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Market potential and demand for product re-use: Small WEEE November 2012 SPMT12_002: The Market Potential and Demand for Product Re-use Product module: Small WEEE

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Page 1: Introduction - Defra, UK - Science Searchrandd.defra.gov.uk/Document.aspx?Document=11827_… · Web viewSummaries of the case studies conducted as part of the small WEEE module of

Market potential and demand for product re-use: Small WEEENovember 2012

SPMT12_002: The Market Potential and Demand for Product Re-use

Product module: Small WEEE

Page 2: Introduction - Defra, UK - Science Searchrandd.defra.gov.uk/Document.aspx?Document=11827_… · Web viewSummaries of the case studies conducted as part of the small WEEE module of

SPMT12_002: The Market Potential and Demand for Product Re-use

Product module: Small WEEE

Project no: 1859

November 2012

Resource Futures

CREATE Centre, Smeaton Road, Bristol BS1 6XN

Tel: 0117 930 4355

Fax: 0117 929 7283

www.resourcefutures.co.uk

Market potential and demand for product re-use: Small WEEENovember 2012

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Document quality control sheet

Report prepared for:Collaborative Waste, Resources and Sustainable Consumption Evidence Programme, Defra

Report prepared by:Gina Anderson, BioIS

Billy Harris, Resource Futures

Checked by: Sam ReeveOperations [email protected]

File name: SMPT_002_SmallWEEEVersion: 01Status: confidentialDate: November 2012

Acknowledgements:The authors would like to thank: Scott Butler (ERP), Willie Cade and Sarah Commes (PC Builders and Recyclers), Cristina Osoro Cangas (Charity Retail Association), Sarah Clayton (WRAP), Corey Dehmey (R2 Solutions), Dr. Colin Fitzpatrick (University of Limerick), Gary Griffiths (RDC), Emma Hallett (ReAlliance), Eric Long (Comet), Sean Nicholson (Microsoft UK), Richard Peagram (HP), David Roman (British Heart Foundation), Caroline Lee Smith.

Contents

Market potential and demand for product re-use: Small WEEENovember 2012

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1. Introduction 1

2. End of life arisings and re-use baseline 3

2.1 Current baseline levels of re-use 5

3. Technical potential for re-use 5

4. Pathways to re-use 8

4.1 Commercial second hand shops 8

4.2 Charity shops 8

4.3 Online exchange 9

4.4 Car boot sales 9

4.5 Asset management companies 9

4.6 Informal exchange 9

5. Market demand 10

6. Barriers 12

7. Opportunities 13

8. Potential actions to encourage re-use 14

8.1 Producer responsibility 16

9. Scenarios 17

10. Potential impacts of product re-use 19

10.1 Carbon offset values of re-use 19

10.2 Impact of re-use on product lifetime 19

11. Case studies 20

11.1 Case Study: Computers for Schools programme 21

11.2 Case Study: RDC’s computer re-use operations 22

11.3 Case study: Awareness raising & collection event by Hampshire County Council 23

12. Summary of findings 24

13. Data gaps and future work 27

Market potential and demand for product re-use: Small WEEENovember 2012

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1. Introduction

Around 591,000 tonnes of small WEEE reaches the end of its life every year in England, of which the majority is domestic. This section looks at the arisings of domestic and commercial small WEEE, the levels of re-use currently being achieved and the potential to encourage further re-use.

The material in this section covers: The levels of end-of-life material arising each year. The levels of re-use currently being achieved and the major channels through which items are

re-used. The potential for re-use of items in the waste stream that are currently not being re-used, and

the composition of this material. A discussion of the level of consumer demand for a range of second-hand small WEEE items

and the implications of this demand for potential expansion of re-use. Current and emerging market barriers and opportunities to expanding small WEEE re-use. A discussion of a range of possible actions that could be introduced to encourage increased

re-use, along with an estimate of the impact of these measures and potential costs. Modelling of re-use scenarios to examine the effect of measures to increase re-use, taking

variations in demand into account. Assessment of the potential carbon impacts of these scenarios. Summaries of the case studies conducted as part of the small WEEE module of this project

(more detailed case studies are presented in Appendix 1).

For the purposes of this study, four categories of items were selected as the focus of the current report: small household appliances, consumer equipment, IT and telecoms and display screen equipment. These were selected based on their quantities arising, potential for re-use and availability of information. The categories examined across this and the large WEEE report account for 81% of total WEEE arisings.

Other WEEE categories have been excluded in this study. One of the key reasons for the exclusion of a number of categories were the small quantities represented (e.g. automatic dispensers, monitoring and control instruments, medical devices and toys, leisure and sports equipment represent each 0.2% or less of the total amount of WEEE arising). i Other reasons were the lack of potential for re-use (e.g. lighting equipment, gas discharge lamps) and the often diverse range of equipment. Furthermore, a lack of published information existed on these categories. Table 1 shows the categories of products selected for examination in this study, as well as examples of the items covered. ii

It should also be noted that the analysis was built on data reported against the WEEE Directive categories. These do not take the size of items into account, and as a result the small WEEE category contains some large items (for example office photocopiers would fall under IT and telecoms). This inclusion was unavoidable, since published data is at the level of the WEEE Directive categories rather than specific products.

Table 1 below shows the segmentation of products used, and some illustrative examples of the products within each category.

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Table 1: Product segmentation and key items examined for small WEEE in this study

Segmentation Examples of items included

Small household appliances

Toasters

KettlesVacuum cleaners

Consumer equipment

MP3 playersHi Fi equipmentVideo games equipmentVideo recorders

IT and telecoms

Computers

Laptops

Peripherals

Mobile phones

Telephones

Display screen equipment

Cathode ray tubes (CRT)

Liquid crystal display (LCD)

Televisions

WEEE categories excluded from the analysis are shown in Table 2 for information.

Table 2: WEEE categories excluded from analysis

Category excluded Estimated arising (tonnes)

Large household appliances† 306,000

Lighting equipment 64,000

Electrical and electronic tools 83,000

Toys, leisure and sport 55,000

Medical devices 10,000

Monitoring and control 17,000

Automatic dispensers 10,000

Cooling appliances† 207,000

Gas discharge lamps 21,000

† Included in coverage of large WEEE.

6Market potential and demand for product re-use: Small WEEENovember 2012

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2. End of life arisings and re-use baseline

The tables below (Tables 3-9) show the estimated end-of-life arisings, baseline re-use levels, major pathways and condition of material (i.e. suitability for re-use) when discarded. The figures for WEEE currently being sent for disposal or recycling that is suitable for re-use may be taken as a strong indicator of the technical potential for additional re-use, since it is this material (re-usable items not currently being re-used) that could be targeted by actions to increase re-use in the short to medium term. Longer term technical potential – incorporating changes in design and large-scale shifts in consumer attitudes towards consumption – have not been considered in this report, as the enormous number of potential variables (and unknown impacts) would render any conclusions speculative. Arisings and general fate of end-of-life products in England

Table 3 presents the amount of small WEEE items arriving at end-of-life in England annually and its fate (recycling, disposal or re-use).

Arisings figures have been taken from WRAP’s (2011) Market Flows of WEEE Materials, as have figures for the amount sent for recycling and disposal. Re-use figures are based on information from the WRAP report plus interviews with market actors carried out as part of this research.

It will be noticed that the sum of re-use, recycling and disposal comes to more than the estimated total end-of-life arising (613,000 tonnes as opposed to 591,000). Theoretically, if we are beginning with end-of-life data (rather than information on the amount of new product entering the market), we would expect the re-use, recycling and disposal figures to be additive. However, the combination of multiple data sources and the fact that a large proportion of material being re-used never enters the waste stream makes it extremely difficult to establish an end of life arising in such a way that end fates are additive. However, the closeness of the two figures suggests that the data is relatively robust.

