1 PRACTICAL EXPERIENCE IN ELVS MANAGEMENT IN SPAIN BEST PRACTICES ON ELVs MANAGEMENTValencia June

2 Legal framework  ON OCTOBER 2000 DIRECTIVE 2000/53/CE IS PUBLISHED ON THE OFFICIAL JOURNAL OF THE EU (SEVERAL DECISSIONS MODIFIED ANNEX II AFTERWARDS)  ON JANUARY 3rd 2003 ROYAL DECREE 1383/2002 TRANSPOSING THE DIRECTIVE IN SPAIN IS PUBLISHED  ON FEBRUARY 2004 THE ORDER 249/2004 REGULATING THE DEREGERISTRATION SYSTEM OF DEPOLLUTED VEHICLES WAS PUBLISHED  ON JULY 13th 2005 THE DECISION 2005/293/CE LAYING DOWN THE RULES ON MONITORING  ON NOVEMBER 2005 DIRECTIVE RRR (2005/64/CE) WAS PUBLISHED ON THE OFFICILA JOURNAL OF THE EU

BEST PRACTICES ON ELVs MANAGEMENTValencia June 3 The solution adopted for ELVs  Continue working with the professionals already dealing with ELV treatment in the past (if they adapt to the new regulation).  Let market conditions work.  Cover the costs of depollution, separation and recovery of materials with the residual vehicle value  without any extra cost when acquiring a new vehicle, nor via tax neither via price, until it is not really needed,

BEST PRACTICES ON ELVs MANAGEMENTValencia June 4 The solution adopted for ELVs 1.The Spanish Royal Decree gives to the producer two options, either to assume directly the obligations relative to the reception and the recovery or establish an Integrated System of Management All brands have chosen to assume directly their responsibility with a sufficient ATFs network, offering to sign the same contract to all ATFs authorized by the autonomous regions The contract was negotiated in SIGRAUTO and once decided the model, the marks empowered SIGRAUTO for signing it in his name with any interested ATF

BEST PRACTICES ON ELVs MANAGEMENTValencia June 5 The role of SIGRAUTO SIGRAUTO helps its members to comply with their responsibilities on the ELV management in the most efficient way possible. With that aim SIGRAUTO has achieved the following objectives:  Establish a well distributed contracted network of ATFs with capacity to treat the total amount of ELVs in Spain.  A constant provision of information both to the general public and to the professionals.  Comply the recovery targets set for 2006.

BEST PRACTICES ON ELVs MANAGEMENTValencia June 6 Situation of the contracted network

BEST PRACTICES ON ELVs MANAGEMENTValencia June 7 Situation of the contracted network 425 CONTRACTED ATFs 17 CONTRACTED SHREDDERS >85% OF TOTAL ELVs TREATED The contracted network has enough capacity for treating all ELVs has complete coverage all over the country and we can affirm that the network is at first technical level in a worldwide basis.

BEST PRACTICES ON ELVs MANAGEMENTValencia June 8 Brands contracting the network

BEST PRACTICES ON ELVs MANAGEMENTValencia June 9 Achievements All vehicles are delivered to an ATF ATFs are controlled by the Regional Governments All ELVs are depolluted and the wastes delivered to authorized companies for its management SIGRAUTO organizes training courses and promotes the use of computer management. SIGRAUTO also carries out and promotes R&D activities Recovery targets for 2006 have been reached

BEST PRACTICES ON ELVs MANAGEMENTValencia June 10 Recovery targets Reuse and recycling>80%>85% Total recovery>85%>95% Elimination/landfill<15%<5% PreventionReuseRecycling Energy Recovery Ellimination Landfill

BEST PRACTICES ON ELVs MANAGEMENTValencia June 11 Monitoring  The way recovery targets shall be measured is set in the recently published Decision 293/2005.  The responsibility of measuring and reporting is clearly of the Administration (in Spain is a two step process: first Regional Governments and then the Spanish Government).  The first mandatory report is the one corresponding to 2006 levels and the deadline is on July 1st A Regional Government’s responsibility

