PWMI NewsletterNO

2006.10

Plastic Waste Management InstituteJAPANAt the Frontline of Plastic Recycling

Reassessment of the "Containers andPackaging Recycling Law"
10 Years After Enactment, andStatus of the "Automobile Recycling Law"
1 Year and 3 Months After Enactment
This report deals with two recycling-related statutes, and highlights the findings of a council
convened to reassess one law while outlining the status of the other law since it recently went intoeffect.
First, now that 10 has gone by since the "Containers and Packaging Recycling Law" was enactedand went effect in 1995, a council of stakeholders was convened to consider and reassess the law.
Here we provide a summary overview of the topics that were considered by the council.
Next, we will review the status of the "Automobile Recycling Law" now that it has been in effect for 1
year and 3 months, and focus particularly on Automobile Shredder Residue (ASR), one of the three
items covered by the statute (ASR, airbags, and CFCs). We will outline the progress made so far in
ASR recycling and describe an ASR processing plant.

Ⅰ.Agenda of Deliberations to Reassessthe "Containers and Packaging Recycling Law"
After 10 Years
As landfills and other final deposition sites arenearing capacity, Japan has sought to address thislooming critical situation over the past few decades notby specifying how wastes should be disposed of(landfills and so on) but rather by defining a frameworkof three Rs-reduce, reuse, and recycle-that focuses
attention on our precious resources. In this approach,waste is regarded as a resource that is indispensable forbuilding of a sound recycling-oriented society, and alls o c i e t a l s t a ke h o l d e r s i n c l u d i n g n a t i o n a l a n d l o c a l

PWMI Newsletter 1

governments, companies, consumers, and citizens'groups alike must share responsibility for promoting
reuse.

Sorted Trash Collection and Recycling:
Mandatory Since Passage of the"Containers and Packaging Recycling
Law" in 1997
Greater diversification of life styles and sheer
convenience have led to a rapid increase in the use andconsumption of plastic containers and packaging,which has greatly increased the amount of household
trash. However disposal of these increased volumes in
landfills depends on finding acceptable disposal sites.
The growing difficulty of locating such sites near urban
areas led to a fundamental shift in thinking, and theconcept of recycling trash and regarding it as aresource has now been embodies in law with theenactment of the "Containers and Packaging Recycling
Law" in 1997.
Initially the law covered aluminum and steel cans,glass bottles, PET (polyethylene terephthalate) bottles,
beverages cartons, cardboard and other paper-based
containers, and wrapping and packaging paper, then thelist of recyclables was extended in April 2000 toinclude other kinds of plastic containers and packaging.
There is now a clear allocation of shared responsibilityof all relevant societal actors to support the recycling

system that has been put into place: consumers are
responsible for sorting the household trash items coveredby the law, local governments are charged with collecting
trash that is sorted by type, and companies* are obligatedto recycle the different wastes separated according tosorting standards. (* Companies here refers more
specifically to companies that sell produces that use
containers, companies that manufacture and importcontainers, and companies that use materials for productpackaging.)
Building this recycling system will increase therecycling rate, reduce the quantity of waste destined forfinal disposal, raise peoples' awareness of the importanceof recycling, and continues to be a fundamental issue ofnational importance.

Revisions to the Law
A decision was made to reexamine the provisions ofthe "Containers and Packaging Recycling Law" ten years
after it went into effect, so a Council was set up consistingof all the stakeholders including experts in the field,
representatives from local governments, companies, andconsumer groups. The Council summarized their findings
in a recommended course of action that was submitted tothe government. A revised "Containers and Packaging
Recycling Law" was enacted in June 2006 based on theCouncil's recommendations.

Recycling
Costs

TakingBackAgreement

PET bottle manufacturer
Drinks producer

Recyclingfee

Sale to textile manufacturers, etc.

