E-waste management and recycling: Game changer under Global Development Initiatives

With the growing number of companies complying with environmental, social, and corporate governance (ESG) reporting in their financial reports, the world is heading towards creating a sustainable economy. China’s President Xi Jinping has called for international collaboration on the Global Development Initiatives (GDI) proposal in line with the United Nations’ 2030 Agenda for Sustainable Development. Under the GDI, two key focus areas are digitalisation and green development. However, the rising production of electronic components driven by digitalisation poses a potential environmental issue if inappropriately disposed of or managed. Thus, effective E-waste management and recycling would be a game changer to ensure sustainability in line with GDI goals.

Furthermore, with the growing emphasis on sustainable energy development, the production of electronic components, devices, and renewable energy technologies needed to produce sustainable energy has also increased. While these advancements offer numerous benefits for economic growth and environmental protection, they also pose a significant challenge in terms of electronic waste generation.

E-waste refers to discarded electronic devices and components that have reached the end of their useful life. These items often contain hazardous materials like lead, mercury, cadmium, and brominated flame retardants. When not appropriately managed, e-waste can lead to environmental contamination and health hazards for nearby communities. To safeguard the progress made under the GDI, it is imperative to address the e-waste problem effectively.

International Collaboration between China and Malaysia:

International collaboration is vital given the global nature of e-waste generation and trade. Under the GDI, one of the eight key areas is green development, which aligns with our 12th Malaysia Plan. However, green development must not solely emphasise green energy or product advancement. It should also prioritise effective management of e-waste. According to Statista (2019), E-waste has risen by roughly 60% in the past decade and shows no sign of slowing down due to rapid digitalisation. By 2030, annual E-waste production is estimated to reach 75 million metric tons, a truly alarming and concerning figure. Therefore, China can collaborate with Malaysia to share best practices, technologies, and knowledge to improve e-waste management systems. China has also aggressively promoted green finance in recent years, increasing access to funds for firms pursuing green development. According to the People’s Bank of China (PBOC), China has 18.07 trillion yuan (USD2.71 trillion) in outstanding green loans, the largest in the world as of the year 2022. Regarding financial markets, China has also emerged as the second-largest green bond market. Thus, an international collaboration between Malaysia and China could enhance efforts towards the GDI's goal of green transition, especially in leveraging green financing on e-waste management.

Extended Producer Responsibility (EPR):

The recent emergence of electric vehicle (EV) companies in Malaysia has sparked the transition towards electrifying the country's automobile industry. This development underscores the importance of establishing safe recycling practices for managing e-waste, especially concerning the disposal of lithium battery components in the vehicle at the end of its useful life. As EVs become more prevalent in the coming years and most manufacturers offer battery warranties of around eight years, it becomes essential to prepare for proper and responsible recycling methods to handle the eventual e-waste from these vehicles. Governments can implement Extended Producer Responsibility (ERP) programmes, making manufacturers accountable for collecting and recycling their products after the end of their life cycle. This encourages manufacturers to design products with recycling in mind, leading to more eco-friendly vehicles and electronic devices.

Responsible E-waste Collection and Public Awareness:

Consumers create the most e-waste as consumption rises due to increasing demand for electronic products, particularly due to work-from-home arrangements during the Covid-19 pandemic. Governments and private organisations should work together to establish convenient and accessible e-waste collection centres. More collection points can be set up in urban and rural areas, making it easier for individuals and businesses to dispose of their electronic waste properly. According to the Department of Environment (2022), Malaysia has 195 e-waste collection centres that are unevenly distributed across the country. Remarkably, Labuan does not have any collection hubs for e-waste disposal. This inconveniences users seeking to dispose of their unusable electronic devices and components, often causing them to dispose of such items improperly. Raising awareness among the public about the importance of e-waste management is essential. While certain shopping centres provide e-waste recycling bins, they are often misused by the public, leading to the disposal of unrelated items. Education campaigns can help people understand the consequences of improper disposal and motivate them to participate in recycling programmes, particularly e-waste recycling.

Green Financing and Incentives for E-waste Management Companies:

To support sustainable development efforts, the China Banking and Insurance Regulatory Commission has issued green finance guidelines, urging banks and insurers to promote green finance strategically. As China’s green finance provides greater accessibility to firms focused on green development, e-waste operators could leverage Chinese green financing for their expansion. Apart from that, the government can provide incentives and tax relief for new players to start up e-waste management firms to address the growing e-waste production. With the green financing and incentives provided, it could also encourage the establishment of country-wide collection hubs, ensuring greater accessibility and raising awareness for the general public.

In conclusion, the success of the Global Development Initiatives (GDI) spearheaded by China hinges on addressing the issue of e-waste. By promoting responsible e-waste management and recycling, the world can ensure the benefits of digitalisation and sustainable energy development are realised without causing harm to the environment and human well-being. In addition to minimising environmental and health risks, this also creates new economic opportunities in the form of green jobs and the recovery of valuable resources from discarded electronics. With international collaboration led by China and a shared commitment to sustainable practices, the vision of a greener and more prosperous future under the GDI can become a reality.

> Chang Kwok Boon is a Lecturer at Tunku Abdul Rahman University of Management and Technology (TAR UMT). The views expressed here are entirely the writer’s own.

The SEARCH Scholar Series is a social responsibility programme jointly organised by the Southeast Asia Research Centre for Humanities (SEARCH) and Tunku Abdul Rahman University of Management and Technology (TAR UMT) in conjunction with the 10th anniversary of the Belt and Road Initiative.