It should be noted that throughout the section below, figures may not sum exactly. While many figures are from the same source, rounding has led to some discrepancies between domestic and commercial sub-figures and totals. Furthermore, in some cases, due to the overlap of pathways there may be some double counting (for example, it is unclear to what extent re-use through AATFs also accounts for re-use through charity shops or other pathways). All UK figures have been weighted to England based on population.1

Table 3: Arisings and fate of small WEEE in England

  Total (tonnes)

Domestic (tonnes)

Commercial (tonnes) Notes Data

confidence

End of life arisings 591,000 431,000 160,000Source: WRAP (2011). Total arisings minus net hoarding.

High

Recycling 274,000 204,000 71,000 Source: WRAP (2011) MediumLandfill/incineration 256,000 188,000 68,000 Source: WRAP (2011) Medium

Current re-use 83,000 37,000 45,000Based on interviews and data from re-use organisations

Medium

Table 4 shows the pathways through which small WEEE items are discarded. Again, it will be noted that the sum of the discard pathways comes to more than the estimated end of life arisings. As previously, this is due to combining figures from a range of sources. However, the closeness of the two figures (591,000 tonnes end-of-life compared with 600,000 tonnes combined discard pathways) again suggests that the figures are in general agreement.

1 For weighting the population of the UK was assumed to be 60.4 million, of England 50.8 million and of Wales 3 million.7

Market potential and demand for product re-use: Small WEEENovember 2012

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Table 4: Discard pathways for small WEEE items

  Total (tonnes)

Domestic (tonnes)

Commercial (tonnes) Notes Data

confidenceHWRC 153,000 153,000 0 Source: WRAP (2011) Medium

Charity shops 4,000 4,000 0

Source: No published data. Interview with BHF suggests that it re-uses around 1,800 tonnes of small WEEE each year.

Low

Warranty takeback or retail takeback

20,000 15,000 5,000 Source: WRAP (2011) Medium

Car boot sales 2,000 2,000 0 DEFRA (2012) figure for electronics Medium

Other disposal / recycling 218,000 164,000 54,000 Source: WRAP (2011) Medium

Indirect collections 112,000 90,000 22,000 Source: WRAP (2011) Medium

Online exchange 12,000 12,000 0

Based on WRAP (2011) online exchange report, covering TVs, computers, IT and mobile phones only. Figure including small household appliances is likely to be higher.

Low

Asset management 64,000 0 64,000 Source: WRAP (2011) Medium

Other re-use outlets 15,000 0 15,000

Source: WRAP (2011). Has not been included for domestic to eliminate double counting.

Medium

Total 600,000 440,000 160,000

The largest discard route in the above table is other disposal (218,000 tonnes), which includes bulky waste, kerbside residual and kerbside recycling collections. Indirect collections account for a further 112,000 tonnes. Indirect collections include third party door-to-door collections by for-profit companies. This collection method has become popular in some areas, such as London, with DHL acting as one of the largest door-to-door WEEE collectors in the UK. Items collected in this way are typically sent for recycling rather than re-use, though it might be possible to divert some of these items to re-use if the collection system were optimised to maintain items in good condition.

Collections via warranty return and retailer take back schemes are other pathways for household small WEEE; items collected through this route could be re-used or recycled. Collection via online exchange platforms also primarily concerns household small WEEE items.

For commercial small WEEE, collection primarily takes place through “other” routes, for example asset management companies. This is a difficult stream to quantify, as items collected via asset management systems often never enter the waste stream but are re-deployed.

8Market potential and demand for product re-use: Small WEEENovember 2012

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2.1 Current baseline levels of re-useThe section presents data on current levels of re-use for small WEEE items via different pathways. Of the estimated 83,000 tonnes of small WEEE re-used, 38,000 tonnes arises from the household sector and 45,000 tonnes from the commercial sector.

Total re-use has been calculated through adding re-use accounted for in the WEEE flows report to re-use measured through the sources listed in the table below. Amounts distributed through commercial second-hand shops and asset management companies have been estimated on the basis of re-use not accounted for through other pathways. This forms a potential weakness, in that informal exchanges are not accounted for anywhere in the table, on the basis of a lack of published data.

Table 5: Current levels of small WEEE re-use

  Total (tonnes)

Domestic (tonnes)

Commercial (tonnes) Notes Data confidence

Total re-use 83,000 38,000 45,000 Medium

Charity shops 5,000 5,000 0Source: No published data. Estimated based on BHF interview

Low. Based on BHF interview

Commercial second hand 18,000 12,000 6,000

Source: WRAP (2011) based on total minus accounted for re-use. Commercial re-use divided 1:4 between second-hand and asset management.

Low.

Asset management 25,000 0 25,000 Low

Car boot sales 2,000 2000 0 Source: DEFRA (2012) Medium

Online exchange 12,000 12000 0 Source: WRAP Online

exchange report (2011)

Low. Does not include all items. Likely an underestimate.

Export 21,000 7,000 14,000 Source: WRAP (2011)

3. Technical potential for re-use

The technical potential for increased re-use, over and above existing levels, has been calculated below based on the condition of the 530,000 tonnes of small WEEE sent for recycling or disposal (see Table 3).

The 2011 WRAP study Realising the re-use value of household WEEE examined domestic WEEE items delivered to HWRCs and collected through bulky waste collection services, and classified their potential for re-use as shown in Table 5.

Table 6: Suitability for re-use of small WEEE

Category Percentage accounted for

Fully re-usable in current condition 4%

Slight repair required, but in general good condition 5%

Parts missing, but reusable with slight/moderate repair 0%

The first category was classified as suitable for immediate re-use, while the other two were regarded as economically viable to repair.

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These figures seem to be generally representative for small household WEEE sent for disposal. A study conducted in 2012 by Hampshire County Council based on a series of bring events focused on small WEEE (see case study) suggested that around 3.7% of WEEE brought to events by residents was fit for re-use in its current condition. However, it should be noted that both this and the WRAP study covered only domestic WEEE, excluding business and public sector waste. The percentages representing re-use potential may not be representative for business and commercial small WEEE, or WEEE collected through other channels.

Potential for re-use and reparability will vary for different categories and products. A recent Irish study (O’Connell et al, 2011) suggested the following potential for re-use levels for IT and telecoms equipment. The critical difference is that the potential for re-use rates were achieved through retailer and manufacturer takeback schemes and are higher than more traditional disposal routes.

Table 7: Potential for re-use of key small WEEE products (O’Connell et al).

Item Potential for re-use

Hard disk drive 9%

Base computer unit 64%

CRT – TV 25%

Data cartridges 1%

Laptops 58%

Printers 35%

Servers 2%

LCD displays 87%

The potential for expanding re-use has been estimated by multiplying the tonnage of items being collected for recycling or disposal (calculated as the sum of HWRC, kerbside recycling, other residual disposal and indirect collections) and multiplying the quantity by the estimated percentage that is re-usable. Reusability was estimated at WRAP’s 9% figure for all items delivered through recycling and disposal routes (HWRC, kerbside recycling, kerbside disposal and indirect collection), 20% for small domestic appliances and consumer equipment returned under warranty or through retailer takeback and 50% re-usability for IT& telecoms and display equipment returned under warranty or through retailer takeback. Note that items handled by asset management companies that are not re-used are assumed to have been recycled on the grounds that they are not in a condition fit for redeployment.

The results are shown in Tables 8 and 9 below.

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Table 8: Estimated technical potential for additional re-use of domestic small WEEE

 Small domestic appliances

IT and telecoms

Consumer equipment

Display equipment Total†

HWRC and other disposal arising 114,000 81,000 88,000 124,000 407,000

Takeback and warranty arisings 3,000 2,000 3,000 9,000 17,000

HWRC and disposal reusability

9% 9% 9% 9% 9%

Takeback and warranty reusability

20% 50% 20% 50% 39%

HWRC and other disposal potential 10,000 7,000 8,000 11,000 37,000

Takeback and warranty potential 1,000 1,000 1,000 4,000 7,000

Combined disposal 118,000 83,000 90,000 133,000 424,000

Combined re-use potential 11,000 8,000 8,000 16,000 43,000

†Defined as the (England weighted) disposal decision paths for HWRC, indirect and residual disposal from the appendices of WRAP (2011) Market flows of WEEE materials.

