The EU Circular Economy Package (CEP) adopted by the EU Commission on 2 December 2015 • An excellent starting position of aluminium • Our first analysis of the proposals / Aluminium is the poster child for the circular economy Aluminium is the material of choice for: Thanks to its durability and endless recyclability, of all the aluminium ever produced is still in use today. 75% Low carbon Resource-efficient packaging mobility Energy efficient building / Europe is #1 in aluminium recycling To maintain its leading position, Europe needs to invest in the circular economy / Aluminium is an energy bank • The energy required for aluminium primary production is “locked” in the metal. • Increasing recycling contributes to reducing Europe’s energy consumption and greenhouse gas emissions. When scrap leaves Europe, it is like exporting a battery that is 95% full. / Europe is facing a challenge when it comes to aluminium scrap availability In 2014 almost 1 million tonnes of aluminium scrap left Europe to other parts of the world. The energy contained in this scrap is close to: 5 / To make the circular economy work, we need to keep scrap in the loop The more we recycle, the less raw aluminium we need to import. • Maximise the collection of available aluminium. • Invest in more efficient sorting and treatment technologies an melting processes. / A level playing field for responsible recycling Keep SMEs in business and safeguard the competitiveness and innovation potential of the whole aluminium value chain. Ensuring higher health and safety standards Recycling processes in non-European countries tend to have lower health, safety and environmental standards. Initial analysis of the possible impact of the new Circular Economy Package The CEP consists of: Communication ‘Closing the loop – an EU action plan for the Circular Economy’ Revised legislative proposals on waste: o Directive on Waste (‘Waste framework Directive) o Directive on Packaging Waste o Directive on Landfill o Directive on electrical and electronic waste Several factsheets on ‘Closing the loop’, helping the consumer to choose sustainable products and services, addressing the production phase as well as on ‘clear targets and tools for better waste management’ and ‘from waste to resources’; Public consultation results EUROPEAN ALUMINIUM 8 EU Action Plan To complement the waste legislation, the EU Commission is proposing a set of « soft » measures (not mandatory). Most of them were already in the pipeline and are therefore on our radar screen: Production - - Ecodesign mandate (2015-2017) to the European standardisation organisation to include durability, reparability, recyclability of products in the ecodesign requirements - 2015 Guidance and promotion of best practices in the mining waste management plans 2018 Consumption - Evaluation of how current PEF pilots projects can be used to measure and communicate environmental information - 2016 onwards Waste management - Improved cooperation with Member States to combat illicit shipment of end of life vehicles - 2015 onwards Promotion of industry-led voluntary certification of treatment facilities for key waste/ recyclate streams – 2018 onwards Initiative on Waste to Energy (Energy Union) – 2016 Good practices in waste collection systems (in the 28 EU capitals) – 2016 onwards EUROPEAN ALUMINIUM 9 EU Action Plan (II) Market for secondary raw materials - Development of quality standards for secondary raw materials (in particular for plastics), in addition to better use of end-of-waste criteria – 2016 onwards Proposed legislation setting minimum requirements for reused water for irrigation and groundwater recharge – 2017 Analysis and policy options to address the interface between chemicals, products and waste legislation – 2017 Critical Raw Materials: improve exchange of information between manufacturers and recyclers on electronic products (2016), EU standards for recycling of electronic waste (2016) Construction and demolition waste: pre-demolition assessment guidelines (2017), voluntary recycling protocol (2016), core indicators for the assessment of the lifecycle environmental performance (2017) Innovation and investments: “Industry 2020 in circular economy” initiative with €650 million in the Horizon2020 programme EUROPEAN ALUMINIUM 10 Revised legislative proposals on waste – in general The main lines of the proposals: Common EU targets for recycling of 60% to 65% of municipal waste and of 65% to 75% of packaging waste by 2025, respectively 2030; Only time derogations (5 years) for Member States which are today at less than 20% recycling of municipal waste (Estonia, Greece, Croatia, Latvia, Malta, Romania, Slovakia); Binding landfill target to reduce landfill to maximum 10% of all waste by 2030 and a ban on landfilling of separately collected waste and economic instruments to discourage landfilling; Simplified and improved definitions and