BIR: EU trade controls on aluminium scrap will ‘distort and depress’

The Bureau of International Recycling has formally reaffirmed its opposition to EU export restrictions or trade controls on aluminium scrap.

In a submission to a consultation by the European Commission on possible trade measures for secondary aluminium, BIR says they would be ‘fundamentally unnecessary’ and risk producing ‘significant unintended consequences for the entire value chain’.

BIR adds: ‘We stand with and fully support the contribution of our member association Recycling Europe and all European recyclers.’

Scrap leakage

Crucially, argues BIR, the Commission’s own monitoring data fails to demonstrate any structural ‘scrap leakage’. Instead, it says, current export volumes reflect a well-functioning market where the EU generates more aluminium scrap than domestic smelters can technically or economically absorb. ‘We have alerted the Commission that restricting these flows would not increase domestic availability.

Rather, it would distort markets and depress recycled metal prices to the point where the economic viability of recycling operations is threatened. By reducing profitability, these measures would inevitably weaken collection incentives and discourage the very investment needed to meet EU recycling targets.’

Burden

BIR fears that a valuable resource could become a financial burden, increasing the likelihood of abandoned or unmanaged waste streams. BIR maintains that the solution lies in evidence-based policymaking that focuses on positive alternatives, such as improving energy affordability, harmonising regulations and incentivising the uptake of recycled content.

Even if trade measures are introduced by the Commission, BIR insists they should be temporary, narrowly targeted, and governed by robust emergency clauses to protect the employment and investment levels of its members.

‘European Preference‘

Meanwhile, Recycling Europe is backing calls for a ‘European Preference’ that puts materials made in the EU at the heart of Europe’s industrial and economic strategy.

‘All recycled materials produced by European recyclers are already Made in Europe, as they originate from waste collected, sorted and reprocessed within the EU,’ says Maria Vera Duran, policy director at Recycling Europe.

The umbrella organisation for recyclers across Europe argues a ‘Made in Europe’ preference must be paired with targeted incentives under the upcoming Industrial Accelerator Act, the revision of EU rules on public procurement and the new Circular Economy Act to boost the uptake of recycled materials across products and value chains.

Recycling Europe is also calling on EU policymakers to incentivise the use of recycled materials in products.