New IAI study reveals environmental benefits of increased global aluminium can recycling

Recycling of aluminium beverage containers could save 60 million tons of CO2e per annum by 2030 globally. Study reaffirms aluminium can recycling rates at 71% or higher.

A new study on recycling of aluminium cans has identified that 60 million tons of CO2e per annum could be saved through effective global recycling of used beverage cans by 2030. The study was commissioned by the International Aluminium Institute and co-funded by Emirates Global Aluminium, Crown Holdings, Australian Aluminium Council and Novelis.

The result of the assessment is contained in a report produced for the IAI by global management consultants Roland Berger. It proposes 25 levers to increase recycling and a prioritised set of strategic recommendations to improve aluminium can recycling for six countries in the Middle East, Oceania and Asia.

The findings and recommendations are based on the assessment of can waste management systems in Australia, Cambodia, South Korea, Thailand, United Arab Emirates and Vietnam.

Together, these countries provide representative insights into can usage, collection, and processing across different countries and cultures. The assessment also provides insight into the regional trade flows of used beverage cans (UBC) scrap in the Gulf and Asia Pacific regions – both major trading hubs.

For each of the six countries, various aspects were analysed including waste management and regulatory schemes, collection infrastructure, recycling and landfill rates, volumes put on market, usage trends, overall performance, used beverage can trade, material flows and future targets.

South Korea had the highest recovery rate at 96%. This was followed by Vietnam 93%, Cambodia 90%, Thailand 86%, Australia 74% and UAE 33%.

The six countries fall into three broad categories
Countries dependent on informal aluminium can collection mechanisms (e.g. Thailand, Cambodia and Vietnam). They rely on a high number of informal workers. As cans generate revenue for the sector, these countries report high recovery rates. Developed systems (e.g. Australia, South Korea). These rely on complex waste management systems such as extended producer responsibility (EPR) and/or deposit return systems (DRS). Transitioning systems (e.g. UAE). Here the collection infrastructure is largely fully developed but does not include mandatory or well-functioning EPR, nor DRS systems.

The aluminium can continues to be the package of choice for the alcohol and soft drinks industries with global consumption expected to increase by 50 per cent between 2020 and 2030 (i.e., from 420 to 630 billion cans annually).

Highlights of the study include
Thailand has the best can-to-can recovery rate of those in scope, at 78% of cans put on market – but 14% of cans still go to landfill.

In the UAE, 67% of cans go to landfill. Of all cans put on market, 20% are used for can-to-can recycling.

Vietnam’s informal sector generates high quality scrap but has a can-to-can recycling rate of just 1%. A further 92% of recovered cans go into “not C2C” products.

South Korea has had an EPR system for more than 20 years and has the highest recovery rate of 96% among the studied countries. Only 37% of cans put on market are recovered for can sheet production – a relatively low rate for a country with established can-recycling infrastructure and capacities.

Australia already has a voluntary EPR scheme, and a DRS scheme (currently in six states out of eight and expected in two more), which helps to reach a recovery rate of 74%. Due to lack of local recycling capacity all cans are exported, 48% for can-to-can recycling.

Cambodia reports high collection and recovery rates – collection is done by the informal sector which relies heavily on scrap for income. Cambodia has no domestic recycling capacity and its cans are mostly recycled into non-can products.