The European Parliament is set to vote on new legislation this week that would force electronics companies to cover the cost of disposing of household electrical and electronic waste.
The industry has accepted that the new laws cannot be averted, despite the potential costs, but is fighting a rearguard action to ensure that European legislators agree a scheme that is both workable and as financially painless as possible.
The Waste Electrical and Electronic Equipment Directive forms the latest stage in the European Commission's drive to introduce the "polluter pays" principle into EU law. It follows agreement on similar legislation to force carmakers to cover the costs of scrapping old cars.
Wednesday's vote is likely to set the parliament on a collision course with EU governments on the key issue in the draft directive - precisely who should be responsible for paying for the disposal and recycling of waste equipment.
Member states and the parliament share decision-making power on the issue. Their differences make it almost certain that the definitive form of the directive will need to be thrashed out in a special conciliation committee following this week's vote.
Parliament is pushing for companies to be individually responsible for their own products. EU governments want it to be left up to each country to decide for itself whether to insist on individual responsibility or whether manufacturers should pay into a collective fund.
"Individual responsibility gives producers the incentive to do things better and industry is arguing that the (governments') approach won't work," says Alex de Roo, a Dutch Green deputy. "So, we've got a rather unusual coalition on this issue between the Greens and the likes of Electrolux."
The industry is also concerned about plans to make producers cover the costs of waste from competitors that have left the market since the product was originally sold. "That would be more like a waste tax," says Viktor Sundberg, European affairs director of Electrolux, the Swedish white goods maker. "It would create an incentive for companies to free-ride and would be a disaster for companies which want to be honest."
Among some 113 amendments the parliament is considering is a plan for manufacturers to issue a financial guarantee when they put a product on the market to cover future disposal. The legislation seeks to set ambitious reuse or recycling targets for old appliances. At least 75 percent of the average product weight of large household goods would have to be reused or recycled. Products covered range from cookers and toasters to cellphones and electric train sets. It also aims to phase out the use of hazardous substances, such as mercury, lead and cadmium by 2007, unless no viable alternative is available.
Orgalime, the group representing European manufacturers of domestic appliances and electronic equipment, estimates the new rules could cost around Euros 15bn (Pounds 9bn) in new investment, Euros 40bn to deal with equipment already on the market plus Euros 7.5 billion in annual costs to the industry. More than 6 million metric tons of electrical waste is produced in the EU's 15 member countries every year and this is increasing by about 5 percent every year. The Financial Times