Measures Taken by Ministry of Economy,
Trade and Industry for the Creation of a Recycling-Oriented Society

This paper is design to introduce you the measures taken by the Ministry of Economy, Trade and Industry (METI) to implement its policies for the creation of a recycling-oriented economic system that can sustain both the environment and economic growth. The policies reflect the suggestions made in the report titled "Vision of Recycling-Oriented Economy," which was submitted by the Industrial Structure Council in July 1999. Such policies are embodied in METI's ever-increasing efforts to establish appropriate rules for the new economic system, promote initiatives on the side of the private sector, and provide support for such initiatives.

Through such efforts, METI hopes to accelerate the transformation of the Japanese economic system to an environmentally self-sustainable one from the current unsustainable scheme premised on mass production, mass consumption, and mass waste disposal.
This transformation is indispensable in preventing Japan and any other country from suffering constraints expected to be worsened in the 21st century by the abusive use of the environment and resources.

2. Smooth Enforcement of the Law for Promotion of Effective Utilization of Resources (Revised the "Recycling Law")

The Law for Promotion of Effective Utilization of Resources was enacted in May 2000 and enforced in April 2001. This law was a renamed revised version of the then-effective Law for Promotion of Utilization of Recyclable Resources.
This new law is designed to help create a recycling-oriented economy by:
(1) requiring further recycling efforts such as obliging businesses to collect and recycle waste products (i.e. "Recycle");
(2) requiring further reduction of waste through the promotion of resource saving production and long-life products ("Reduce");
(3) promoting the reuse of parts, etc., recovered from waste products ("Reuse"); and
(4) devising measures to reduce industrial waste through the reduction of by-products and the enhancement of recycling systems.

This law is epoch-making and unprecedented in the world in two points. First, it required all 3R actions - recycle, reduce, and reuse. Secondly, it covers the entire product life spans from the upstream phase where companies are required to reduce their industrial wastes and design environmentally-friendly products to the downstream phase where companies are obliged to recover reusable parts or materials from waste products for the purpose of recycling.

In response of the establishment of the law, a cabinet order was issued to designate 69 product categories in 10 industries (covering about 50% of municipal and industrial wastes) effective from April 2001 and a ministerial ordinance was issued to set detailed guidelines for 3R activities. (Please refer to Table 1). The law requires 3R efforts to be made in the following seven areas:

(1) Designated Resources-Saving Industries
These industries are required to reduce by-products generated at manufacturing plants ("Reduce") and to recycle such by-products ("Recycle").
(2) Designated Resources-Reusing Industries
These industries are required to use recycled materials ("Recycle") and recovered parts ("Reuse") in the manufacturing processes.
(3) Specified Resources-Saved Products
These products are required to be designed in such way that these products can be produced with less resources and used for longer periods ("Reduce").
(4) Specified Resources-Reused Products
These products are required to have such designs that allows easy dismantling, etc., for the purpose of recycling and reusing parts or materials.
(5) Specified Labeled Products
These products are required to carry marks to promote separate collection for the purpose of recycling.
(6) Specified Resources-Reconverted Products
These products are required to be collected and recycled on the responsibility of the manufacturing companies ("Recycle").
(7) Specified By-Products
These by-products reefers to such by-products generated by any companies other than manufacturing companies that are generated through processes of energy supply or construction works. Such by-products are required to be recycled ("Recycle").

This law encourages each company to take 3R initiatives in order to promote industry-wide serious involvement in 3R activities. In this sense, this law has the nature of recommendations or guidelines, rather than strict regulations.

Since this law is under the jurisdiction of METI, METI is responsible for keeping precise track of how much this law encourages companies to take 3R initiatives. Such monitoring would be impossible without adequate information disclosure by companies. If such monitoring shows any need for the law to expand the coverage, METI will study if it is necessary to additionally designate other industries or products.

This law is expected to provide a framework for the creation of a recycling-oriented economic system, while promoting companies' initiatives, communications between governments and citizens, and positive partnerships between social stakeholders.

3. Smooth Enforcement of the Containers and Packaging Recycling Law

The Containers and Packaging Recycling Law was enforced in 1997 to make the recycling of glass bottles and PET bottles mandatory. The law has come into effect in full in 2000 to require the recycling of containers and packages made of paper or plastic and also to oblige small and midsize businesses, in addition to large businesses already covered by the law, to recycle such containers and packages.

In compliance with the law, more and more municipalities have started collecting recyclable containers and packages separately. The rise of the number of such municipalities has naturally increased the amount of containers or packages separately collected and recycled by municipalities. (Please refer to Table 2). Regarding PET bottles, the rate of collection and recycling rose to about 35% (excluding wastes from business activities) in 2000. This increase was made possible by municipalities' efforts of enhancing their recycling capability. Municipalities have established recycling systems capable of recycling all the collected PET bottles and plan to further raise the rate of collection and recycling to 50% by 2004 based on their plans for the separate collection of PET bottles.

The law not only promotes recycling but also reduces wastes. For example, the city of Nagoya, which was first among large cities to fully implement the law in 2000, saw its total wastes and its wastes buried in landfills decrease about 20% and about 30% respectively from a year earlier. This data clearly shows the effectiveness of the law. As the law has been very effective in promoting the recycling of PET bottles, it is expected to also help municipalities recycle "plastic containers and packages" and "paper containers and packages," both of which are yet to be covered by the separate collection systems of most municipalities.

