Research Report
A Legislative Study to Stabilize Waste Treatment and to facilitate Waste-to-Resource Conversion
Ⅰ. Background and Purpose
▶ Over the recent years, issues caused by inadequate waste disposal have emerged as a growing challenge, including: a large-scale “waste crisis” brought by China's waste import regulations; about 6,300 tons of waste illegally exported to the Philippines that was sent back to Korea after causing problems locally; the lack of an industrial waste control system; opposition from residents and local governments over issues surrounding installment of waste treatment facilities.
▶ An environment-friendly waste control policy is being pursued with a focus on the cycle of “use of resources – waste generation – conversion into resources - circulative use.” However, there is still a long way to go before realizing the waste-to-resource conversion, a main pillar of resource circulation policies, on any meaningful level.
▶ This study aims to establish an institutional basis for promoting stable waste treatment and waste-to-resource conversion by identifying issues and challenges pertaining to waste treatment and recycling and suggesting improvement measures.
▶ “Stable waste treatment” refers to a state in which waste is not irresponsibly dumped or left unattended as waste recycling or disposal (incineration or landfill) is efficiently carried out. With this in mind, major current challenges and issues will be discussed, proposing ways for improving the relevant legal regime, covering: plastic wastes, packaging material wastes, the extended producer responsibility (EPR) system, illegal waste disposal, the public nature of waste treatment facilities, etc.
○ In addition, major laws pertaining to waste treatment and recycling and regulations subordinate thereto are discussed, further looking into ways for dealing with current legal issues and making necessary improvements. Specifically, this study will review the Wastes Control Act; the Promotion of Installation of Waste Disposal Facilities and Assistance to Adjacent Areas Act; the Special Act on Installation and Operation of Public Waste Resource Management Facilities and Resident Support, etc.
○ Newly emerging issues, such as microplastic wastes and waste control based on the 4th Industrial Revolution technology, are also to be examined to identify major challenges and improvement measures.
○ To derive implications for the Korean legal regime, comparative legal review has been conducted by examining: the Circular Economy Package of the EU, which operates waste policies and systems from the viewpoint of resource circulation, such as plastic reuse and recycling and improvement of packaging material structures; microplastic regulations in Canada, the UK and New Zealand; and the German Packaging Act 2019 of Germany.
▶ The waste-to-resource conversion aims to promote the reuse and reclaiming of wastes and the recovery of energy from waste resources. Current issues and challenges related to waste-to-resource conversion and energy recovery will be identified, seeking legal improvement.
○ Some of the relevant laws are examined in order to analyze current legal issues and improvement measures, covering: the Framework Act on Resources Circulation; the Act on the Promotion of Saving and Recycling of Resources; the Act on Resource Circulation of Electrical and Electronic Equipment and Vehicles; and the Act on the Promotion of Purchase of Green Products.
○ Discussions are made to identify the current status and the need for institutional improvement in relation to major current issues, including redefining the concept of recycling; establishing the upcycling standards; measures for promoting reuse; institutional improvement for promoting the demand for recycled products; clarifying the import and export standards for recycling purposes, etc.
II. Major Issues
▶ Recycling companies tend to avoid utilizing plastic wastes due to poor quality, while the amount of imported plastic wastes is steadily increasing.
○ In order to make sure plastic wastes are separated and discharged in a clean and pollution-free state, the relevant public notice needs to be amended to provide an easier-to-understand information on the criteria for separating and discharge wastes.
○ While the importation of plastic wastes is restricted now, the same restriction does not apply if plastic wastes are crushed and imported in the form of flakes or pallets, as they are considered a reclaimed material. Therefore, it is necessary to limit the importation of plastic flakes and pallets produced abroad by amending the Enforcement Decree of the Act on the Promotion of Saving and Recycling of Resources.
▶ In the case of packaging material wastes, although major packaging materials and products have economic value, some of them are just disposed of without being recycled due to such impeding factors as differences in materials and structural complexity. Furthermore, the absence of the compliance obligation regarding the packaging materials and structure standards, etc. has given rise to various problems including continued production of goods difficult to be recycled, such as colored or fluorescent colored PET bottles.
○ To improve this, it is urgent to enhance the system for evaluating matters related to harmful effects, resource circulation, and packaging material structures. At the same time, the relevant regulations need to be strengthened. For instance, if evaluation results determine that the issueof harmfulness or obstacle to circulation is serious, an improvement order is to be issued rather than an improvement recommendation. Any one failing to comply with such order should be subjected to the suspension of sale of related products.
