Increasing UK Metal Recycling

A review of policy options for increasing UK recycling and delivering Net Zero commitments.

WRAP recognises a significant opportunity for the UK to lead in the production of net-zero or low carbon metals. Currently, the UK exports most of the scrap metal it produces, missing the opportunity to recycle domestically and reduce emissions, while also leaving the industry exposed to market volatility and high raw material costs.

Recent investments, such as Tata Steel’s £1.25 billion joint venture with the UK government, highlights further the importance of policy in driving change.

Our metal recycling report outlines policy options to further increase metal recycling, reduce dependence on imports, and stimulate investment in cleaner technologies.

It also includes a set of focused actions to transition the UK steel and aluminium industries from linear models to a circular economy can support a range of outcomes including the government's net-zero targets.

Policies that could drive the significant investment required to boost domestic recycling include:

• Carbon Border Adjustment Mechanism: This could incentivize investment by levelling the playing field for UK-based producers.
• Extended Producer Responsibility (EPR): This could raise funding for infrastructure transformation.
• Digital Product Passports: To improve traceability and recycling potential of materials.
• Improved Sorting Technologies: Innovations in sorting and separation can enhance aluminium recycling efficiency. 

Securing funding from the UK Investment Bank (National Wealth Fund) could also crowd in significant private capital over time.  There is no single intervention that will encourage more domestic recycling of domestically produced scrap metals, and a range of interventions would need to be pursued.

Our report includes examples of policies from around the world. With continued innovation and widespread participation, a sustainable future is not just a possibility – its an impending reality.