This call was made during a visit by the Executive Vice-President of the European Commission, Stephane Sejourne, to Hydro's aluminium recycling plant in Luxembourg's Kleve.
The Kleve plant recycles post-consumer aluminium waste from products such as automobiles, construction, and infrastructure, with an annual capacity of 115,000 tons. The visit discussed aluminium waste exports, the EU's Waste Transport Regulations, and the framework conditions for aluminium recycling in Europe.
The European aluminium recycling industry is facing increasing difficulties in obtaining sufficient waste. Since 2019, EU aluminium waste exports have increased by more than 50%, reaching approximately 1.26 million tons per year. European buyers can pay higher prices than European recycling companies, partly due to subsidies and other market distortions. This has weakened the basis for the operation and investment of European recycling capacity.
Paul Warton, Executive Vice-President of Hydro's Compression Business and President of the European Aluminium Association, said: "Europe has invested heavily in aluminium recycling capacity, but recyclers are struggling to obtain sufficient waste at competitive prices."
"European buyers, with subsidies and other market distortions, can pay higher prices, and European plants have to bear the pressure of declining capacity utilization and weakened investment confidence. We need effective measures to address this imbalance."
Warton spoke at the event in Kleve, stating that Hydro supports limiting the export of aluminium waste classified as waste to non-OECD countries in accordance with the Waste Transport Regulations. However, the effectiveness of this measure will depend on whether it can block possible evasion routes.
Warton said: "The proposed method helps solve the problem, but the coverage cannot be limited to materials officially classified as waste. The export of waste that has received 'waste termination' recognition must also be dealt with, as such waste is currently freely exportable to OECD and non-OECD countries. Otherwise, a large amount of waste may continue to flow out of Europe."
Hydro welcomes the efforts of the European Commission to address the issue of aluminium waste exports. However, the effectiveness of the measures proposed in the Waste Transport Regulations will depend on how much waste loss it can reduce in practice. If it cannot make European industry easier to obtain waste, supplementary measures should be introduced, including blocking evasion loopholes and imposing export fees on a wide range of products and regions.
Warton said: "Hydro has closed four recycling facilities in Europe in the past two years. Strong and effective policy actions are needed to avoid further closures."
Hydro also calls for the revision of other EU policy tools affecting aluminium recycling, including blocking the waste loophole in the Carbon Border Adjustment Mechanism (CBAM) and introducing measures to increase the demand for recycled aluminium.
