policies has shown that “industrial work Programme FP7 2007–2013 under symbiosis” is the ZeroWIN strategy least addressed by European Union (EU) grant agreement n° 226752. policies. Relevant EU policies were selected based on their impacts on industrial networks along the product life cycle: raw material acquisition, manufacturing, Written by Claudia Luepschen, distribution, product purchase and use, and end of life. Only a few policies address Ruediger Kuehr and Federico Magalini the first phases of the life cycle; most policies and legislation predominantly regu- late the end of life of products and materials, with sector-specific policies having © United Nations University, 2013 ISBN 978-92-808-3107-8 the greatest combined impact on the high-tech sector. Sustainable procurement ISSN 1814-8026 (as part of supply chain management) is supported at the EU level only in a volun- Licensed under the Creative Commons tary way. For the construction sector, the EU appears to lack a concerted policy Deed “Attribution-NonCommercial- approach on resource efficiency. No dedicated construction and demolition laws NoDerivs 2.5” are in place in most countries, and most of the existing regulations concern general The views expressed in this publication waste only. are those of the authors and do not Consultation with industry stakeholders and desk research on policy measures necessarily reflect the views of the covering the electronics, photovoltaic, automotive and construction sectors have United Nations University. shown that most stakeholders consider the zero waste approach promising. However, various barriers were mentioned regarding its practical implementation, including lack of access to appropriate technologies and waste materials, lack of partners for establishing by-product/waste exchanges, high costs associated with the implementation of necessary new technologies and the transportation of wastes or by-products from one company to another, lack of economic incentives, barriers resulting from unclear definitions and non-harmonized standards and legislation, and lack of political support. It is important to emphasize that some (or all) of the www.unu.edu
“barriers” on this list are “perceived” Overall, more research on recycling needed to bring the national measures, barriers from industries that may have and reuse technologies and the use of which vary considerably across Europe, a vested interest in retaining the status recovered materials must be encour- into closer harmony. Different inter- quo. aged. Accordingly, there must also be pretations among member states greater public investment to support should be avoided and policies should Standards are key these endeavours. be written in a way that limits the Feedback from the ZeroWIN indus- As the photovoltaic sector is still potential for alternative interpretation. trial case studies has shown that, across relatively new, specific guidelines for For example, the same collection all sectors, one of the major barriers for the inspection, control and repair of categories, targets or target setting stakeholders to engage in industrial broken photovoltaic (or component principles – e.g. the new Waste networks is the perception that prod- parts) or their decommissioning should Electrical and Electronic Equipment ucts of lower quality may result from be introduced. In this way, all complete (WEEE) Directive (2012/19/EU) the use of recycled and reused parts systems or parts at end-of-life can also introduced collection targets based on and components. A European standard be reused. In addition, with a sub electrical and electronic equipment for second-hand components and prod stantial share of modules expected to put on the market or waste generated ucts would help ensure the liability of become waste in the coming years, there in a national context – and reporting parts and components and counteract is a great need for research on recycling systems should be implemented in all this fear and scepticism. An equally technology and the issuance of reference EU member states, in particular for important issue, particularly for the IT documents for best available technolo- the electronics, photovoltaic and reuse industry when it comes to reverse gies for photovoltaic reuse and recycling. automotive industries. logistics, is the lack of information To support this harmonization of associated with returned products. Huge barrier to industrial definitions and policies, a stronger Producers should be required to networking: Unclear definitions focus on compliance and monitoring is provide information about the operat- of waste and by-products needed, which depends on sufficient ing life of the component to refur One of the key stumbling blocks to funding to environmental agencies for bishers or reuse organizations, so that a realizing zero waste in industrial enforcement. Waste management warranty for the part or component can networks is a lack of clarity regarding plans, for instance, as a cornerstone of be issued accordingly. Some companies the definition of the terms “waste” European waste policy and as required already have comparable standards on a versus “product” and an inconsistent by the Waste Framework Directive are voluntary level. Xerox, for instance, has interpretation and implementation of not efficient if not enforced. Enforcing developed processes and technologies the Waste Framework Directive (and environmental laws and regulations is to ensure that all its products, regard- other Directives) across EU member an important ingredient in protecting less of their reused or recycled content, states. This lack of clarity often leads the environment and reducing envi meet the same specifications for to significant administrative burdens ronmental harm caused by improper performance, appearance, quality and (and respective costs) associated with recycling or illegal waste disposal. In reliability, and carry the same guaran- turning waste materials into new some cases, enforcement agencies rely tees, warranties and service agreements production cycles. Legislation needs to on coercive powers to demand compli- as Xerox equipment made from all new impose a clear definition of waste and ance with environmental laws, while parts. To take this one step further, the end-of-waste status and simplify the others make use of educational strate- increased use of standardized compo- recognition of by-products to facilitate gies to persuade individuals, organiza- nents would generally increase the the legal exchange of materials. End-of- tions and governments to comply with exchangeability of items in the produc- waste criteria being developed – and environmental laws and regulations. tion, installation, repair, reuse and in some cases already published – in It is thus equally important to support recycling phases. Both the photovoltaic the context of the Waste Framework law enforcement agencies whose activi- and the IT industries, in particular, Directive will further promote ties and strategies are governed by would benefit from such standardi common approaches and downstream legislative instruments and which need zation and exchangeability, among markets for recovered fractions. Such to be put in place and secured with others, of parts, plugs and interfaces. a clarification in definitions is also adequate supporting funds.
