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Financing ICT for Development: The Reverse Side of the Coin

This open consultation discusses financial mechanisms for meeting the challenges of ICT for development. It focuses on the rapidly growing problem of e-waste and how it affects developing countries. The consultation explores the two sides of recycling and aims to move towards a win-win situation.

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Financing ICT for Development: The Reverse Side of the Coin

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  1. FINANCING ICT FOR DEVELOPMENTTHE REVERSE SIDE OF THE COINOpen Consultations on Financial Mechanisms for Meeting the Challenges of ICT for Development,8-9 October 2009, Geneva Katharina Kummer Peiry Executive Secretary Secretariat of the Basel Convention

  2. Topics • Introduction • A rapidly growing problem • Developing countries are hurt most • The two sides of recycling • Moving towards a win-win situation

  3. INTRODUCTION • IT advances • Rapidly increasing demand globally • Positive impacts on development • Faster, smaller, more responsive equipment • Consequences • Increasing turnover of products • Increasing quantities of obsolete products

  4. Introduction • PCs & MPs major IC equipment • Computing equipment lifespan decreased • 1997: 4-6 years • 2005: 2-4 years • In 1 decade (1994-2003), 500 million PCs worldwide reached end-of-life ~ E-WASTE

  5. A RAPIDLY GROWING PROBLEM • By 2005 (global estimate), 500 million (250,000 t) MPs stockpiled, waiting for disposal • Phones in USA • Estimated use by 2005, ca. 175 million • 1993-2003 • 2.5 million phones collected for reuse/recycling • (<1% of discarded phones each year)

  6. Separation of PCs and other E-waste on the road Photo: Terazono (2006) Usual scenery of print circuit board heating for removing IC-chips and Pb at Guiyu Photo: Yoshida (2004)

  7. A rapidly growing problem • E-waste the fastest growing portion of municipal waste streams • 1% in USA • 4% in EU • E-waste generation shows linear increase in many countries (future trends, 2005-2020)

  8. DEVELOPING COUNTRIES ARE HURT MOST • Industrialised countries introduced comprehensive take-back and recycling systems • Developing countries have nearly no control • Lack of legislation and enforcement • Lack of controlled take-back systems • Informal sector dominance • Illegal trafficking (false declaration) • Lack of awareness (gov. & public)

  9. Open dumping of E-waste recycling residues and residential waste along the river at Guiyu (Source: Terazono, 2006) Natural burning

  10. Developing countries are hurt most • Illegal e-waste export from developed countries in contravention of international and regional legislation • Basel Convention • EU Waste Shipment Regulation • African Bamako Convention • South Pacific Waigani Convention

  11. International Actions • The Geneva Plan of Action (2003) encourages • “… government, civil society and the private sector … to initiate actions and implement projects and programmes for sustainable production and consumption and the environmentally safe disposal and recycling of discarded hardware and components used in ICTs.”

  12. International Actions • Tunis Agenda for the Information Society (2005) reaffirms the commitment: • “…to using ICTs, as a tool to achieve the internationally agreed development goals and objectives, including the Millennium Development Goals, by … strongly encouraging ICT enterprises and entrepreneurs to develop and use environment-friendly production processes in order to minimize the negative impacts of the use and manufacture of ICTs and disposal of ICT waste on people and the environment. In this context, it is important to give particular attention to the specific needs of the developing countries.”

  13. International Actions • Basel Convention COP-6 (2006) • Theme: “Creating Innovative Solutions Through the Basel Convention for the Environmentally Sound Management of Electronic Waste” • World Forum on E-wastes: Ministers, corporate officials, civil-society representatives and other participants explored solutions for advancing the objectives of ensuring the environmentally sound management of e-waste • Nairobi Declaration on the ESM of E-Waste and Decision VIII/2 adopted. The Declaration serves as the overall mandate for a roadmap of actions on tackling the e-waste problem under the Convention

  14. Source: EMPA TWO SIDES OF RECYCLING • E-waste has high recycling value • Plastics • Ferrous metal • Non-ferrous metals • Precious metals • Special metals • E-waste recycling is economically viable & attractive

  15. Source: EMPA Two sides of recycling • E-waste recycling in most developing countries ~ informal sector • Africa, Asia-Pacific, etc. • involving large number of people • practices not env. sound • methods: burning, acid etching • no/poor OHS protection • almost no env. pollution control

  16. Two sides of recycling • EPR Policies in developed countries • Producers’ responsibility of e-products t/o life-cycle • Impetus to recycling industry in developed countries • Take back & recycling schemes, incl. in new e-products price • Currently only cover domestic market, at national & regional levels, esp. in OECD countries • Do not cover e-products exported to countries outside geographic scope of domestic EPR policies (loophole)

  17. Two sides of recycling • Financial mechanisms for EPR policies at international level, global economy • important challenge for international community • could foster sound recycling and ESM of e-wastes globally

  18. Two sides of recycling • Pilot projects under implementation • To explore schemes for ESM of E-Waste in developing countries • TA programmes • UNEP • Secretariat of the Basel Convention • UNIDO, etc.

  19. Two sides of recycling • SBC is facilitating partnerships in ESM of E-Waste, a.o. PACE, MPPI • PACE • Multistakeholder groups • Aims: • To find incentives and methods to divert EoL CE from burning and land disposal to commercial recycling/recovery operations • To develop technical guidelines • To promote SD for use, repair & refurbishment of PCs in developing countries and CwEiT

  20. Source: EMPA Two sides of recycling • Challenge • Millions of x-poor people in developing countries living from valuable materials in EoL e-products or e-waste • Introduction of proper recycling system has to find a way • Involving informal sector • w/o harming health & environment

  21. TOWARDS A WIN-WIN SITUATION • Technology for ESM of E-Waste exists, but, has to be linked to product life-cycle to become economically viable • Intro of life-cycle approach for e-products needs concerted efforts • All players (producers, users, recyclers, etc.) • Robust & sustainable financing system

  22. Towards win-win situation • Prerequisites to lasting solution: env and health safety considered in • Production • Distribution • Use • Refurbishment and Recycling • Financing mechanisms

  23. Towards win-win solution • Efforts to bridge digital divide, avoid health & environmental problems, incl. across the border • Life-cycle approach • Relevant international laws • Using ICT in ESM • Benefits to development of countries • Post-use benefits to job & income generation

  24. FOR FURTHER INFORMATION Secretariat of the Basel Convention International Environment House 15 Chemin des Anemones Chatelaine CH-1219 GENEVA, SWITZERLAND Website: www.basel.int E-mail: sbc@unep.ch

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