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Revision of the Waste Shipment Regulation
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Facilitating shipments of waste for reuse and recycling in the EU, not exporting waste challenges outside the EU and addressing illegal shipments of waste, are crucial for the European Union to adequately manage waste shipments in a clean and more circular economy and to avoid losses of valuable resources that can be recycled in the EU.
The European Commission recognises the steel industry as a priority sector for transitioning to a circular and climate-neutral European economy. Therefore, it is essential that export of waste does occur only when comparable environmental, health and social conditions exist between the EU and third countries, and only when those conditions are verified with certainty.
Significant improvements are necessary to ensure that the proposed measures are implementable, effective, and that no risks of fraud or circumvention arise. The different treatment between OECD and non-OECD countries, and the subsequent fact that certain destination countries may be exempted from having to demonstrate the extent to which they meet these essential conditions, is contrary to the spirit of the reform and could undermine the whole system.
In this regard, the legal presumption applied to OECD countries is not justified in view of the Commission impact assessment, while this approach creates a risk of discrimination among facilities of third countries. Moreover, the legal presumption applied to OECD countries is in breach of the coherence and effectiveness principles under Better Regulation. Lastly, the safeguard procedure for OECD countries merely addresses potential issues due to sudden increase of waste flows, therefore it constitutes a breach of the proportionality and subsidiarity principle.
The proposed requirement that exporters carry out audits of the facilities where exported waste will be processed is welcome, however it is vital that the scope of those audits is defined with more clarity.
In particular, auditing standards should be defined in the legislative text, while the audit should be performed by an EU-based independent and accredited third party. Regular reporting and transparency requirements should apply, and an effective system of complaints should be included as well.
Moreover, a careful evaluation is necessary to ensure that additional administrative burden will not hinder intra-EU shipment, while a three-year transition period before the entry into force of the new requirements is excessively long as far as ferrous scrap is concerned.
Extended version updated on 18 January
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Brussels, 25 July 2024 – Major indicators in the European steel market show a steeper-than-expected downward trend, further impacting the outlook for this year and the next. Poor demand conditions, driven by ongoing factors such as high energy prices, persistent inflation, economic uncertainty and geopolitical tensions, are exacerbated by a manufacturing crisis affecting the largest steel-using sectors, including construction and automotive. According to EUROFER’s latest Economic and Steel Market Outlook, apparent steel consumption is further deteriorating. After a slump (-3.1%) in the first quarter of 2024, its rebound for the full year has been revised downwards (to +1.4% from +3.2%), as well as for 2025 (+4.1% from +5.6%). Similarly, output in steel-using sectors, after a decline in the first quarter (-1.9%), is projected to experience a deeper-than-expected recession (-1.6% from -1%). A recovery is anticipated only in 2025 (+2.3%). Steel imports continue to show historically high shares (27%).
Third quarter 2024 report. Data up to, and including, first quarter 2024
Picture Copyright: European Union, 2024 Source: EC - Audiovisual Service
Brussels, 18 July 2024 – The re-election of Ursula von der Leyen as President of the European Commission paves the way for the continuation of the ambitious initiatives started in her first term. For a stronger and prosperous Europe, defining a pragmatic set of measures within the first 100 days of the new Commission mandate is the right step forward to ensure the success of the EU’s industry transition, if properly implemented. The European Steel Association urges that the Clean Industrial Deal be complemented as a priority by a European Steel Pact, as proposed by the German delegation to the European People’s Party (EPP).