2 Policy Brief www.isp.unu.edu
Not enough support for reuse should be required to guarantee reuse Reuse is integral to achieving the goal companies access to municipal collec- of zero waste. Reuse – whilst environ- tion points. Finally, a reimbursement mentally superior to recycling – is a policy would provide financial incen- necessary part of overall waste reduc- tives for consumers to turn in their tion; however, in particular for the reusable equipment, as would inclusion electronics sector, current legislation of reused products in green procure- does not sufficiently promote reuse. ment policies. However, one has to Furthermore, uncertainties regarding keep in mind that these measures the quality, timing and quantity of might imply higher costs and might returned products are a major stum- also increase compliance costs and bling block to the creation of a func- eventually turn into a discussion of tioning reuse market. This is essentially who pays what. This needs to be an issue of reverse logistics, where such further researched. supply uncertainties and value destruc- For small reuse enterprises in par tion due to time delays and storage can ticular, potentially high labour costs cause a serious barrier. Therefore, an and the externalization of costs pose a efficient acquisition and reverse dis significant challenge. Social enterprises tribution system, in particular for can solve this by combining training business equipment, is essential for and/or rehabilitation of certain catego- tracking, collecting and returning used ries of workers. Reducing value-added products to the IT asset management tax for reused products would support or refurbishment facility. Setting sepa reuse by making it more financially rate collection targets for reuse and attractive to consumers. Value-added
“Policy instruments will have to trigger a change of the traditional ways industry is operating” recycling in the WEEE Directive tax is included in the price of new would support this. These targets products. It is thus recommended that should apply to both the business-to- a reduced value-added tax be applied to business (B2B) and the business-to- previously used products. Overall, About the Authors consumer (B2C) sector. To counter low some financial support of social enter- returns of equipment suitable for reuse, prises active in refurbishment and Dr Ruediger Kuehr is head of ZeroWIN CS 1 and CS 3 suggest that reuse (e.g. through tax incentives, sub the operating unit SCYCLE of specific collection and transportation sidies and “welfare to work” funding for the United Nations University systems for high-value reusable labour) could trigger a change from the Institute for Sustainability and appliances be put in place to ensure traditional manner of operating. Peace (UNU-ISP) in Bonn, that they are not damaged in the For reuse of B2B IT equipment as Germany. process. It is also recommended that well, economics seem to be the main Claudia Luepschen and municipalities ensure that appropri- driver. Even though trade in used B2B Dr Federico Magalini are ately trained staff inspect incoming IT equipment is ongoing in some Euro Research Associates at equipment at municipal collection pean countries, this is not covered by UNU-ISP SCYCLE. points. In addition, municipalities current WEEE Directive (2002/96/EC)
Towards Zero Waste in Industrial Networks: Policy Recommendations from the ZeroWIN Project 3 www.unu.edu
reporting, with organizations collect- declare their share of the market (to be seen as commercially sensitive. ing and treating for reuse and recycling ensure adequate coverage in total) and Accounting of collection and correct without the same requirements defined to treat to an acceptable standard. treatment might also be more difficult by legislation for B2C WEEE. A Simple annual mass data by category to implement for smaller actors for solution that addresses these issues would be sufficient to determine an whom WEEE cascades into smaller needs to be developed which considers organization’s total collection share streams as it moves through these both the drivers of the system, the from the sales figures provided by networks. Whether a unit is viable for value in reuse and resource exploita- manufacturers for WEEE Directive reuse depends on the likelihood of its tion, and the barriers that affect deci- reporting (usually on an annual basis), sale and the costs of its repair or treat- sion making. There is a pressing need potentially supported by third-party ment when compared with the poten- for accountability and a mechanism verification. However, one has to keep tial profit. This value assessment was needs to be put in place for actors to in mind that market share details can shown to be completely market-driven and the requirements of such a market are highly specific and variable.
