In the wake of its recent World Recycling Convention, the Bureau of International Recycling has expressed concern regarding the effect of the current energy/cost-of-living crisis on the livelihood of its member companies in Europe and across the globe.
During the event in Dubai, most of the over 650 attending companies, many of which are SMEs, reported on the huge burden that rapidly escalating energy costs put on their operations, threatening their survival on the medium to long term. During all commodity sessions covering ferrous and non-ferrous metals including stainless steel and alloys, paper, plastics, tyres/rubber and E-scrap, reports of unprecedented pressure on profit margins, financial losses and bankruptcy came to light.
In addition, potential or forthcoming trade restrictions impacting exports of recycled materials will – if adopted – result in long-term market disruptions that will heavily impact circular value chains and therefore result in additional constraints for the recycling industry.
Subsequently, the BIR has urged national governments and international legislators to enact immediate financial aid for the recycling industry to prevent significant long-term damage to a sector that plays a pivotal role in the global circular economy and the protection of the planet.