IT directors need to prepare for an increase in PC and IT hardware costs due to imminent European environmental legislation.

Analyst Gartner predicts PC prices could rise by up to $50 if two new European Commission directives become law later this year.

The Waste from Electrical and Electronic Equipment directive covers recycling of equipment such as computers, and the Hazardous Substances in Electrical and Electronic Equipment Directive would ban certain substances used in the manufacturing of IT equipment.

Under the legislation manufacturers will be responsible for recycling obsolete goods, and will have to pay for research and development into new manufacturing processes. The Department of Trade and Industry estimates the bill to British industry could reach £3bn.

And users will swallow most of the cost, says Brian Gammage, principal analyst at Gartner.

'IT directors should be warning the board that they will be expected to pay for this in their acquisition costs. People will start looking at leasing options and per seat options, especially in larger companies as a way to overcome these costs,' he said.

Most organisations could do without the expense of meeting the new legislation, says Hugh Peltor, director of consumer electronics at trade body Intellect.'It's certainly not going to help companies struggling out of the downturn,' he said 'However, if we're going to save the planet, the bottom line is we will have to share these costs - it can't all be down to industry.'