Landfill bans and certification schemes are promising instruments Particularly for the construction sector, landfill bans appear to be an efficient www.zerowin.eu legislative tool. Bans on the disposal of certain types of waste in landfills The ZeroWIN project aims to provide targeted policy recommendations encourage the development of indus- supporting the development of industrial networks in practice. trial networks to find alternative solu The ZeroWIN project’s Work Package on Policy Implications and tions such as recycling and reuse. In the Recommendations investigates barriers, trade-offs and overlaps of relevant United Kingdom, as a result of the legislation while integrating the outcomes of these case studies at a policy banning of plasterboard from landfills, level. Consultation with industry stakeholders highlighted some difficulties the recycling content of plasterboard and concerns regarding practical implementation of industrial networking has increased from around 10 per cent and its underlying principle of mutual benefit through the exchange of in 2007 to 78.5 per cent in 2011. This waste materials. However, initial results from the case studies are promising, has worked so well because consider- suggesting that industries can reduce greenhouse gas emissions by at least able efforts were made prior to the 30 per cent and achieve a 70 per cent overall reuse and recycling rate for legislation being enforced to work with waste by successfully engaging in an industrial network. the primary manufacturers and waste The ten ZeroWIN industrial case studies are: disposal companies to develop segrega- tion and collection schemes. This devel- Implementation of design recommendations in high-tech products: opment of an industrial network made CS 1: Prototype of a D4R laptop it possible for the legislation to be CS 2: Prototype of a D4R photovoltaic system CS 3: Development of a regional reuse network for ICT products implemented effectively. Across all sectors studied in the Zero-waste construction – Construction resource efficiency networks: ZeroWIN project, for some products, CS 4 and 5: Two new buildings in Portugal and the United Kingdom the costs for recycled materials are CS 6: Refurbishment of Deutsche Bank’s Head Office and New Construction higher than those for virgin materials Schwabinger Tor in Germany or for landfill disposal. In the construc- Zero-waste construction – Zero-waste management in demolition activities: tion sector, new material is relatively CS 7 and 8: Demolition of end-of-life building in Portugal and the United Kingdom cheap. Costs for dismantling, storage, CS 9: An automotive component cleaning, etc. of material to enable CS 10: B2B EEE industrial networks reuse, on the other hand, are high, and sustainable products are on average
4 Policy Brief www.isp.unu.edu
more expensive than ordinary prod- tal product certification schemes for ucts. In such cases, the aforementioned construction materials mandatory by landfill bans could be transposed or law would mean that all construction landfill costs could be increased to products and materials could be com- encourage the use of recycled material pared on environmental grounds as in industrial networks. Other financial well as price. Major achievements have incentives such as taxes or subsidies for already been made in the construction the use of recovered materials can also sector in the area of energy perfor- be beneficial. Case studies in the photo mance; however, there is room for voltaic sector, as in the construction improvement to steer certification sector, highlighted that the higher cost towards a stronger inclusion of recov- of using recycled materials or compo- ered materials and support for indus- nents presents a barrier for realizing trial networks. This could either be industrial networks. achieved by implementing a new certifi- The extended producer responsi cation system or adjusting existing bility (EPR) principle was introduced certifications systems as LEED by legislation to make producers (Leadership in Energy and Environ responsible for their products over the mental Design) by the United States entire life cycle, especially at their end Green Building Council, BREEAM in of life. Proponents of EPR argue that the United Kingdom or DGNB (Deut if producers have to deal with their sche Gesellschaft für Nachhaltiges products and the resulting waste, they Bauen; German Sustainable Building will have a greater incentive to design Council) in Germany to support indus their products in such a way that they trial networking (and thus provide an can be more easily disassembled, argument to the owner of a construc- reused and recycled. However, EPR in tion project for creating an industrial the construction sector is very difficult network).
