The plenary session in Valencia on May 28 began with a potent example of how fact-based advocacy had been used by the recycling industry to counter the inaccurate arguments of vested interests seeking the introduction of export restrictions on Europe’s recycled steel. And the meeting concluded with a sneak preview of a heavily-researched and potentially game-changing study co-funded by BIR and KPMG, which will detail in hard numbers the massive and wide-ranging environmental gains achieved worldwide through recycling.
IEC Chairman Olivier François, President of EuRIC, opened the meeting by explaining that the EU’s recently-unveiled Steel & Metals Action Plan had resulted from European consuming industry pressure to keep recycled steel within its borders. Recycling industry representatives had reacted quickly to debunk the following three claims made by those supporting export restrictions: that recycled steel availability was an issue in Europe; that Europe exported its higher-quality recycled steel, leaving lower qualities for the continent’s own mills; and that Turkish mills bought so much European recycled steel because these purchases attracted government subsidies.
On the first point, Mr François explained that Europe produced 100 million tonnes of recycled steel per year, of which it exported 20 million tonnes because European consumption was around 80 million tonnes. “That’s just a fact,” he told delegates. As for the second point, it was “absolutely wrong” and was backed by EU customs statistics, which showed that the lower grades of recycled steel actually represented 70% of the exports. And the last point had been refuted by Turkish authorities.
A decision on the next step in this export debate would be taken shortly and, hopefully, the recycling industry’s compelling counter-arguments would be taken into account and free trade would be maintained for recycled steel, said Mr François. If tariffs, for example, were to be imposed on shipments outside the EU, the market would re-adjust and the recycling industry would not buy around 20 million tonnes of metallic waste, including those with high residue/cost implications such as car hulks, creating problems for a wide range of stakeholders including municipalities and car manufacturers.
“Everything you outlined are the arguments we’re hearing with regard to copper in the US,” noted Robin Wiener, President of the US Recycled Materials Association. Recycled steel export restrictions out of Europe would impact everyone and therefore it was “so critical that we all work together to help each other”, she added.
Mr François went on to herald a “historic moment” in the decarbonisation and circular economy debate. A public consultation had been launched (closing on July 8) to recast the European Trading System, and this opportunity would be used by Europe’s recycling associations to press for an end to “the complete separation of decarbonisation regulations/organisation in Europe and the circular economy”.
The IEC’s Chairman then identified the upcoming BIR/KPMG publication as “absolutely key to showing the politicians that this connection between the circular economy and decarbonisation must be done”. This comment provided the perfect launchpad in Valencia for an update on the “Environmental Benefits of Recycling” study from Stéphanie Grandjean Mateos and Mina Bishop, respectively Director and Senior Manager Circular Economy at KPMG France’s ESG Centre of Excellence.
Now in its “final stages” prior to release, said Ms Bishop, the report would be significantly wider in scope than its predecessors released in 2008 and 2016. The number of recycled materials addressed had been increased to 10 and key performance indicators had been extended so that coverage now encompassed: CO2 emission savings; energy savings; water savings; raw material savings; and land use savings or ozone depletion.
The information had been drawn from a very wide range of sources and based on actual market data/realities, added Ms Grandjean Mateos. Picking up on the earlier comment from Mr François about recasting the European Trading System, she said the “Environmental Benefits of Recycling” study showed a clear link between decarbonisation and recycling/the circular economy and spotlighted some “really impressive” figures for all 10 materials covered.
Cameron Leitch, Policy and Sustainability Manager at the British Metals Recycling Association, suggested the report would have multiple benefits. “Governments believe the best form of policy-making is predicated on robust, data-driven insights,” he pointed out. Also, “the recycling sector and operators within it are being asked by suppliers and customers for environmental data on an increasing basis”.
And Mr Leitch added: “There are going to be certain sectors that are going to be lobbying for certain activities that really diminish the role of recycled materials, and that’s where we have to use reports like this.”
According to BIR Director General Arnaud Brunet, the high levels of anticipation surrounding this publication were entirely justified. “The numbers are very big – very big – and very interesting,” he assured delegates.
