The World Economic Forum (WEF) has published a briefing note on the role of trade in the transition to a more circular economy for the electronics industry.
The white paper entitled "Facilitating trade along circular electronics value chains«, published on September 18, 2020, analyzes the trade-related challenges to reversing circular electronics supply chains, emphasizing that It is possible to use technology to improve lives and limit unnecessary disposalThe authors explore trade policy solutions, including international agreements between governments, bilateral regulatory pilot projects, and public-private initiatives.
The role that electronics play in economies and societies has become even more critical during the COVID-19 pandemic, as they have enabled many types of work to continue by connecting workers. However, many electronic products still end up in the environment or are recycled unsafely. The 2020 edition of the UN Global E-Waste Monitor concludes that, in 2019, generated 53,6 million metric tons of electronic waste, and that around the 82% were probably not collected or managed in an environmentally sound manner.
The challenges Highlights in the briefing note relate to: complexities of product classifications; factors leading to increases in reverse logistics costs for used products and those characterised as hazardous; and cumbersome processes for obtaining trade permits, particularly for products classified as hazardous. For example, reverse logistics for used electronics was found to be 31% more expensive than outbound logistics for new products, and delays of up to 14 months to complete paperwork on hazardous products are common.
When describing solutions or possible actions to facilitate trade, the document highlights border and internal measures, transparency on national requirements for waste classification and movement, and policy actions including international trade instruments and regulatory cooperation between countries. For example, where electronic products are classified as hazardous under the Basel Convention, or at the national level, they may face trade bans and, if cross-border movement is permitted, are subject to prior informed consent (PIC) from importing and transit countries.
The focus of the Basel Convention on risk trading could be complemented by measures to facilitate responsible trade for the circular economyFor example, capacity building for trade facilitation could help digitize and automate the PIC procedure, and regulatory cooperation could involve fast-track systems for permits or longer validity periods.
The paper is part of a series on trade and the circular economy. The briefing note is expected to contribute to a broader report on circular e-routes, to be published in January 2021.
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