Concept of recycling of end-of-life vehicles in Japan

Japan began to establish a recycling-based economic system in the 1970s. In response to the problems of fluctuating prices of recycled materials from end-of-life automobiles, illegal disposal, environmental pollution and low recycling rates, Japan enacted the Automobile Recycling Law in 2002, which was implemented in 2005. The law has many innovative and unique features in terms of funding and information management, and has achieved better results in the year since its implementation.

Through the study of Japan's end-of-life automobile recycling system, there is a certain reference significance for China's end-of-life automobile recycling management.

Japan's "Automobile Recycling Law" of the introduction of the background

Japan's land area of about 380,000km2, an area of about the same as China's Yunnan Province, the territory of the mountainous area of about 71%, the forest greening rate of about 67%. The country is divided into 1 capital (Tokyo Metropolis), 1 province (Hokkaido), 2 prefectures (Osaka Prefecture, Kyoto Prefecture), 43 prefectures, the capital Tokyo. The population of the country is about 130 million, and in 2004, the total number of automobiles in the country was 74.7 million, with 575 automobiles per 1,000 people, and about 5 million automobiles are scrapped every year. At present, there are 85,000 registered and recognized end-of-life automobile recycling enterprises, more than 3,000 dismantling plants and 1,200 crushing plants throughout Japan.

The introduction of the Automobile Recycling Law in Japan has its own unique background. From a macro point of view, because of the lack of resources, Japan began to establish a recycling-oriented economic system in the 1970s to get rid of the mass production, mass consumption, mass disposal type of development model, the end-of-life products as a resource for effective recycling, and the establishment of the promotion of a recycling-oriented society in line with the requirements of the basic legal system. From a microscopic point of view, Japan also has outstanding problems in the recycling of end-of-life automobiles. First, the market for steel scrap has brought about substantial changes in the value of end-of-life automobiles, affecting the income and expenditure of the relevant enterprises; second, the norms to be observed in the disposal of end-of-life automobiles are not yet clear, leading to the illegal disposal of end-of-life automobiles. As of 2001, there were at least 126,000 illegally discarded vehicles throughout Japan. Compared with the first two problems, Japan is facing a new and more serious problem in the management of end-of-life vehicles, namely the disposal of automobile shredding residues, airbags and Freon air-conditioning refrigerants. Japan has a limited land area, and disposal costs are rising rapidly as the amount of shredding debris going to landfills increases; the increasing number of airbag-type devices, such as side airbags and curtain airbags, require specialized treatment at the time of scrapping; and automobile air-conditioning refrigerant (Freon), if emitted directly into the atmosphere without treatment, contributes to the destruction of the ozone layer, which is one of the causes of the problem of global warming.

In order to solve the above problems, in 2002, Japan's Ministry of Economy, Trade and Industry (METI) and Ministry of the Environment (MOE) fully communicated with automobile manufacturers, recycling and dismantling companies, associations, and other parties, and ****submitted the "Law Concerning the Re-Resourcing of End-of-Life Motor Vehicles, Etc." (referred to as the "Automobile Recycling and Utilization Act") together, which was deliberated and passed by the National Diet on July 12th of the same year and was put into effect on January 1st, 2005.

Operating Mechanism of Japan's Automobile Recycling System

1. Management Mechanism of the Automobile Recycling System

Japan's management of the recycling of end-of-life automobiles is carried out through both governmental and private organizations.

The central government of Japan directs and manages the recycling of end-of-life vehicles through the Ministry of Economy, Trade and Industry (METI), the Ministry of the Environment (MOE), and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT). The Ministry of Economy, Trade and Industry and the Ministry of the Environment are responsible for researching and formulating policies and regulations to guide the recycling of end-of-life automobiles, as well as for formulating entry requirements for the end-of-life automobile recycling industry (mainly dismantling and crushing enterprises); the Ministry of Land, Infrastructure, Transport and Tourism and its subordinate local land transportation bureaus implement the management of vehicles and road traffic. In addition, each local government is responsible for the registration and approval of the entry of the end-of-life automobile recycling industry.

In terms of recycling fees, information management, recycling and disposal of Freon, and disposal of airbag-type objects, under the framework of the new law, two new unofficial organizations have been added to manage funds, information, and assist in the disposal of Freon and airbag-type waste products. These two organizations are the Automobile Recycling Promotion Center (a consortium) and the Automobile Recycling Cooperation Organization (a limited liability intermediate corporation). The former is responsible for managing funds and information, while the latter is responsible for assisting in the disposal of Freon and airbag waste products.

