Critical need for e-waste management in the Philippines-

The effective management of electronic waste (e-waste) is dependent on volume and level of toxicity. While volume is determined by the internal generation and import of electronic equipment, the toxic nature of the equipment that contain constituents such as lead, mercury, arsenic, cadmium, selenium, hexavalent chromium, etc. makes e-waste management a complicated process requiring specialised collection, treatment, recovery, recycling, and disposal.

The Philippines does not as yet have an official inventory of the waste generated from electrical and electronic equipment (EEE). However, industry experts have estimated that, in 2012 alone, over three million units of electronic products turned obsolete and will mostly likely end up as waste. Though a lot of EEE waste comes from domestic manufacturing, the import of used electronic products is also beginning to make a significant contribution to the e-waste basket of the country. Hence, an official inventory is critical in determining the best course of e-waste management in the country, as each stream of waste has different levels of toxicity, which means that the processes used to treat them would also differ.

Mixed composition of e-waste

E-waste in the domestic market is largely produced from television sets, refrigerators, washing machines, air conditioners, radios, and personal computers. The increasing uptake of these products and the accelerating rate of replacement of used equipment at the local level is largely due to the high rate of electronic equipment production in the country.

The Philippines is one of the major producers of electronic products in the world. It accounts for over 10 per cent of the semiconductors and 3.5 inch hard disk drives (HDDs) and produces about 50 per cent of the 2.5 inch HDDs produced globally. It has also emerged as the manufacturing hub for major electronic players: the country is home to eight of the world’s 30 largest chipmakers including industry majors like Intel, Philips, and Analog Devices. Similarly, major HDD makers – Hitachi, Toshiba, Fujitsu, and NEC – have their manufacturing facilities in the country, not to mention prominent electronic firms like Amkor, Epson, Lexmark, and Sunmark.

EEE constitutes 40 per cent of the country’s total imports; the bulk of imported EEE goods comprise mobile phones and related accessories. The remaining imported units include assorted electrical and electronic components, along with computer sets (laptops and personal computers) and accessories. The country mainly imports electronic components as manufacturing inputs for re-exporting (for instance, 2.5 inch and 3.5 inch HDDs). Finished electronics, second-hand electronic items, and recyclable e-waste are also imported for further processing. These goods are primarily imported from the US, South Korea, Hong Kong, Thailand, and Japan.

On average, only about 30 per cent of the equipment imported is in good condition, while the remainder requires refurbishing, and reconditioning.

Absence of guidelines and regulations

E-waste management practices in the Philippines consist of four phases: reuse, storage, recycle, and landfilling. Industry experts estimate that about 50 per cent of the obsolete electronic items are reused. As for the remainder, 30 per cent are stored, 5 per cent are recycled, and 15 per cent are sent to landfill sites. Electronic items that are reused or stored have an additional life-span of three years; they are further recycled and ultimately sent to the landfill sites.

In terms of institutional structure, the city authorities are responsible for the collection of e-waste. However, as of now, there are no guidelines or regulations to ensure the safety of collection and disposal methods. Generally, e-waste is collected, treated, and disposed of in the same way as regular municipal solid waste. Thus, the entry of several toxic materials into the food chain through leakages into the groundwater or soil beds is not a remote possibility.

The practice of disposing of e-waste also varies at the different levels of consumer segments. At the household level, electronic goods are generally resold; commercial units usually enter into formal arrangements for collection of used products; industrial users transport the e-waste to recyclers; and government agencies generally auction discarded personal computers and electronic products.

Repairs of obsolete electrical and electronic products are generally undertaken in the grey market: for instance, the refurbishment of mobile phones, laptops, and personal computers is undertaken regularly. Refurbishment refers to the process of upgrading and changing component parts through the use of functional parts of discarded products to create a new product, which is widely adopted for computers.

The market for refurbished computers has expanded to such a large extent that a US-based company, HMR Philippines, has entered the market to refurbish old and discarded computers and sell them as second-hand products. Of late, there has been a increasing reliance by the company for refurbishing personal computers discarded domestically. This is largely due to strict measures taken by the government towards the importing of used electronic products.

The e-waste recycling process in the Philippines is limited to the buying, sorting, segregating, processing, and selling of waste materials (for export purposes). For instance, recycling personal computers may generate 98 per cent of recoverable waste, which is typically exported to developed economies like China, Korea, and Japan in Asia, or Italy, Germany, and Finland in Europe, for smelting or metals recovery and further processing. The recycling sector in the country is also dominated by informal recyclers who employ rudimentary processes and tools to recover precious metals. Such units are generally found in the slum neighbourhoods of Metro Manila.

Policy push needed for sustainable future

The country has yet to recognise e-waste as a distinct category and adopt a policy that specifically addresses issues of e-waste generation, import, and management. Currently, the framework for managing e-wastes falls under two major laws: the Ecological Solid Waste Management Act of 2000 (RA 9003) and the Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990 (RA 6969). Though the law recognises that e-waste contains hazardous components and encourages the minimisation of e-waste generation, its recycling and reuse, and landfill of inert residues, it does not make specific provisions for managing e-waste.

Should the policy be in place, it will create an enabling framework for entrepreneurs to invest in state-of-the-art collection, processing, and recycling of e-waste, as some of these operations can generate positive revenue streams. While the industry is able to take on the tasks of e-waste disposal, the challenge lies in instituting a “take-back” system.

Going forward, the Philippines will need to move progressively towards instituting sustainable practices for e-waste management due to both external and internal factors. The country is heavily dependent on the export of electronic products (the market size is in excess of $30 billion); to gain wider market access (particularly in European market), domestic firms will have to adhere to the environmental and health requirements of importing countries. Internally, factors such as shrinking landfill spaces, the promising prospects of recovering precious metals, and the availability of cheap labour will motivate companies to invest in the e-waste recycling and recovery industry.