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Chapter 9 Illicit Trade in Electrical and Electronic Waste (E-Waste) from the World to the Region

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Chapter 9 Illicit Trade in Electrical and Electronic Waste (E-Waste) from the World to the Region Chapter 9 Illicit trade in electrical and electronic waste (e-waste) from the world to the region Counterfeit Goods (EAP to Europe and US) $24.4 bn Illegal wood products from EAP $17 bn Heroin within EAP $16.3 bn Methamphetamines within EAP $15 bn Fraudulent medicines (EAP to SEA and Africa) $5 bn IIllegal e-waste to EAP $3.75 bn Illegal wildlife in EAP $2.5 bn Migrant smuggling (E and SE Asia to Europe and US) $1.55 bn Migrant smuggling (GMS to Thailand) $192 m Sex trafficking (GMS to Thailand and Cambodia) $181 m Migrant smuggling (S and W Asia to Australia and Canada) $97.3 m Illegal ODS to EAP $67.7m $ bn = US$ in billions $ m = US$ in millions Labour trafficking (GMS to Thailand) $33 m 0 5 10 15 20 25 30 This chapter has been developed with the kind contribution of the United Nations Environment Programme. 101 dƌĂŶƐŶĂƟŽŶĂůKƌŐĂŶŝnjĞĚƌŝŵĞdŚƌĞĂƚƐƐĞƐƐŵĞŶƚͲĂƐƚƐŝĂĂŶĚƚŚĞWĂĐŝĮĐ NATURE OF THE THREAT 1. Environmental disruption: 2. Negative impact on human pollution of soil and water systems, emission health: toxic metals and ultraviolet of greenhouse gases, thinning of ozone radiations affecting immune, respiratory and layer, negative impact on marine and forest digestive systems, including high risk of skin ecosystem by ultraviolet radiations. cancer and eyes diseases. 3. Socio-economic impoverishment: increase costs for public health, reduced agriculture productivity, food insecurity and poverty. 102 Chapter 9 1. What is the nature of this market? The e-waste trail often begins in Europe, the United States and Japan, where discarded electronic Electrical and electronic waste (e-waste) is the fastest and electrical equipment is collected by recycling growing waste stream in the world. Globally, the operations. There are two main ways in which old United Nations Environment Programme (UNEP) equipment can be discarded. First, private consumers estimates that up to 50 million tons of e-waste is dispose of used equipment at municipal waste generated every year, with only 10% of it being collection sites. The second is where businesses recycled.1 contract a specialized waste company to collect and treat defunct equipment. In principle, discarded Broadly, the term e-waste covers a host of electronic equipment is then tested in order to separate working items, such as personal computers, televisions, items from non-working items. The latter (e-waste) mobile phones, and printers, as well as electrical should be dispatched to specialized recycling goods like refrigerators and air-conditioning units. facilities. In reality, the e-waste is often diverted onto The growth in e-waste is a consequence of the the black market due to a lack of sufficient auditing digital economy and rapid innovation in consumer and oversight, The motivations are numerous: first, electronics, as continuous product developments avoid the cost of legitimate recycling, and, second, lead to a rapid turnover of electronic devices. receive payments for the scrap equipment. Further, Consumption in emerging markets is rising rapidly. the trade of used electronic and electrical equipment For example, sales of personal computers in China can be driven by the re-use value of products and reached 40 million units in 2008. This was second waste exported to developing countries. In such only to the United States. In the same year, 190 situations the equipment (whether in working or – million new mobile phones were sold in China.2 less likely – non-working condition) can fetch prices China generated an estimated 1.7 million tons of far above their intrinsic material value.5 e-waste in 2006. This volume is predicted to rise to 5.4 million tons by 2015. In 2012, it is estimated Globally, trade in hazardous and other wastes, that 190 million personal computers and 74 million including e-waste is regulated under the Basel televisions will become obsolete in China.3 All Convention on the Control of Transboundary this will require management of e-waste, whether Movements of Hazardous Waste and their Disposal through direct re-use, reclamation, resource recovery, (1992). The Convention was developed in response recycling or disposal operations. An emerging factor to a series of scandals in the 1980s involving the that creates incentives for recycling of e-waste is the dumping of toxic waste in developing countries. scarcity of precious and rare earth metals contained Currently, 178 countries are parties to this in electronics. Therefore the recycling and recovery Convention, including almost every country in East market becomes an important element impacting Asia and the Pacific.6 both the legal and illegal transboundary movement of e-waste worldwide. A raft variety of international, regional and national agreements, as well as legislation and other measures Despite such growth in China, the main generators further regulate or restrict the trade in hazardous of e-waste