“The extended producer responsibility (EPR) principle was introduced to make producers responsible for their products over the entire life cycle” to implement because of the long life Policy adjustments: A more cycle of buildings. The same applies to concrete call for action the photovoltaic industry, where the Feedback from ZeroWIN members average lifetime for panels is 25 years. and invited stakeholders has shown In the construction sector one promis- that the WEEE Directive, RoHS ing instrument is the certification Directive and the Ecodesign Directive of buildings. Such schemes usually set are considered to be the most effective high standards in construction and measures for achieving zero waste in may thus push the establishment of industrial networks. Even though none strong networks of well-performing of these directives directly foresee or industries. Moreover, a push to make promote the exchange of waste with the current voluntary environmen-
Towards Zero Waste in Industrial Networks: Policy Recommendations from the ZeroWIN Project 5 www.unu.edu
other industrial sectors, this develop- ensure the collection and recovery of apply to the purchase of new products ment is not precluded either. The end-of-life photovoltaic products. and not of reused products. WEEE Directive, after its recast as However, one of the proposed collec- For the demolition sector, the lack well, has a particular focus on waste as tion targets (from 2019 onwards) of of specific legislation and guidance a resource, conveyed through its princi 65 per cent of the items put on the related to demolition is causing a ples of prevention, recovery and safe market in the last three years is not at barrier to more environmentally sound disposal of WEEE. As for the RoHS all realistic for photovoltaic panels, demolition and reuse. Legislation Directive, restricting the use of hazard- considering that their average lifetimes imposing targets for reuse or up-cycling ous substances in electronic products is are about 20 years and that the market of the material generated on-site would likely to enhance the economic prof is still expanding so that “substitution” promote selective demolition and itability and possibility for recycling of of old panels is currently limited. It increase the availability of reusable WEEE and thus facilitates, in a general seems much more appropriate to have materials.
“There is general scepticism in industry regarding the perceived practicality of industrial networks” way, the exchange of waste and an individual collection target for Education of all stakeholders is resources in industrial networks. photovoltaic panels, as this would needed However, in particular for the encourage separate collection of this While the concept of industrial net- Ecodesign Directive, which provides product, whose composition and works has been widely discussed in consistent EU-wide rules for improving recycling techniques differ from those academic circles, there still seems to be the environmental performance of of other electrical and electronic equip- a general scepticism in industry regard- energy-related products, there is some ment. In order to reflect the very long ing the perceived practicality of indus- criticism that the current focus on lifetime of photovoltaic panels and the trial networks, what costs are involved energy consumption during the use recent appearance of photovoltaic and how barriers can be overcome. phase of products is too narrow, markets in Europe, an individual Using waste from another company neglecting the potential for design for collection target for photovoltaic panels requires environmental permits and reuse and recycling (D4R). Accord could be based on the quantities of can potentially lead to costly and time- ingly, there are calls to make the waste (from photovoltaic panels) consuming court proceedings over the Ecodesign Directive about eco-design, generated in the territory. waste or by-product question. Further i.e. to extend its scope to other design The Green Public Procurement more, companies often seem to have aspects (for reuse, disassembly, univer- Programme supports and promotes very little knowledge of the by-products sality, etc.) and to include non-energy- sustainable procurement at the EU and wastes from other industries that using products. level. It is, however, only voluntary. The could possibly be utilized. It is impor- The recast of the WEEE Directive inclusion of mandatory procurement tant to foster industry trust in existing introduced a major change for the criteria promoting the purchase of industrial networks, to support indus- photovoltaic industry. Previously reused goods and adding requirements trial symbiosis initiatives and use suc exempt from WEEE recycling obliga- for inclusion of reused or recycled con cessful local, regional and national tions, the recast now includes photo tent as well as promoting the potential cases to market their economic benefits voltaic under Category 4 (consumer for reuse and recycling would be a big and showcase best practices – and equipment and photovoltaic panels) step towards supporting reuse and ensure that their activities are not and Category 5 (small equipment with recycling and thus industrial net illegal (or reduce the uncertainty or integrated photovoltaic panels), mean- working. In addition, funds granted perception thereof). This could also ing that producers of photovoltaic to public bodies (e.g. universities) for involve making public funds available panel systems will be obligated to procurement activities oftentimes only for such initiatives or, as mentioned
