Reverse logistics is a crucial step to asset recovery in ITAD, but several obstacles in the industry affect the economy and the global logistics supply chain as well. Device reuse and asset redeployment are key factors in logistics operations, and recent shifts in the industry, such as Basel Convention changes, will significantly impact asset recovery and e-scrap shipments when the changes go into effect in 2025.
Basel Amendments
In 2022, The Basel Convention on the Control of Transboundary Movements of Hazardous Waste and their Disposal published several proposed alterations to the convention that would dramatically change how some end-of-life exports are managed. As a result, the convention passed several new laws, set to go into effect in 2025. The new Swiss-Ghana proposals include reclassifying certain materials not currently classified as hazardous and expanding the definition of “waste” under the convention to include devices being prepared for reuse, which are not currently classified as waste according to the convention. The devices would no longer be considered waste once reused.
The reclassification would require exporter notification and receipt of consent from authorities within the importing country. Because the U.S. is not a party to the Basel Convention, if the changes were adopted, all exports of devices covered under the convention from the U.S. to Basel-party countries would be considered illegal. This will disrupt the U.S. industry and change the competitive landscape for the U.S. on a global scale.
Global Impact
Reusing electronics not only reduces e-waste but also increases device value. Device refurbishment and recycling are critical components of reverse logistics, which close the life cycle of electronics and help companies promote a more sustainable economy. Trade restrictions prevent asset value maximization and reduce access to affordable electronics for many countries by significantly reducing available logistics operations. Broader logistics operations help increase asset recovery, which enables critical materials to be reused rather than exhausting resources to mine new materials.
Electronics recycling facilities like HOBI close the loop on the critical material supply chain and help make the electronics manufacturing supply chain more sustainable. Refurbishing products for asset redeployment and critical materials recovery are crucial steps in closing the process, and industry leaders are preparing for the Basel amendments that will significantly hinder the economic benefits of device resale and any progress toward a circular economy.