BEST PRACTICES ON ELVs MANAGEMENTValencia June 12 Actual recovery levels 68% FERROUS METALS 100%REUSE-RECYCLING 7% NON FERROUS METALS 100% REUSE-RECYCLING 1,5% FLUIDS 100% REUSE-RECYCLING-RECOVERY 4% TYRES 100% REUSE-RECYCL-RECOVERY 1,6% NON METALLIC CONTENT IN REUSE 100% REUSE 3% GLASS 100% REUSE-RECYCLING

BEST PRACTICES ON ELVs MANAGEMENTValencia June 13 Actual recovery levels THE ACTUAL LEVELS ARE APROXIMATLEY 86,5% WITH MORE THAN THE 80% FOR REUSE AND RECYCLING

BEST PRACTICES ON ELVs MANAGEMENTValencia June 14 Only existing value: Valencia

BEST PRACTICES ON ELVs MANAGEMENTValencia June 15 Verified data: monitoring trial SIGRAUTO has carried out a detailed analysis of the recovery levels achieved in Spain. The trial has been suggested from ACEA to compare the results with similar trials made in Germany, United Kingdom and Belgium The analysis of the information is showing levels a little higher than 85%:

BEST PRACTICES ON ELVs MANAGEMENTValencia June 16 Future targets THE TARGETS FOR 2015 ARE TOO AMBITIOUS RECOVER = 95% LANDFILL LIMIT = 5% WITH A MINIMUM 85% FOR REUSE AND RECYCLING

BEST PRACTICES ON ELVs MANAGEMENTValencia June 17 The challenges to increase the levels  The Commissions in its report makes clear that the challenges to increase the recovery levels and being able to reach 95% on 2015 can be only achieved through the so called “post-shredding technologies” instead of separation of the different elements at ATFs.  The aim of these technologies must be mainly to separate the different plastics and rubber for its recovery, together with the separation of the “organic fraction” (which can be used in energy recovery options) from the “inert fraction”

BEST PRACTICES ON ELVs MANAGEMENTValencia June 18 Problems for Post-shredding technologies  Its development has been in some way slowed- down due to the uncertainty existing regarding the revision of the targets recently clarified by the Commission.  Heavy investments that need strong guarantee of long term material inputs.  The products obtained could have markets but they need to be developed. There are some lack of activities from the plastic manufacturers side in using recycled plastics.

BEST PRACTICES ON ELVs MANAGEMENTValencia June levels ON JANUARY 2007 FER AND SIGRAUTO SIGNED AN AGREEMENT WITH THE SPANISH CEMENT PRODUCERS ASSOCIATION (OFICEMEN) WITH THE SCOPE OF ANALYSING ON AN INDUSTRIAL BASIS THE UTILISATION OF SHREDDER RESIDUES AS ALTERNATIVE FUEL IN CEMENT KILNS

BEST PRACTICES ON ELVs MANAGEMENTValencia June 20 Some additional problems  Some sectors are trying to put restrictions to the reuse of parts.  Some vehicles might be going directly from the ATF to the smelting plants  There is a need of R&D investments in order to comply with the increasing legislative pressure and landfill costs

BEST PRACTICES ON ELVs MANAGEMENTValencia June 21 Some additional problems  Integrated Management Systems (SIGs) proliferation in Spain  The End of Life Vehicles legislation is specific and should not be interfered by partial legislations (batteries, tires, used oil, etc) which should be limited to the materials produced during the life of the vehicle.

BEST PRACTICES ON ELVs MANAGEMENTValencia June 22 Economical Aspects  All incentives for research and development aiming to make the treatment profitable is lost.  All participants know that there is a fund to pay the treatment costs.  Integrated Management Systems are non profit organizations in a free market.

BEST PRACTICES ON ELVs MANAGEMENTValencia June 23 Responsibility  It is always better that the direct responsible of the management continues to be the manufacturer putting the product in the market.  Instead of transferring this responsibility to an Integrated Management System financed with an extra cost charged when selling the products.

BEST PRACTICES ON ELVs MANAGEMENTValencia June 24 Other Problem: The reuse of parts FIRST TEMPTATION  Forbid the reuse of parts  Promoting the sales of new original parts  CLEPA tried to do so and the only result is that in Directive RRR there is a list of parts not to be reused when MANUFACTURNG NEW VEHICLES

BEST PRACTICES ON ELVs MANAGEMENTValencia June 25 Parts extracted at repairing shops ARE THE ANSWERS VALID ALSO FOR THE PARTS GENERATED AT REPAIRING SHOPS AS A CONSEQUENCE OF A REPAIRING OR MAINTAINANCE OPERATION? NO, these parts must be reprocessed or remanufactured by someone that has responsibility on the reselling of that part.

