Low raw material costs have dealt a heavy blow to the recycling
industry. The French recycling federation (FEDEREC) believes the sector
needs a complete overhaul to stay afloat in the coming years.
FEDEREC
published its view of the future of recycling in a white paper
entitled "The recycling industry by 2030." In the preface to this
70-page document, a frank discussion of the problems facing the industry
and how they might be solved, Corinne Lepage, a Republican politician,
evoked a sector "devastated by an oil price that is so low that it is
driving us back towards a linear economy, as it is cheaper today to buy
primary raw materials than recycled raw materials".
But according
to the former French environment minister, other factors also
explain "this economic nonsense, which is made possible by an absence of
pressure to absorb external costs, particularly the cost of carbon,
which burdens recyclers and the whole of the reuse industry".
The
once-flourishing recycling sector has been in stormy waters for several
years. The white paper points to "decreasing volumes, falling raw
material prices, pressure on selling prices, margin erosion, the
appearance of new competitors and new rules, intensifying competition at
all levels..."
With oil at only $35 per barrel, Yann Vincent, the
coordinator of the white paper and president of FEDEREC's research and
innovation committee, believes the industry must "find ways to rethink
its activity".
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