Episode Transcript
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Speaker 1 (00:08):
The new Basel
Convention rule changes came
into effect in January 2025.
Is your business ready for it?
Welcome to the circular future,your access to thought leaders
and innovations to help you be abusiness sustainability
champion, even if it's not yourcore job.
I'm your host, stephanieMcLarty, head of Sustainability
(00:33):
at Quantum Lifecycle Partners,your trusted partner in
electronics circularity.
One of the recurring discussionpoints over the last many
months has been Basel.
No, I'm not talking about theSwiss city, at least not
directly.
I'm talking about the BaselConvention, which controls
(00:53):
transboundary movements ofhazardous wastes and their
disposal.
There has been a significantamendment that came into effect
January 1st 2025.
So let's talk more about theconvention, what the changes are
and why it's all importantBecause, even if you don't
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export or import electronicmaterials directly, you may
still be affected through yoursupply chain and, as a
disclaimer, I'm not a lawyer, somake sure you get professional
advice on what this all meansfor your specific company.
All right, so firstly, what isthe Basel Convention?
(01:35):
The Basel Convention was adoptedin the late 1980s to deal with
the international movement ofhazardous waste.
At the time, there was hugepublic outcry that hazardous
waste from more industrializedcountries were being dumped in
developing countries whereenvironmental regulations and
enforcement were less robust.
(01:57):
The convention was adopted in1989 in Basel, switzerland,
hence the name and came intoforce in 1992.
Each country was then to signand ratify the convention within
their home country.
Today, there are 191 parties tothe convention.
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This includes Canada and theEuropean Union, but not the
United States.
The US signed the convention in1990, but never ended up
ratifying the convention and,important to note, there is a
trade ban between parties andnon-parties for Basel-controlled
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materials.
Basal-controlled materials,meaning parties who ratified the
convention cannot export orimport with non-parties for the
applicable materials.
The exception is Article 11,which allows for separate
agreements, even between partiesand non-parties, as long as the
management of the materialsmeets the environmental
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standards of the convention.
Under this Article 11 provision, there is a separate agreement,
sorry, under this Article 11provision, there is a separate
agreement for OECD members orOrganization for the Economic
Cooperation and Development and,for example, there is a
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bilateral agreement betweenCanada and the US under Article
11 that has allowed for tradebetween the two countries for
many years.
Okay, so what now has changed?
In June 2022, the parties tothe convention agreed to add new
control measures governing theinternational trade of hazardous
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and non-hazardous e-waste ande-scrap materials.
These have come into effectJanuary 1st 2025, and are known
as the so-called E-Amendments.
So among the changes, first ofall, the definition for what is
being controlled.
(04:09):
The E-Amendments have creatednew classifications for both
hazardous and non-hazardouselectronic products.
These new listings includethree categories for hazardous
and non-hazardous materials, so,firstly, whole equipment.
Secondly, components such ascircuit boards, display devices,
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etc.
And thirdly, fractions thatresult from processing, such as
shredding and dismantling.
What's important to know hereabout the definitions?
The convention now capturesmany products which used to move
freely for recycling.
So basically, your organizationmay be affected where you
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weren't before.
Another change is that shipmentsare also subject to prior
informed consent, or PIC, or PICnotifications, which basically
mean exporters must obtainwritten consent from the
importing country's governmentthat it will legally accept the
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shipment, that it will legallyaccept the shipment.
So you need to get writtenconsent before sending a
shipment.
So basically an administrativechange.
Now the implementation of thesechanges adds some additional
complexity.
It is actually up to eachcountry the extent to which they
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incorporate the Basel or OECDcontrol procedures into its
national regulation.
This is because consensus wasnot reached within the OECD
framework, so you really have tolook at each country and how
they are approaching the changes, and even that has evolved.
(05:57):
In November 2024, just weeksbefore the changes were to take
place, the government of Canadaannounced that it would not
impose strict PIC notificationsand permits on recyclable
electronics imported from OECDcountries like the United States
for recycling.
So ultimately, this decisionmaintains the status quo for
(06:21):
trading with Canada.
So why do all of these changesmatter.
There are many reasons to payattention to these changes.
Firstly, this may restrictexport markets significantly,
especially for non-Baselsignatories like the United
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States.
And even if this doesn't affectyou directly, your supply
chains may be impacted in termsof what materials they will
accept or pricing or turnaroundtime and more.
And remember, it's not justabout your direct downstream or
even upstream vendor, but theentire supply chain beyond.
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Secondly, each country isresponsible for implementing
these new trade controls, sothere may be variances from one
country to the next, not tomention disruptions or delays
that could be significant toyour business.
Thirdly, there may be morepaperwork that your company has
to comply with.
This will just be a realityyour business has to deal with.
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Fourthly, there could beindirect implications on
certifications, for example, theR2-V3 certification on
responsible recycling, whichQuantum and many companies have
requires compliance with allapplicable laws and regulations.
So if a company were to notcomply with Basel, this may put
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their certification in jeopardy.
All right, with all of thesechanges, what can you do?
Well, firstly, educate yourselfto understand how your company
is affected, if at all, and keepup to date on any developments
so you can be sure yourorganization is prepared.
And also talk to your supplychain and find out if the Basel
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changes will have a direct orindirect impact on your business
.
At Quantum, we're always happyto answer any questions and
remember, if you're looking fora leader in electronics reuse
and recycling, we'd love to chat.
Head on over toquantumlifecyclecom and contact
us.
This is a Quantum Lifecyclepodcast and the producer is
(08:37):
Sanjay Trivedi.
Thank you for being a CircularFuture Champion and your company
and beyond Logging off.