VDMA Calls For Secondary Market in Raw Materials Across EU

Some interesting thinking from the VDMA on a secondary market for raw materials across the EU. An internal supply chain of recovered materials from end-of-life products like cars, electricals and appliances would reduce reliance on imports, plus product miles travelled;

Europe wants to become climate-neutral, and to achieve this, the circular economy must find its way into all production processes. On the one hand, this is a real stress test for everyone involved, but on the other hand, circular processes also offer enormous potential for medium-sized mechanical and plant engineering companies. The Circular Economy Act announced by EU Commission President Ursula von der Leyen is an important signal, but the circular economy can only succeed if certain conditions are met.

This is essential: A European internal market for secondary raw materials is needed.

This means that it must be possible to trade and utilise secondary materials at competitive prices within the EU. This also requires quality criteria and standards for secondary raw materials and their reuse. “Due to volatile prices, the market is currently under severe pressure and secondary plastics in particular are often more expensive and therefore not economically attractive,” says Dr Sarah Brückner, Head of the VDMA Environment and Sustainability Department. “Both the link between quantity and quality and the price structure are simply not right today, and this is where the EU can set a positive course with concrete measures,” says Dr Brückner.

One approach to strengthening the secondary raw materials market in Europe could be a product-specific recyclate utilisation quota. This means that a minimum quantity of secondary raw materials should be reused for certain products. This would allow the market to be reorganised and the price imbalance between recyclates and virgin materials to be better balanced.

However, it is important that this quota regulation and market surveillance apply throughout Europe and are implemented swiftly. A further prerequisite is that implementation is carried out with little bureaucracy and without significant negative economic impact, particularly on small and medium-sized enterprises and competitiveness.

Avoiding a patchwork in the circular economy

According to von der Leyen’s plans, the Circular Economy Act is to be published in the coming legislative period. The VDMA has clear ideas on this: “We hope to avoid a patchwork in the circular economy with the help of the Circular Economy Act. The situation in Europe is currently rather chaotic when it comes to national waste regulations, materials policy and circular product policy measures,” says Dr Brückner. National measures, such as the draft of a national circular economy strategy (NKWS) recently published in Germany, must fit into the European framework; only then will they lead to long-term success, emphasises the VDMA expert.