Mitsuo Matsumoto Ministry of Economy, Trade and Industry Japan

1. APEC/SCSC/TFTF 24 June 2007, Cairns Japan's Legal Scheme for Establishing the Sound Material-Cycle Society Mitsuo Matsumoto Ministry of Economy, Trade and Industry Japan

2. Legislation and Policies to Promote the Sound Material-Cycle Society Basic Environment Law Basic Environment Plan Fundamental Law for Establishing a Sound Material-Cycle Society Law for Promotion of Effective Utilization of Resources Waste Management Law Regulations in accordance with the characteristics of specific products Containers and Packaging Recycling (CPR) Law Home Appliance Recycling (HAR) Law Food Recycling (FR) Law Construction Material Recycling (CMR) Law End-of-life Vehicles Recycling (ELVR) Law Green Purchasing Law

3. Legislative System in Line with the Life Cycle of Products Consumption Use Collection Recycling Waste Designing Production Law for Promotion of Effective Utilization of Resources (PEUR) Green Purchasing Law Waste Management Law PEUR Law CPR Law HAR Law FR Law CMR Law ELVR Law Businesses - Self Collection Gov. Organizations - Purchase Environmentally Friendly Products Businesses Municipalities - Proper Handling and Management of Waste Businesses - Environment Conscious Design - Reuse and Use of Recycled Material - Material Labeling Consumers - Proper Disposal

4. History of Law for Promotion of Effective Utilization of Resources 1991 Law for Promotion of Utilization of Recycled Resources （Recycle Law） １Ｒ Recycle of recovery products as raw materials （recycled waste-paper 56%, recycled waste-glass bottle 65%） Recycle conscious design: use of recyclable materials, design for easy dismantlement (automobile, TV, refrigerator, etc. ） Labeling for separated collection （steel can, aluminum can, PET bottle, NiCd battery） Promotion of recycling of by-products generated at factories （slag, coal ash from power plant） 1999 Sound Material-Cycle Economy Vision Promotion of waste reduction measures in addition to recycling: - Lesser use of resources, adoption of long-life design (Reduce) - Reuse of products/parts (Reuse) Law for Promotion of Effective Utilization of Resources （3R Law） ３Ｒ 2001 • Reinforcement of recycling measures • Adoption of reducing, reusing measures Promotion of effective resource utilization at every aspects of business activities

5. Outline of Law for Promotion of Effective Utilization of Resources I. Measures on products: Manufacture Separation and Collection Reuse, Recycle [Raw materials] [Product design] Specified Resources- Saved Products Reduce Reduce Design for Reduce ・ Designated Resources- Reutilizing Industry Specified Reuse- Promoted Product Specified Resources-Recycled Product Consumption Distribution and Service Reuse Reuse Execution of Self-collection and Recycling Design for Reuse and Recycle Use of Recyclable Resources and Reusable Parts Recycle Recycle Specified Labeled Product Labeling to Facilitate Separated Collection J-MOSS II. Measures on by-products: Manufacture Specified By-product Designated Resources- Saving Industry Reduce Reduce Recycle Recycle Reduction of by-products generation and promotion of recycling measure

6. J-MOSS: Information Provision of Materials Included in Products Utilization of Law for Promotion of Effective Utilization of Resources  Materials (lead, etc.) required to be controlled in designing/manufacturing processes of products are specified  Manufacturers/importers of specified products are obliged to provide information on any of such materials if included in their products Specified Products Specified Materials  Lead and lead compound  Mercury and mercury compound  Cr6+ compound  Cadmium and cadmium compound  Polybromobiphenyl  Polybromodiphenylether  Personal Computer  Unit Air-conditioner  Television set  Refrigerator  Washing machine  Microwave  Clothes dryer Inclusion Mark  Inclusion mark is to be labeled on product/package  Inclusion mark as well as detail information (e.g. indication of relevant parts, quantity of materials/substances) to be provided on product’s catalogue/brochure, operation manual and web-site To be labeled on products, packages, catalogues, etc.

7. Detail Information to be Provided on Product’s Website Equipment name：Television receiver Type designation : ○○-AAA JIS C 0950

8. Basic Concept of J-MOSS How effectively chemical control can be conducted in a supply chain. Does Japan need to establish a regulatory regime similar to the EU? High Recycling Rate Promotion of Environment Conscious Design • Leading activities by industries should be well recognized. • No needs for restriction of use of certain chemical substances similar to the EU. • New measures should facilitate the future development of environment conscious designing.

