EU Waste Shipment Regulation: Will banning plastic waste exports help or hinder European recycling?

29 Feb 2024 --- The European Parliament has adopted “tougher” rules under its Waste Shipment Regulation (WSR) to reinforce control measures and waste management within the EU. But, EuRIC — the European Recycling Industries’ Confederation — says the rules threaten recycling in the bloc.

The newly approved measures — endorsed with 587 votes in favor, eight against and 33 abstentions — were passed on Tuesday and are poised to have far-reaching implications for waste management practices in the EU and beyond.

Among the key provisions, the updated regulations will prohibit the export of plastic waste to non-OECD countries within two and a half years of the regulation’s entry into force. Additionally, stricter conditions will be imposed on plastic waste exports to OECD countries.

Furthermore, the regulations will digitalize the exchange of information and data on waste shipments through a central electronic hub to enhance reporting efficiency and transparency. Additionally, shipping waste destined for disposal in another EU country will be permitted only under exceptional circumstances, further tightening controls on intra-EU waste movements.

The parliament asserts the move would internalize the EU’s responsibility for managing its plastic waste and reducing its reliance on exports.

EuRIC’s secretary general says the rules may inadvertently affect non-plastic recycling streams such as recycled paper and scrap metals.Rapporteur Pernille Weiss emphasized the significance of the revised law, stating: “The revised law will bring more certainty to Europeans that our waste will be appropriately managed, no matter where it is shipped to.”

“The EU will finally assume responsibility for its plastic waste by banning its exports to non-OECD countries. Waste is a resource when it is properly managed, but should not in any case be causing harm to the environment or human health.”

Green Deal challenges
The regulation’s adoption comes amid growing concerns over the environmental impact of waste shipments. In 2020 alone, EU waste exports to non-EU countries amounted to 32.7 million tons, representing 16% of global waste trade, highlighting the need for stricter oversight and regulation.

EuRIC has raised concerns regarding the potential impact of the regulations on recycling activities within Europe. The federation’s secretary general, Emmanuel Katrakis, tells Packaging Insights that while the regulations aim to curb exports of unprocessed plastic waste, they may inadvertently affect other recycling streams, such as recycled paper and scrap metals. 

“Around 60 waste types are treated, legally speaking, in the same way under the revised WSR, although they are completely different. For instance, while the rules initially proposed to curb exports of unprocessed plastic waste, they are now also applying for recycled scrap metals of high value, which do not present environmental or health concerns and often have a surplus in supply that exceeds domestic demand.” 

Katrakis continues that  the rules fail to distinguish between unprocessed waste and recycled raw materials that still fall under waste classification due to the absence of harmonized end-of-waste criteria.

“Uncertainties also arise regarding the application of the revised rules, as the EU Commission is granted considerable discretionary power in several areas that necessitate clarification, particularly concerning audits and assessing equivalent conditions. While secondary legislation aims to address certain aspects, the devil lies in the details.”

Katrakis highlights that the EU currently exports 5–7 million tons of recovered paper annually due to limited capacity for recycling within the EU. This exported paper is crucial to supplement the amount the European paper industry does not absorb. If export access is restricted by WSR, the fate of collected paper within the EU may be similar to what happened in Ireland, where paper was incinerated instead of recycled due to market constraints. The parliament asserts the move would internalize the EU’s responsibility for managing its plastic waste.

“Such outcomes would be exactly the opposite of the objectives of the EU Green Deal, the new circular economy action plan, and the WSR, which aim to facilitate circular economy and reduce reliance on virgin materials through recycled resources. Fortunately, the most stringent export measures will only take effect in three years, allowing some time for market adaptation,” says Katrakis.

Rethinking recycling
Plastics Recyclers Europe’s (PRE) president, Ton Emans, tells us banning EU waste exports to non-OECD countries represents “a great opportunity” for the EU and is “perfectly” in line with its environmental objectives and the proximity principle, according to which waste is managed close to its place of production.

“The goal must be to reap the benefits of the waste that was previously badly managed and to divert it from suboptimal recovery options like landfill or incineration toward recycling. The issue of exports highlighted the shortcomings and vulnerabilities of the production and management of plastics at the end of their life which often lacked proper collection and sorting.”

However, Martijn Lopes Cardozo, venture partner at Regeneration.VC, tells Packaging Insights that a paradigm shift in the recycling sector is necessary. “With the upcoming ban on plastic waste exports to non-OECD countries, EU member states now do not have the luxury of just exporting plastic. This requires a rethink of the recycling sector as in many countries there is a lack of recycling capacity, and in many cases, the plastic is downcycled or burnt.”

“The focus on recycling takes us away from the key question: How can we avoid plastic waste in the first place? This requires the industry and the users of plastic to think beyond recycling and start thinking about designing out plastic, using less and using it for applications where it lasts a long time. It is exciting to see innovation picking up with many compelling alternatives gathering steam.”

EU recyclers to face unfair competition?
EuRIC has proposed concrete strategies to counteract the supposed adverse effects of the regulations, including actively participating in the implementation process and advocating for additional measures to bolster demand for recycled resources within the EU.

PRE underscores that investments to increase European collection and sorting infrastructure must be accelerated.“To ensure recycling of plastic waste generated in the EU, EuRIC urges common sense: recycled content targets under the PPWR must be met through plastics waste collected and recycled in the EU, as initially proposed by the Commission.” 

“If this principle is not met, strict measures should be implemented to level the playing field between plastics recycled in the EU and imported plastics. Otherwise, recycled content targets will primarily benefit non-European industry players, particularly from Asia, who have cheaper energy and fewer rules to follow,” says Katrakis.

“Regarding plastic recyclers, the situation is dramatic. Not only will export markets to non-OECD countries be closed off entirely, but EU recyclers also face unfair competition from non-EU countries exporting much cheaper plastics labeled as recycled, produced under conditions that are anything but equivalent to those in the EU.”

Emans at PRE underscores that investments to increase European collection and sorting infrastructure must be accelerated. 

“Only with harmonized collection, advanced sorting and a robust design for recycling framework the European recyclers will be able to use high-quality waste, which will translate into high-quality recycled materials. Without stable, high-quality input materials, the industry’s efforts might be hindered.” 

“However, with the recent destabilization due to cheap imports of self-declared recycled content materials and products containing them, the market might stall investments in the sector. Therefore, the ongoing talks in the context of the PPWR must ensure safeguards for the industry.”

For the venture fund partner that supports new tech players such as Greyparrot, SmarterX and Cruz Foam, among others, the industry needs to “wean ourselves from our plastic addiction and reduce demand.”

“The recent bankruptcy of Umincorp in the Netherlands was a direct consequence of being unable to compete with low virgin plastic prices. Clearly, a healthy business case is necessary for investors to put capital in this important sector,” says Cardozo.

By Radhika Sikaria