Table 9: Estimated technical potential for additional re-use of commercial small WEEE

 Small domestic appliances

IT and telecoms

Consumer equipment

Display equipment Total†

HWRC and other disposal arising 6,000 54,000 6,000 10,000 76,000

Takeback and warranty arisings 0 5,000 0 0 5,000

HWRC and disposal reusability

9% 9% 9% 9% 9%

Takeback and warranty reusability

20% 50% 20% 50% 49%

HWRC and other disposal potential 1,000 5,000 1,000 1,000 7000

Takeback and warranty potential 0 2000 0 0 3000

Combined disposal 6,000 59,000 6,000 10,000 81000

Combined potential 1,000 7,000 1,000 1,000 9000

†Defined as the (England weighted) disposal decision paths for HWRC, indirect and residual disposal from the appendices of WRAP (2011) Market flows of WEEE materials

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This suggests a potential for additional re-use of around 52,000 tonnes, of which 43,000 tonnes is domestic small WEEE. Both of these figures are substantially lower than for the other product areas examined – this reflects the low estimated suitability for re-use of materials entering the residual stream. The very low potential of re-use of commercial WEEE may also reflect the existing (relatively high) level or re-use activity, which will tend to reduce the reusability of goods on final disposal.

4. Pathways to re-use

This section discusses the major pathways through which small WEEE items enter re-use. There is little published data on the quantity of materials handled by each of the re-use pathways; however, it was possible to provide indicative figures on the most important routes into re-use (as shown in Table 5).

4.1 Commercial second hand shopsOf all the product groups examined in this research, small WEEE has the highest profile for re-use on the high street. Chains such as Cash Converters, Computer Exchange buy and trade in second hand small WEEE items, primarily IT & telecoms and consumer equipment.

It is estimated that this pathway could account for up to 18,000 tonnes per year, although the data is very limited – the domestic figure is derived from all non-exported small WEEE minus the amount of re-use accounted for by other pathways, while the commercial figure is based on attributing one fifth of small WEEE re-use to the commercial sector (with the rest carried out through asset management companies) on the basis of data in WRAP’s WEEE flows report. In both cases, the WRAP report suggests that the majority of the material handled by the sector is IT and telecoms equipment.

Anecdotally, expert and stakeholder feedback indicates that re-use of equipment from the business sector accounts for a large amount of small WEEE re-use2. According to research commissioned by Microsoft3, globally, the formal and the informal computer re-use sectors (e.g. selling goods online or passing them on to friends and family) are of a similar size. Over 50 million PCs worldwide will be entering the formal market for re-use this year; an equivalent amount will move through the informal re-use sector. This suggests the existence of a large grey sector for re-use of PCs (and possibly other small WEEE items) in England.

4.2 Charity shopsCharity shops are retail outlets run by a charity association to raise money and are frequently staffed by volunteers. Goods are sold at commercial second-hand rates. Items sold through charity shops arise from direct donations by households or are purchased through AATFs such as Environcom (see the case study in Appendix 1). Small WEEE items sold through charity shops are typically purchased by low income families or students.

There is no published data on the quantity of small WEEE re-used through charity shops, and the Charity Retail Association was not able to provide an estimate. A conservative estimate of 5,000 tonnes has been made, based on an interview with the British Heart Foundation. The BHF re-uses approximately 1,800 tonnes of small WEEE each year across the UK, and is believed to be the largest dealer in electrical items in the charity sector. Site visits to BHF stores suggested that the charity sector retails a mix of small domestic appliances (mostly at the higher or more specialist end, such as bread-makers or coffee machines) and consumer equipment, such as hi-fi systems.

2 For example, based on information provided by RDC, a professional computer re-use and recycling organization, an estimated 11,000 tonnes of waste may collected via professional computer refurbishment and re-use operations.3 Information provided verbally by Microsoft during stakeholder interview.

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4.3 Online exchangeOnline exchange sites, such as eBay and Freecycle provide another route by which small WEEE can enter re-use. Typically individuals post photos and a description of their items and directly organise delivery with buyers. A wide range of customer types use online exchange systems. Limited data is available on the quantity of items re-used via online exchange platforms. WRAP’s online exchange reportiii suggests that online exchange accounts for approximately 12,000 tonnes of items each year, mostly through eBay, which is the single largest online exchange site. Again, computers, mobile phones and other IT items are the major sellers.

4.4 Car boot salesCar boot sales occur across the UK throughout most of the year, and are an additional channel for the re-use of small WEEE. A number of sites exist which provide a listing for car boot sales. For example Carbootjunction had 1,474 car boot sales in their directory in October 2012 while carboot.com listed 548 boot sales.

The extent of re-use through car boot sales is difficult to monitor, since items do not enter the waste stream and are not being traded in the formal economy. As such, a great deal of evidence is anecdotal. DEFRA commissioned research by Durham University iv on re-use through car boot sales in 2012, and this research has been used as the basis for an estimate of 2,000 tonnes of small WEEE being reused per year through this pathway.

4.5 Asset management companiesFor commercial small WEEE, asset management companies represent perhaps the single biggest re-use channel. Businesses rent rather than purchase equipment, which at the end of its contract period is recovered by the leasing company and replaced with a new product. End of contract products are typically refurbished and redeployed or dismantled and the components used for remanufacture. IT and telecommunications equipment are especially likely to pass through this re-use route – a strong example of such a re-use pathway would be Xerox, which leases large machines to businesses and uses modular architecture to maximise the re-deployment of parts. Xerox estimates a re-use rate by weight of up to 70-90%v. Asset management is usually used for high-value items, where there is significant economic value in the base unit that is returned for refurbishment.

4.6 Informal exchangeDonations of small WEEE items to family or friends are another potential channel for re-use. There is no published information available on the importance of this pathway, but it is plausible that it accounts for a significant quantity of re-use. Informal re-use is extremely difficult to measure, since no formal transaction takes place, and is an area that would benefit from further research.

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5. Market demand

It has not been possible to accurately quantify demand in the course of this research. As a function of price, demand is inherently elastic, and an analysis would have required access to detailed market information that was not available to the study4.

In order to inform estimates of re-use potential, this report uses an indicative measure, with demand defined as high, medium or low. The level of demand for each product was assigned on the basis of interviews with market actors (such as re-use projects, industry experts and retailers) supplemented by published sources where these were available. Demand represents a subjective assessment on the part of suppliers that a particular item is more or less desired by consumers and is more or less easy to sell at a sustainable price.

We have assumed that products that are experienced by suppliers as being highly desired by consumers, and which are relatively easy to sell, are likely to have the largest potential for expansion. It should also be noted that this characterisation refers to the capacity of the market to accept substantial amounts of additional material without a collapse in market price. Low demand does not therefore preclude a high baseline of existing re-use activity, but merely denotes that the capacity to expand further from this baseline may be limited.

Market demand for small WEEE is influenced by a number of factors. Consumers often perceive product reliability as a major risk with electrical goods, and to offset this risk expect to see a significant price differential between items purchased new and second-hand. This expected price differential can be higher than the cost of collection and refurbishment, undermining the economic viability of re-use. Such concerns can be at least partly allayed by purchase of reused items via trusted high street outlets and warranty and guarantee options.vi DEFRA research found that consumers who purchased reused items often took a defensive stance, which appears to indicate a potential fear of being judged unfavourably for buying second-hand items.vii

More generally market demand is closely linked to the price difference between new and used items, the type of item and the brand. Interviewees stated that demand for reused IT and telecoms equipment is generally high, especially for computers, laptops and mobile phones. Mobile phones and computers are the two most frequently reused small WEEE products. A large proportion of computer equipment for re-use is sourced from the business sector due to the regular hardware renewal undertaken by companies and the availability of large quantities of standardised equipment, making refurbishment operations more effective. Although its design lifetime may be seven years, it is easier to re-use computer equipment which is three to five years old.5 There is a large for-profit market for computer equipment refurbishment and re-use, but also a number of social actors working towards skills development and technology access objectives. Demand for IT and telecoms equipment is both from domestic sources and abroad. Often mobile phones are sent for re-use abroad while computers are resold both domestically and abroad. Demand for peripherals (such as printers) and landline telephones is medium.

