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COMMISSION CONFERENCELaunching the consultation on the Thematic

Strategy on the Prevention & Recycling of Waste

Session 3Setting and Reaching Recycling Targets

Working with the Market

Ross Bartley, Environmental & Technical Director

The Bureau of International Recycling was created in 1948. It is the World Federation of therecovery and recycling industries dealing mainly with ferrous and non-ferrous metals, paperand textile materials. Some BIR members are also handling rubber, glass and plastics.Represented in more than 50 Countries, BIR represents the interests of 39 nationalfederations and some 7000 companies world-wide of which 500 are also directly affiliated.(WWW.BIR.ORG)The EU sister Federations of BIR are the European ferrous recovery & recycling federation(WWW.EFR2.ORG); the European metal trade and recycling federation(WWW.EUROMETREC.ORG) and the European Recovered Paper Association(WWW.ERPA.INFO). BIR and these EU federations share the same Secretariat located at24, Avenue Franklin Roosevelt, B-1050 Brussels, Belgium.

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Presentation structure

■ Characteristics of the Recycling market

■ Policy instruments and objectives

■ Material / Product Specific Issues: example oftextiles

■ Conclusions

European members

Where is the market?Price/Cost

Waste Secondary RawMaterial

Desirable

-ve

value

+ve

value

MATERIAL

SPECIFICATIONS

e.g. metal content

Characteristic

AREA OF:

De-pollution and/or

Treatment

European members

Recovered material with a market

May have been Waste – but has had value added by the RecoveryProcess –

e.g.recovered ferrous scrap; (may be further cut, sheared, orbaled)

destined for a metallurgical production process.

The recovered scrap has positive economic value and/or use value,a regular market between recognisedeconomic operators and is traceable via written contract(s) betweeneconomic operators

European members

Positive economic value /use value/regular market for metal scrap:

No 1 Steel scrap

0

500

de c a de19 0 0 to 19 9 0Decades 1900 to 2000

EURO

European members

Ferrous scrap supplied to customersworld-wide in:

■ ALBANIA■ ALGERIA■ ANGOLA■ ARGENTINA■ AUSTRALIA■ AUSTRIA■ BELGIUM■ BOSNIA AND HERZEGOVINA■ BRAZIL■ BULGARIA■ CANADA■ CHILE■ CHINA■ COLOMBIA■ CONGO (DEMOCRATIC REPUBLIC OF)■ CUBA■ CZECH REPUBLIC■ DOMINICAN REPUBLIC■ ECUADOR■ EGYPT■ EL SALVADOR■ FINLAND■ FRANCE■ FYR■ GERMANY■ GREECE■ GUATEMALA■ HAITI■ HONDURAS■ HONG KONG■ HUNGARY

■ INDIA■ INDONESIA■ IRELAND■ ISRAEL■ ITALY■ JAPAN■ KAZAKHSTAN■ KENYA■ KOREA (DEM.PEOPLES REP. OF)■ KOREA (REPUBLIC OF)■ LATVIA■ LEBANON■ LIBYAN ARAB JAMAHIRIYA■ LUXEMBOURG■ MACEDONIA (FORMER YUGOSLAV

REPUBLIC OF)■ MALAYSIA■ MAURITANIA■ MEXICO■ MOLDOVA■ MOZAMBIQUE■ MYANMAR■ NEPAL■ NETHERLANDS■ NEW ZEALAND■ NIGERIA■ NORWAY■ PAKISTAN■ PANAMA

�PARAGUAY�PERU�PHILIPPINES�POLAND�PORTUGAL�QUATAR�ROMANIA�RUSSIA�SAUDI ARABIA�SINGAPORE�SLOVAK REPUBLIC�SLOVENIA�SOUTH AFRICA�SPAIN�SWEDEN�SWITZERLAND�TAIWAN (ROC)�TANZANIA (UNITED REPUBLIC OF)�THAILAND�TRINIDAD & TOBAGO�TUNISIA�TURKEY�UKRAINE�UNITED KINGDOM�UNITED STATES�UZBEKISTAN�VENEZUELA�VIETNAM�ZIMBABWE

Countries / Companiesthat do not reportproduction data are notshown.

