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– Europe’s recovered paper industry is a global leader and collects more than 55 million t of recovered paper per year. A large part of that is converted within Europe and around 13 million t are exported every year. A new waste legislation in Spain that is supposed to promote recycling of recovered paper within Europe, has now given rise to debate among recovered paper traders and converters.
The heart of the controversy is a single paragraph of the 56-page law (Ley de Residuos y Suelos Contaminados) which was published in the Official State Gazette (BOE) on 29 July. Paragraph 16.3 of the law reads: “the proper authorities may take temporary measures to prioritise the recovery of waste materials within the European Union if environmentally justified.”
Recovered paper converters doing business in Spain take this paragraph to mean a strengthening of the domestic market. Spanish industry association Aspapel welcomes the paragraph and talks of “Recycling made in Europe” which will protect the environment and create “green” jobs. Increasingly higher deliveries of recovered paper to China jeopardised the success of the European recovered paper system and provoked a shortage of recovered paper at paper mills in Europe, said Carlos Reinoso, director general of Aspapel in a press release of the association.
On the other side of the debate is the association of recovered paper collectors and traders Repacar which is notably more critical of the new legislation. The association considers the flow of goods to Asia indispensable as there is not enough recovered paper converting capacity in Europe. In addition, Repacar forecasts a decline in recovered paper prices if restrictions are placed on exports to the Far East. “Any restriction on exports of Spanish recovered paper out of the European Union will result in an artificial oversupply of recovered paper. Prices in the domestic market will consequently fall notably below the price level in free international markets and at the same time undermine economic incentives to collect recovered paper in Spain”, the association writes.
Francisco Donoso, member of Repacar’s board and director general of Reciclajes Dolaf, told EUWID that he thinks the new legislation would limit free trade and be protectionist. Lower recovered paper prices in Spain would furthermore give domestic paper manufacturers advantages in competition with other European manufacturers.
Furthermore, Repacar does not want to accept the argument that local processing of recovered paper would cut CO2 emissions arising during transport to the Far East. The association says, recovered paper is being shipped in containers that have to go back to Asia anyway, whether filled or empty, and that therefore the transportation of recovered paper only closes an existing cycle.
So far, there are no details as regards the measures the new law allows. In the middle of August, Repacar itself made some suggestions that included granting financial advantages to recovered paper converters compared with virgin fibre converters, subsidising the transport of recovered paper within Europe and imposing sanctions on the sale of recycled paper outside of Europe as this leads to asymmetry in the balance of trade.
Spain exports around 9% of its recovered paper to manufacturers outside of Europe.
31.08.2011
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