In the quest for sustainability and the battle against climate change, various industries come under the spotlight for their environmental impact. Yet, metal recycling (MR) often goes unnoticed despite its significant influence on lowering global greenhouse gas (GHG) emissions.

Metals possess the unique ability to be recycled indefinitely without loss in quality. This trait establishes MR as an essential yet underappreciated element of the circular economy.

In light of this year’s Global Recycling Day, we want to give MR the spotlight it deserves. In this blog post, you can read more about:

Types of metal scrap, differentiating between pre-consumer (new) and post-consumer (old) scrap, and the challenges associated with recycling each.
Environmental impact of metal recycling, highlighting how this process significantly reduces GHG emissions, conserves natural resources, and prevents landfill waste.
Economic benefits of metal recycling, including energy savings, job creation, and the growing demand for metals driven by green technologies.
Benefits for Metal-based Industries, including benefits for construction, automotive, and consumables industries

Types of Metal Scrap

We differentiate between two main types of scrap: pre-consumer and post-consumer, also known as 'new' and 'old' scrap, respectively. ¹

Pre-consumer Scrap

(also known as post-production or new scrap) comes from materials left over or cut away during manufacturing, such as metal turnings or chips created during machining, and excess material from extrusions and rolled products.

This type of metal scrap is considered high-quality because its composition is well-known and generated in consistent quantities, making it easier to recycle. Consequently, pre-consumer scrap is typically recycled much more than post-consumer scrap.

Post-consumer Scrap

comes from products used and discarded by consumers, and presents more challenges than its pre-consumer counterpart.

It often contains a mix of different materials, making its composition uncertain and recycling more complex. Post-consumer scrap typically undergoes extensive processing to prepare for the process, including shredding and sorting. The collection also poses problems and a big difference in recycling rates (RR) between old and new metal scrap.¹

An excellent example of post-consumer scrap recycling is aluminum beverage cans. They hold the title of the world's most recycled type of drink packaging, boasting a global weighted average RR of 69%. This compares to the RR of polyethylene terephthalate (PET) and glass, which stand at 43% and 46%. ⁶

It is equally important to recycle both types of metal scrap as they are valuable resources impacting both the environment and the economy.

Environmental Impact of Metal Recycling

Our World in Data reveals that the energy sector was responsible for approximately 72% of global greenhouse gas emissions in 2016. This includes emissions from electricity and heat production, transportation, and manufacturing. ²

Highlighting essential sectors for the metal industries, the iron and steel industry accounts for 7.2% of emissions, while non-ferrous metals account for 0.7% of the GHG emissions. Road transportation counts for 11.9% out of 16.2% of total transport emissions. Finally, landfill waste caused 1.9% of GHG emissions in 2016. ²

Now, how does recycling come into play? What are its benefits, and how does it help lower GHG emissions?

When we recycle metal materials, we create less CO₂, keep them out of landfills, and save natural resources. ³

Less CO₂ Emissions

It significantly reduces carbon dioxide emissions compared to extracting and processing raw materials.

For instance, using steel scrap reduces CO₂ emissions by up to 58%, and recycling aluminum can reduce emissions by up to 95%. By diverting metals from traditional manufacturing, MR contributes to the global effort to reduce greenhouse gas emissions, combat climate change, and improve air quality.

Metals Do Not End Up in Landfills

MR prevents valuable materials from ending up in landfills, which can take centuries to decompose and potentially leach toxic substances into the soil and groundwater.

By recycling metals, we conserve space in landfills and protect the soil and groundwater from contamination, contributing to a healthier ecosystem.

Conservation of Natural Resources

MR reduces the need for mining, impacting the environment through deforestation, habitat destruction, and soil erosion. Mining also consumes vast amounts of water and energy, contributing to water scarcity and pollution.

Using secondary instead of primary metal cuts air pollution by 80%, water pollution by 76%, and water use by 40%. By recycling metals, we conserve natural resources and maintain biodiversity, ensuring a healthier and more sustainable environment for future generations. ³

Transitioning from environmental benefits, let's now explore the economic angle to MR.

Economic Benefits of Metal Recycling

By recycling and utilizing metal scrap, we can achieve major economic impacts such as saving energy, meeting the demand for metals in production, and creating jobs in the sector. ^3,4,5

Energy Saving

MR saves much energy compared to producing metals from virgin ore.

For example, recycling aluminum saves 95% of the energy required to make the same aluminum from its virgin source. This significant energy saving translates into lower production costs, reduced greenhouse gas emissions, and conservation of natural resources.