European members

market price for metal scrap followsthe market for primary material

European members

Copper scrap supplied to customersworld-wide in:

■ ALBANIA■ AUSTRALIA■ AUSTRIA■ BELGIUM■ BRAZIL■ BULGARIA■ CHINA■ COLOMBIA■ FRANCE■ GERMANY■ INDIA■ INDONESIA■ IRAN, ISLAMIC REPUBLIC OF■ ISRAEL■ ITALY

Countries / Companiesthat do not reportproduction data are notshown.

■ JAPAN■ MACEDONIA■ NEW ZEALAND■ PERU■ POLAND■ PORTUGAL■ ROMANIA■ RUSSIAN FEDERATION■ SAUDI ARABIA■ SOUTH AFRICA■ SPAIN■ SWEDEN■ SWITZERLAND■ UNITED KINGDOM■ UNITED STATES■ ZAMBIA■ ZIMBABWE

European members

market for recovered paper follows themarket for primary pulpwood

European members

Recovered Paper supplied tocustomers world-wide in:

For the EU countries in 2001 : recovered paper utilisation was 39.5 million tonnes,paper and board consumption 76.0 million tonnes and the recycling rate 52.0%. In2001, the net trade of recovered paper amounted to 2.6 million tonnes. Thatamount of recovered paper was collected from EU15 countries but exported to thirdcountries for recycling purposes.

RomaniaRussiaSaudi ArabiaSingaporeSlovak RepublicSloveniaSouth AfricaSri LankaSudanSwazilandSyrian Arab Rep.TaiwanTanzania (United Republic of)ThailandTunisiaUnited Arab EmiratesUruguayVenezuelaVietnamYugoslaviaZimbabwe

IndonesiaIran (Islamic Rep. of)IsraelJordanKenyaKuwaitLatviaLibya Arab JamahiriyaLithuaniaMacedoniaMadagascarMalaysiaMongoliaMoroccoMyanmarNepalNigeriaPakistanPanamaPeruPhilippines

AlbaniaAlgeriaArgentinaBangladeshBosnia-HerzegovinaBrazilBulgariaChileChinaColombiaCosta RicaCroatiaCubaEcuadorEgyptEl SalvadorEstoniaEthiopiaGuatemalaHong KongIndia

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■ Characteristics of the Recycling market

■ Policy instruments and objectives

■ Material / Product Specific Issues: example oftextiles

■ Conclusions

European members

Targets and what is a Recycling Rate?

Recycling Efficiency Ratio:-

Total of Material ‘M’ Recycled (Actual)Total Material ‘M’ available for Recycling (Potential)

Material ‘M’ available for Recycling = Material ‘M’ collected

X 100

x

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Where to measure a Recycling Rate?

■ Clearly, and as stated in the Strategy Paper,« it is often very difficult to distinguishbetween recycled and virgin material in thefinal product »For a given material one atom looks much like any other

■ It follows that data is best gathered beforemelting, pulping, or other ‘ProductionProcesses’

■ Suggest to measure at the point wheresecondary raw materials substitute primaryinfeed.

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Targets: Packaging – will be…

■ Collection Target:■ at least 60% of household packaging waste by weight

■ Recycling Target:■ at least 55% of waste packaging by weight

■ Targets for materials:■ 60% for Glass and Paper/Board■ 50% for Metal■ 22.5% for plastic■ 15% for wood

Council foresees deadline as 31 Dec 2008.

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Targets: ELVs

■ For vehicles produced before 1 Jan 1980 - mayuse targets

Re-use & Recovery 75%Re-use & Recycling 70%

■ 1 Jan 2006 for all ELVs Re-use & Recovery 85%

Re-use & Recycling 80%■ 1 Jan 2015 for all ELVs Re-use & Recovery 95% Re-use & Recycling 85%

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The ELV Shredding process

Aspirated dust (obsolescentterms - “fluff” or “light fraction”)

Magneticseparation

Eddy currentseparation

Non-magneticfraction - (“heavyfraction” obs..)

