Circular economy and metal recycling: an opportunity to reduce emissions and strengthen European industry
30/10/2025
A recent report from the European Commission’s Joint Research Centre (JRC) reveals that the full adoption of circular economy strategies in resource-intensive industries could reduce CO₂ equivalent emissions by between 189 and 231 million tons per year. This includes key sectors for metal recycling, such as steel and aluminum, as well as cement, concrete, and plastics.
🔍 Impact of Metal Recycling: Greenhouse Gas Emission Savings
The report estimates the following potential CO₂ equivalent savings from using recycled materials:
- Steel: 64–81 Mt CO₂-eq.
- Aluminum: 12–14 Mt CO₂-eq.
⚡ Reduced dependence on foreign raw materials and energy
In addition to environmental savings, the circular economy reduces dependence on imported resources and fossil fuels:
Steel
- 46 million tons of metallic ores
- 730 PJ of fossil fuels
- 12 TWh of electricity
Aluminum
- 3.6 Mt of metallic ores
- 78 PJ of fossil fuels
- 13 TWh of electricity
This demonstrates that recycling metals reduces not only emissions but also exposure to the volatility of international resource and energy markets, increasing the security and resilience of European industry.
💶 Commercial and Competitive Benefits
The report also analyzes the economic impact on the trade balance, showing how the circular economy can strengthen Europe’s position:
Steel
- Imports: -€7.6 billion
- Exports: -€0.6 billion
- Positive change in the trade balance: +€7 billion
Aluminum
- Imports: -€3.9 billion
- Exports: -€0.3 billion
- Positive change in the trade balance: +€3.6 billion
🛠️ Strategic Implications for Metal Recycling
For companies like ScrapAd, this context represents a great opportunity:
- Strengthening the value of recycled metal: demonstrating that its use contributes to significant CO₂ and energy savings increases demand and perceived value.
- Improving traceability and certification: ensuring the quality and sustainability of recycled material is key for European industries.
- Digitalization and transaction platforms: facilitating the connection between supply and demand for recycled metals through technology optimizes efficiency and reduces intermediaries.
- Sustainable positioning: Communicating these benefits reinforces the image of green leadership with customers, suppliers, and regulators.
The JRC report confirms that metal recycling is not only an environmental strategy, but also an economic and competitive one.
Leveraging the circular economy will allow companies in the sector to reduce emissions, decrease energy dependence, improve their trade balance, and strengthen their position in an increasingly demanding and sustainable market.
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