9. Basic Concept of J-MOSS • Handling of Materials and Chemical Substances in Products • Appropriate separation and management of materials/substances at the stage of reuse and recycling: • -> Effective emission control, improvement of reuse/recycling processes, improvement of quality of reused/recycled materials • Information on specific (rare, useful or hazardous) materials/ substances should be disclosed, monitored and managed throughout a supply chain. Expanded Application of Law for Promotion of Effective Utilization of Resources • Designation of specific materials/substances to be controlled during designing and manufacturing of products • Obligation to manufacturers and importers to provide information on the specific materials/substances contained in their products

10. Outline of Law for Promotion of Effective Utilization of Resources I. Measures on products: Manufacture Separation and Collection Reuse, Recycle [Raw materials] [Product design] Specified Resources- Saved Products Reduce Reduce Design for Reduce ・ Designated Resources- Reutilizing Industry Specified Reuse- Promoted Product Specified Resources-Recycled Product Consumption Distribution and Service Reuse Reuse Execution of Self-collection and Recycling Design for Reuse and Recycle Use of Recyclable Resources and Reusable Parts Recycle Recycle Specified Labeled Product Labeling to Facilitate Separated Collection J-MOSS II. Measures on by-products: Manufacture Specified By-product Designated Resources- Saving Industry Reduce Reduce Recycle Recycle Reduction of by-products generation and promotion of recycling measure

11. Basic Concept of J-MOSS Information provision is necessary for separation of hazardous materials and substances under the sophisticated recycling system in Japan Information provision through the internet A: Some Parts Exempted B: Containing Specified Materials To be labeled on products, packages, catalogues, etc. Information provision through the internet

12. Some Outcomes of Law for Promotion of Effective Utilization of Resources [Reuse/ Recycle] [Separation/ Collection] [Product Designing] Products with Reduce Requirement ●Self collection/recycle systems established by manufacturers 【Self collection rate】 Business appliances: 0.45M (2001) -> 0.67M (2005) Home appliances: 0.23M (2004) -> 0.32M (2005) 【Recycling rate】 Business desktop PC: 78.9% （2005） <target: 50% (2010)> Home desktop PC: 69.5% （2005） <target: 50% (2010) > ●Weight saving of Note PC: 1,650g -> 1,199kg ●About 1.5 times longer-life for hard-disc drive ●About 60,000 hours longer-life for back-light of liquid-crystal display panel Reduce Products with Reuse requirement Distribution and service Consumption Reuse ●Materials selection Using recyclable materials such as PS, PC, ABS ●Design for easy dismantlement - Number of parts reduced by 50% - Number of screwsreduced by 46% - Dismantling time reduced by 15% ●Material labeling for separated collection Recycle

13. Follow-up (Surveys) of J-MOSS ◇Ongoing Surveys 1. Market Survey 2. Survey on Internet ◇ Market Survey ◇ Survey on Internet

14. Challenges to Law for Promotion of Effective Utilization of Resources Changing Circumstances • Increasing demand/price of natural resources • Changing supply and demand structure of recycled resources • Lesser usage of natural resources in manufacturing • Popularization of sound recycling system in different countries • International standardization of environment conscious design • Improvement of recycling systems in accordance with the changing supply and demand structure • Proper handling of used products containing useful metallic resources

15. Further promotion of reduced usage of natural resources and environment conscious design with lifecycle thinking Challenges to Law for Promotion of Effective Utilization of Resources Improvement of recycling systems to cope with changing resource market Solutions? • Respond to new recycling systems based on market mechanism • Increase collection rate and reduce cost for collection by streamlining existing recycling systems • Promotion of voluntary collection of mobile phones that include high rate of useful metallic resources • Resource reduction in the total supply chain • Reuse of collected and recycled parts in the same type of new products • Facilitation of international standardization of DFE technology • Raising awareness of consumers on 3R conscious products

16. Establishing Sound Material-Cycle Society After one year of implementation of J-MOSS (enforced 01/07/2006) • Japan’s resource productivity, including specified products covered by the J-MOSS, is improving • Survey on J-MOSS is planned to be conducted every years from 2007 • Results of the survey will be used for possible improvement of J-MOSS and other schemes to further promote establishment of the Sound Material-Cycle Society • Japanese government will continue to provide support for international standardization activities to cope with EU-RoHS like regulations through IEC/TC 111