ASR

ASR

European members

ASR tonnage (all non-metallics) re:Directives targets up to 2015

Energy recovery (definition issue)

Re-use and/or Material recycling

Incineration and/or Landfill

1995 2006 2015

Capacityneededdoubles

A bbbb rdreduction

Milli

on to

nnes

<0.3 - 0.6<0.3 - 0.6

0.3 - 0.60.3 - 0.6

0.3 - 0.60.3 - 0.6

0.6 - 1.20.6 - 1.2

0.3 - 0.60.3 - 0.6

0.6 - 1.20.6 - 1.2

1.0 - 1.81.0 - 1.8>1.3- 2.4>1.3- 2.4

estimated

Capacityneededdoubles

ASR = Automotive ShredderResidue

European members

80Gas dischargelamps

50702, 5, 6, 7 and 9

65753 & 4

75801 & 10

MinimumComponent,material andsubstance reuse &recycling

Minimum recoveryrateAv. Wt.%

WEEEAnnex 1Acategory

Targets: WEEE

European members

European Declaration on PaperRecovery

49.7%52.1%

European members

■ Should they be set by Priority Waste Stream?■ and/or by Material?

■ Should they be set EU wide?■ with/or without National variations?

Currently we observe that most all Recycling Targetsalready take account of those materials recycledefficiently by the market

Does Europe need Recycling Targets?

European members

■ Characteristics of the Recycling market

■ Policy instruments and objectives

■ Material / Product Specific Issues: example oftextiles

■ Conclusions

European members

■ Then…■ 60% of clothes for

re-use paid for 40%of textiles for fibrerecycling, cleaningcloths and textilewaste for finaldisposal

■ Now…■ 40% of clothes for

re-use cannot payfor 60% of textilesfor fibre recycling,cleaning cloths andtextile waste fordisposal

Textiles – a structural problem ?

In the EU, over 3.5 million tonnes of textiles, bed linen other domestic cloth iscollected, transported, sorted - the sector employs over 100.000 workers.

European members

■ Quality: the quality of old clothing has dropped considerably -60% of collected textiles cannot be worn any more and has tobe funded by the sorting companies.

■ Cheap new clothing: More and more cheap new clothing fromAsia inundates the markets and competes with second-handclothing.

■ Costs: Sorting and transportation costs are increasingdisproportionately.

■ Prices: Prices for sorted articles are dropping.■ Waste legislation: EU Regulations (1420/99 & 1547/99)

jeopardise European companies’ export opportunities on theworld market.

Textiles – a structural problemand a market problem

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■ Trade bans: Many Non-OECD countries block imports of secondhand clothing through trade bans or high customs duties.

■ Insurance: Hardly any insurance is willing any more to insurecompanies involved in textiles recycling.

■ Sector suffers from un-licensed/un-permitted/unauthorisedcompanies. Unfortunately, in Europe there are plenty of these,and they are major competitors since they can work morecheaply.

Unfortunately, there is more...... but there is a need to focus onsolutions, as in 2003 alone, company closures could reach the30%-mark.

Textiles – a structural problemand a market problem

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for the Textiles Recycling Sector rectify the structural andmarket problems they face now?

Would setting Recycling Targets…

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■ Promoted in the Strategy Paper but..■ Little experience other than with the UK’s PRN system…

■ Some criticise the PRN System in particular, that…■ It is not suited to achieving defined environmental targets or high

recycling quotas■ It presupposes a well functioning market■ It’s use entails waiving the internalisation of disposal costs■ It, under fierce pricing pressures, prevents progress in strategic

developmentHowever, we are not opposed to EU wide Tradable Recycling Certificatesystems, that properly adjusted by taking into account lessons learned,address recyclables with poorly functioning markets. Try it for EU’s textiles!As Tradable Certificates will generate funds, the main question to resolve iswhere those funds should be allocated to improve market performance (?)

Tradable Recycling Certificates –Another type of market?

European members

■ Characteristics of the Recycling market

■ Policy instruments and objectives

■ Material / Product Specific Issues: example oftextiles

■ Conclusions

European members

Where is the market?Price/Cost

Waste Secondary RawMaterial

Desirable

-ve

+ve

AREA OF:

De-pollution and/or

Treatment

MATERIAL

SPECIFICATIONS

e.g. metal content

Characteristic

European members

Recovered material with a market

destined for a production process.

The recovered material haspositive economic value and/or use value,a regular market between recognisedeconomic operators and is traceablevia written contract(s) between economicoperators

European members

Recommendations:

■ Existing well functioning markets■ Need to ensure these are not hampered■ And where possible further developed

■ Poorly functioning markets■ Use instruments to initiate, support and

improve■ Work with the market and not against it