Recycling industry hit by global economic crisis

The global economic crisis is having a negative impact on recycling in countries including the Czech Republic, largely dependent on selling its recyclable materials abroad. Now, sources say, the system is threatening to grind to a halt. The drop in demand from countries such as China, has left smaller municipalities in a bind, stuck with the tab of having to get rid of the material. What are possible solutions and what could happen next?

Earlier, Jan Velinger spoke to Vojtěch Kotecký of Friends of the Earth:

“In the long term there is no question that we need to spur the domestic recycling industry. Currently a substantial part of our recyclable materials are sold abroad, so that a drop in demand of recyclable commodities such as the one we are now seeing affects us heavily. We will need new legislation, tax reforms and other measures that will open the market for new Czech recycling businesses, grants and so on, to improve the situation. To ensure our recycling schemes are not so dependant on foreign markets.”

We’ve already seen reports of small municipalities in trouble – what could happen next?

“There is of course every risk that some recyclable waste will be land-filled or will not be used very efficiently as a result of the crisis. But the even more important risk is that recycling schemes and the industry in general will be undermined by the drop in demand for commodities and this could have a more long-term detrimental effect. It can also have a negative psychological effect. If ordinary people see recycling as ‘hard hit’ they could eventually become less diligent in the separation of waste, their interest could drop. I don’t think that that has happened so far – for now families do remain dedicated to recycling – but we need the government to step in to help counter worries over the market situation.”