Overall, demand for consumer equipment can be considered as medium-high. While demand for hi-fi and video games equipment is high, demand for MP3 players and video recorders is medium. The decreasing price of new products mean that selling re-used units is becoming more difficult.

Overall demand for display screen equipment can be considered as medium, since demand for liquid crystal displays is high, while demand for cathode ray tube units is low. While some sources such as the 2011 WRAP study Realising the re-use value of household WEEE indicate that all CRT units collected are sent directly for recycling, data presented in the 2011 WRAP study Re-use Collection Systems in the UK showed that some re-use of CRT units does take place and around 10% of such units collected may be re-used. In both studies, the CRT units in question were collected via

4 Such a calculation would require accurate information on the amounts of each specific product sold over a given time period at a range of different prices.5 Computers may have a longer technical or design lifetime than 3-5 years, but those items which are discarded by their first owner after 3 to 5 years are most adapted for re-use in terms of their economic viability of repair and refurbishment.

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Household Waste Recycling Centres (HWRCs). Interviewees indicated that demand for CRT units is low and such items can have high disposal costs due to hazardous components.

Table 10: Market demand for small WEEE items by product type and estimated quantities suitable for re-use

ItemEst. Tonnage suitable for re-use

Market demand (potential)

Notes

IT and telecoms 15,000 High Assumed that IT and telecoms available for re-use break down as6:

Computers 5,000 High Computers 30%Laptops 3,000 High Laptops 20%Peripherals 5,000 Medium Peripherals 30%Mobile phones 2,000 High Mobile phones 10%Telephones 2,000 Medium Telephones 10%

Consumer equipment 9,000 Medium-High Subcategories divided evenly as no data available

MP3 players 2,000 Medium  Hi Fi equipment 2,000 High  Video games equipment 2,000 High  Video recorders 2,000 Medium  Small domestic appliances 12,000 Low Subcategories divided evenly as no data

available10

Toasters 4,000 Low  Kettles 4,000 Low  Vacuum cleaners 4,000 Low  Display screen equipment 17,000 Medium Assumed that category breaks down as:

Cathode ray tubes 12,000 Low CRT 70%Flat screen display 5,000 High Flat screen 30%

For both domestic and commercial small WEEE re-use (excluding small domestic appliances, for which there is very low demand) the major issue constraining market growth is the restricted supply of high quality items for re-use. Based on discussions with stakeholders, consumer demand appears to be greater than the amount of small WEEE available for re-use. If barriers were removed, growth could be expected in the re-use market for small WEEE.

6 Note that there is no published evidence as to the relative proportions of specific items available for re-use. The assumption above is based on the relative bulk of items and anecdotal evidence on the extent of their re-use.

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6. Barriers

For small WEEE, key barriers to further expansion of the re-use market relate to: The lack of quality standards, The logistical difficulty of getting WEEE products back at the end-of-life in a fit state for re-use Lack of consumer awareness Decreasing price gap between new and used equipment

The table below outlines some of the major barriers to expanding the re-use of small WEEE, as gathered through interviews, discussions with the sector and a review of the existing literature. The barriers are arranged in approximate order of priority, with those having the largest potential effect listed first.

Table 11: Barriers to small WEEE re-use

Barrier Notes

Lack of incentives and targets

The current transposition of the WEEE Directive in England does not contain specific targets for re-use, rather targets for recovery and targets for re-use and recycling as a single grouped category, with targets varying by product category. This structure does not provide specific incentives or targets to encourage re-use of small WEEE, and often creates competition between re-use and recycling activities, as discussed below.

Competition of re-use activities with recycling

The WEEE Directive has given rise to a cost-effective WEEE recycling structure that provides a cheaper, more convenient and more readily verifiable source of evidence than re-use. This infrastructure, in order to remain profitable, needs a ready supply of WEEE to recycle, and this has had the effect of drawing products away from re-use organisations towards recycling.

Lack of quality standards

Several interviewees stressed that a broader acceptance and implementation of sector-wide quality standards is needed to inspire consumer confidence and differentiate high-quality re-use operations from grey sector re-use. This could involve a further implementation of PAS-141 type standards. Standards may need to be tailored to different product groups and have faced a lack of enthusiasm from some industry actors. This barrier is especially relevant for high tech equipment such as computers.

Logistical difficulty of collecting small WEEE

Retailer takeback and HWRC segregation for large WEEE has generally been a success, as these items are bulky and difficult to dispose of. Small WEEE, however, is easy to dispose of through the residual waste collection system. This, in combination with the low perceived value of much small WEEE, and a lack of takeback options, has led to a large proportion of small WEEE being disposed of to residual waste. This is combined with the difficulty of optimising collection conditions to maximise reusability. Collection via bins can reduce reusability because of damage and loss of accessories. To maximise re-use, collection should involve individual packaging of items (e.g. in a plastic bag with its accessories) and care taken during handling.

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Barrier Notes

Consumer hoarding preventing WEEE material supply

Often consumers hold onto WEEE items that they perceive as having value, in the hope that at some point in the future they can sell them for a profit or pass them along to a friend or family member. However, such items are often high technology products, which had the latest features when originally purchased but can very quickly become obsolete. If such items are turned in immediately by consumers they can have a potential for re-use, but if they are hoarded, they no longer have any value for re-use.

Lack of eco-design of products and difficulty with dismantling

Smaller products and limited eco-design considerations mean repair or dismantling for components can be difficult. This is especially the case for smartphones and tablets.

Purchase of a new product is considered cheaper or more convenient than repairing a current product

Price of new products is decreasing; decreasing number of repair outlets; lack of consumer awareness of repair options. This is particularly true for items which have a low initial purchase price.

Disposal is considered more convenient than re-use or resale

Unless the equipment in question is clearly valuable, consumers often do not take steps for re-use or resale. For those considering selling items online, often the effort required for posting them online, monitoring responses and handling transport/delivery can be off-putting.viii This barrier is particularly relevant for smaller items or those perceived to have a low value

Perceived lack of standardised warranty and guarantee offers for re-used products

Offering a warranty and technical support for reused products can help allay consumer concerns about purchasing reused equipment. While many re-use organisations offer short term (e.g. 3-6 month) guarantees for items and will replace them, stakeholders indicated that consumers perceived a lack of reliability for reused products. This perception acts as a barrier to the purchase of reused small WEEE items.

Lack of repair options and replacement parts

Repair parts for items are often not available, or available at a discouragingly high price, resulting in the purchase of a new product rather than the repair of an old one, whether the item is in warranty or not.

Lack of consumer awareness on the environmental impacts of products

Awareness of environmental impacts of WEEE disposal could encourage consumers to re-use.

7. Opportunities

This section outlines potential opportunities for the expansion of small WEEE re-use identified during the research, organised by priority (largest potential impacts first). The opportunities relate to both household and commercial small WEEE. The key opportunities identified for expanding the re-use sector for small WEEE are:

changing consumer attitudes towards the re-use sector due to the economic recession

diminishing consumer lifecycle expectations

broadening set of channels for small WEEE collection

encouraging trend towards sale of services rather than products

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Table 12: Opportunities for small WEEE re-useOpportunity Notes

Impact of recession on consumer attitudes

Within the context of the current economic recession a broader range of consumers have been selling and purchasing small WEEE items through the re-use sector. This trend appears to indicate increasing awareness of the re-use sector by consumers and may continue to boost consumer confidence in the sector in the future.

