Global recycling industry to see major shift
According to trade expert Juan Verde, the global recycling industry could benefit from the rising demand for secondary materials as global trade structures and power relationships change. Verde, who advised US presidents Joe Biden, Barack Obama, and Bill Clinton, made these comments at the Bureau of International Recycling’s World Recycling Convention in Bangkok, Thailand.
Verde stated that the global sustainability agenda is not under threat, but rather it is being re-labelled, with recycling remaining a critical part of the new industrial setup. He noted that recycling is still a vital component of the global sustainability agenda.
The trade expert noted that the rules that once applied to free trade and the global economy are no longer valid, and a new world order is emerging. This shift is mainly driven by the rise of China and emerging trends in technology, supply chains, conflicts, and protectionism. The rise of China is a key factor in this shift.
One major consequence of this shift is a race for resources, especially critical materials essential for emerging technologies such as 5G, artificial intelligence, quantum computing, biotechnology, and space technology. Verde believes this will transform the world economy and the recycling industry in ways that are not yet fully understood. The impact of this transformation will be significant.
Verde also highlighted the growing trend of regionalisation and ‘friend-shoring’, with major economies like the US reshoring key industries to secure supply chains. This new protectionism is expected to force countries to invest in ramping up their recycling capacity. The US is one of the countries leading this trend.