Container and packaging recycling system (in the case of PET bottles)
2

Source: Ministry of Economy, Trade and Industry

A number of definite positive effects were observed
over the ten years that the law was in effect including a
trend toward fewer plastic containers (except PETbottles) and a reduction in the quantity of waste
destined for final disposal. But at the same time, otherissues emerged regarding how the costs of sorted
collection should be allocated, the responsibilities of
local governments and companies, how more efficientcollecting systems (collecting routes) should beimplemented, how to deal with companies that do notmeet their recycling obligations (free riders), dealing
with exporting of discarded PET bottles, and a host ofother issues. Guided by the "Basic Law for Promoting
the Creation of a Recycling-oriented Society"* that isclosely related to all the other recycling laws, theCouncil deliberated for a year and a half on theseissues, and that is the background of the reassessmentthat the Council submitted to the government. (* The"Basic Law for Promoting the Creation of a
Recycling-oriented Society" was enacted in June 2000
as a basic framework for working toward
comprehensive, planned waste recycling solutions,while promoting the formation of recycling-oriented
society in step with other recycling-related statutes.)
The specific concerns addressed by the Councilare summarized as follows:
・ How to promote reduction and reuse (two of theThree Rs) based on regional plans for promoting arecycling-oriented society and local government plans
for sorted collection of trash.
・ Moving forward to achieve a recycling-oriented society
by promoting all three principals of the three Rs(emphasis has been on recycle, but reduce and reuse
are also fundamentally important).
・ Creating greater cooperation among all the stakeholders
including national and local governments, companies,and consumers.
・ How to achieve greater cost efficiencies that are fairlyallocated across society as a whole.
・ How to promote voluntary initiatives among companies
that use more than a defined volume of containers andpackaging in the form of status reports detailing theirefforts and progress toward minimizing waste.
・ Set up a scheme for shifting some of the costs for
sorting and storing wastes from local governments tocompanies.
・ Prevent free-riding by increasing the penalties forcompanies that fail to meet their recycling obligations(dealing with companies that do not pay their fairshare of processing costs).
・ Clarify policies toward recycling of discarded PETbottles that are exported to other countries.
・ While as yet still limited, add provisions dealing withenergy recovery through recycling of plastic containers
and packaging.

Current status of sorted trash collection by local governments
TON
600,000
500,000

Plsstics
Pet bottles

400,000
300,000
200,000
100,000
01997 1998 1999 2000 2001 2002 2003 2004 2005

PWMI Newsletter 3

Council Deliberations
The Chairman who presided over the Council
deliberations reassessing the "Containers andPackaging Recycling Law" was Takashi Gunjima,
Professor of Economics at Doshisha University. Hereare excerpts from an interview with Professor Gunjima
where he highlights the main concerns of the Councilsessions.

Need for This Ten-Year Reassessment"Ten years after enactment, it was necessary toreassess the "Containers and Packaging Recycling
Law" and identify issues that have since emerged. In
moving toward a recycling-oriented society, it wasparticularly important to consider how reduction andreuse-two of the three Rs-can be promoted, thecompatibility of the "Containers and Packaging
Recycling Law" with other related domestic laws,
Japan's transformation as a consumer society, and how
Japan's "Containers and Packaging Recycling Law"might contribute internationally considering waste
reduction efforts in other countries." Prof. Gunjima
also stressed that "in sorting out these issues, theprinciple of reduction, one of the three Rs (reduce,reuse, and recycle) that is the basis of the "Containers
and Packaging Recycling Law," has a particularly
important role to play in reducing environmental
impact, and certainly should be included in the courseof action recommended by the Council." "Companies
too, as manufactures of consumer products, must seek
ways to minimize waste and achieve reduction incooperation with local governments." "Revisions to the"Containers and Packaging Recycling Law" should
encourage companies to minimize waste and take steps
to implement high-quality recycling while providing aframework promoting awareness of what can be done
from the consumers' standpoint.

"because the cost-effectiveness was uncertain as a result of
the different degrees of effort by different local
governments and the fact the accounting methods are
significantlydifferentfromordinary
corporateaccounting."
On the other hand, the Council "also considered
whether the current allocation of costs for separation,collection, and recycling of trash which is borne mostheavily by the local governments is about right just theway it is." On this issue, "the consumer groups strongly
supported the idea that companies should pick up more of
the processing costs from the standpoint of Extended
Producer Responsibility (EPR)." "Talks on this point
addressed how much reduced waste reduction of burden
on the local governments might be achieved if some of thecost burden (not all processing costs but a portion
depending on circumstances) was shifted to companies,
and how consumers might react if some of these costs
were added to the cost of products in implementing EPR,
but the talks were confined to just one approach." "EPR
also has its limitations, so in order to come up with thebest allocation of costs, it is necessary for all thestakeholders to be heard and cooperate in figuring out how
taxpayer costs can be reduced."