Education of consumers on WEEE collection options, re-use possibilities, and warranty options offered for reused products

Providing public information on the benefits of re-use, how and where to purchase re-used products and the carbon impact of WEEE manufacturing could provide encouragement to increase small WEEE re-use levels. Improving awareness of warranties and guarantees available for reused item could also be an important area in terms of increasing consumer confidence. Communication could also discourage consumer hoarding of smaller products.

Broadening set of channels for small WEEE collection

A wider range of channels is becoming available for consumers to turn in small WEEE, which could help increase both collection of items and their re-use. For example, mobile phone takeback programmes are offered by several operators, allowing consumers to turn in their old mobiles for financial compensation. The increasing popularity of sites such as Freegle, which allows users to post items they want to give away and locate other interested consumers in their area, also contributes to this trend. One-off events for small WEEE collection, such as Hampshire County Council’s small WEEE takeback events, are another route through which items can be returned for re-use.

Encouraging trend towards sale of services rather than products

There is an increasing trend towards the sale of services rather than products (e.g. software-as-a-service, cloud computing). In such a situation, the physical part of the unit can be reused by several consumers. This is especially the case for computer equipment.

8. Potential actions to encourage re-use

This section considers a number of potential interventions in terms of likely outcomes, taking account of the barriers and opportunities discussed above. Measures are not necessarily linked to specific barriers or opportunities, but take place in the context of these factors.

For each measure presented in the table below a description is provided, accompanied by the estimated impact of the measure and the costs of implementation. Impacts were calculated in relation to current collection and re-use volumes of small WEEE and the amount of potentially re-usable WEEE in the waste stream. For example, the impact of a re-use target could be based on diverting 10% of the available reusable WEEE currently being sent for recycling or disposal. The percentages used were set based on stakeholder feedback and team expertise.

Implementation costs have been assessed using an approach broadly based on the European Commission’s Impact Assessment Guidelines. ix The table below indicates three cost areas – costs for firms (cost to companies of implementing measures), government (cost to the taxpayer) and consumers (through increased product prices) – as well as broad estimate of relative magnitude, in terms of high, medium, low or cost saving. These cost estimates are indicative, and are not based on a quantitative financial calculation. Instead, they aim to indicate the likely distribution of the costs among stakeholders – though these are likely to vary widely depending on the specific method of implementation. Values assigned were once again based on stakeholder feedback and team expertise.

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It should be noted that the estimated impacts presented are not cumulative. Multiple supply side measures, for example, are likely to have a combined impact lower than the sum of their individual impacts, as they may be completing with one another for access to material. Conversely, combining a supply side incentive with a measure to boost demand could have a greater impact than the sum of their individual effects.

Table 13: Potential measures for increasing small WEEE re-use in England

Measure Impact (estimated)

Costs to introduce Discussion

Increase the weighting of WEEE sent for re-use in counting towards WEEE targets (Re-use-specific or product-specific targets can also be considered)

Low (est. 5,000 tonnes)

Firms: Low

Taxpayer: Low

Consumer: Savings

Stronger weighting of re-use within the context of the current combined recycling and re-use target included in the WEEE Directive. This could be ‘weighted’ in favour of re-use of whole appliances or re-use via particular channels. For example, in Illinois (USA), when WEEE is collected and its weight counted towards targets, refurbished equipment counts as double, and refurbished equipment donated to schools or educational institutions counts as triple. Impact tonnage based on capture of 10% of additional potential for re-use.

Introduction of collection and re-use incentives for consumers

Low (est. 4,000 tonnes)

Firms: None

Taxpayer: Low

Consumer: None

In order to address consumer hoarding practices and the perception that disposal is more convenient than re-use or resale, incentives could be put in place to encourage small WEEE turn in to re-use organisations such as charity shops or FROs. This could involve, for example, linking takeback and monetary compensation and could be particularly meaningful for those products in high demand such as LCD TVs. Impact tonnage based on an estimated 10% increase in the amount of domestic small WEEE currently being re-used.

Development of partnerships between producer compliance schemes, larger recyclers and re-use organisations to ensure a supply of goods for re-use

Low (est. 4,000 tonnes)

Firms: Low

Taxpayer: Low

Consumer: None

Increasing partnerships between local authorities, producer compliance schemes, larger recyclers and re-use organisations could ensure that items have the opportunity to enter a re-use channel before being directly routed towards recycling.

Impact tonnage based on capturing 10% of small WEEE suitable for re-use currently collected through HWRC, residual or indirect waste collections.

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Measure Impact (estimated)

Costs to introduce Discussion

Encouragement of the adoption of re-use quality standards as well as the use of regular audits

Low (est. 4,000 tonnes)

Firms: Medium

Taxpayer: Low

Consumer: Savings

Encouraging standard refurbishment and re-use practices, such as the continued adoption of PAS-141, can level the playing field for small WEEE re-use. Regular audits can ensure compliance and maintenance of a high operational standard. Such quality standards can also help allay consumer fears about unreliable products being offered for sale via re-use organisations. Impact tonnage based on an estimated 5% increase in the amount of small WEEE currently re-used.

VAT relief on sales of used items

Low (est. 2,000 tonnes)

Firms: Savings

Taxpayer: Medium Consumer: Savings

Effect would depend on extent to which the VAT rebate was passed through to consumers and to the price elasticity of demand. CRR (2008: 23) suggest that pass through is likely to be around 100%. The same report also notes that price is an important factor in second hand purchases.

Impact tonnage based on an estimated 10% increase in the amount of small domestic WEEE currently re-used through charity shops and commercial second hand shops.

Organisation of awareness raising and bring events by local authorities

Low (est. 52 tonnes)

Firms: None

Taxpayer: Low

Consumer: None

Organisation of awareness raising and collection events by local authorities, such as the campaign carried out by Hampshire County Council (see case study “Small WEEE awareness raising and collection event organised by Hampshire County Council”). In the case of Hampshire County Council, partnerships were developed to involve schools, community centres, small businesses, housing associations, libraries and local authority offices, allowing for over 90 collection events to be held during Recycle Week 2012

Impact tonnage based on events being run by 250 local authorities.

Introduction of a producer responsibility re-use target for small WEEE

No impact (see below)

Industry: HighTaxpayer: MedConsumer: Med

Evidence suggests that introduction of a 10% re-use target would have no impact on current levels of re-use (see below for discussion).

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8.1 Producer responsibilityWhile producer responsibility legislation with mandatory re-use targets might appear as an obvious, high impact measure, the situation is more complicated. One problem is that, if existing re-use channels were not accredited to issue evidence of re-use, introducing targets would undermine the sector as it currently stands, which would lose access to products targeted by producer responsibility schemes requiring evidence. If existing re-use organisations were accredited, existing re-use would need to be counted against the target.

For example, introducing a mandatory re-use target of 5% of new material placed on the market (in the line with the suggested target for the 2012 WEEE Directive recast) would result in a target of around 30,000 tonnes of re-use. Re-use channels that could be accredited to offer evidence of re-use (charity shops, commercial second-hand shops and export for re-use) currently account for an estimated 44,000 tonnes of re-use, considerably more than the potential target. The result would be a system that imposed administrative expenses without producing any significant incentive to increased re-use. In order to produce an incentive to increase re-use, any target would need to be set at a level above 20%.

In addition to their lack of effect, re-use targets within producer responsibility legislation have other drawbacks. Items that are re-used do not change their state. This makes it highly difficult to develop end-of-waste criteria based on re-use, which has serious implications for administering targets and preventing fraud. Key issues that would need to be considered include:

Unlike items that are recycled, items that are re-used can be re-used more than once. It is theoretically possible to have a level of re-use higher than the quantity of materials being placed on the market.

Re-use is an ongoing condition rather than a one-off event. As discussed in the introduction and in the modules, the length of time for which an item is re-used relative to its typical first lifetime is critically important when assessing its impact. The duration of re-use relative to a typical original first lifetime (and auditing to ensure that item is actually being used) would need to be a factor in determining whether an item counted towards targets.