4. Full Enforcement of the Home Appliances Recycling Law

The Home Appliances Recycling Law was fully enforced in April 2001. This law obliges home appliances manufacturers to recycle TVs, refrigerators, air conditioners, and laundry machines and to make efforts to attain target remanufacturing rate ranging from 50% to 60%. The enforcement of the law prompted manufactures to form two large groups, one of which includes Matsushita and Toshiba, and the other includes Hitachi, Sanyo, Sharp, Mitsubishi, and Sony. Each group has established its own recycling plants, waste-collecting centers, and other necessary facilities and also set recycling charges.

Thanks to such manufactures' preparatory efforts, the law has caused no significant problem since the enforcement less than one year ago. Manufactures see their collection systems and recycling systems functioning well (please see Table 3). Manufacturers are especially happy to see their 37 recycling plants located in various areas in Japan handling more home appliances than expected. Another good news is that the number of illegally-dumped appliances did not increase so much as anticipated. Although the number did increase at the beginning of the enforcement year in comparison with the previous year, it has gradually leveled off as time passed. Currently, the number accounts for as low as less than 1% of the total number of waste appliances.

It is important to keep closely monitoring and analyzing the effects of the law.

5. Study of the Automobile Recycling Law (Tentative Name)

A draft of the Automobile Recycling Law (Tentative Name) has been under study at the Industrial Structure Council since July 2000. This reflects the increasing trend both at home and abroad toward enhanced recycling of end-of-life vehicles. The automobile recycling has been taking root in Japan to some extent since the enforcement of the Law for Promotion of Effective Utilization of Resources. This law has already obliged automobile manufactures to promote designs for recycling, reduction (designing for more compact, more light, or more easily-repairable automobiles), and reuse (designing for more easily removable bumpers and panels).

Regarding the Automobile Recycling Law, an interim report was issued by the council, which is summarized as follows:
(1) Each person who buys a new vehicle shall pay a recycling charge at the time of purchase. The money collected as a recycling charge shall be kept by a fund management organization until such vehicle comes to the end of its life and needs to be disposed of.
(2) Regarding the collection/recycling systems, each dealer or repairer, etc., shall act as an "ELV collector" to which final users turn in their end-of-life vehicles (ELVs) and each automobile dismantler and shredder shall act as a "recycler" to which such ELVs are brought in for recycling. Any company which desires to become a collector or recycler shall be duly registered with a competent authority before commencing its operations; and
(3) Automobile manufactures and importers shall be responsible for recovering and recycling CFCs, airbags, and shredder dust, which are the main causes of users' losing money, instead of gaining money, by turning in ELVs. (Please refer to Figure 1)

This interim report will provide basic ideas for a draft of "Automobile Recycling Law (tentative name)," which is scheduled to be submitted to the Diet.

6. Guidelines for Waste Treatment/Recycling by Commodity and Business

The guidelines for waste treatment and recycling for each product category and each industry were set by Industrial Structure Council's study group for waste and recycling in 1990. The guidelines show companies how to recover recyclable materials and handle residues, giving advice on the establishment of their recycling targets and waste collection systems, etc. The guidelines have been annually revised and reinforced based on the progress made by companies for the year in terms of recycling.

The latest revision was made in July 2001 to designate two more product categories and to promote further 3R efforts. This revision raised the total number of designated product categories to 35 and the number of designated industries to 18. (please refer to Figure-2).

The guidelines complements the law by specifying detailed rules for companies to comply with.

7. Promotion of Eco-Town Businesses

The "eco-town" businesses are projects to establish high-tech model recycling facilities in local communities to reduce the amount of wastes. Eco-town businesses have been promoted through METI's subsidies given to private companies for the establishment of such facilities. Such METI's subsidy system was introduced in 1997. METI hopes to use it to help the private sector take initiatives in building the recycling industry. METI has already approved eco-town businesses in 14 municipalities (the approvals were jointly given by METI and the Ministry of the Environment) and granted subsidies to 24 facilities nationwide (please refer to Figure-3). To maximize the effect of this subsidy system, it is important for METI to carefully select renovative projects to grant subsidies to. Through this system, METI intends to further promote private sector's initiatives in developing the recycling industry.

8. Promotion of Technological Development

METI announced the "3R Program" in 2001 as a strategy for the development of recycling technology. This program is designed to accelerate technological innovation, which is indispensable for the creation of a recycling-oriented economic system and also for the commercialization of recycling technology. According to this program, priority needs to be given to the following fields, where a strategic technological development is very important.
1. Measures to promote the recycling of automobiles
2. Measures to promote the recycling of home appliances
3. Measures to promote the recycling of containers and packages
4. Measures to promote the recycling of resources containing hazardous components
5. Measures to promote the commercialize of recycling technology
(please refer to the Figure 4)

9. Conclusion

As described above, various measures have been taken by METI for the implementation of its recycling policies. As a next step, METI has three jobs to do, which are (1) checking whether recycling systems are established and managed properly pursuant to the law or any other relevant regulation; (2) taking additional measures to make recycling systems more sophisticated and comprehensive; (3) promoting recycling initiative through "direct" support (establishment of recycling facilities in relation to eco-town businesses, etc., technological development, etc.) and "indirect" support (environmental accounting, environmental labeling, lifecycle assessment, etc.).

We have just taken a first but great step toward the creation of recycling-oriented society backed by the establishment of recycling-related laws and the growing environmental awareness of the public. For further steps in that direction, METI is determined to take appropriate measures to implement its policies through close and open communications with people concerned.