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2002 Recycling: It's in the Can Aluminum is universally recognized as a valuable metal, and this contributes to its high rate of recycling around the world. About two thirds of aluminum ever produced is still in use, equaling 440 metric tons (485 million tons) of a total 680 metric tons (750 million tons) manufactured since 1886. Recycled aluminum cans are a major factor in this recycling success story and make up more than half of the aluminum scrap Alcoa currently uses. Producing aluminum from used beverage cans requires only 5% of the energy needed to mine, refine, and smelt aluminum from raw materials. Even with this significant benefit, some countries have seen a decline in their can recycling rates over the past decade. In the United States, the rate slipped from 62% in 1991 to 55% in 2001. Other countries, such as Brazil, Japan, Sweden, and Switzerland, saw significant increases in recycling rates during this same period. "Increasing the recycling rate was very important to Brazil for social and economic reasons," said José Giosa, president of Tomra Latasa Reciclagem and a member of Brazil's national recycling commission. "In 1991, our recycling rate was 36%. In 2001, it reached 85%—the highest among reporting countries where recycling is not mandated by law. By increasing our rate, we created new jobs and companies, saved electricity, and increased the environmental awareness of our people." Brazil and its aluminum industry made a concerted effort to increase the country's recycling rate. Intensive marketing efforts and publicity by the aluminum industry, an increase in can collection sites, the proliferation of can collector cooperatives, and a growing awareness of the residual value of cans as scrap material gave the rate its significant boost and created 2,500 new jobs in the aluminum can recycling industry. "Unemployment is one of the big problems we're facing in Brazil, and a lot of people found recycling as a way to survive," said Giosa. "About 150,000 people in Brazil today have their total income coming from the collection of aluminum cans." Around the world, areas with low per-capita incomes often have higher recycling rates as people seek to supplement their income with money earned by collecting and recycling aluminum cans. Conversely, a country going through an affluent period—like the United States experienced in the 1990s—has a population less motivated to supplement income through recycling. Increasing environmental awareness and collecting cans for charitable donations are effective ways to rekindle motivation. In some regions, the government mandates recycling. In others, deposits are placed on containers to encourage their return for recycling. The ease with which a population can recycle cans also contributes to the recycling rate. Recycling centers and curbside collection are two common techniques, although the latter can often be cost-prohibitive because of the increased manpower needed to handle the materials. "In the United States, aluminum cans provided up to 70% to 75% of the revenues in curbside recycling but were only 2% to 3% of the weight," said Craig Covert, market development manager for Alcoa Rigid Packaging. "Today, those revenues are down due to lower collection rates and lower aluminum prices. Some communities that have subsidized curbside recycling are reevaluating this approach as revenues decline and costs increase." Another driver of recycling rates is the market demand for aluminum. High demand means a greater need for recycled cans, which are used as scrap. In times of low aluminum demand, the price for virgin material may slip below the price of recycled material. While this can negatively impact recycling rates, many companies still use recycled cans because of the investment made in their recycling facilities. An interesting note is that while demand for aluminum is down in the United States, the aluminum scrap market is still very tight since there is limited scrap available for purchase. Recycling aluminum cans as well as other sources of used aluminum remains a major focus for Alcoa, and in October 2002 the company announced a new corporate sustainability goal. By 2020, 50% of Alcoa products—except for raw ingot that is sold to others directly—will be made from recycled aluminum. The rate currently stands at approximately 20%. |
