Indian Recyclers Urge Intervention Against EU's Proposed Waste Ban

In a thorough eight-page letter addressed to India's Ministry of Commerce and Industry, Secretary General Amar Singh urgently requests for government intervention before the finalization of the list in November. Singh argues that the proposed list represents a trade barrier rather than an environmental initiative, urging the Ministry to approach the issue with an emphasis on India's trade and raw-material security, especially considering the resource-protection measures in Europe. He suggests that the matter should be addressed through appropriate India-EU bilateral trade mechanisms, specifically within the frameworks of the India-EU Free Trade Agreement (FTA) and the broader goal of fostering resilient and mutually beneficial supply chains.

India's Plea for EU Metal Scrap Imports

The letter highlights India's need for imported metal scrap as a crucial secondary raw material, emphasizing the EU as a significant supplier (refer to Box). Singh argues that EU restrictions on metal scrap exports contradict the core principles of a circular economy. If recyclable metal scrap is hindered from reaching countries with established recycling facilities and industrial demand, it could lead to a build-up of scrap in the originating country, diminish its economic value, and weaken incentives for collection, sorting, and recycling.

MRAI Criticizes EU's Unfair Scrutiny on Metal Recycling

MRAI argues that the broader policy direction of the EU aims to retain a larger amount of valuable secondary raw materials, specifically metal scrap, within its borders for use by local industries. This initiative is further propelled by the EU’s Carbon Border Adjustment Mechanism, which incentivizes European steel and aluminum producers to adopt metal scrap in an effort to lower their carbon emissions.

‘These developments indicate that the proposed restrictions are not merely an environmental measure but also have a clear element of resource protectionism – aimed at retaining valuable metal scrap within Europe and securing greater availability of secondary raw materials for European industry.’

EU Dominates India's Metal Scrap Imports

In a significant trade relationship, the European Union has emerged as a key supplier of metal scrap to India, according to the MRAI. Last year, India imported approximately 2.03 million tonnes of aluminum, 0.47 million tonnes of copper and copper alloy, 0.21 million tonnes of lead, and 0.11 million tonnes of zinc from various global sources. Notably, the EU contributed around 20% of the aluminum scrap, 22% of the copper and copper alloy, 20% of the lead, and a significant 40% of the zinc scrap imports that India procured during the period. Moreover, the country also imported about 8.45 million tonnes of ferrous and stainless steel scrap last year, with around 0.79 million tonnes originating from EU nations, highlighting the region's substantial role in India’s metal scrap supply chain.