The Automotive Recycling Promotion Center aims to ensure the convenience of automobile users and the healthy development of the national economy by promoting the recycling and rational disposal of automobiles in order to improve the efficient use of resources and protect the environment. The Center is sponsored by nine member organizations, including the Japan Automobile Manufacturers Association (JAMA) and the Japan Auto Parts Industries Association (JAPIA). The main activities of the Center include research and studies on the promotion of automobile recycling and rational disposal, popularization and promotion, provision of information, operation and management of the system, exchange and cooperation, as well as management of funds based on the Automobile Recycling Law, recycling, and information management. In addition, the center has a research group on island countermeasures, etc., which carries out operations related to the disposal of automobiles from automobile companies and importers not in charge of recycling (including those from small factories and importers), as well as countermeasures against island countermeasures, and countermeasures against the illegal abandonment of end-of-life automobiles.

The Automotive Recycling Cooperative Organization consists of 12 domestic automakers and the Japan Automobile Importers Association. The main duties of the organization are threefold; first, to establish a logistics and recycling (dismantling) system for the reception and resourcing (dismantling) of Freon and airbag scrap; second, to pay recycling fees to Freon recycling units and automobile dismantling factories; and, third, to pay disposal fees to Freon dismantling factories and airbag recycling plants, and to carry out operational supervision and audits.

2. Recycling fees and management

The Automobile Recycling Law stipulates that automobile users have to pay recycling fees, including five fees: ASR (Automobile Shredder Residue), airbags, Freon treatment fees, fund management fees and information management fees. New car users pay the above fees at the time of purchase, and owners of in-use vehicles can pay through agents such as post offices, banks, and convenience stores. Alternatively, the fees can be paid through the agency that conducts the annual inspection. After paying the fee, the owner will obtain a stamped certificate, without which the vehicle cannot pass the annual inspection. In the case of Toyota, for example, the three processing fees for the Vizier model are 9,400 yen, the Corolla is 10,140 yen, the Celsior 15,430 yen, and the Estima 13,430 yen. The money management fee is 380 yen per car for new cars, 480 yen per car for used cars and a flat 130 yen per car for information management.

The Automobile Recycling Promotion Center is entrusted by the state to collect the recycling fee and strictly manage and apply it until end-of-life automobiles can be recycled. The recycling fee is paid to automobile manufacturers and importers only after confirming the completion of the recycling of shredded residue, Freon, and airbags.

3. Handling of three types of substances and information management

The biggest difference between the new management system and the previous one is the handling of shredding residue and information management. Prior to the implementation of the law, the residues from the crushing of end-of-life vehicles were usually disposed of in landfills, and the information management of end-of-life vehicles was not perfect. The new management system sets out different recycling requirements for three types of substances: shredding residues, Freon and airbags. Japan's automobile recycling management system is shown in Figure 1.

The recycling of automobile shredding residue (ASR) is based on mass recovery and heat recovery, and the recycling target for ASR is 30% (mass ratio, equivalent to 88% of the actual recycling rate of the whole vehicle) in 2005, 50% (equivalent to 92% of the actual recycling rate of the whole vehicle) in 2010, and 70% in 2015. 70% in 2015. When the ASR recycling ratio reaches 70% recycling ratio, the whole vehicle mass recycling reuse rate can reach 95%, which is comparable to the EU target. The recycling decomposition of Freon type is consistent with the original system. There are 24,000 recycling outlets and 9 Freon decomposition plants nationwide. Recycling of airbags can be done by dismantling them or by commissioning a dismantling plant to detonate them on the vehicle (individually or simultaneously). Currently, all newly manufactured vehicles can be detonated on board. There are also 25 designated receiving stations and 5 recycling plants throughout the country.

Features of Japan's automobile recycling system

In summary, Japan's automobile recycling system is characterized by the following six main aspects.

1. Establishment of a recycling mechanism based on the principle of expanding producer responsibility

In the old automobile recycling system, shredding residues became an impediment to recycling. Therefore, the incumbency of automobile producers has been expanded in the new system. Enterprises are required not only to be responsible for recovering and disposing of shredding residues, Freon and airbag waste products, but also to ensure the smooth operation of the entire recycling system.

2. Effective use of existing recycling channels

Taking into account the economic principle of overall social cost, the existing recycling channels such as dismantling plants and crushing plants are fully utilized in the establishment of the new system, so that end-of-life automobiles can circulate as valuable resources and all aspects of participation in automobile recycling can be profitable, thus ensuring that recycling and reuse can be carried out smoothly.

3. Enhancing Consumer Awareness of Environmental Protection through Recycling Fees

Unlike the European system where automobile manufacturers bear the cost of recycling, Japanese consumers are required to pay a recycling fee when purchasing a new car and are required to pay a recycling fee for in-use vehicles within three years of the implementation of the law. The purpose of this is to make automobile consumers understand that whoever scraps the vehicle will have to pay the recycling fee, thus enhancing the awareness of saving resources and caring for the environment.

4. Effective use of competition and cooperation among automobile manufacturers

The recycling fee is set by automobile manufacturers. Because consumers have to consider this fee when buying a car, automobile production enterprises cannot set the fee arbitrarily. In addition, the implementation and operation of the end-of-life automobile recycling system, as well as the establishment of a unified recycling logistics channel, etc., also requires mutual coordination among enterprises.

