Germany's environmental legislation: obstacles for U.S. exporters?

Business America, July 26, 1993 by Brenda J. Fisher

Environmental issues continue to receive ever-increasing public and press attention in Germany. Media coverage is extensive and focuses on such issues as industrial and household pollution, day-to-day waste management, and public policy options for dealing with those challenges. As the country where the "Green Movement" started, Germany has imposed the strictest European standards on its industry. As a result, German industry has become a leader in this field and is pushing for adoption of the strictest standards (its own) at the European Community level.

Because of its extensive history of environmental concern, Germany is likely to be one of the strongest proponents of EC strict liability for damage to the environment. For example, Germany already has "green taxes" in place and is a supporter of their expansion to the European level. Germany is a strong champion of voluntary "eco-labelling" in Europe. In fact, the EC has used Germany's "Blue Angel"--a much sought-after, but difficult to obtain, hallmark of environmental friendliness--as a basis for its own eco-label proposal.

Germany has the strictest environmental laws in Europe. The German Environment Minister, Klaus Toepfer, has launched a campaign to reduce waste via recycling and environmentally benign manufacturing processes. A number of these recent developments in Germany's environmental legislation have been reported to the Commerce Department's Germany Desk by the U.S. and Foreign Commercial Service Posts in the Federal Republic. Summaries of the various legislation are provided below. Copies of reporting on this legislation are available from the Commerce Department's Germany Desk.

Recycling of Manufactured Products: In spite of protest from the business community, in April the German Federal Cabinet adopted the draft of a new recycling law, which aims at avoiding waste materials and giving recycling priority over dumping and incineration. An initiative of German Environment Minister Klaus Toepfer, the legislation will require that manufacturers become responsible for the entire life-cycle of their products. End-users will be able to return used products to manufacturers, who will be obliged to reintroduce the old material into the production cycle to the degree possible. Incineration or depositing in waste sites will be permissible only if recycling or re-use is not yet feasible. Export of waste would be strictly prohibited. Toepfer has expressed hope that the legislation will bring about a change in attitudes of manufacturers, retailers, and consumers and that the EC will gradually fall in line with Germany's stricter stance on waste disposal.

Electronic Waste Regulation: The draft ordinance states that any product incorporating electric or electronic parts will have to be accepted back by the manufacturer, wholesaler, retailer, and/or importer. In practice, a retailer would, for example, have to take back any television set of a brand that he usually carries. Also, a manufacturer or distributor of a TV set has to take back not only its own products, but also similar items manufactured by its competition. If a TV set is returned and no replacement purchase is made, the retailer would still be obliged to accept the appliance.

The draft also obliges manufacturers or wholesalers to take back any appliance from the retailer, and ensure that the appliance and/or parts will be recycled or re-used. The entity that ultimately disposes of the electric/electronic scrap will have to submit exact data on disposed products annually, such as type, units, and how and where disposed. The draft regulation encourages the trade to ease its responsibility by establishing an organized collection and recycling system prior to the January 1994 effective date of the legislation.

Automobile Recycling: Proposed German legislation would oblige automobile manufacturers to recycle the vehicles they produce. Though industry leaders have expressed concern over the costs of complying with the legislation, most key manufacturers are taking steps to do so, including development of new recycling technologies. The Ordinance on Avoiding, Reducing, and Recycling Waste from Motor Vehicle Disposal, also known as the Old Car Ordinance, would require manufacturers to accept from the last owner and reprocess all motor vehicles registered after April 1993. (For the purpose of this legislation, motor vehicles are defined as passenger cars, mobile homes and campers, and commercial motor vehicles.)

All fluids, including brake fluids and gasoline, will have to be drained from the vehicle and disposed of in a nonpolluting manner. In addition, manufacturers will be required to design motor vehicles and parts to facilitate either disassembly and reuse, or the recycling of materials. Components and materials used in vehicle construction will have to be identified to promote type-pure disposal. Use of a nationwide vehicle return system--also established by the legislation--will be free of charge to the vehicle's last owner except in cases where vehicles have already been stripped or where they have been damaged in accidents.