By recycling metals, we not only save energy but also contribute to reducing environmental pollution and mitigating climate change. ³

Increased Demand

The global push for decarbonization has led to a surge in demand for metals necessary for green technologies like wind turbines, solar panels, and electric vehicles. The demand for metals is projected to rise significantly, necessitating an increase in MR to prevent supply crunches.

Demand for industrial metal scrap will increase greatly due to the decarbonization trend, which includes a shift towards electrification. Electric vehicles and renewable energy technologies like solar and wind require significantly more metals than their traditional counterparts. As we transition to a greener future, the importance of metals in our economy is set to rise dramatically.

– Jan Pannenbäcker, Metaloop’s CEO & Co-Founder

For example, by 2030, the demand for copper and nickel is expected to increase by 50-70%, while cobalt and neodymium could see a 150% rise, and graphite and lithium demands could multiply by six to seven times. ⁵

By recycling metals, we can help meet this growing demand, contributing to the sustainability of supply chains and supporting the green transition efforts worldwide.

Job Creation in the Recycling Industry

MR is a labor-intensive process offering many job opportunities for workers collecting, sorting, buying, and selling metal scrap. ³

For example, in the US, the scrap metal industry significantly contributes to the economy by supporting over 450,000 jobs. This industry is comparable in size to the national forestry and fishing industries combined, showcasing its importance in job creation and economic growth. ⁴

Recycling benefits both the environment and the economy—and how does this translate to industries dealing with metals?

Benefits for Metal-based Industries

MR is making a big difference in various sectors like construction, automotive, and consumables. It helps reduce greenhouse gas emissions, cuts down waste, and lessens the need for new materials. Here's how it's making an impact:

Lowering Environmental Impact: Recycling drastically reduces greenhouse gas emissions. It also minimizes waste and decreases reliance on newly mined materials, tackling major environmental issues in these industries.
Matching Consumer Expectations: By using recycled metals, companies align with global sustainability efforts. This meets the growing consumer demand for environmentally friendly products, aligning with green standards.
Satisfying Metal Demand: With the demand for metals on the rise, recycling helps fulfill this need while ensuring production continues smoothly.

For instance, the increasing global need for aluminum could be addressed by sourcing 50% from primary sources and 50% from recycled materials. ⁶

Collective Contribution to Circular Economy

Metal recycling is at the heart of building a more sustainable world and guiding us to a cleaner, healthier planet.

While pre-consumer scrap continues to achieve high RR due to its purity, the challenge remains in enhancing the recycling processes for post-consumer metal scrap, beyond just aluminum cans. The rise of closed-loop recycling for high-value metals like copper is inspiring—it's a step in the right direction, showing that structured initiatives are gaining ground in various sectors. Yet, this stresses the need for companies to extend similar initiatives to less pricey metals.

Here’s where teamwork shines. This is a team sport involving everyone: smelters, manufacturers, logistics, consumers, and policymakers. Each link in the chain is vital. Together, our efforts go beyond mere scrapping — we're building a better future for all.

Are you looking for a trusted partner in your recycling journey?

Explore Metaloop’s services by scheduling a meeting with our Head of Growth and discover more about how we can make a difference together: Schedule a Call

Works Cited

1 Engh, Thorvald Abel, et al. Principles of Metal Refining and Recycling. Oxford University Press, 2021.

2 Ritchie, Hannah. “Sector by sector: where do global greenhouse gas emissions come from?” Our World in Data, 18 September 2020, https://ourworldindata.org/ghg-emissions-by-sector. Accessed 18 March 2024.

3 EuRIC. “Metal Recycling Factsheet.” EuRIC, 6 January 2024, https://euric-aisbl.eu/resource-hub/reports-studies/metal-recycling-factsheet. Accessed 18 March 2024.

4 Fava, Philip. “The Positive Impact the Scrap Metal Recycling Industry Has on the United States.” Forbes, 2011, https://www.forbes.com/sites/philfava/2011/11/21/the-positive-impact-the-scrap-metal-recycling-industry-has-on-the-united-states/. Accessed 18 March 2024.

5 “How to avoid a green-metals crunch.” The Economist, 11 September 2023, https://www.economist.com/finance-and-economics/2023/09/11/how-to-avoid-a-green-metals-crunch. Accessed 18 March 2024.

6 International Aluminum. “IAI Material Flow Model – 2021 Update.” International Aluminium Institute, 2021, https://international-aluminium.org/resource/iai-material-flow-model-2021-update/. Accessed 18 March 2024.