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The Best of two Worlds Project (Bo2W)
Possible solution strategies
Andreas Manhart
Bo2W Closing Event, Berlin, 24 September 2015
2
www.oeko.de
Bo2W project team
1 Better access to downstream markets
Idea:
● Dubious business practices by intermediate parties between collection
and end-refining that can result in money losses for collectors.
● If formal recycling enterprises have a better access to downstream
markets, they would be an economically better position.
● This is tried out in this Bo2W-project.
Open points:
● Most recyclers in developing countries and emerging economies are
still quite small.
● Developing the market access for such enterprises is a challenging
task.
The Bo2W project – Solution strategies│Manhart│Berlin│24 September 2015
3
www.oeko.de
Bo2W project team
2 Focus on B2B markets
Idea:
● Competition not only on price, but also on recycling quality.
● Also big and multinational companies should make sure that they
dispose e-waste and batteries with competent partners.
● Public sector should set an example.
Open points:
● Private and public waste tendering processes need to be adapted.
● “Sound recycling” needs to be clearly defined (standards &
certification needed).
The Bo2W project – Solution strategies│Manhart│Berlin│24 September 2015
4
www.oeko.de
Bo2W project team
3 Ban worst polluting practices
Idea:
● Worst polluting practices such as car-tire burning, cable burning and
unsound lead-acid battery recycling should be sanctioned.
Open points:
● Environmental sound alternatives needed.
The Bo2W project – Solution strategies│Manhart│Berlin│24 September 2015
5
www.oeko.de
Bo2W project team
Co-operations between informal and formal
recycling
Idea:
● Informal recyclers will continue to play a role in collection and
dismantling.
● But critical fractions should be handed over to sound recyclers (e.g.
cables, undrained lead-acid batteries, plastics, CRT-glass).
● Informal collectors and recyclers should be paid for deliveries.
Open points:
● Who pays for the premium?
● Sound recycling needs to be defined.
The Bo2W project – Solution strategies│Manhart│Berlin│24 September 2015
4
6
www.oeko.de
Bo2W project team
5 Financing via EPR
Idea:
● “Producers” (players that bring products on the market) are held
responsible for environmentally sound management of an e-waste /
car-waste volume equivalent to those brought onto the market.
● Producers can either build a management system by themselves or
financially contribute to sound management.
Open points:
● Some types of EPR-financing-systems are vulnerable to corruption.
● While brand-name companies are mostly willing to join such systems,
the large number and diversity of importers makes the creation of
such a system challenging.
The Bo2W project – Solution strategies│Manhart│Berlin│24 September 2015
7
www.oeko.de
Bo2W project team
6 Local disposal options for hazardous waste
Idea:
● Recyclers get the possibility to dispose negative value fractions
cheaply or free-of charge.
● Possibly even free pick-up service for defined waste fractions such as
CRT-glass.
Open points:
● Governments need to make appropriate decisions.
● Who pays for it?
The Bo2W project – Solution strategies│Manhart│Berlin│24 September 2015
8
www.oeko.de
Bo2W project team
7 Provide start-up capital
Idea:
● Formal recycling companies are challenged with cash-flow problems:
While they need to pay for collection, processing, storage and
transport, they only receive money after output fractions arrived at
downstream markets (mostly located in other world regions).
● Mid-sized credits can help to bridge these gaps and enable rapid
growth.
● By rapid growth, economies of scale can reduce overall costs.
Open points:
● High interest rates for these type of business models in developing
countries and emerging economies.
The Bo2W project – Solution strategies│Manhart│Berlin│24 September 2015
9
www.oeko.de
Bo2W project team
1-7
Possible strategies
1. Better access to downstream markets
2. Focus on B2B markets
3. Ban worst polluting practices
4. Co-operations between informal and formal recycling
5. Financing via EPR
6. Local disposal options for hazardous waste
7. Provide start-up capital
The Bo2W project – Solution strategies│Manhart│Berlin│24 September 2015
www.oeko.de
Many Thanks for Your Attention!
