Explanatory Memorandum to COM(2012)136 - Amendment of rules on the placing on the market of portable batteries and accumulators containing cadmium intended for use in cordless power tools

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This page contains a limited version of this dossier in the EU Monitor.

1. CONTEXT OF THE PROPOSAL

The Batteries Directive (Directive 2006/66/EC[1]) seeks to make the use of batteries and accumulators as reflected in the activities of all operators involved in their life-cycle, less harmful to the environment. It lays down specific rules on placing batteries and accumulators on the market and on the collection, treatment, recycling and disposal of waste batteries and accumulators.

The Directive prohibits the placing on the market of batteries and accumulators containing mercury and cadmium. This ban on using cadmium in batteries and accumulators applies to ‘portable batteries and accumulators, including those incorporated in appliances, that contain more than 0.002% of cadmium by weight’ (Article 4(1)(b) of the Batteries Directive). The prohibition of the use of cadmium in batteries was not proposed by the Commission, being introduced by the co-legislators in the co-decision procedure. Both the Council[2] and the European Parliament[3] prepared separate impact assessments on substantive amendments, such as the cadmium ban, to the Commission proposal.

Article 4(3) exempts portable batteries and accumulators intended for use in:

a) emergency and alarm systems, including emergency lighting;

b) medical equipment;

c) cordless power tools (CPT).

Article 4 i of the Batteries Directive requires the Commission to review the exemption from the cadmium ban provided for portable batteries and accumulators intended for use in CPT (Article 4(3)(c)) and to submit a report to the European Parliament and to the Council together, if appropriate, with relevant proposals, with a view to the prohibition of cadmium in batteries and accumulators.

The Commission was asked only to review this exemption as at the time of the adoption of the Directive in 2006 there were doubts whether technical substitutes were already available for this application. In this context, Recital 11 clarifies: ‘The Commission should evaluate the need for adaptation of this Directive, taking account of available technical and scientific evidence. In particular, the Commission should carry out a review of the exemption from the cadmium ban provided for portable batteries and accumulators intended for use in cordless power tools.(..)’.

A Commission Report was submitted to the European Parliament and to the Council in December 2010 i. It concluded that it was not then appropriate to bring forward proposals concerning the exemption for cadmium-containing portable batteries intended for use in cordless power tools (CPT) because not all the technical information (notably costs and benefits of cadmium and its substitutes) was available to support such a decision.

Since then, this additional information has been gathered and used by the Commission to prepare an impact assessment, in line with its guidelines on impact assessments.

This proposal also aligns the Batteries Directive with Articles 290 and 291 of the Treaty on the Functioning of the European Union in line with the Commission's commitment to review provisions attached to the regulatory procedure with scrutiny in each instrument it intends to modify[5].

1.

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENT



An on-line public stakeholder consultation (10 March-10 May 2010) was launched via the EUROPA website, based on a study published in 2009. Contributions and a summary of stakeholder comments were published on the EUROPA website.

Stakeholders were invited to give their views on the environmental, social and economic impact that might result from any future ban on cadmium in portable batteries and accumulators intended for use in cordless power tools.

Some stakeholders favoured withdrawal of the exemption for the use of nickel-cadmium (NiCd) batteries in cordless power tools, since they viewed the economic costs as minimal and the environmental benefits as substantial in the long term. Others opposed withdrawal of the exemption and underlined that the data on the economic, environmental and social impact did not justify withdrawal. Overall, the stakeholder consultation confirmed the need for a comparative life-cycle assessment in order to provide a firm basis for the cost-benefit analysis.

A stakeholder workshop (peer review) was organised on 18 July 2011. The objective was to provide input to the comparative life-cycle assessment of the three different battery chemistries used in portable batteries intended for use in cordless power tools. This assessment was carried out by a consultant on behalf of the Commission.

The Commission's impact assessment concludes that compared to the baseline scenario the other policy options related to a withdrawal of the exemption (immediate withdrawal or withdrawal in 2016) would lead to a lower overall environmental impact, both in terms of avoiding releases of cadmium to the environment and in terms of aggregated environmental impacts based on six environmental indicators.

In the case of delayed withdrawal of the exemption (in 2016), the environmental benefits would be slightly lower than under the option of immediate withdrawal but the costs would be much lower compared to this option. Some recyclers and cordless power tool manufacturers have given cost-estimates for both policy options related to the withdrawal of the exemption (in the range of €40- 60 million in the case of immediate withdrawal and €33 million in the case of withdrawal by 2016). It is however doubtful whether all these costs should be attributed to the cases of withdrawal of the exemption, given that the amounts of cadmium batteries used in cordless power tools will decrease by 50% between 2013 and 2025 under the baseline scenario.

Consumers might be affected by the higher manufacturing cost of alternative battery technology applied to cordless power tools under the policy options related to the withdrawal of the exemption. Over the period 2013-2025, a cordless power tools with an alternative battery chemistry will, depending on the alternative battery chemistry chosen (nickel metal hydride or lithium-ion), cost €0.8 and €2.1 more respectively if the exemption is immediately withdrawn and an additional €0.4 and €0.9 respectively in the case of withdrawal in 2016.

The social impacts and administrative burden are limited for all policy options and they should not lead to compliance issues.

The impact assessment concludes that if the exemption is withdrawn in 2016, the environmental benefits would be slightly lower than in the case of immediate withdrawal but the costs would be much lower compared to an immediate withdrawal. As withdrawal of the exemption in 2016 would have almost the same level of effectiveness at a higher efficiency compared to an immediate withdrawal, this option is the preferred one.

2.

LEGAL ELEMENTS OF THE PROPOSAL



Article 1(1) of this Proposal amends Article 4(3)(c) of Directive 2006/66/EC by limiting the exemption for the use of cadmium in portable batteries and accumulators intended for use in cordless power tools to 1 January 2016. This means that as from this date, the use of cadmium in portable batteries and accumulators intended for use in cordless power tools, included those incorporated into appliances, is restricted to 0,002% of cadmium by weight in line with Article 4(1) of Directive 2006/66/EC.

Paragraphs (2) to (11) of Article 1 of this Proposal identify the delegated and implementing powers of the Commission in Directive 2006/66/EC and establish the corresponding procedures for adoption of these acts.

Article 2 of this Proposal requires Member States to transpose the amendment to Article 4 (3)(c) of Directive 2006/66/EC within 18 months after entry into force of the Directive.

Article 3 of this Proposal stipulates that this Directive enters into force on the twentieth day following that of its publication in the Official Journal.

Article 4 of this Proposal states that this Directive is addressed to Member States.

3.

BUDGETARY IMPLICATION



Not applicable.

5. OPTIONAL ELEMENTS

Not applicable.