The Value Proposition
• By adopting recycled aluminium, manufacturers can realise cost savings, reduce environmental impact, and position themselves as leaders in sustainable and responsible business practices.
• Addressing threats to the UK aluminium market is essential to unlocking the full potential of recycled aluminium and driving its adoption across various industries.
0333 240 9735
The Voice of the UK Aluminium Industry
www.alfed.org.uk
Unlocking
The Economic Viability Of Recycled Aluminium In Manufacturing: The Packaging Perspective
Market and Recycling Rates
Government Policy and Promoting Recycling – Intrinsically Linked?
So what? – Takeaway thoughts
SO, WHAT’S THE BIG PICTURE?
Context – Market & Recycling Rates
UK Market – The Biggest In Europe! Recycling Rates Keep Pace!
GOVERNMENT POLICY & PROMOTING RECYCLING – INTRINSICALLY LINKED?
Recycling Aluminium Packaging Is Already Viable!
68% 82%
Recycling Rate for All Aluminium Packaging in 2021
Recycling Rate for Aluminium Beverage Cans in 2021
So, how can this be improved?
Government Policy? It can be good… …or very bad!
Policy & Recycling – A Question of Good Design!
The Opportunities…
• A well-designed Deposit Return Scheme for Drinks Containers could:-
– Bring recycling rates to 90%...
– …At a low cost for brands who use this sustainable and valuable material…
– …provide high quality recyclate for the circular economy…
–
…And revolutionise attitudes to recycling!
• A well-designed Extended Producer Responsibility (EPR) system could:-
– Drive collection and recycling rates of all aluminium packaging typed up…
–…Incentivise the use of recyclable packaging…
– …And spark innovation in recycling technology and systems!
The Risks…
• A poorly-designed Deposit Return Scheme for Drinks Containers could:-
– Damage the market for cans (by up to 25%!), particularly multipacks…
– …needlessly charge those wanting to use cans for setting up YET ANOTHER ineffective collection system…
–
…annoy the public and ‘switch them off!’
• A poorly-designed Extended Producer Responsibility (EPR) system could:-
–
Fail to take account of circular economy potential of aluminium compared to other materials…
– …be so onerous that it suppresses innovation…
– …AND lack the ‘teeth’ to actually deliver recycling rate improvements, being an expensive ‘white elephant.’
So, how does our industry help with getting the right policy?
Vision
A world where consumers know that they can recycle their empty aerosols in their kerbside recycling, and be confident that their packaging waste will be collected, sorted and recycled responsibly.
Key Messages
More aluminium packaging than ever is being recycled, but there’s room for improvement…
…policy can help, but also hinder,
…collective action by industry CAN HELP GET GOOD POLICY…
…and realise the circular economy for aluminium packaging!
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Comparison of aluminium price, LME vs UBC baled scrap vs old rolled scrap
Data source: letsrecycle.com
Scrap,
Casting, Extrusion, Forming, Joining, Testing,
Design & CAE/FEA, LCA
Design, Specifications,
Manufacturing, Testing
“
Economic Viability is informed by financial analysis but takes a broader approach to costs and benefits than just financial considerations.
The economic analysis typically encompasses a larger geographic scale, examining the national or regional implications of the project and social and environmental externalities.”
Hydropower sustainability council: Hyrdosustainability.org
Environmental impact – Net Zero
• Net Zero can’t wait to 2050
• Delink growth in aluminium production and GHG emissions
• Electricity decarbonisation, direct emissions reduction and resource efficiency
• “To avoid the GHG emissions overshoot, the increase in the demand for virgin aluminium would need to slow and even reverse from current levels.” Eunomia report, 2022, Is Net Zero Enough for the Materials Production Sector?
https://www.eunomia.co.uk/reports-tools/is-net-zero-enough-for-the-materials-production-sector/
Recycling is essential but insufficient
Unlocking the economic viability of recycled aluminium
Exporting economic opportunity
Export millions of tonnes of aluminium as low grade material, import as high grade for billions of £
Demand for material
Customer awareness and demand for recycled materials is increasing.
Environmental impact
Demand for aluminium is set to increase significantly – must use existing material
Under increasing scrutiny. Recycling can reduce impact but only part of wider solution.
Circular Economy Innovation Network -
Aluminium
Greener aluminium Maximise re-used Do more with less
Alloy design Disassembly & Reuse Certification
Maintain value
Increase recovery systems
Innovative thinking
Capability training
Shorter closed loops
New revenue streams
Pathway to accelerating circularity of aluminium
Related Innovate UK programmes & opportunities
11th October – Webinar
“Taking action towards circularity in aluminium”
Transforming Foundation Industries Resource Efficiency for Materials & Manufacture
Cross-sector collaboration between the Foundation Industries
Metals, Cement, Ceramics, Chemicals, Glass, Paper
Inaugural Innovation Pavilion here at UK Metals Expo Stand T34
UK to be a leader in resource efficiency Across all materials
Expressions of interest:
Rapidly find innovative solutions to materials and manufacturing challenges
Closes 30th Sept.
It is no coincidence that the UK manufacturing sector is at one of its weakest points in history.
The governments duty is to create a competitive trading environment that allows the UK industry to succeed, grow and lead the green transition.
• Enables growth in the green economy
What steps are needed to implement?
• We need clear objectives
• We must learn from international best practice
• It should be implemented and governed by a separate body
• It needs to deliver on key commitments (skills, infrastructure, finance, R&D, etc...)
Considerations for a successful strategy:
• Should include horizontal and vertical elements to inspire an integrated industry that accounts for energy and climate policies
• Must adapt to changing business environments
• Mustn’t protect businesses from transitional change
• Should create conditions for new ideas to be commercialised and businesses to grow
The role of aluminium:
• Key to driving industrial change and sustainable progress
• Has a significant strategic value to future innovation across multiple sectors (increased investment is essential)
• Perfectly positioned to capitalise on demand for sustainable materials
• Contributor to key industries
• Essential to driving future innovation
0333 240 9735
www.alfed.org.uk