TED Case Studies

German Waste Exports

Go to All TED Cases

          CASE NUMBER:         227  
          CASE MNEMONIC:       GERMWSTE
          CASE NAME:           German Waste Exports

A.  IDENTIFICATION

1.  The Issue

     Recycling paper, plastic, glass and aluminum products has
become an efficient way to deal with environmental waste, but
what happens when there is simply too much to recycle and not
enough facilities for the recycling process?  Germany has
encountered this very problem in its push to make less waste and
recycle more.  In 1991, Germany introduced a program to recycle
the immense amount of packaging in which products are sold. 
Fully implemented on January 1, 1993, this program, named the
German Packaging Ordinance, requires manufacturers, users and
distributors of packaging to take back used packaging from
consumers and have it recycled.  Even though packaging waste is
presently down to 5% compared to 30% in 1990, the main issue now
is the fact that Germany exports a large amount of its packaging
waste to other countries, as its recycling facilities cannot keep
up with the amount being recycled.  The amount of packaging
exported has been around 1.3 million tons and several EU
countries have expressed outrage at the amount they have had to
take in.  France and Britain, in particular, have criticized the
ordinance for creating so much waste that has impacted other
countries' plastics, paper and packaging industries.

2.   Description

     The controversy surrounding this case began in 1991, when
the Duales System Deutschland (DSD) began to operate, creating a
network of private companies for collecting, sorting and
recycling household waste.  Recycling quotas were soon set and
the response of German consumers was overwhelming:  Klaus Topfer,
Germany's Environment Minister soon proclaimed them "world
champion collectors."  However, by 1993 it was evident that the
champion collectors had taken their name seriously, as 66% of
household waste paper, 55% of glass, 45% of tins and 20% of
plastics were recycled in 1993 alone.  Had Germany possessed the
capability to recycle this large amount, there would not have
been a need to export so much of this waste to other countries,
which is precisely what the EU sees as a solution.  Under an EU
plan limiting the recycling quota to 45%, any country exceeding
this maximum must have sufficient domestic recycling capacity to
handle the excess amount.  Needless to say, Germany responded
angrily and accused the EU of attempting to reverse Germany's
high environmental standards.

     Although legislation on packaging has been introduced in
several European countries, including France, Belgium, Austria,
Spain and the Netherlands, Germany's Packaging Ordinance is by
far the most ambitious plan in the EU.  The ordinance decrees
that by July 1, 1995, 64% of plastics and paper and 72% of glass,
tin and aluminum must be collected, sorted and recycled.  The
European Environment Council attempted, but failed, to implement
the Packaging and Packaging Waste Directive in June 1994, which
targeted 50-65% for packaging waste recovery and 25-45% for
recycling.  If the directive had passed, it would have put a
clamp on Germany's excessive packaging exports.  

     Germany's strict collection and recycling standards have had
major implications for manufacturing within Germany and trade
within the EU.  For instance, standards for packaging have been
taken on by companies such as Procter and Gamble and Eastman
Chemical Products, which have both aimed to reduce or even
prevent the environmental impact of their products and packaging
in their design, manufacture, use and disposal when possible. 
However, not all manufacturers have been in accordance with
Germany's ordinance.  In fact, many industries throughout the EU
have threatened legal action against Germany over the law,
complaining that it distorts free trade and fair competition. 
Officials in the bottling industry have accused the ordinance of
discriminating against cartons and plastics (materials widely
used for imported beverages) and in favor of the refillable glass
bottles used by domestic German suppliers.  Thus, in attempting
to reduce the packaging amount, Germany is being accused of
unfair trade practices by its fellow EU members, causing friction
within the Union.

     Germany has defended its Packaging Ordinance, particularly
in its packaging exports.  The argument here is that since
Germany is the importer of 3 million tons of new paper a year,
the export of 1.3 million tons is justified: "the problem is that
the Scandinavians, from whom we buy most new paper, refuse to
take any old paper back."  However, to ease conflicts over EU
national recycling programs, Germany agreed to reduce waste
exports, particularly plastics.  From 1994, DSD pledged not to
make further contracts for recycling plastic in the EC, but would
honor current contracts only.

3.   Related Cases

     ECPACK case
     EULABEL case
     GERMPACK case
     GERMAUTO case
     ONTARIO case
     DANISH case
     ITALYBAG case

     Keyword Clusters

     (1): Trade Product                 =  PLASTic
     (2): Bio-geography                 =  Temperate [TEMP]
     (3): Environmental Problem         =  Waste Land [WASL]