are still the developed countries in the and other waste in general or e-waste in specific. European Union (EU) and the US. Since 2008, the Within the EU, the Waste Electrical and Electronic EU has produced on average 6.5 million tons of Equipment (WEEE) Directive seeks to promote e-waste each year. This figure is set to almost double recycling to reduce the amount of e-waste being to 12 million tons by 2015. In terms of per capita dumped in landfill sites. Under the EU’s Waste e-waste generation, the UK rate is 15 kg per year, Shipments Regulation, transfer of e-waste to and Germany 13.3 kg, while Japan generates 6.7 kg countries which are not members of the Organisation and China 1.7 kg.4 for Economic Cooperation and Development (OECD) is prohibited. China banned the import of 1 UNEP 2010. This figure tallies with business research findings of 53 used electrical and electronic equipment in 2000. In million tons of e-waste produced in 2009, of which only 13% was many other Asia Pacific countries, specific national recycled. See also: ABI Research 2010. 2 Foreign Policy 2009, “E-waste: There’s an app for that”, Foreign Policy, 23 September 2009 5 Secretariat of the Basel Convention, December 2011. 3 Chi and others 2011 6 Only one country has not yet acceded to the Basel Convention. http:// 4 Ongondo and others 2011 archive.basel.int/ratif/convention.htm#10. 103 dƌĂŶƐŶĂƟŽŶĂůKƌŐĂŶŝnjĞĚƌŝŵĞdŚƌĞĂƚƐƐĞƐƐŵĞŶƚͲĂƐƚƐŝĂĂŶĚƚŚĞWĂĐŝĮĐ Overview of Pollution Crime These crimes are of international concern. The world is one vast ecosystem, and the release of ODS There are many forms of transnational organized anywhere in the world impacts our common ozone environmental crime, and as the world becomes layer. Dumping e-waste negatively impacts shared increasingly connected through trade and soils and water systems, not to mention the harm regulation of this trade, new forms will continue caused to human health by the illegal disposal of to emerge. One of the two main subsets of these materials. environmental crime is crime related to the illicit harvesting of natural resources, notably wildlife and These materials are generally illegally disposed of timber resources, which were addressed in the two in less developed countries, where criminals take previous chapters. advantage of lax or non-existent environmental controls or less effective enforcement – or both – in The other main subset is pollution crime, notably order to profit at the expense of both human and the smuggling and dumping of hazardous wastes, environmental health from unsound recycling and including electrical and electronic “e-waste”, and disposal practices. the trade in ozone-depleting substances (ODS). The international trade in these products is Illegal trafficking of hazardous and other wastes, regulated by global treaties, and substantial legal including e-waste, is specifically defined under the markets do exist. Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their East Asia plays a prominent role in the illegal trade Disposal. In fact, Parties to the Convention are of both e-waste and ODS. The region is a major required to introduce national/domestic legislation recipient of illicit e-waste. It is also the largest to prevent and punish the trafficking. producer of ODS. It is estimated that up to 10 million tons of e-waste are traded illegally into and around the region every year, with a potential value of at least US$3.75 billion. Approximately 3,660 tons of ODS are illegally traded from and within the region every year, with an estimated value of up to US$68 million per year. e-waste regulations are not in place and thus, e-waste up to 2 kg of lead,7 which is toxic to humans. Yet, in is handled under hazardous waste regulations due to addition to being hazardous, e-waste also contains the presence of toxic materials. The US, while not a commercially valuable elements, such as copper and party to the Basel Convention, regulates exports of gold. One ton of computer scrap contains more gold equipment containing cathode ray tubes (CRTs) - than 17 tons of ore. Ideally these valuable materials mainly from computer monitors and television sets - should be retrieved through safe recycling practices under the Resource Conservation and Recovery Act. in modern facilities. Nonetheless, environmentally- All of these regulations seek to prevent hazardous sound recycling has significant cost implications. waste from being dumped into developing countries Unscrupulous recyclers and waste brokers in Australia, the European Union, Japan and the United that lack the infrastructure and facilities to safely States effectively avoid costs and obtain income from recycle or dispose of it. the illicit trade. For example, Australia reportedly only recycles around 5% of e-waste collected, but E-waste is classified as hazardous waste due to the exports around 60% of used computers that are presence of toxic materials which can be considered collected through recycling schemes.8 either hazardous or non-hazardous waste in accordance with the Basel Convention and can 7 See “Why do CRT monitors contain lead?” in How Stuff Works.
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