BIR speaks out against recycling-hindering regulations

Regulations and policy interventions that stifle the free trade of recycled materials are hampering achievement of sustainability goals and undermining the transition to a circular economy, the Bureau of International Recycling (BIR) says in its latest position paper. The statement was approved during the meeting of the organization’s World Council of Recycling Associations on October 30th in Singapore. Entitled “Free Trade of Recycled Materials”, the position paper stresses that, to prevent such unwanted outcomes, the recycling industry must be properly represented wherever policy decisions that affect trade in recycled materials are being made.

The recycled materials industry needs stable market access

Recycled materials have long played a critical role in global manufacturing supply chains and will remain key to addressing climate challenges as sustainable alternatives to extracted natural resources. But to be competitive, the global recycling industry depends on stable market access. Therefore, the position paper maintains, policies should ensure the free and fair flow of these materials.

Although this trade enables the efficient distribution of recycled materials to regions where they are most needed, governments worldwide have intensified policy interventions that hinder flows across borders, according to BIR. Unjustified tax obligations, export quotas/bans, and additional administrative burdens create an uneven playing field for recyclers and ultimately hinder the uptake of secondary raw materials, for the benefit of primary resource producers and manufacturers, it is argued.

Policies can work against efficient flow of materials to areas of high demand

Certain other policies work against their stated objectives by stranding materials where there is insufficient or inefficient recycling capacity, thus stemming the supply of recycled materials to economies with higher capacity/demand and thereby decreasing overall recycling rates. Interfering with the efficient functioning of the international recycling market will result in lower levels of investment and recycling, the position paper warns. An unpredictable regulatory environment hinders long-term investment decisions and puts a multitude of recycling businesses and related jobs at risk, it adds.

Representation of the recycling industry in discussions that impact operations

To avoid the introduction of measures that undermine global environmental efforts, the position paper insists that the recycling industry must be represented when national or international bodies discuss any regulatory or policy matters that have the potential to impact recyclers’ operations.

BIR’s latest position paper places heavy emphasis on the critical importance of the international trade in recycled materials, both to the global manufacturing supply chain and to the shift towards a more circular economy. The global trade in recycled materials has been estimated at over US $130 billion in 2019, and according to BIR’s own estimates, the global recycling industry processes over 600 million metric tons of recycled materials annually.

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