Given the above points, there are serious barriers to introducing effective producer responsibility legislation – at least along the lines of current UK legislation on WEEE or packaging – to promote re-use. This study does not conclude that a producer responsibility approach is impossible, but more research is required into how industry and retailers could be made accountable for expanding re-use above its current level without undermining the sector as it currently exists or creating opportunities for fraud.

9. Scenarios

Table 14 below outlines two hypothetical scenarios of increased re-use. These scenarios are based on achieving a percentage of diversion of the available material into re-use. For each scenario, the amount of each item type diverted is based on the quantity available in the waste stream suitable for re-use and the market demand for that material.

Scenario 1 models a moderate level of capture for re-use, while scenario 2 models a higher level. While the numbers are hypothetical, it should be noted that the resultant increased capture levels have been designed to be consistent with the impacts predicted by the measures outlined in Table 13.

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Table 14: Assumptions for scenarios – percentage of further re-use achievable, in addition to the existing baseline scenario

Demand Scenario 1 (% diverted) Scenario 2 (% diverted)

High 12% 15%

Medium 6% 10%

Low 3% 5%

Applying the capture rates above to the quantity of small WEEE items current collected but not re-used that are suitable for re-use according to our previous estimate, the additional amounts of each product entering re-use can be derived for each scenario. Unlike the other modules, figures have not been rounded, as the numbers are generally low.

Table 15: Potential additional re-use for small WEEE items

Item   Market demand (potential)

Scenario 1 Scenario 2

IT and telecoms 15,000 High    Computers 5000 High 600 750Laptops 3000 High 360 450Peripherals 5000 Medium 300 500Mobile phones 2000 High 240 300Telephones 2000 Medium 120 200Consumer equipment 9,000 Medium-High    MP3 players 2000 Medium 120 200Hi Fi equipment 2000 High 240 300Video games equipment 2000 High 240 300Video recorders 2000 Medium 120 200Small domestic appliances 12,000 Low   0Toasters 4000 Low 120 200Kettles 4000 Low 120 200Vacuum cleaners 4000 Low 120 200Display screen equipment 18,000 Medium    Cathode ray tubes 13000 Low 390 650Flat screen display 5000 High 600 750Total additional re-use potential     3,690 5,200

Current re-use     82,000 82,000Total re-use     85,690 87,200

Scenario 1 (moderate increase) would result in a combined increase of an estimated 3,690 tonnes of material, while Scenario 2 (high re-use) would increase re-use by approximately 5,200 tonnes. These are comparable with the range of impacts for measures discussed above. These scenarios are equivalent to a 4.5% or 6.3% increase in overall levels of re-use, suggesting that the relative impact of the scenarios is relatively small.

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10. Potential impacts of product re-use

The section details the potential impacts of product re-use in terms of carbon offset and product lifetime extension.

10.1 Carbon offset values of re-useRe-use has no intrinsic environmental benefit, but its value is based on the amount of new product displacement by the re-use of an item (and taking into account other factors, such as the environmental impacts of product use during its lifetime). The value of reusing a small WEEE item will vary according to its displacement value and its material composition. As a general figure, discussions with WRAP have suggested a CO2 abatement factor (relative to disposal) of 0.475 tonnes of CO2 per tonne of re-use for small household appliances and other small WEEE items.

Using this figure, the table below shows the CO2 abatement associated with the current level of re-use and the scenarios outline above. As previously, rounding has not been conducted due to the low figures involved.

Table 16: Carbon offset values of small WEEE re-use (Baseline, Scenario 1, Scenario 2)

Scenario Tonnes re-used CO2 abatement Difference from baseline

Baseline 82,000 38,950 0

Scenario 1 85,690 40,703 1,753

Scenario 2 87,200 41,420 2,470

This suggests that small WEEE re-use currently saves around 45,000 tonnes of CO2 emissions per year, and that an additional 2,500 tonnes could be saved if scenario 2 were achieved.

10.2 Impact of re-use on product lifetimeThe impact of small WEEE re-use is very much dependent on the ratio of the expected re-use lifetime of a product to the typical first use lifetime. Data presented represents an average value. It should be noted that lifetimes for some small WEEE items have a broad range; for example the lifetime of televisions can range from 4 to 15 years.

The table below shows the average age of a range of small WEEE items based on stakeholder and expert interviews and the following key sources:

BIOIS for ADEME (2012) Etude sur la durée de vie des équipments électriques et électroniques

ERM for DEFRA (2011) Longer Product Lifetimes : Chapter 2 – Life Cycle of Nine Products TNS Sofres for GIFAM (2010) Durabilité des appareils électrodomestiques WRAP (2011) Benefits of re-use case study: electrical items

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Table 17: Lifetime of a selection of small WEEE items

Item First life in years

Second life in years

Lifetime extension

Estimated total lifetime

Computers 3.5 5.5 157% 9

Laptops 3 3.75 125% 6.75

Peripherals 3.5 4.5 129% 8

Mobile phones 1.6 2.4 150% 4

Televisions 6 3.5 58% 9.5

Toasters 5.5 11 200% 16.5

Vacuum cleaners 4 3 75% 7

All 3.87 4.81 124% 8.68

The table suggests that, on average, small WEEE items have their lifetimes extended by around 124%. The fact that second product lifetimes can double initial product lifetimes suggests that first lifetimes represent consumer preferences rather than technical limitations of products.

WRAP’s Benefits of re-use case study suggests a displacement factor for televisions of 50%.

Lifetime extension is heavily dependent on the first life of the item, which varies for a range of items. Some interviewees noted that home computers tend to have a longer first lifetime than those used in business settings – businesses typically have a 3 to 4 year refresh cycle for IT equipment, whereas consumers may hold onto a computer for a first lifetime of 7 years, provided it is still in good working order. Items such as vacuum cleaners and printers can have varying lifetimes depending on whether they are used in a domestic or commercial setting. Typically commercial models are expected to have a longer lifetime; for example in the case of vacuum cleaners, domestic models have a normal maximum life expectancy of 500 hours of use, whereas commercial models have normal maximum life expectancy of 15,000 hours of use.x

11. Case studies

This section includes summaries of the case studies that were conducted as part of the small WEEE module. As stated in the introduction, the key factors considered where selecting case studies were:

Innovation – does the project illustrate a new or improved way of doing things? Barriers and opportunities – preference was given to projects that overcome a barrier or

exploit an opportunity, as identified above Availability of data – case studies were selected in order to provide data on the impacts and

costs of specific projects and measures Scalability – projects were selected on the based on the potential to generalise from the

project results.

The three case studies conducted were:

Computers for Schools, a Canadian government initiative that diverts end-of-life computers from government departments and private donors to schools.

RDC’s computer and IT refurbishment scheme, which levies a collection charge on businesses in exchange for a proportion of the resale value.

A series of small WEEE bring events organised by Hampshire County Council.

Findings from the case studies have been incorporated into the costs and impacts in the table of measures set out above.

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11.1 Case Study: Computers for Schools programmeComputers for Schools (CFS) is a nation-wide initiative sponsored by Industry Canada and Human Resources and Skills Development Canada. The programme seeks to maximise computer re-use, increase technology literacy, and improve computer and internet access to reduce the “digital divide” affecting Canadians with differing levels of resources. The CFS operation ties in with skills development programmes offered by Human Resources and Skills Development Canada to build technology-related skills such as computer repair and software testing. This unique combination of objectives constitutes one of the most innovative features of the scheme.

CFS sources older or unused computers from federal government departments, provincial-territorial governments and the private sector for refurbishment and placement in educational institutions. Institutions which are eligible to receive equipment through the programme include schools, libraries and registered not-for-profit learning organisations. The scheme was launched in 1993 when it became clear that the Canadian government had heavily invested in an IT infrastructure that was not being used to its full potential.

