The US Recycling industry is a 117 Billion Dollar Marketplace. In July, China announced it would no longer accept recycled raw materials. Many municipal agencies rely on exporting recycled materials to China to meet mandates of landfill diversion. The China waste ban threatens the entire waste collection & recycling industries. This deck was presented in association with a webinar at ForesterUniversity.com

1. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
Now What?
Preparing for
China’s Waste Ban

2. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
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Arturo Santiago
Managing Editor
Forester Media
asantiago@forester.net
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3. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
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4. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
Constance Hornig, Esq.
Law Offices,
MSW Contracts Counsel
Robin K. Wiener
President
ISRI
Zoe Heller
Policy Director
CalRecycle
David Biderman
President
SWANA
Chaz Miller
Director, Policy & Advocacy
National Waste &
Recycling Assoc.
Arturo Santiago
Managing Editor
Forester Media

5. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
Robin K. Wiener
President
ISRI

6. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
ISRI: Voice of the Recycling Industry
1,300+
Member
companies
34
Countries
4,000+
Recycling facilities
worldwide
6
Full Range of Commodities …
PlasticsFerrous &
non-ferrous metals
Paper Glass Tire &
Rubber Textiles
Electronic
s

7. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
$117 Billion Industry
155,000 Direct Employment plus 378,000 jobs throughout the
economy indirectly supported by recycling
130,000,000+
Tons processed annually
Today’s Recycling Industry: A Snapshot
Iron/Steel 67.0 Copper 1.8 Plastics 3.5
Paper 47.2 Lead 1.2 Electronics 5.0
Aluminum 5.0 Zinc 0.12 Tire (#) 122
In millions of tons (or other unit shown)

8. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
Recycling Industry & Exports
8
Part of the Global Industry
37 $16.5B
Total exported from U.S.
(million metric tons)
Value of U.S. materials
exported
155
Destination countries to which
recyclables were sold
• The U.S. is the largest exporter of scrap commodities in the world
• Global scrap exports: 160 million tons worth $70 billion
• Both Quantity and Quality are key to the Strength & Success of that Link
in the Supply Chain (scrap sold according to globally recognized
specifications)
• With approximately 30% of scrap processed in US destined for export in
recent years, the health of the US recycling industry is directly tied to the
health of the global economy.

9. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
In 2016, Last year, the US recycling industry exported $5.6
billion of scrap to China

10. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
WhyisChina soImportant
totheRecycling Industry?

11. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
For recovered fiber,
China is by far our
most important
market
China:ScrapPaper

12. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
1. For plastics, China accounts
for 67% of exports, although
declining year over year
2. (Japan is the 2nd largest
exporter to China at 19%,
followed by Germany at 15%,
UK at 9%, and Belgium at 4%)
China:ScrapPlastics

13. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
What is Going on in China?????
2014: AQSIQ Export & Import Licensing Requirements
Introduced
2016/7: Green Fence & National Sword initiated to focus on
quality
July 2017:
• WTO Notification G/TBT/N/CHN/1211 (“ the ban”)
• WTO Notification G/TBT/N/CHN/1211 (identification standard)
• Revised GB Standards Proposed (failed to notify WTO)
• “Implementation Plan to Enhance Solid Waste Import Management
System by Prohibiting the Entry of Foreign Waste”
Within China:
• Country-wide inspection/enforcement actions
• Restrictions on quotas import license

14. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
Why??
Multi-Prong Strategy by China to:
1. Prohibit import of “solid waste with major environmental hazards & intense
public reaction by the end of 2017”
→ Mixed paper, post-consumer plastics
2. Halt imports that can be replaced w/ domestic resources by end of 2019
→ Mixed metals/category 7 materials?
3. Raise thresholds for importation
→ Proposed 0.3% “carried waste” threshold for all imports
4. Greater customs enforcement to reduce smuggling/illegal wastes
→ 100% inspection
5. Refine laws, regulations & related systems → reductions in import licenses
6. Increase domestic recycling

15. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
Industry Advocacy
Convince GoC
to keep
market open
U.S.-China
Comprehensive
Economic Dialogue
Coordination with &
Between Global
Recycling Industry
Direct
Engagement
Partner Associations
in China
o The White House
o USTR
o Commerce
o Treasury
o Senate Finance Committee
o House Ways & Means Committee
Messages:
US: $5.6 billion in US exports & 40k+ jobs at stake in US
China
• Need for clarity & transparency
• Support of responsible recycling & shutting down of irresponsible recycling operations
• Need to adopt standards consistent with global recycling industry
• Scrap versus waste
• Revenues at risk within China
• Needs of manufacturers for
high quality scrap
o CISA
o CMRA
o CSPA o Chinese Embassy
o AQSIQ
o MEP

16. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
David Biderman
President/Executive Director
SWANA

17. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
Key Points
• China’s import ban could have significant adverse
impacts on municipal recycling programs in the
United States and Canada
• SWANA submitted comments to WTO raising
concerns about scope, clarity and timing of the
Import Ban, and has offered to work with the Chinese
government to address these issues
– Can’t just “turn off” municipal curbside recycling
programs
– Not enough lead time to permit/construct/expand
recycling facilities in North America

18. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
Key Points
• SWANA will continue to work with ISRI and other
stakeholders and the relevant U.S. government agencies
(e.g., Department of Commerce and Office of U.S. Trade
Representative (USTR)) to raise concerns and develop
reasonable solutions acceptable to all sides.
– Recommend a 5 year phase in to allow governments, suppliers,
and customers to adapt
– Discussing issue with European counterparts at
WASTECON/ISWA World Congress next week
– Have contacted solid waste associations in Australia and Asia to
coordinate response

19. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
Chaz Miller
Director, Policy and Advocacy
National Waste and Recycling Association

20. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
• Impact on American Recyclers
• Impact on Chinese end markets
• Clarity
• Realistic Standards
• Time to adjust
NWRA

21. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
Zoe Heller
Policy Director,
CalRecycle

22. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
• Exports and the State or Recycling in California
• Impact on Existing CA Programs and Infrastructure
• Workshops Addressing Changing Commodity Prices
• CalRecycle’s Current and Upcoming Initiatives
CalRecycle

23. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
Constance Hornig, Esq.
Law Offices,
MSW Contracts Counsel

24. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
• Economic feasibility of MRF processing contracts threatened
o Operating revenues
o Additional capital investment
• Compliance with performance standards doubtful
o Guaranteed minimum revenue shares
o Recovery/residue percentages
o Quality
o Disposal prohibitions
• Disputes Likely
o Uncontrollable circumstances / change in law
o Change orders
• Risk Allocation in future contracts reconsidered.
Key Points

25. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
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26. Now What? Preparing for China’s Waste Ban
#ChinaWasteBan
Constance Hornig, Esq.
Law Offices,
MSW Contracts Counsel
hornig@mswesq.com
Zoe Heller
Policy Director
CalRecycle
zoe.heller@calrecycle.
ca.gov
David Biderman
President
SWANA
dbiderman@swana.org
Chaz Miller
Director, Policy & Advocacy
National Waste &
Recycling Association
cmiller@wasterecycling.org
Arturo Santiago
Managing Editor
Forester Media
asantiago@forester.net
Robin K. Wiener
President
ISRI
robinwiener@isri.org