The environment could be the next victim of the credit crunch

As world demand for commodities such as steel, paper and plastics fall as a result of the shrinking global economy, UK recycling levels could suffer in an unexpected twist stemming from the so-called "credit crunch".

Paper mills across the UK, Europe and beyond are significantly reducing imports of paper and board for recycling and, already, the prices paid to waste producers for these materials is falling.  There are fears that the UK recycling industry will not have sufficient capacity to store recyclables until the market stabilises, which may lead to much of the hard work of the last decade being undone as materials like this are forced back into landfill.

Recycling exports are expected to fall

Additionally, China, the worlds' largest net importer of scrap metals is apparently curbing inputs as a consequence of falling demand for steel.

Lee Petts, managing director at Remsol oberves "It is likely that the worsening economic outlook will see demand for many types of recyclate decline significantly and rapidly in the next few months.  UK waste producers need to brace themselves for the prospect that they may soon have to pay to recycle things like scrap metal for which they have in the recent past been able to achieve free disposal or even a small payment."

Homeowners and Local Authorities are also likely to be hit if markets for recyclables begin to suffer.

For help implementing waste minimisation strategies that could reduce your exposure to these and other changes, contact Remsol.