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Saturday, 4 May
business

The European Union may ban scrap metal exports by December

The European Commission could ban scrap metal exports by December despite industry protests, the Bureau of International Recycling (BIR) conference in Brussels announced on Tuesday, October 26 according to "Ukrainian News".

According to the report, the European Commission has proposed restrictions on the export of “waste” material, and BIR representatives have been trying over the past year to convince the EU’s executive branch, the European Commission (EC), that it should no longer regard processed, clean scrap of high metallic content as “waste.”

According to BIR, an appropriate ban on the export of scrap metal may be introduced as early as November 17, when the final version of waste management regulations is published.

The European Commission’s intention is to avoid any adverse “effects on the environment and public health caused by shipments of waste to third countries outside the EU,” according to its website.

It's worth noting that in June 2021, a group of about 70 members of the European Parliament appealed to the European Commission to ban scrap metal exports.

At the same time, it was proposed to extend this moratorium only on those countries that do not meet EU environmental standards. Most of these countries are not members of the Organization for Economic Cooperation and Development (OECD).

This message was initiated by European parliamentarians from Italy. Italian metallurgical companies, dependent on scrap imports are most concerned about scrap metal possible shortages in the EU. The use of scrap metal reduces the consumption of original raw materials and thereby reduces carbon dioxide emissions by the metallurgical industry.

According to “Ukrainian News”, on September 30, the Ministry of Economy published a draft resolution of the Cabinet of Ministers on the temporary ban on the export of scrap metal from the country until the end of 2022 in response to the relevant appeals of Ukrmetallurgprom, Ukrtruboprom and the Federation of Employers of Ukraine to the top leadership of the country to impose a ban till the end of 2023 in order to ensure stable development of Ukrainian metallurgical industry.

According to statistics of the State Customs Service, Ukrainian enterprises in January-September this year increased exports of scrap by 18.1 times compared to the same period last year. The current export reached 455.4 thousand tons, which amounted to 175.6 million dollars. 87.25% of Ukrainian metal scrap was exported to Turkey.

The European Business Association also supported the initiative of the Ministry of Economy to temporarily ban scrap exports until the end of 2022, considering its positive effects on the environment. Member companies of the association believe that the adoption of the draft resolution will also have a positive effect on the metallurgical industry and the economy of Ukraine in general, in particular on the way to decarbonization.