BEST PRACTICES ON ELVs MANAGEMENTValencia June 26 SIGRAUTO IS SIGRAUTO’S SOLUTION VALID? -Yes we are satisfied. -We have achieved good results without increasing vehicle prices. -Even so, we have received critics for not having established an Integrated Management System.

BEST PRACTICES ON ELVs MANAGEMENTValencia June 27 Conclusion PERSONALLY I AM COMPLETELY SATISFIED WITH THE FUNCTIONING OF OUR NETWORK AND CONVINCED THATA OUR SECTOR HAS OPTED FOR THE BEST SOLUTION FOR ALL THE SOCIETY

BEST PRACTICES ON ELVs MANAGEMENTValencia June 29 A problem: The measuring methodology The possible methodologies are laid down in the Commission Decision There are difficulties both in liability and availability of data Most member states are still deciding which methodology to use and usually opting for a simple methodology based in statistical data and not in detailed information coming from each facility. There is a general tendency of using the methodology of assuming a certain metal content (around 75%) and adding up the non metallic materials and components recovered.

BEST PRACTICES ON ELVs MANAGEMENTValencia June 30 Commission Report on targets THE CONCLUSION IS THAT THE TARGETS MUST BE MANTAINED BECAUSE THEY GENERATE BENEFITS BOTH ECONOMIC AND ENVIRONMENTAL. THE COMMISSION WILL PROMOTE ECO- INNOVATION IN THE SECTOR MAINLY IN INNOVATIVE SHREDDINGTECHNOLOGIES AND PLASTIC RECYCLING

BEST PRACTICES ON ELVs MANAGEMENTValencia June 31 Integrated Management Systems in Spain Replacement Tyres  TNU  Signus Ecovalor Used oil  Sigaus  TPI Batteries and accumulators Electric and electronic devices Packaging

BEST PRACTICES ON ELVs MANAGEMENTValencia June 32 Who pays all this?

BEST PRACTICES ON ELVs MANAGEMENTValencia June 33 Advantages to contracted ATFs  Manufacturers have not opted for a new network based on their dealers or other networks like the Technical Inspection of Vehicles Facilities.  Manufacturers defend their ATF’s network from the attempts of interference of other sectors and their interests in banning or limiting their activity

BEST PRACTICES ON ELVs MANAGEMENTValencia June 34 Integrated Management systems ARE THE PANACEA?  NO  They play an important role.  There are better solutions both environmentally and economically.  Their excessive proliferation shall be avoided because of the derived costs.  They reduce the incentives for R&D investments.  Producer’s responsibility is diluted.

BEST PRACTICES ON ELVs MANAGEMENTValencia June levels: tyres Royal Decree 1481/2001 establishes that from July 16th 2006 used tyres cannot be landfill not even shredded so tyres replaced are repairing shops and the ones coming from ELVs need to be send to recovery processes. Today this is solved for both streams of tyres but as shown in the pictures SIGRAUTO keeps working in order to find new solutions for the tyres generated by ELVs in order to make more profitable and simple their recovery.

BEST PRACTICES ON ELVs MANAGEMENTValencia June levels: glass Even if in this moment the Commission is thinking in eliminating the mandatory separation of glass at the depollution step if there are post- shredding separation processes, SIGRAUTO carried out a project analyzing and measuring the real costs of processing a kg of non metallic materials through the whole treatment chain in order to see if it was possible for shredders to promote glass separation at ATF compensating the costs of extracting and storing the glass with part of the benefits they obtain. SHREDDERS ATFs RECYCLERS GLASS RECOVERY PROJECT

BEST PRACTICES ON ELVs MANAGEMENTValencia June 37 Used parts A QUESTION Has any sense to oblige to use original parts when repairing a used car with 10 or more years of age? SOME ANSWERS. Reused parts shall be authorized to be used as another option. The economic issue is solved. It avoids that people extend the life of damaged parts (lighting, windshield, suspensions, wheels, etc.).. The ELV treatment chain keeps its profitability avoiding negative market values that would be finally paid by the consumers.