Andreas Manhart
Oeko-Institut
Phone: +49 89 12590077
E-Mail: a.manhart@oeko.de
Bo2W project teamThe Bo2W project – Solution strategies│Manhart│Berlin│24 September 2015

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The Best of two Worlds Project (Bo2W) - Possible solution strategies

  • 1. www.oeko.de The Best of two Worlds Project (Bo2W) Possible solution strategies Andreas Manhart Bo2W Closing Event, Berlin, 24 September 2015
  • 2. 2 www.oeko.de Bo2W project team 1 Better access to downstream markets Idea: ● Dubious business practices by intermediate parties between collection and end-refining that can result in money losses for collectors. ● If formal recycling enterprises have a better access to downstream markets, they would be an economically better position. ● This is tried out in this Bo2W-project. Open points: ● Most recyclers in developing countries and emerging economies are still quite small. ● Developing the market access for such enterprises is a challenging task. The Bo2W project – Solution strategies│Manhart│Berlin│24 September 2015
  • 3. 3 www.oeko.de Bo2W project team 2 Focus on B2B markets Idea: ● Competition not only on price, but also on recycling quality. ● Also big and multinational companies should make sure that they dispose e-waste and batteries with competent partners. ● Public sector should set an example. Open points: ● Private and public waste tendering processes need to be adapted. ● “Sound recycling” needs to be clearly defined (standards & certification needed). The Bo2W project – Solution strategies│Manhart│Berlin│24 September 2015
  • 4. 4 www.oeko.de Bo2W project team 3 Ban worst polluting practices Idea: ● Worst polluting practices such as car-tire burning, cable burning and unsound lead-acid battery recycling should be sanctioned. Open points: ● Environmental sound alternatives needed. The Bo2W project – Solution strategies│Manhart│Berlin│24 September 2015
  • 5. 5 www.oeko.de Bo2W project team Co-operations between informal and formal recycling Idea: ● Informal recyclers will continue to play a role in collection and dismantling. ● But critical fractions should be handed over to sound recyclers (e.g. cables, undrained lead-acid batteries, plastics, CRT-glass). ● Informal collectors and recyclers should be paid for deliveries. Open points: ● Who pays for the premium? ● Sound recycling needs to be defined. The Bo2W project – Solution strategies│Manhart│Berlin│24 September 2015 4
  • 6. 6 www.oeko.de Bo2W project team 5 Financing via EPR Idea: ● “Producers” (players that bring products on the market) are held responsible for environmentally sound management of an e-waste / car-waste volume equivalent to those brought onto the market. ● Producers can either build a management system by themselves or financially contribute to sound management. Open points: ● Some types of EPR-financing-systems are vulnerable to corruption. ● While brand-name companies are mostly willing to join such systems, the large number and diversity of importers makes the creation of such a system challenging. The Bo2W project – Solution strategies│Manhart│Berlin│24 September 2015
  • 7. 7 www.oeko.de Bo2W project team 6 Local disposal options for hazardous waste Idea: ● Recyclers get the possibility to dispose negative value fractions cheaply or free-of charge. ● Possibly even free pick-up service for defined waste fractions such as CRT-glass. Open points: ● Governments need to make appropriate decisions. ● Who pays for it? The Bo2W project – Solution strategies│Manhart│Berlin│24 September 2015
  • 8. 8 www.oeko.de Bo2W project team 7 Provide start-up capital Idea: ● Formal recycling companies are challenged with cash-flow problems: While they need to pay for collection, processing, storage and transport, they only receive money after output fractions arrived at downstream markets (mostly located in other world regions). ● Mid-sized credits can help to bridge these gaps and enable rapid growth. ● By rapid growth, economies of scale can reduce overall costs. Open points: ● High interest rates for these type of business models in developing countries and emerging economies. The Bo2W project – Solution strategies│Manhart│Berlin│24 September 2015
  • 9. 9 www.oeko.de Bo2W project team 1-7 Possible strategies 1. Better access to downstream markets 2. Focus on B2B markets 3. Ban worst polluting practices 4. Co-operations between informal and formal recycling 5. Financing via EPR 6. Local disposal options for hazardous waste 7. Provide start-up capital The Bo2W project – Solution strategies│Manhart│Berlin│24 September 2015
  • 10. www.oeko.de Many Thanks for Your Attention! Andreas Manhart Oeko-Institut Phone: +49 89 12590077 E-Mail: a.manhart@oeko.de Bo2W project teamThe Bo2W project – Solution strategies│Manhart│Berlin│24 September 2015