The initiative is managed by the federal government of Canada, with the funding for the operational aspects of the programme provided by Industry Canada and the funding for the skills and training aspects of the programme provided by Human Resources and Skills Development Canada. 14 certified refurbishers, 13 of which are not-for-profit organisations, handle the collection, refurbishment and placement of computer equipment, with the help and financial contribution of private sector donors including Telecomm Pioneers, Microsoft and Rail Canada. Volunteers, often retired telecoms employees, play a large role in refurbishment operations. The refurbishment organisations are responsible for promoting the CFS scheme, as well as recruiting new donors within their region. On a territorial or provincial level, refurbishers involved in CFS are registered with and promoted by the Ministry of the Environment as collection and re-use organisations for computers.

Computers are collected from federal government departments, provincial-territorial governments and private sector donors. The mode of collection varies by region. For example, in Ontario, collection is outsourced and takes place on a cost-recovery basis or is paid for by donors, whereas in Ottawa a dedicated fleet of trucks handles collection. Next, one of the refurbishers undertakes data wiping and testing in line with national standards set for the programme. Based on the results of the testing phase, equipment is sent either for re-use or for recycling. Equipment which is considered fit for re-use in line with nationally set standards is placed in schools, libraries and not-for-profit learning organisations.

Annual operating costs (which account for around 12% of total programme funding) amounted to approximately $1 million between 2008 and 2011 (an estimated £640,000). Over the same period, partner contributions totalled to approximately $56 million (an estimated £36 million as of August 2012) and other contributions, including funding by the federal government, totalled to an estimated $79 million (an estimated £50.6 million). During this period, 195,298 computers were refurbished at a total cost of $25,563,198 (an estimated £16.4 million), representing a cost to the Canadian government of $131 (an estimated £84 per computer) per refurbished computer unit.

Over the same period, the Computers for Schools (CFS) programme received a total of 634,575 computer donations. Organisations involved in the CFS programme as refurbishers have indicated that donations are increasing and that warehouses are currently at full capacity; therefore items are stockpiled for re-use.

Between the start of its implementation period and 2011, the CFS programme provided 1,092,063 computers to schools and other learning institutions across Canada. The Technical Work Experience Program (TWEP) element of the programme is considered to have enhanced participants’ knowledge and skills and facilitated job creation. The initiative appears to have been very effective in capturing the identified demand that led to its development. A 2009 study by the OECD ranked Canada sixth among OECD countries in terms of access to computers (with 98% of students having access to a computer at school), which attests to the success of the CFS programme. A report assessing the effectiveness of the Computers for Schools programme prepared on behalf of Industry Canada estimated the net environmental benefits of refurbishing 195,398 computers over the 2008-2011 period at $43,457,913.14 (an estimated £27.8 million). A re-use rate of approximately 80% has been

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achieved by some certified refurbishers participating in the programme, either through re-use of full units or components.

Ultimately, the CFS project has helped overcome the insufficient development of technology and related technical skills in Canada, as well as unequalled access to technical knowledge. It contributed to the promotion of re-use as the preferred treatment option for WEEE. Key success factors were the use of national standards and the backing of the federal government, which inspired confidence in the programme from participating private sector donors and programme beneficiaries, as well as the development of regional partnerships. Ensuring a long enough contract with refurbishers is also important. Provided these conditions are met, there is no reason why such a scheme could not be transposed to the UK. These types of partnerships are expected to further expand in the near future. Over time the CFS programme has expanded the types of beneficiaries included in the programme. This could further evolve as other uses are identified for refurbished computers.

11.2 Case Study: RDC’s computer re-use operationsInitially launched in 1992 as an IT auctioneer, RDC has provided IT asset management and recovery services to corporations, governments and consumers since 1998. RDC’s current operations include the collection of reusable IT products as well as other Waste Electrical and Electronic Equipment (WEEE). Equipment is collected from customers, centralised at RDC’s headquarters in Braintree, Essex, wiped for data security, tested for functionality and safety, and resold through a variety of channels. This shift in activities from auctioning to the managing and refurbishing of IT equipment was inspired by emerging customer concerns over the risks of poor computer re-use and recycling practices, as well as fears of confidential data release through reprocessing of used material.

RDC has developed a straightforward model whereby customers are charged £5 for equipment collection, £10 for equipment processing, and are provided with around 75% of the revenue from the sale of their equipment. Thanks to this model and to stable contracts with large corporate and government customers, RDC has experienced a steady growth in the volume of their operations. RDC’s customer base consists of 70% businesses, 28% government, and 2% consumers. In the past three years, export sales for RDC have tripled, largely due to demand from emerging economies seeking access to technology but unable to afford new products. RDC now sells equipment to an estimated 74 countries and its revenues for 2012 are set to exceed £50 million. These results have been achieved without significant marketing efforts since new contracts typically develop from existing relationships within the IT sector. RDC employs 340 employees in Braintree and also has offices in Germany and France.

Equipment is collected and centralised in RDC’s headquarters in Braintree. Upon arrival at RDC’s warehouse, all equipment is tagged to allow tracking by load and by individual item. For equipment collected globally, RDC works with a network of partners for the collection and handling of equipment. Memory is wiped via an automated process and a certificate is prepared which specifies what percentage of data was wiped. Furthermore, safety testing is undertaken to ensure the electrical safety of the equipment for further use. Once equipment testing is completed, RDC reports back to customers on the estimated value of their equipment for resale or, if the equipment is intended for redeployment in the same organisation, the percentage of equipment which is fit for redeployment. At this point a Microsoft operating system can be installed to permit immediate re-use.

Since 1998 RDC has processed over 10 million IT items. Of the functioning WEEE received by RDC, an estimated 85% is re-used; the remaining 15% is recycled, with residues recovered as waste-to-energy fuel. Of the WEEE handled by RDC in 2011, approximately 18% was re-used. Based on independent research, RDC estimates that re-use could save over 950 kilograms of carbon dioxide equivalent (CO2 e) per PC, indicating that RDC’s re-use operations could have saved over a million tonnes of CO2 e. Moreover, since April 2002 RDC has sent zero IT waste to landfill. 100% of equipment unfit for re-use is recovered, with 92% of materials recycled and the remaining 8% consisting of material residues recovered as waste-to-energy fuel. RDC is seeking to merge collections so that fewer vehicles are needed and less fuel is consumed. Over a third of a million miles a year has been saved by this approach.

Through their operations RDC has overcome typical social barriers to re-use, such as consumer hesitancy about purchasing used equipment due to uncertainty of its quality and security. To do so,

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RDC has developed an extensive system of functionality and safety testing for processing equipment, and endeavoured to obtain a number of ISO certifications for environmental and health safety. A key lesson which can be garnered from RDC’s experience is that ensuring quality is crucial to boosting consumer confidence in re-used products and expanding re-use volumes. Furthermore, it is important to encourage careful handling of potentially reusable equipment rather than treating it as waste; if items are treated as waste, they are often damaged and become waste. RDC’s strategy for future development is to create automated web interfaces for consumers to send in their equipment or purchase new equipment, with the possibility for trade-ins. The ultimate aim is to offer free collection of equipment from consumers.

11.3 Case study: Awareness raising & collection event by Hampshire County Council

Hampshire’s waste authorities worked together on an awareness raising and research project for small WEEE to coincide with national Recycle Week. The impetus for the event was to understand how much and what type of small WEEE was out there and raise awareness as consumers often think only of large WEEE for collection and re-use. Hampshire County Council’s PCS contractor, WeeeCare agreed to support the event and provide the means to transport collected items and to assist with the logistics of the campaign. Partner authorities across Hampshire then made every effort to get schools, community centres, small businesses, housing associations, libraries and local authority offices on board with this campaign with over 90 collection events held during Recycle Week 2012. A contractor (MEL) was employed to analyse a sample of the material collected with suitable items PAT tested and passed on for re-use. WeeeCare provided the collections and also covered project costs including communications materials such as artwork, merchandise, printed materials, prizes for schools and householders and advertisements in publications.