4.   Draft Author:  Maya Dragicevic

B.   LEGAL CLUSTER

5.   Discourse and Status:  AGReement and COMPlete

6.   Forum and Scope: GERMany and REGIONal

7.   Decision Breadth: 15

8.   Legal Standing: LAW

C.   GEOGRAPHIC FILTERS

9.   Geography

     a.   Geographic Domain:   EUROPE
     
     b.   Geographic Site:     Western Europe {WEUR]
     
     c.   Geographic Impact:   GERMany

10.  Sub-National Factors:  NO


11.  Type of Habitat:  TEMPERATE

D.   TRADE FILTERS

12.  Type of Measure: Regulatory Standard [REGSTD] 

13.  Direct vs. Indirect Impacts:  INDirect

     As the German Packaging Ordinance is an environmental
regulation, its effects are indirect both in Germany and the
European Union.  Due to the ordinance, German manufacturers now
strive to reduce the amount of packaging used in products sold
and provide facilities where consumers may immediately recycle
the product package.  However, due to the lack of recycling
facilities in Germany, this has created the huge problem of too
much waste being exported into other EU countries, hampering
their packaging industries.  In order to sell in Germany,
manufacturers must reduce the amount, weight and dimensions of
packaging to make less do more, re-use where possible, and make
packaging easier to recycle by staying with a single material. 
Hence, manufacturers wishing to export products into Germany must
follow these criteria in order to make sales.  

14.  Relation of Measure of Impact

     a.   Directly Related:    NO
     b.   Indirectly Related:  YES  MANY
     c.   Not Related:         NO
     d.   Process:             YES  Pollution Land [POLL]

16.  Trade Product Identification: WASTE Paper, Packaging,
     Cartons, Plastics

17.  Economic Data


18.  Degree of Competitive Impact: LOW

     The German Packaging Ordinance is a double-edged sword in a
sense.  The high recycling quotas set in 1991 made it seem that
products collected to eventually be recycled would in fact get
recycled, not exported outside Germany's borders.  One British
official commented that "the mountains of waste are growing and
are being shipped to various parts of the world to be dumped and
incinerated at great cost.  It's environmental lunacy."  The
waste packaging exports are undermining fellow EU countries'
recycling programs, forcing them to deal with their waste and
that of Germany's.  Furthermore, the criteria for packaging have
caused some countries to accuse Germany of unfair trade
practices, as foreign packaging is unfavorable to domestic German
manufacturers.
     Impact:  MEDIUM

19.  Industry Sector: MANUFacturing

20.  Exporter and Importer:  MANY and GERMany

E.   ENVIRONMENT CLUSTERS

21.  Environmental Problem Type: Waste Land [WASL]

22.  Species Information

     Species:       MANY
     Genera:        MANY
     Diversity:     NA

23.  Impact and Effect:  LOW and PRODuct

24.  Urgency and Lifetime:  LOW and 100s of years

25.  Substitutes:  RECYCling

F.   OTHER FACTORS

26.  Culture:  YES

     In recent years, Germans have had an extremely high level of
environmental consciousness, implementing some of the strictest
environmental legislation in the world.  Both manufacturers and
consumers benefit from producing and purchasing products that are
reusable and recyclable.  When the DSD first started its
recycling program, it was met with huge success by the German
people, who were extremely eager to participate in such a
widespread national recycling plan.  By 1993, DSD trucks
collected 4.4 million tons of household waste only meant to be
reached around 1996, which shows the German people's firm
commitment to recycling.  However, even though recycling has
become such a popular activity, the problem of exporting waste
and a lack of recycling facilities in Germany remains.

26.  Human Rights: NO

27.  Trans-Boundary Rights: YES

     Germany's large amount of packaging waste exports has become
a trans-boundary problem, as neighboring countries have become
increasingly critical of the increasing amount of these exports. 
EU countries suggest that since the Packaging Ordinance is a
German national law, it is unthinkable that other countries
should suffer the consequences of excess waste that comes from
abroad.

28.  Relevant Literature

"Albania: Greenpeace Cleans Up Albania's 'Death Train' Toxins."
Reuter Textline. March 3, 1994.

"Belgium: Commission Puts Off Decision on German Packaging."
Reuter Textline. March 27, 1992. (Lexis/Nexis).

"EC: Designs on Plastics Packaging." Reuter Textline. December
10, 1992. (Lexis/Nexis).

"EC: EC Irons Out Wrinkles in Draft Waste Proposals." Reuter
Textline. February 27, 1992. (Lexis/Nexis).

"Environment Ministers Told of Plans to Reduce German Packaging
Waste Exports." International Environment Reporter. Vol. 16, No.
22, November 3, 1993, page 797.

"Germany: German Waste Drive Creates a Stink." Reuter Textline.
February 17, 1994. (Lexis/Nexis).

"Germany: Greenpeace Returns Out-of-Date Toxic Pesticide to
Germany." Reuter Textline. March 12, 1994. (Lexis/Nexis).

"Germany: The Ups and Downs of German Waste Exports." Reuter
Textline. July 31, 1994. (Lexis/Nexis).

"Guide to German Packaging Ordinance." Europe Information
Service. June 19, 1992. (Lexis/Nexis).

"Packaging Waste: European Parliament Committee Adopts Much-
Amended Report." Europe Information Service. June 8, 1993.
(Lexis/Nexis).

"UK: Lean and Green - Packaging." Reuter Textline. March 12,
1993. (Lexis/Nexis).