Recycling - Then and Now - Adapting to the changing market - City of Chesterfield, Missouri
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Recycling - Then and Now Adapting to the changing market
History of Recycling
• Curbside recycling
became common in the
1980s.
• On average, Americans
recycle 66 million tons
of material each year.1
• The U.S. used to send
4,000 shipping
containers to China
every day. 2
1
2
NY Times, May 29, 2018
2 PRI, January 1, 2018
Single-Stream Recycling
The way most Americans learned how to recycle
PROS
• Residents put all their recycling items into one bin
because the recycling facility sorts it for them.
• High participation rate
• High diversion rate (from landfill)
CONS
• Resulting high contamination
• Residents put a lot of non-recyclable items in their
recycling bins, which contaminates the good recyclables.
• Common contaminates include plastic bags, food, liquid,
garden hoses, toys, clothing and diapers.
In 2019, the national average contamination rate was 30%
3
China Sword
A disruption in the global recycling industry
99.5%
• In December 2017, China announced Purity
Standard
their environmental initiative, National
Sword, to reduce pollution.
• China reduced the acceptable
contamination level of imported
materials from 3% to 0.5%.
• China banned all mixed paper from
import, regardless of contamination
levels.
4
Shift in Commodity Markets
Exports of plastic waste, pairings and scrap from G7 countries (‘000 tons)
Before China Sword After China Sword
China now
China imports
China Sword
Where are U.S. curbside recyclables going?
Pre-2018 Post-2018
~40% to China ~1% to China
& Hong Kong & Hong Kong
Chinese policy has caused a permanent change to global commodity markets.
6
Source: Financial Times, Oct 24, 2018
Ripple Effects of China Sword
• Commodity values of recyclables have significantly
decreased.
− An average ton of mixed paper sold for approximately
$110 in 2017. By 2019, the price dropped to $5 per ton.
(Source: RISI PPI-PPW)
• China Sword has affected every single state in the US.
− Some cities are suspending curbside recycling pickup,
sending recyclables to landfills or incineration.
• Republic Services lost an estimated $150 million in
revenue in 2018.
− Hundreds of other recycling programs across the country
are collapsing due to significant increased costs and
decreased commodity values.
7
Recycling Economics
It’s time to face the uncomfortable economics behind
household recycling
• The actual cost of recycling has been
subsidized by the value of the recyclable
The Business commodity at market.
and Economic
Model is • Companies collecting recyclables have been
Broken charging the resident a price that does NOT
fully cover the cost.
• America does not know what to recycle
Contamination
due to a lack of public education.
is a Big Issue
• Contamination drives additional costs to
separate the garbage out of the recycling
stream and dispose of it properly.
• Many forms of plastic are becoming
Changes in unmarketable, and therefore unrecyclable.
Material
Trends • People are reading their news online instead of
on a newspaper.
• Light-weighting: Lighter water bottles means it
takes almost twice as many to create one ton. 8
Opportunity for a Sustainable Future
If we want to continue recycling, we need to create change
• We need to build a sustainable
recycling program that does NOT rely
The Business on the commodity value.
and Economic
Model is • Amend contracts to reflect the actual
Broken cost of recycling, while incentivizing
residents to become better recyclers.
• Increase public education to teach
Contamination how and what to recycle.
is a Big Issue
• Republic Services has launched a
national education campaign called
Recycling Simplified.
Changes in
• Re-evaluate what materials should and
Material shouldn’t be recycled.
Trends
• Consider removing certain items from
the recycling stream, like glass.
9
National Consumer Survey about Recycling
2% 2%
Most Recycling
Important Importance 13%
Characteristic 28%
(n=2,737)
in a Waste 36%
42%
Provider
(n=1,433)
41%
36%
Municipal residents value price and 83% of residents view recycling as
environmental solutions equally. important or critically important.
Source: Cicero Group, Recycling W2P Study, Oct-2018 Source: Cicero Group, Recycling W2P Study, Oct-2018
Q-17:Please select your top 3 most important characteristics in order. Q-20: From your perspective, how important is recycling? 10National Average Cost of Recycling
($4.00/Mo) + ($2.50/Mo) + ($0.50/Mo)
- $1.50/Mo = ($5.50/Mo)
11National Consumer Survey about Recycling
Municipal $26.00 $25.70
Resident $25.50
Willingness $25.00
$24.50
to Pay
(n=1,433) $24.00
*
$23.50 $23.16
$23.00
$22.50
$22.00
$21.50
MSW Recycling
Material Solid Waste
AKA: Trash
Container
Municipal residents are willing to pay even more for recycling than MSW*
12
Source: Cicero Group, Recycling W2P Study, Oct-2018 * WTP finding based on the national average MSW price point of $23.16.
Q10: What do you consider to be a fair monthly price for the once-a-week pick-up of a single garbage container?
Q11: What do you consider to be a fair monthly price for the once-a-week pick-up of a single recycling container?Recycling Benefits the Economy
EPA’s Key Findings from their 2016 Recycling Economic
Information (REI) Report
Recycling and reuse activities in the U.S. accounted for:
• 757,000 jobs
• $36.6 billion in wages
• $6.7 billion in tax revenue
Every 10,000 tons of recyclables creates 15.7 jobs.
This is expected to increase now that the U.S. is expanding recycling facilities.
13
Source: EPA, 2016 REI ReportWhat Happens if Recycling Stops?
Not utilizing
Valuable natural
recovered materials
resources will not
in new products can
be returned to
significantly
manufacturing,
increase
hindering circular
greenhouse gas
economies
emissions
Critical disposal Discontinued
infrastructure recycling programs
(i.e. landfills) and will be very difficult
capacity is to restart
consumed more
rapidly
Eliminating recycling programs will increase the cost of MSW disposal services.
14Taking Action
Republic Services is committed to building a sustainable
recycling business model.
2.5 Billion Media Impressions Recycling Simplified
Republic Services has garnered 2.5B This campaign is a simplified
media impressions regarding education plan for residents,
our recycling education. businesses, and schools.
15Recycling Simplified
We are a leader in recycling education, teaching communities
what to recycle and how to avoid contamination.
Recycling Resources for:
• Residential • Business
• Municipal • Media
Public Education Materials:
• Website • Lesson Plans
• Print Ads • Reference
• Billboards Guides
• Brochures • Post Cards &
Bill Inserts
RecyclingSimplified.com
16National Awards
We are leading the way in our industry, receiving notable
recognition and rankings for our 2018 sustainability
achievements.
Barron’s 2018 Ethisphere 2018 Forbes 2018 2018 Best Places to
100 Most Sustainable World’s Most Ethical The World’s Most Work for LGBTQ
Companies Companies Innovative Companies Equality
Great Place to Work Dow Jones CDP RobecoSAM
Certified Aug 2018- Sustainability Indexes Driving Sustainable Sustainability Award
Aug 2019 Economies Gold Class 2018
17RecyclingSimplified.com
• Overview of Website
− Video “recycling basics”
− Recyclingsimplified.com/recycling-basics
− Recyclingsimplified.com/expert-tips/
• How a MRF works
− YouTube.com – Republic Recycles, N Texas facility
− http://www.ninenet.org/blogs/living-st-louis/recycling/
18Let’s Partner
Together, we can educate our community to create
better recyclers, reduce contamination, and create a
sustainable recycling model.
19Thank you.
Susan Piazza
spiazza@republicservices.com
618-581-8578
Municipal Manager
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