Recyclers in India have added their voice to the growing criticism of proposed restrictions on the export of ferrous and non-ferrous metal scrap from Europe.
The object of their concern is the EU Waste Shipment Regulation which specifies the non-OECD countries that can receive certain non-hazardous waste from the EU. On 18 September, the European Commission published a draft listfor consultationwhich excludes major Asian destinations including India, Malaysia and Thailand from receiving ferrous and non-ferrous metal scrap.
The Bureau of International Recycling and Recycling Europe have already expressed opposition, saying the move could seriously disrupt global recycling markets.
The Material Recycling Association of India (MRAI) argues that if India is excluded from the final list, exports of ferrous and non-ferrous metal scrap from the EU to India could end from 21 May 2027. MRAI represents more than 2 000 members with a collective network directly and indirectly supporting employment for over 2 500 000 people.
Urgent intervention
In a detailed eight-page letter to India’s Ministry Commerce and Industry, secretary general Amar Singh seeks ‘the Government’s urgent intervention’ before the list is finalised in November. Seeing the list as a trade barrier rather than an environmental measure, Singh writes: ‘We further request the Ministry to examine and take up the matter from the perspective of India’s trade and raw-material security, particularly in view of the resource-protection in Europe.’
MRAI suggests the matter ‘be taken up through the appropriate India–EU bilateral trade mechanisms, particularly in the context of the India–EU FTA and the broader objective of developing resilient and mutually beneficial supply chains’.
Essential resource
The letter notes that India requires imported metal scrap as an essential secondary raw material with the EU being an important source (see Box). EU restrictions on metal scrap exports run contrary to the fundamental principles of a circular economy, Singh writes.
‘If recyclable metal scrap is prevented from moving to countries where there is established recycling capacity and industrial demand, the consequence could be an accumulation of scrap in the country of generation, reduction in its economic value and weaker incentives for collection, sorting and recycling.’
Unfair comparisons?
MRAI also complains that the EU is subjecting ferrous and non-ferrous metal scrap to scrutiny on account of potential emissions from shredding, smelting and refining operations but not doing so for other material streams.
‘Environmental impacts and residual wastes are not unique to metal recycling,’ the letter notes. ‘Treatment of paper, rubber, textile, mineral, organic, ceramic, paint, dye and other waste streams involve much more emissions, residues, wastewater or disposal requirements. Despite this, several such streams have been proposed for authorisation for India, whereas ferrous and non-ferrous metal scrap has been excluded.’
Protectionism
MRAI’s case is that the wider policy direction of the EU is to retain greater quantities of valuable secondary raw materials, particularly metal scrap, within Europe for use by its domestic industry. The EU’s Carbon Border Adjustment Mechanism is seen as an additional driver to encourage European steel and aluminium producers to use metal scrap to reduce their carbon intensity.
‘These developments indicate that the proposed restrictions are not merely an environmental measure but also have a clear element of resource protectionism – aimed at retaining valuable metal scrap within Europe and securing greater availability of secondary raw materials for European industry.’
BIG BUSINESS
The European Union is one of India’s important sources of metal scrap, according to the MRAI. Last year, the country imported approximately 2.03 million tonnes of aluminium, 0.47 million tonnes of copper and copper alloy, 0.21 million tonnes of lead and 0.11 million tonnes of zinc.
The EU accounted for approximately 20% of India’s aluminium scrap imports, 22% of copper and copper alloy imports, 20% of lead imports and 40% of zinc imports during the year.
India imported approximately 8.45 million tonnes of ferrous and stainless steel scrap last year, of which approximately 0.79 million tonnes originated from the EU.
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