○ In order to manage packaging wastes more systematically and efficiently, the standards for materials and structures of packaging materials need to be prescribed by enforcement rules, etc. rather than subordinate regulations (public announcements, etc.). Also, a new law (Packaging Materials Act (provisional)) may be enacted, mainly covering the provisions prescribed in Article 9 of the Act on the Promotion of Saving and Recycling of Resources.
▶ Currently, the extended producer responsibility (EPR) system is evaluated as inefficient due to its complexity; difficulty in calculating the amount of recycling obligation; omission of most general products other than packaging materials and electrical and electronic products; and extensive exemption granted to small businesses. Therefore, improvement measures need to be considered and implemented.
○ By amending related laws, such as the Act on Resource Circulation of Electrical and Electronic Equipment and Vehicles, the items subject to the EPR System should be expanded, in particular, covering glass, plastic, electronic devices, etc. for automobiles.
○ In addition, the Act on the Promotion of Saving and Recycling of Resources needs to be amended to clarify the responsibility of producers, including collection costs. Necessary improvement actions should also be taken in order to improve and reinforce the container deposit system and the ERP system.
▶ Although the responsibility for illegal disposal of wastes has been strengthened under the Wastes Control Act in the wake of a recent fiasco involving illegal waste disposal and recyclable wastes, a gap in waste management still remains a major challenge in Korea. The reason is that the current legal regime lacks the requirement of treatment within an area of waste generation, and imposes the treatment responsibility on basic local governments and regional local governments. Also, many local governments face conflicts in determining sites for waste treatment facilities.
○ The Wastes Control Act needs to prescribe the responsibility for waste treatment and management between the State and local governments, and to establish the principle of waste treatment within the place of origin. The management system should also be clarified by requiring basic local governments to handle household wastes, regional local governments to handle industrial wastes, and the State to be responsible for treating and controlling designated wastes and final wastes.
▶ The Special Act on Installation and Operation of Public Waste Resource Management Facilities and Resident Support, which is to enter into force in 2021, stipulates the establishment of public waste resource management facilities in order to dispose of wastes subject to public treatment swiftly and environment-friendly. Under this Act, in addition to household wastes, the public treatment of industrial wastes is to be strengthened, thus helping resolve the conflict caused by the treatment of industrial wastes in public disposal facilities.
○ However, the difference in the support for residents in surrounding areas between this Act and the Promotion of Installation of Waste Disposal Facilities and Assistance to Adjacent Areas Act may lead to new conflicts in terms of equity. There are also criticisms that small businesses might experience deteriorating management conditions due to competition with existing waste treatment facilities, and that the profitability of public waste resource management facilities may not be sufficient enough to achieve the intended effect.
○ In reinforcing the public nature and public management of waste treatment facilities, the positions of various stakeholders and the actual reality must be taken into account, and above all, careful consideration should be given to the health and safety of local residents.
▶ Korea is operating various systems to promote resource conversion, and in terms of the legal regime and the diversity of contents of the law, Korea is considered on par with other advanced countries. Still, more improvement is needed for its system to function effectively, delivering its intended results.
○ As the concept of recycling under the Wastes Control Act encompasses waste reuse, waste reclaiming and energy recovery, in many cases, confusion arises because it does not match the international definition of recycling.
- The confusion over the concept of recycling may deepen further after the Framework Act on Resources Circulation is enacted, with its adoption of the concept of resource circulation.
- Therefore, it is necessary to integrate the concepts of recycling scattered in the Wastes Control Act and the Act on the Promotion of Saving and Recycling of Resources into one unified definition under the Framework Act on Resources Circulation, defining the meanings of reuse, recycling and energy recovery as subordinate concepts.
○ The public's interest in upcycling is increasing, and start-ups in this field are growing as well. However, the concept and licensing standards for upcycling have not yet been clearly established, working as an obstacle to vitalizing the upcycling industry.
- In amending the Wastes Control Act, details should be prescribed so that upcycling activities can be licensed and permitted, and upcycling products should be included in green products subject to mandatory purchase by public institutions.
○ A high demand for reclaimable raw materials is essential to completing the resource circulation, and in order to expand the demand for reclaimable raw materials, their purchase by public institutions and private companies must be actively promoted. However, the current system alone shows limitations in encouraging such necessary purchase.
- In order to promote the purchase of recycled products, preferential procurement of recycled products by public institutions should be allowed in the purchase of green products. Further, private companies' obligation to purchase reclaimable raw materials should be expanded to include plastics under the designated recycling business operator system.
Ⅲ. Expected Effects
▶ To prevent a recurrence of illegal waste treatment, improvement plan based on analyze of practical issues to be suggested
▶ To facilitate stable waste treatment and waste-to-resource conversion, suggestion in policy and legislation to be prepared