Increasing demands for resource security and the need to reduce dependence on raw material imports have fuelled the debate surrounding the amendment to the Circular Economy Act (KrWG). The BDE Federal Association of the German Waste, Water and Circular Economy Industry sees the anchoring of industrial policy objectives in the new draft legislation as an important step towards strengthening the security of raw material supply.
In its statement on the draft bill for the amendment to the Circular Economy Act (KrWG), the BDE welcomes the anchoring of security of raw material supply in the objectives of the act. Recent years have clearly demonstrated the vulnerability of the German and European economies. Events such as the corona pandemic and geopolitical conflicts have disrupted supply chains and exposed the dependence on raw material imports from third countries.
„Collapsing supply chains usually lead quickly to production stoppages and impacts on entire value chains. This jeopardises the entire economic location. It is therefore long overdue for the circular economy to be understood as an industrial and economic policy necessity. It determines security of supply, value creation, investment and industrial jobs, thereby securing Germany as a business location.“
Dr Andreas Bruckschen, Managing Director of the BDE
Chemical versus mechanical recycling
A controversial point in the draft is the equivalence of chemical and mechanical recycling. The BDE warns that the introduction of chemical recycling processes without sufficient economic and ecological assessment could weaken established mechanical recycling. The association highlights that the energy consumption of pyrolysis is significantly higher than that of mechanical recycling.
Green Public Procurement
The BDE takes a critical view of the inadequate design of Section 45 of the Closed Substance Cycle Waste Management Act (KrWG), which fails to exploit the potential of green public procurement (GPP). Without binding regulations and sufficient enforceability, the impact of this instrument remains limited. Dr Bruckschen emphasises that a change of course is necessary to strengthen security of raw materials and increase the resilience of Germany as a business location.
Source: BDE Federal Association of the German Waste Management, Water and Recycling Industry