6 Policy Brief www.isp.unu.edu
earlier, awarding financial incentives reused materials in the construction via tax breaks for companies that get industry a criterion for the evaluation SCYCLE, located in Germany, is involved in closed-loop industrial of public tenders. This would encour- UNU-ISP’s first Operating Unit networks and prove to be cooperating age project professionals to think about and became operational on with positive commercial results and these aspects in the design stage and 1 January 2010. SCYCLE stands environmental impacts. In addition, would increase the likelihood that for Sustainable Cycles, its mission waste exchange information should be planners (local authorities/end users/ being to: encouraged to allow the market to find architects) would be more open to Enable societies to reduce the envi the right suppliers and create demand. incorporating the use of sustainable ronmental load of the production, A good example for this is the Resource materials and to consider input sub use and disposal of especially but Exchange Platform (www.trxp.eu), stitution with by-products, recycled not exclusively, electrical and elec which was developed under the materials or materials whose by- tronic equipment to sustainable ZeroWIN project and which provides products have a high reuse potential levels through the development possibilities for offers and requests of in other processes. and promotion of independent, materials and allows providers and Industrial networking can create comprehensive and practical seekers to communicate directly and energy and material savings, a competi- research as a sound basis for negotiate prices independently. tive advantage and new business oppor- policy development and decision Education is also vital for support- tunities for industry, and minimize making. ing reuse, in particular related to elec waste and pollution. Stakeholder con Within this context SCYCLE: tronics. Consumer education on the sultation shows that a lingering mental yy Conducts research on environmental, social and financial barrier among industry actors con eco-structuring towards benefits of reuse is necessary to create tributes to scepticism as to the benefits sustainable societies a market and generate demand for of industrial networking and hesitance yy Develops interdisciplinary reused products. For the construction to change their traditional operations. and multi-stakeholder sector, education can be a tool to Currently, the automotive, construc- public–private partnerships oppose illegal disposal of construction tion, electronics, photovoltaic and yy Undertakes education, and demolition waste. Designers also other industries are under no obliga- training and capacity need to be educated; currently, design- tion to change their ways of operating. development ers and architects often give priority to In order to establish effective industrial yy Facilitates and disseminates aesthetic aspects and only give minor networks and achieve the goal of zero practical, science-based consideration to environmental and industrial waste, policy instruments recommendations to the energy performance or the possibility will have to trigger this change. United Nations and its for material recovery at the structure’s agencies, governments, end of life. For public buildings in par Acknowledgements scholars, industry and the ticular, the tender process, prescribed The authors would like to thank all public by legislation, results in a lengthy delay WP8 partners of the ZeroWIN between the design and construction Consortium for their suggestions and phases. Thus, the builder is normally review of this brief – in particular, the not involved in the design phase and Austrian Society for System has little ability to change the mate Engineering and Automation, Bio rials, equipment and techniques set Intelligence Service, University College by the architects in the design stage. for the Creative Arts, WAMECO, Greater reuse rates could be encour- Politechnika Wroclawska and AU aged by making the use of recycled/ Optronics Corporation.
Towards Zero Waste in Industrial Networks: Policy Recommendations from the ZeroWIN Project 7 www.isp.unu.edu
INSIDE: Policy Brief Towards Zero Waste UNU Institute for Sustainability and Peace (UNU-ISP) is a research and training centre of the United Nations University. UNU-ISP takes an in Industrial innovative, integrated approach to sustainability—one that encompasses global change, development, peace and security. The Institute bridges Networks: Policy these cross-cutting issues through research, education and collaborative initiatives with the aim of solving current problems and anticipating Recommendations future challenges. UNU-ISP is based at the United Nations University headquarters in Tokyo, Japan. from the
ZeroWIN Project
Germany
D-53113 Bonn D-53113
Platz der Vereinten Nationen 1 Nationen Vereinten der Platz
UN Campus UN
Operating Unit SCYCLE Unit Operating
Peace
and Sustainability for Institute United Nations University Nations United