Priority Concerns of These Deliberations
Prof. Gunjima observed that "while keeping a close eye on
the legal systems and trends in other countries, thecontributions that Japan's "Containers and Packaging
Recycling Law" can make both domestically and in theinternational sphere was discussed." He also stressed that"all parties involved through the life cycle of a productshould share responsibility to reduce environmental
impacts, and the idea that consumers too (as producers ofwaste) should bear some responsibility, at least in the formof voluntary initiatives, must also be taken into
consideration.

Local Government Processing Costs

Assessment of the "Revised Containers and Packaging
Recycling Law" Five Years From Now"A major theme of the Council deliberations
revolved around the sorted collection costs borne bylocal governments. First we had to determine just whatthese costs are." This issue had been postponed

Prof. Gunjima noted that "in our discussions we were
well aware of the EU's strategy of dealing withissues as separate themes. The vision of the direction4waste recycling policy should take over the next ten
years in the EU applies to all parties involved in the life
cycle of the product and emphasizes 'what people
should do' and 'what people can do.' Note in particular
the transition from 'recycling by different plastic items'
to 'recycling by different materials.' If this approach isimplemented, it will affect Japan in no small degree. In
the assessment five years from now, advanced Refuse
Paper and Plastic Fuel (RPF) and combustible wastes
as cement-producing fuel energy recovery technologies
will be recognized as practical recycling methodologies
the same as mechanical recycling and feedstock
recycling today, so there will be ongoing discussions

regarding the extent these methods reduce environmental
impacts based on life-cycle assessment (LCA) and otherscientific perspectives." "It is highly likely that question ofhow to deal with biodegradable plastics will also come up
for discussion."
Another issue that will be tackled in the future, Prof.
Gunjima noted that "the OECD countries are seeking more
efficient use of expenditures at the policy-making andsystem-planning stages for reducing environmental
impacts, and the development of solutions that have a realeffect on improving the environment. To obtain theseobjectives, objective assessment and careful examination
capabilities are critically important."

II. Status of the Automobile Recycling Law 1 Yearand 3 Months After Enactment and Report on
an ASR Processing Plant
Onsite Report From Dowa Mining: ASR
Processing Based on Refining Technology
As of March 2006, the "Law on Recycling ofEnd-of-Life Vehicles"-also known as the "Automobile
Recycling Law"- had been in effect for 1 year and 3months. It is estimated that close to 5 million vehicles
reach the end of their useful life every year in Japan.
About a million of these end-of-life vehicles (ELVs)
are exported as used vehicles, but the material from theremainder of these vehicles must be processed in sucha way as to mitigate their impact on the environment.
Examining the period from January 2005 toMarch 2006, it is estimated that about 4 million
vehicles were disposed of, but regarding the threedesignated items covered by the Automobile Recycling
Law-Automobile Shredder Residue (ASR), CFCs, andair bags-only 2.68 million vehicles were processed for
ASR, which represents only 67% of the estimatednumber of discarded vehicles during the period (figures
based the report "Status of Payments to Automakers"
prepared by the Japan Automobile Recycling
Promotion Center).

During this period the Japan Automobile
Recycling Promotion Center paid out \15.7billion to the automakers to cover ASR
processing costs.
Over this same period from January 2005 to the end of
March 2006, users paid recycling fees (advance disposalsurcharges) on approximately 49.44 million vehicles for a
total amount of ¥470.2 billion. In terms of when the fees
were paid, about 15% were paid when registering newvehicles, about 79% was paid when bringing vehicles infor vehicle inspections, and 6% was paid when vehicles
were discarded.
Now turning to recovery of the three items designated forrecycling over the same time frame, we find that ASR wasrecovered for approximately 2.68 million vehicles, airbags
recovered on 440 thousand vehicles, and CFCs recovered
for about 2.05 million vehicles, for which the automakers
were compensated ¥15.7 billion, ¥800 million, and ¥4.3
billion, respectively (figures courtesy of the Japan
Automobile Recycling Promotion Center).

PWMI Newsletter 5The smooth implementation of the recycling system isgenerally attributed to Japan's vehicle registration
system involving mandatory vehicle inspection
procedures and ELV procedures when vehicles arediscarded.