5. Fair and Transparent Electronic Inventory System

In terms of information management, an electronic inventory system has been established and is in operation to receive information on the handover of end-of-life vehicles from the relevant units through the Internet, i.e., the "Electronic Inventory (Mobile Reporting) System", and the information is managed in a unified manner. Through this system, the government has clear statistics and supervision of information on the recycling, dismantling and crushing of end-of-life vehicles (refer to Figure 1). On this basis, the management of recycling fees is made fair, open and transparent.

Japan's "Automobile Recycling Law" on China's reference significance

Japan in order to establish a circular economy and to deal with a series of problems brought about by end-of-life vehicles began to re-establish the end-of-life automobile recycling system. This system is not only a requirement of the current state of economic development in the country, but also a manifestation of the global action for resource conservation and environmental protection. Although our country has a large land area, it has a large population and few available resources per capita. For this reason, in the new century, China has put forward the development goal of establishing a resource-saving and environment-friendly society. As for the management of the recycling of used and end-of-life automobiles, China has established a set of management systems for the scrapping, recycling and dismantling of used and end-of-life automobiles and the encouragement of renewal one after another since 1980. However, with China's economic development and the increase in the number of motor vehicles, the original management system can no longer meet the current economic development requirements in some aspects. In particular, in the management of end-of-life automobile recycling and reuse, some of the existing regulations are not conducive to the reuse of recycled parts and components. It is therefore necessary to carry out reforms. At present, the relevant state departments have formulated a new "automobile scrapping standards", the management of end-of-life automobile recycling has also begun to gradually systematize, institutionalize and standardize. However, at present, China's recycling management of end-of-life automobiles is still in the initial stage, there are many places need to be perfected, and we need to learn from the successful or failed experience of foreign countries in the management of end-of-life automobile utilization.

Through the study of Japan's end-of-life automobile recycling management system, we can summarize the following aspects of experience for policymakers to learn from.

1. The recycling and utilization management of end-of-life vehicles should be combined with the actual situation of the country. Every country in the world has national conditions that distinguish it from other countries. Japan's end-of-life automobile recycling system is formulated after a full study of the actual situation of Japan's end-of-life automobile recycling and dismantling and recycling industry, which is in line with the actual situation in Japan. As far as the management system is concerned, we cannot simply judge it as advanced or backward. The management system in Europe is adapted to the situation in Europe, and the management system in Japan is adapted to the situation in Japan. As long as it is in line with the actual situation of a country, with low management cost and good effect, it means that the management system is successful. On Japan's new end-of-life automobile recycling system to implement the results achieved over the past year, this system is more successful. Therefore, China's management of end-of-life automobile recycling must be combined with its own industrial characteristics and level of development, can learn from the management model of other countries, but can not copy the management model of other countries.

2. The management of end-of-life automobile recycling should be in line with the law of the market, but also to strengthen the government's macro management. From the understanding of the situation, end-of-life automobile recycling industry there is a certain profit margin, investment in this area, will get a better return on investment. The management of end-of-life automobile recycling in the United States is based on this principle. Compared with Europe and Japan, the U.S. is the country with the least legal construction for the recycling of end-of-life automobiles, mainly relying on the market to regulate. However, the situation in China and the United States are different, the market economic system is not yet very perfect, if we rely entirely on the market means of regulation, there will be unexpected problems. For example, when the price of scrap steel rises, enterprises will inflate the price to grab scrap steel resources, disrupting the market order, resulting in a decline in the overall profit of the industry, affecting the subsequent development of enterprises. There will even be a resurgence of collaterals, seriously threatening the safety of people's lives. Therefore, in the management, not only to give full play to the market's own regulatory role, but also through macro management to guide and standardize the development of this industry.

3. The role of automobile manufacturers in the recycling of end-of-life vehicles should be actively utilized. Japan, Europe's automobile production enterprises in the recycling industry plays an important role in recyclability technology development, easy dismantling technology development, environmental protection material substitution technology has an irreplaceable role. The direct participation of automobile production enterprises is important for improving the recycling rate of end-of-life automobiles from the source. Therefore, China's end-of-life automobile recycling system should also allow automobile production enterprises to actively participate.

4. Environmental protection in recycling should be emphasized. End-of-life vehicles and their parts in the recycling, dismantling, crushing, reuse and other aspects of the pollution of the environment, if not handled properly, will cause irreversible impact on the environment. For example, waste oil (including fuel, lubricating oil, battery electrolyte, etc.), if directly infiltrated into the soil, will have an adverse impact on the ecological environment and affect people's health. Therefore, to scientifically foresee the various aspects of recycling of end-of-life vehicles on the premise of the possible adverse effects on the environment, and constantly improve the environmental management standards and regulations, so that the recycling industry healthy and sustainable development.

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