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The Business Case for Increased Recycling Beth Schmitt - Alcoa 27 October, 2011 1.

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Presentation on theme: "The Business Case for Increased Recycling Beth Schmitt - Alcoa 27 October, 2011 1."— Presentation transcript:

1 The Business Case for Increased Recycling Beth Schmitt - Alcoa 27 October,

2 Recycling and our Social License 2 Mega trends that support future global growth of aluminum also point to a mandate to think of our material as a technical nutrient – a manufactured natural resource, or secondary raw material, rich in energy. Technical Nutrients must be incorporated into manufacturing

3 What is the Problem? 3 U.S.: 97 billion ROW: 99 billion Half the worlds cans are consumed in the U.S., yet 42% of them are still going into the trash We have the largest market for these cans, but one of the lowest recycling rates among developed countries. Total Market – 196 billion 41 billion trashed ~70% recycled

4 The result? About 1.3 billion lbs or 575 KMT of metal with a strong market is being buried. Equivalent of 2 smelters are buried in landfills every year. 4 What is the problem? 41 billion trashed

5 What about the Southeast? 5 The recycling rate in the SERDC region is well below national average b cans, or >500 mm lbs buried each year. Equivalent of 10,000 airplanes!

6 Meanwhile, the Southeast-based aluminum industry is short of cans! 6


8 Recycling = Jobs! 8 CRIs recent study supports a view that up to 7 FTE in collection jobs are created per 1000 mt of material 500mm lbs or 33kmt of un-recycled aluminum in the 11 SERDC states 33.2 thousand FTEs in SERDC region Aluminum Association estimates recycling jobs would increase to > 100 if 75% rate achieved. Source: Container Recycling Institute

9 What can be done? Policy support is imperative Disposal bans Mandated or incentivized recycling Logical, fair, and effective EPR Pay as you throw

10 Pay-as-you-throw – logical, incentive driven change 10 Source: Skumatz Economic Research Associates, Inc. analysis

11 PAYT Effects 11 Effective: Demonstrated in cities DOUBLES recycling Diverts 1/5-1/6 from landfill! Most effective strategy 3x more effective than RecycleBank and BEST of dozens of other program options assessed) Strong job creation (13:1) YW Recy Source Redn (SR) 3 PAYT effects Source for graphs and figures: Skumatz Economic Research Associates, © all rights reserved; jobs data computed using ILSR data.

12 PAYT/VR communities PAYT/VR communities PAYT/VR communities Key PAYT/VR communities More than 200 PAYT/VR communities Superior, CO, survey © SERA, all rights reserved, may be used with permission of author 7,100 SERAs 2006 survey found almost 7,100 PAYT/VR communities and only 3 states without programs SERAs 2006 survey found 25% of population with PAYT available. White indicates no programs in the state Pay-as-you-throw (PAYT) Variable Rates Communities

13 Summary The U.S. is the leading consumer of aluminum cans, but we lag far behind the rest of the world in recycling The Southeast is the largest can consuming region, but reports the lowest recycling rates in the U.S. Meanwhile the domestic aluminum recyclers are all located in the SERDC region U.S. competitiveness, job creation, and energy savings are all outcomes of increased recycling Policy support to provide incentives are critical 13

14 Thank you! 14

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