EU Passes Tax on Electronics Manufacturers

Earlier this week the European Union passed into law legislation mandating manufacturers of electronics pay to take back and recycle old equipment.

Opponents of the legislation, including European manufacturers, said the new law would add a significant cost to equipment sold in Europe.

According to published reports, by 2006 the industry will have to recycle or reuse more than half of all old equipment, and less than 30 percent will be allowed to be buried or incinerated.

The passage of the law follows three years of discussion on the issue, as well as the impact of the legislation.

The new directive will be the first example of EU environmental legislation based on the principle of "individual producer responsibility".

Individual manufacturers will be responsible for organizing the disposal, recycling or reuse of the goods they put on the market after September 2005, creating an incentive for "greener" design.

EU member states will have to set up collection systems for waste electrical and electronic equipment.

In addition, they are obliged to finance a proportion of the waste of products put on the market before September 2005 based on their market share.