During the bring events, approximately 7.5 tonnes of small WEEE was collected, approximately 4,144 items. A vast range of items were donated including: mixed adaptors & power supply units (PSUs), irons, plastic kettles, digital boxes, lamps, metal kettles, toasters, blenders, mobile phones and telephones. These items were the most frequently donated at the events. In total, 52 out of 1400 items surveyed were judged to be suitable for re-use which was calculated at 3.7% of the overall sample and 1.3% of the total collected weight. These items were selected via an initial visual inspection and subsequent PAT testing. Items sent for re-use included: hairdryers, irons, fans, metal kettles and plastic kettles.

The major reasons for items not being suitable for re-use include: damage to item, incomplete item, PAT test failure, no plug, no cable, wetness, and the object being obsolete. In the future, small changes could be made during the collection process in terms of separating those items at that point believed to be reusable or not. The removal of water from items such as irons would reduce the potential water damage to other items during the transport process.

Challenges faced in setting up the project include coordinating the events with such a large number of people and making sure that communication was clear and precise between all parties involved. The main difficulty was to act as a point of contact between the event locations, district authorities and WeeeCare who were leading with the logistics arrangements.

The collection week itself was hugely successful in that it opened up opportunities and allowed for people to dispose of their items in the most convenient way. It allowed for those who are unable to travel to a Household Waste Recycling Centre (HWRC) an opportunity to deal with their waste in a sustainable way. It also highlighted the opportunity for items to be passed over to charities and for products to then be sold on.

This project has further highlighted the importance of communicating messages to the general public regarding the disposal of their unwanted products. Many who donated items at collection events commented on not being aware of how to deal with their small WEEE, however showed great interest in doing so. This type of event could occur regularly at HWRCs. The project also highlighted the importance of storing items during collection events correctly to maximise re-use; collecting items in sacks and transporting in bulk may lead to some items being damaged or losing elements. Therefore it is suggested that future events have separate storage for items identified as potentially reusable. Finally, future collection events should focus on regular, localised community collections on specific

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days so that there is an ongoing campaign in place and over time the message is able to reach as many people as possible.

12. Summary of findings

Household small WEEE collected represents approximately double the quantity of commercial small WEEE collected. Both household and commercial small WEEE appear to be primarily collected in residual waste. “Other collection methods” include indirect collections, asset management and collection via kerbside recycling and bring sites, which also account for a large percentage of small WEEE collection. “Other collection methods” can also include grey sector, informal re-use paths or consumer hoarding. Volumes of equipment passing through these channels may be underestimated as there is no official reporting for indirect collections, asset management systems and informal re-use paths. Consumer hoarding of small WEEE at home impacts the entry of end-of-life equipment into potential re-use channels as well as their potential for re-use (e.g. if left in a cupboard for 3 years, a mobile phone may be obsolete and no longer reusable).

In terms of re-use of household small WEEE, the major channels through which re-use takes place are approved authorised treatment facilities, online exchanges and asset management or indirect collections. Anecdotally, expert and stakeholder feedback suggests that re-use of equipment from the business sector accounts for a large amount of small WEEE re-use, especially for computer equipment; however this is not reflected in official statistics of equipment collected through AATFs.7

Demand for small WEEE is generally considered to be high; often consumer demand is higher than the amount of products that organisations can collect. However, demand varies by product group and the condition of the equipment. For example, mobile phones and computers are the two most frequently re-used small WEEE products. In terms of televisions, there is high demand for LCD screens, but very low demand for CRT monitors. However, data presented in the 2011 WRAP study “Re-use Collection Systems in the UK” indicated that re-use of CRT units does take place and around 10% of such units collected may be re-used. Market demand is strongly linked to the price difference between new and used items; for some products such as toasters and kettles, which are very low-cost as new, demand in the re-use sector is limited.

The primary consumers of re-used small WEEE products in England are low-income families, students, organisations managing social housing, and potentially small businesses. There is a very large market oversees for small WEEE products, especially mobile phones.

Barriers to expanding re-use appear to be primarily supply side, with market demand outweighing the supply of items available. Potential barriers to re-use include the lack of standards, the logistical difficulty of getting WEEE items back at the end-of-life in a fit state for re-use, lack of consumer awareness on re-use pathways and the decreasing price gap between new and used equipment.

A number of opportunities exist for expanding the small WEEE re-use sector. These include changing consumer attitudes towards the re-use sector due to the economic recession, diminishing consumer lifecycle expectations, a broadening set of channels for small WEEE collection, and a trend towards sale of services rather than products.

Potential actions to encourage re-use considered to have a high potential impact on the amount of small WEEE re-used in England include introducing a re-use target, introducing collection and re-use incentives for consumers, and encouraging the organisation of awareness raising and bring events by local authorities. A potential action considered to have medium-high potential for encouraging small WEEE re-use is the development of partnerships between producer compliance schemes, larger recyclers and re-use organisations to ensure a supply of goods for re-use. Additional actions considered to have medium potential include encouraging the adoption of re-use quality standards as well as the use of regular audits, the introduction of measures to reduce outdoor weather exposure for products potentially to be re-used and increasing the weighting of WEEE sent for re-use in counting towards WEEE targets.

7 For example, based on information provided by RDC, a professional computer re-use and recycling organisation, an estimated 11,000 tonnes (or 4% of commercial small WEEE collected) may be collected in the UK via professional computer refurbishment and re-use operations.

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Figure 1 overleaf illustrates headline findings for small WEEE, covering arisings, current re-use baseline and major pathways, potential for increased re-use and market demand for material.

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Figure 1: Summary of small WEEE arisings, current re-use and market potential

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13. Data gaps and future work

While WRAP has undertaken a number of studies on the re-use of WEEE items via different channels, additional work is needed to fully capture small WEEE re-use taking place in England and the potential for market expansion.

Key data gaps for baseline re-use levels include:

The lack of adequate information on the re-use of commercial WEEE. This is due mostly to the lack of reported data from AATFs, and could be addressed by extending the requirement for AATF evidence of recycling or re-use to commercial WEEE.

Lack of detailed reporting data from ATFs, which constitute a major gap in WEEE data. While the Environment Agency was asked for ATF recycling and re-use, it was not able to provide figures.

There is a lack of information on the extent of informal re-use of WEEE. This could potentially be address through research examining the behaviour of households over a period of time.

There is no information on the size of the commercial second-hand sector, through chains such as CeX and Cash Converters.

There is very little information on the amount of re-use carried out through asset management companies. This could be addressed by carrying out a specific piece of research, partnering with a number of such organisations to measure their re-use performance.

WEEE items are complex multi-material items and the carbon offset value of re-using WEEE was difficult to ascertain. Research in to this area would greatly benefit the process of assessing the value and impact of WEEE re-use.

Published literature on actual product lifetime was hard to source. As with the above point accurate information on this factor will add to the robust assessment of the impact of WEEE re-use and assessing material flows.

Commercial buy back schemes – for example, for mobile phones; there is very little information on the size of this market and the extent of re-use taking place.

There is very little published information on market demand for re-use. There is a need for further consumer-focused research to investigate attitudes to the re-use of a range of products, and to investigate consumer views of the commercial value of second-hand goods. This latter information is important in assessing the potential for market expansion.

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i UNU (2007) 2008 Review of Directive 2002/96 on Waste Electrical and Electronic Equipment (WEEE); see Figure i: Breakdown of WEEE arising 2005ii A full list of products included in each category can be found in the WEEE Directive: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2003:037:0024:0038:en:PDFiii WRAP (2011) Online exchange potential impactiv DEFRA (2012) Estimating levels of re-use exchange activity via car boot salesv http://www.xerox.com/corporate-citizenship-2010/sustainability/waste-prevention.htmlvi Cooper, Tim & Mayers, Kieren (2000) Prospects for household appliancesvii DEFRA (2011) Public understanding of product lifetimes and durability (1) viii WRAP (2011) Rentalic: Rent – Share – Be Greenix European Commission (2009) Impact Assessment Guidelinesx Report to EC by AEA Energy & Environment (February 2009) Work on preparatory studies for eco-design requirements of EuPs (II) - Lot 17 Vacuum cleaners