harmonized calculation methods for recycling rates; Concrete measures to promote re-use and stimulate industrial symbiosis; Economic incentives for producers to put greener products on the market and support recovery and recycling schemes (EPR schemes for packaging, batteries, electric and electronic equipment, vehicles, etc.) EUROPEAN ALUMINIUM 11 Definitions, point of measurement and calculations Alignment of definitions (municipal waste, construction and demolition waste, final recycling process, backfilling, etc.) via the Waste Framework Directive (WFD): o Final recycling process: ‘’the recycling process which begins when no further mechanical sorting operation is needed and waste materials enter a production process and are effectively reprocessed into products, materials or substances’’ Positive as the point of measurement moves from ‘collection for’ to ‘real’ recycling’ Might result into a drop in the results for some materials, limited risk for metals Calculations based on the weight of the input waste entering the final recycling process, but the weight of the output of any sorting operation may also be used, providing o such output waste is sent into the final recycling process and o the weight of the remaining materials and substances for disposal or energy recovery stays below 10% of the total weight recycled (= the maximum ‘impurities’ level) o Member States may take into account the recycling of metals that takes place in conjunction with incineration (= from the bottom ashes), providing these recycled metals meet certain quality requirements Very positive and essential for meeting the ambitious separate aluminium packaging waste recycling targets EUROPEAN ALUMINIUM 12 Packaging References to prevention but only concrete preparing for reuse and recycling targets by weight, incineration with energy recovery still possible for remaining non-recyclable fractions (mainly plastics); o All packaging: 65% in 2025 and 75% in 2030 o Per material (2025 to 2030), including a new split metal targets: o Plastics: 55% in 2025. no target for 2030 (to be defined) o Wood: 60% to 75% o Ferrous metal: 75% to 85% o Aluminium: 75% to 85% o Glass: 75% to 85% o Paper and cardboard: 75% to 85% Reference to the same calculation basis as defined in the WFD, thus including the metals recovered from the incineration of the bottom ashes – very positive! General requirements in the WFD for Extended Producer Responsibility schemes – not yet sure what this exactly means for the cost-sharing with public waste management operators Design for recycling: possibility for EPR to ‘modulate’ their costs on the basis of the real end-of-life cost of products, taking into account their re-usability and recyclability EUROPEAN ALUMINIUM 13 Construction and Demolition Waste o o Definition: Backfilling is still a material recovery operation but cannot be defined and thus calculated as ‘recycling’. The reprocessing of waste into materials that are used for backfilling operations shall be reported as backfilling; The Commission may develop guidelines for the interpretation of the definitions of recovery and disposal Positive, but we have to remain attentive o Target: The preparing for re-use, recycling and backfilling target for nonhazardous construction and demolition waste shall be increased to a minimum of 70% by waste not satisfying as we need separate material based recycling targets EUROPEAN ALUMINIUM 14 Scrap exports and monitoring Waste exported from the EU for preparation for recycling shall only count towards the attainment of the targets if the exporter can prove that the shipment of waste complies with the requirements of that Regulation and that the treatment of waste outside the EU took place in conditions that are equivalent to the requirements of the relevant EU environmental legislation Promotion of industry-led voluntary certification of treatment facilities for key waste/recyclate streams Stepping up enforcement of revised Waste Shipment regulation 2016 onwards: main focus on the new WSR is putting in place inspection plans by Member States including risk assessment sources of illegal shipments and performance of the inspections Development of quality standards for secondary raw materials EUROPEAN ALUMINIUM 15 Links to the new proposal (accessible in full screen) • Communication : Closing the loop - An EU Action Plan for the Circular Economy • ANNEX: EU Action Plan on Circular Economy • Proposed Directive on Waste • Proposed Directive on Packaging and packaging waste • Proposed Directive on landfill • Proposed Directive on electrical and electronic waste • European Commission Press release • European Commission MEMO EUROPEAN ALUMINIUM 16 Questions? Contacts: labberton@european-aluminium.eu garczynska@european-aluminium.eu lavorel@european-aluminium.eu Avenue de Broqueville 12 - 1150 Brussels, Belgium Phone +32 2 775 63 63 european-aluminium.eu EUROPEAN ALUMINIUM