The role of clearing houses in enforcement policies

1. The role of clearing houses in enforcementpolicies Christian BRABANT Pierre-Marie ASSIMON 

2. Agenda • Whatis OCAD3E ? • How to secure WEEE flows ? • Governmentalinitiatives : regulation • Clearing house initiatives • Take-back system initiatives Eco-systèmes 2013

3. Whatis OCAD3E ?

4. WEEE organizationin France Producers Retailers Authorities Take-back systems Contract and compensation Accreditation Social economy Contract and compensation Clearing house OCAD3E Municipal collection points Contract and compensation Accreditation Eco-systèmes 2013

5. Clearing house missions • OCAD3E, the WEEE clearing house in France, is a non profit private company owned by the 4 take-back systems (25% each) and accredited by authorities for a 5-year period • OCAD3E Missions : • Conclusion of contracts with municipalities • Payment of financial support to municipalities for collection • Equalize take-back systems operations according to their different market shares (collection obligation tracking) • Coordinate general interest subjects regarding WEEE : consumer survey, yearly national WEEE collection day, WEEE arising survey Eco-systèmes 2013

6. How to secure WEEE flows ? 4 main initiatives jointlycarried out : • Regulation actions • Legal actions • Financial support to municipalities • Operational actions • A range of strong actions implementedsince the launch of complianceschemes in France in 2006 • Positive effects are measured on the long run • Only the full range of actions mayguarantee efficient enforcementpolicies, for limitingillegalactivities and for reaching collection targets Eco-systèmes 2013

7. Governmentalinitiatives

8. Governmental initiatives (1/2) Actions # 1 : Support regulation changes/ improvements A lobbying approach to have a strong and comprehensivelegalframework/ new regulations on the long run. A legalframeworkbased on 4 pillars : • Ban on cash transactions for scrap dealers • Purchasingisstillallowed but must bedonewith check • Estimated volumes of transaction : 1 billion euros eachyear • Mandatory « police records » on everyscrapdealer’s site • Each client must declareitsidentity and the quantities of WEEE or used EEE broughtwhenarriving on-site • Registercanbechecked by the police anytime (e-register) Eco-systèmes 2013

9. Governmental initiatives (2/2) Actions # 1 : Support regulation changes/ improvements A lobbying approach to have a strong and comprehensivelegalframework/ new regulations on the long run. • Taxabilityof each transaction • Thanks to the police records, scrap dealers are obliged to declareannualy to the fiscal administration the sum of purchases of each client. This amountwillbeincluded as an income in eachindividual taxation bill. • Incentivereinforced in 2011, beginning to have positive effectson collection rates in 2013 • Operators are not allowed to treat WEEE fromselective collection withouthaving a contractwith a take-back system • French decree of 2012 Eco-systèmes 2013

10. Clearing house initiatives

11. Clearing house initiatives (1/2) Actions # 2 : Support municipalities in legal actions A very close support to municipalitieswitheasy solutions and systematiclegal actions in case of theft. • OCAD3E systematically engages legal actions for municipalities • A dedicatedlawyer • Since 2010 : 90 lawsuits, 30 judgments (for receivingstolengoods) • 1st cases for forbidden cash purchasing in 2012 • OCAD3E obtainedfrom the police force a specifictimesavingpre-complaint to befilled in online Eco-systèmes 2013

12. Clearing house initiatives (2/2) Actions # 3 : Financial support to municipalities An additionalincentive to encourage best practices. • Averagefinancial support for municipalitiesfrom OCAD3E (collection facilities, charges, dedicated staff, etc.) = 60 €/ton • For municipalitiesenforcingmeasures to secureWEEE, additional support = 10 €/ton • Based on Large HouseholdAppliances (LHA) quantitiescollectedat the collection point, LHA being the main stolen WEEE stream • Allows the partner to invest in order to improve the security of the deposit Key figures for additional support : • 1.3 M€ sinceJanuary 2010 • 700 k€ in 2012 => a veryfastgrowth of good practices since 2012 Eco-systèmes 2013

13. Take-back system initiatives

14. Take-back system initiatives (1/3) Actions # 4 : Operational solutions Concrete solutions to protect WEEE at collection points level. • Optimisation of collection frequency • Locked shipping containers for LHA : 40 sites in 2012 +18% yearly Eco-systèmes 2013

15. Take-back system initiatives (2/3) Actions # 4 : Operational solutions Concrete solutions to protect WEEE at collection points level. • Dedicated collection stands for Small HouseholdAppliances (SHA) : 130 stands deployednationally Eco-systèmes 2013

16. Take-back system initiatives (3/3) Actions # 4 : Operational solutions Concrete solutions to protect WEEE at collection points level. • Video surveillance on sites • Marking of WEEE allowingtraceability : • WEEE trackingwith RFID chip (test) Eco-systèmes 2013

17. Conclusions

18. Conclusions • 4 initiatives whichmust bejointlyimplementedto be efficient : regulation, legal actions, financial support, operationalsolutions Operational solutions Municipalities Support Take-back systems Legal actions Financial support Lobbying Regulation Legal basis Eco-systèmes 2013

19. Conclusions • Verygood first results in France : +20 to 25% in collection rates frommunicipalitiesimplementingthose actions • A frameworkallowing to : • Fightagainstillegalactivities • Secure WEEE flowsand improve collection rates • Initiatives must besupported by nationwideactors • A harmonised set of actions on a European basis coulddramaticallyimprove national enforcement => Limitation of used EEE + metal exports • Coordination of the police on a European basis isnecessary to strengthen the model Eco-systèmes 2013

20. … thankyou !

21. Contact : Christian Brabant – cbrabant@eco-systemes.fr Pierre-Marie Assimon – pmassimon@eco-systemes.fr