On the 21st, at the International Recycling Material Conference hosted by MRAI (Material Recycling Association of India) in Jaipur, India, a panel discussion was held with representatives of major recycling associations.
“The Future of the Recycling Industry and Trade Challenges” as Discussed by Leaders from India, Europe, the United States, and the Middle East Amid Geopolitical Turmoil
At the international conference hosted by MRAI (Material Recycling Association of India), representatives from India (MRAI), Europe (BIR: Bureau of International Recycling), the Middle East (BMR: Bureau of Middle East Recycling), and the United States (REMA: Recycled Materials Association) gathered in one place.
At the conference, active discussions were held on maintaining supply chains amid rising geopolitical tensions, concerns over protectionist trade policies, and regional initiatives to realize a circular economy.
Below is a report highlighting the key presentations and Q&A from each region.
1. India (MRAI): A Rapidly Growing Market and Challenges in Institutional Reform
MRAI emphasized that by 2050, India has the potential to create a market value of 2 trillion USD and approximately 10 million jobs from the recycling industry alone, highlighting progress in strong policy frameworks developed in cooperation with the government.
• Major Policy Initiatives:
- National Steel Policy and Scrap Recycling Policy: Promote sustainable steel production.
Currently under revision, with consultations expected to take place soon. - Introduction of EPR (Extended Producer Responsibility): Applied widely to non-ferrous metals, tyres, batteries, waste oil, electronic waste (E-waste), and more.
In particular, EPR for non-ferrous metals is scheduled to be implemented from April. - Automobile Recycling (ELV): Currently voluntary, but MRAI continues lobbying for mandatory implementation.
Mandatory adoption aims to move away from the informal sector.
*This point will be reported separately.
• Challenges and Recommendations:
- Securing Raw Materials: Domestic scrap generation alone is insufficient, resulting in high dependence on imports.
MRAI is calling for the elimination (zeroing) of import duties on scrap such as aluminum. - GST (Goods and Services Tax) Issues: The current high tax rate of 18% benefits the informal sector that engages in tax evasion.
MRAI strongly recommends reducing GST to 5% in order to eliminate illegal transactions and improve industry health.
2. Europe / Global (BIR): Crisis of Free Trade and the Importance of Data
BIR representative Ms. Susie Burrage expressed strong concern over the global increase in trade barriers.
She called for a shift in perception from “waste” to “valuable secondary raw materials” and emphasized the following points:
- Warning Against Protectionism:
Movements such as the EU Waste Shipment Regulation (EUWSR) and the Critical Raw Materials Act are strengthening inward-looking policies.
Export restrictions disrupt global supply-demand balance and increase recycling costs. - BIR’s Initiatives:
To protect free and fair trade, BIR conducts global flow studies and future forecasts for ferrous and non-ferrous metals, promoting “data-driven policy advocacy.” - Visualization of Environmental Contribution:
Demonstrating that the use of recycled materials is essential for decarbonization and appealing to policymakers.
3. United States (ReMA): Growth Amid “Chaos” of Tariffs and Regulations
ReMA (formerly ISRI) representatives, including Mr. Robin Wiener, described the U.S. policy environment as “chaos,” while emphasizing the robustness of U.S.–India trade.
- Changes in the Trade Environment:
Tariffs that were previously around an average of 2% have become more complex and increased due to multiple systems such as Section 232 of the Trade Expansion Act. - Strength of U.S.–India Trade:
Despite challenges, India is the third-largest trading partner for the U.S., and exports of recycled materials have grown sixfold in value over the past 20 years. - Fight Against Export Restrictions:
Successfully blocked a proposed ban on copper scrap exports.
Currently working closely with the White House and Congress to prevent the expansion of regulations to aluminum, nickel, and other materials. - Issue of Definitions:
Expressed concern that under the influence of the Basel Convention and others, “recyclable raw materials” are being broadly interpreted as “waste,” hindering trade, particularly in electronics-related sectors.
4. Middle East (BMR): Transition from Oil to a Recycling Powerhouse
The BMR representative passionately spoke about how the Middle East is transforming from a mere energy supplier into a “global recycling hub.”
- Strategic Transformation:
Countries such as Saudi Arabia and the UAE have set net-zero targets for 2030–2050 and are positioning recycling as a strategic resource. - Successful Policy Example (UAE):
Achieved the effective elimination of VAT (Value Added Tax) on scrap transactions and introduced the Reverse Charge Mechanism (RCM), long sought by the industry.
This has reduced fraudulent transactions and created an environment where honest businesses are rewarded. - Cooperation with India:
Proposed a “strategic partnership” combining Middle Eastern logistics and infrastructure with India’s technology and market scale.
The slogan presented was “One language, one vision, one goal.”
Q&A Highlights
Q1: Will India’s aluminum scrap import duty be abolished?
A (MRAI): Very optimistic. The government is being persuaded that materials are necessary for domestic production and that barriers should be removed. A resolution is expected in the next budget or within 6–12 months.
Q2: Will the EU Waste Shipment Regulation (EUWSR) stop exports to India?
A (BIR): The regulation will come into force on May 27, but since audit standards and conditions for non-OECD countries, including India, have not yet been announced by the EU, the situation remains unclear. BIR continues to urge the European Commission to ensure trade is not disrupted.
Q3: Are U.S. tariff policies and uncertainty discouraging corporate investment?
A (REMA): While uncertainty exists, companies are not stopping investment. Instead, industry restructuring through M&A is progressing. However, conditions are harsh for small and medium-sized family-owned businesses. Even under a new administration (implying a future Trump administration), it is uncertain whether tariff policies will be dramatically relaxed, but coordination with the manufacturing sector as a whole will continue.
Q4: What is the impact of VAT measures in the Middle East?
A (BMR): Although only introduced on January 14, legitimate operators are very welcoming. Tax-evasion-oriented players are being eliminated, and the market is expected to become healthier.
Conclusion
This conference highlighted that all regions are facing common waves of strengthened environmental regulations and resource nationalism. Amid these challenges, MRAI, BIR, REMA, and BMR unanimously concluded that it is essential to globally unify the recognition that “recycled materials are resources, not waste,” and that international cooperation and data sharing are indispensable to maintaining free trade.
(IRUNIVERSE Rohini&Tanamachi)