Transformation of Dowa Mining to a Major
Player in the Recycling Business
A number of companies are now involved in theprocessing and recycling of Automobile Shredder
Residue (ASR), but in this report we will highlight theprocessing plant run by Dowa Mining Company inOkayama.
Dowa Mining has a long history in the metal refining
industry, and the company leveraged its accumulated
expertise and technology in developing and running an
ASR energy recovery plant. Once end-of-life vehicles(ELVs) are disassembled, the ferrous and nonferrous
metals and catalytic materials from engines, chassis,
transmissions, tires, batteries, and so on are separatelyrecycled. About 80% of the materials contained in
discarded vehicles is readily recovered and recycled,and many companies have sought to develop thetechnologies for recycling the remaining 20%,

which is equivalent to about 700 thousand tons of material
a year. Among these companies, Dowa Mining leveraged
its refining technology expertise and constructed an ASR
energy recovery plant in Okayama that has attracted
widespread interest across the industry for its success inrecovering rare metals and energy in the form of steam
heat.
Leveraging its original expertise in metal refining,
Dowa Mining has branched out into electronic component
materials (cell phones and printed circuit boards), metalmachining including plating, metal surface special
machining, thermal processing, and a host of other new
business areas. Symbolizing the company's diversification
into new areas, Dowa Mining pooled its resources andexpertise to build an advanced ASR energy recovery plantthat began full scale operation in 2005.

ASR Energy Recovery by Leveraging Metal
Refining Technology
Dowa Mining's ASR energy recovery facility at its
Okayama plant uses fluidized bed combustors, and began
full-scale operation about the same time that theAutomobile Recycling Law went into effect. The plant

ASR processing facility at Dowa Mining's Okayama plant6

has the capacity to process 3,000 tons of shredder dust
including ASR a month.
Here we will briefly consider the ASR processing
steps at the plant. In the preprocessing phase, shredded
fragments containing a mixture of steel, aluminum,
copper, and glass are sorted and the material recovered.
Rare metals and impurities are removed in thispreliminary sorting. This suppresses the production ofclinkers in the fluidized bed combustors, which enables
the fluidized bed combustors to operate effectively andcontinuously for long periods (about three months ofcontinuous operation).
Clinkers are very disruptive because, when they fall
into the combustors, this throws off the fluid balance
which adversely affects the silica sand (fluid sand) andcauses the fluidized bed combustors themselves to losefunctionality and quit working. It was this criticalexpertise of how suppress the production of clinkers thatwas most important and distinguishes Dowa Mining's
Okayama plant.
Another distinguishing feature of the plant is thatthe amount of shredder dust fed to the fluidized bed
combustors is always constant. Generally when steam isused for power generation, the amount of shredder dust
being processed has to be adjusted upward because theamount of steam is constant, but at the Okayama plant it isjust the opposite.
The steam temperature of boilers at the plant range
from 350-400℃. All this steam heat is recovered and used
to heat the plant, with the remainder used toProcessing flow

ASR

Recovered materials(lron)

Raremetal
RevoryMaterial to be incinerated

Recovered materials(Aluminum)

Recovered materials(Copper)

Recovered materials(Glass)

PWMI Newsletter 7

generate electric power. Although the amount ofpower generated fluctuates, it provides around 40%of the power used by the plant, and virtually 100% of
the steam is used by the plant.
Shredder dust crushed and sorted in thepreprocessing is fed into the fluidized bed combustor
and incinerated with heating values typically ranging
from 3,500 to 4,000 kcal. Gases in the fluidized bed
combustor are approximately 600-650℃ (using silicasand). The gases are then transported to a secondarycombustion chamber where they are applied to awaste heat boiler at a temperature of about
900-950℃. Finally, the 400℃ waste gas is sent to acooling tower where temperatures are brought down
to about 180℃. Ash trapped in a bag filter before thewaste gas is released cannot currently be mixed into
cement, but this approach is currently beinginvestigated.

Challenge of Ensuring Stable Amounts ofASR
Processing capacity of the Okayama plant is about 15
tons an hour or 11,000 tons a month of ground up andsorted feedstock in the preprocessing (including non-ASRmaterial), and about 4 tons an hour or approximately 2,800
tons a month of recovered energy, but again not all of thisenergy is generated by ASR.
Currently the amount of ASR being produced is lessthan was originally projected, so the amount of ASR thatcan be outsourced to domestic ASR processing plants has
also fallen off. The Okayama plant was also affected by
the trend, and currently has modified its operations toprocess other types of wastes besides ASR.

ASR (Automobile Shredder Residue)

Plastic Waste Management InstituteWeb site:http://www.pwmi.or.jp

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