Scrap Shortage Myth or Reality?

Transcription

1 Scrap Shortage Myth or Reality? Stefan Glimm Metal Bulletin Conference Madrid 18 November 2015

2 EAFA s Mission Statement EAFA is the international body representing foil rollers and manufactures of aluminum closures, containers, household foil and all kind of flexible packaging in Western, Central and Eastern Europe. (EAFA comprises more than 100 Member Companies in EU 28, TR, RU ) Foil Rolling Container Household foil Alu Closures Flexible Packaging Market Analysis, Communication, Food Contact, Sustainability, Global Networks, Note: EAFA represents all foil <200 micron; including semi-rigid containers and all kinds of alu closures

3 Global Aluminium Foil Roller Initiative (GLAFRI) Organization GLAFRI Founded in January members from 26 countries and 4 continents Objectives Support foil market growth globally One Voice approach for foil globally on Sustainability as THE answer to the growing demand and limited resources Foil as solution provider to avoid food waste Share best practices on foil promotion and innovation Further enhancing recovery/recycling

4 Recycling of Aluminium Closures Aluminium closures despite their small size can be collected either together with the mixed packaging fraction or the glass packaging collection stream Easy extraction of the aluminium from both material streams for recycling back into aluminium Value of recycled aluminium closures supports the economics of recycling process of both material routes

5 Recycling Rates of Aluminium Closures Recycling rates depend on national collection and recycling schemes!

6 Recyling Rates of Aluminium Containers Press release published 29 th October 2015 Increased container recycling rate to about 55% Promoting the actions on national level (support of national aluminium packaging organisations) Note: the recycling rate is calculated for the product alufoil container not for alufoil container packaging

7 Ireland: Tea Light Campaign Campaign to encourage school kids and consumers to recycle the tea light holders at IKEA after usage Second to Fourth classes in the greater Dublin area are being challenged to collect as many tea light holders as possible. Children will also be given the opportunity to enter a colouring competition with an overall prize of IKEA vouchers to spend in store Underlying message: Recycling of aluminium foil (container) Project partners:

8 Ireland: Tea Light Campaign EAFA facilitated best practice exchange among national aluminium packaging organisations EAFA s co-financing campaign three motives available

9 Ireland: Tea Light Campaign

10 Recycling through Bottom Ashes

11 Scrap Shortage Myth or Reality? Stefan Glimm Metal Bulletin Conference Madrid 18 November 2015

12 The Answer Scrap Shortage is a Myth! The only way to improve the environmental footprint of aluminium products through recycling is by increasing the volume of postconsumer scrap available for recycling New Business Modell required to enhance collection

13 The Reality 75% of all aluminium produced since ever is still in use.* How to increase this in future? Acknowledgement: Scrap exports being a serious issue if recycled under less strict environmental conditions outside Europe. However, the real challenge is to reduce the losses within the aluminium circle But can we really claim scrap shortage if t/a* in Europe or t/a* globally are NOT coming back into the aluminium loop? Do we accept that these volumes will even grow? *IAI

14 The Challenge is increasing Source: IAI

15 The Reality 75% of all aluminium produced since ever is still in use.* How to increase this in future? Acknowledgement: Scrap exports being a serious issue if recycled under less strict environmental conditions outside Europe. However, the real challenge is to reduce the losses within the aluminium circle But can we really claim scrap shortage if t/a* in Europe or t/a* globally are NOT coming back into the aluminium loop? Do we accept that these volumes will even grow? Or do we need a new business model to enhance collection? *IAI

16 The Aluminium Pool PRIMARY (54.2) SECONDARY (35.6) ALUMINIUM PRODUCTS (88) one-off applications not yet collected (e.g. landfill) technical losses SCRAP POTENTIAL in million tons; source: CRU for 2014

17 Why is more collection not happening? Whatever post-consumer alu scrap is collected is recycled. In these cases the value of post-consumer alu scrap guarantees its collection and recycling by itself. However there is post-consumer alu scrap which does not fully covers the cost of collection, sorting and recycling at least not on the first glance. Even in these cases the value of post-consumer alu scrap normally contributes to larger extent to the economics of recycling processes if collected (e.g. alu closures in glass or even thin foils in flex pack recycling processes). In some packaging cases special incentive systems (e.g. deposits for bev cans) or legislative framework (e.g. green dot systems) support collection of post-consumer alu scrap.

18 How to improve the sustainability of aluminium through recycling Robbing Peter to pay Paul Buying available scrap to increase recycled content in a given product is reducing availability for scrap in other products and does not improve the overall sustainability of aluminium products. CO 2 a new currency? Growing Peter s Potential to feed Paul s Future Demand Increasing the availability of scrap by enhancing the collection of not yet collected post-consumer scrap would reduce scrap shortage and considerably improve the environmental footprint of future aluminium products and their overall sustainability.

19 Who has an interest to improve collection? IAI/primary: greening the Alu Story Secondary Smelters: reduce scrap shortage Down stream producers: recycling up product environmental footprint down Competitiveness increase for each

20 Who has an interest to improve collection? IAI/primary: greening the Alu Story Secondary Smelters: reduce scrap shortage Down stream producers: recycling up CO² product footprint down Regulators/Governments: reduce CO² footprint of economy increase circular economy = reducing material losses further

21 Parameters to overcome the Scrap Shortage and Non-Collection-Paradox Capex Primary: 3.650/t* Should be benchmark for scrap collection investment and its possible financing ETS Carbon Off-Setting programs Scrap value (after collection) More scrap available = worth a premium for the secondary industry? Reducing carbon footprint of the Aluminium Story = worth a premium for the primary industry/iai? Consortium of interested parties needed to establish enhanced collection as a new business model? *CRU, greenfield projects in the world ex China 2014

22 Thank you! Visionars invited to join brainstorming on new business model Collection & Recycling Foil Rolling Container Household foil Alu Closures Flexible Packaging