EU prepares broader waste export ban to keep aluminium scrap inside Europe

The European Union is preparing a broader prohibition on waste exports to non-OECD countries as Brussels seeks to retain more recyclable materials for European industry and reduce the transfer of waste to markets with different environmental standards.

The measure would include aluminium scrap, a source of secondary raw material that has become increasingly important to the bloc’s industrial and decarbonisation policies.

European Commission Executive Vice-President for Prosperity and Industrial Strategy Stéphane Séjourné has withdrawn an earlier proposal based on trade instruments after internal discussions concluded that it would cover only around half of aluminium scrap exports.

The Commission will instead work on a delegated act under the EU Waste Shipment Regulation. According to Séjourné’s office, the new approach would prohibit waste exports to countries outside the Organisation for Economic Co-operation and Development, with exceptions for certain EU candidate countries.

The exact list of waste streams and exempted countries has not yet been published. The measure must first undergo a public consultation, and the Commission intends to adopt it before the end of 2026.

The announcement therefore represents a policy direction rather than an immediate ban. Companies can continue operating under the existing rules while the scope, implementation dates and possible exemptions are defined.

From aluminium controls to a wider restriction

Brussels had initially planned to present targeted aluminium scrap measures on 23 September. European producers had requested export duties or other restrictions to reduce the volume of recyclable metal leaving the bloc.

That initiative formed part of a wider effort to protect energy-intensive industries facing high power costs, international competition and pressure to reduce emissions.

The Commission’s decision to abandon the narrower mechanism changes the scale of the intervention. Instead of limiting selected aluminium exports through a conventional trade instrument, the proposed delegated act would address waste shipments more broadly through environmental legislation.

The distinction is significant because trade measures and waste rules operate under different legal frameworks. The new route would allow the Commission to link the restriction to environmental management, circularity and the processing standards applied in destination countries.

It could also affect a larger group of exporters, recyclers, metal traders and overseas processors than the original aluminium-focused plan.

However, the Commission has not yet clarified whether every category of non-hazardous waste currently eligible for export would be covered or whether the final measure will establish a more limited list.

China and India among the markets exposed

China and India are not members of the OECD and are major buyers of scrap metal and other recyclable materials. Unless exemptions or alternative arrangements are introduced, both could be affected by the proposed restrictions.

India imported approximately 366,000 tonnes of aluminium scrap from the EU in 2025 and became the bloc’s largest buyer during the first quarter of 2026, according to industry estimates.

Indian authorities and business organisations have already sought relief from the European Union under the existing waste shipment regime. Representatives of the country’s metals sector have warned that reduced access to European scrap could increase costs for steel and aluminium producers.

The discussion also intersects with the EU’s commercial relationship with India. New Delhi has argued that scrap restrictions could weaken some of the expected industrial benefits of its trade agreement with the bloc and has suggested export quotas as a possible alternative to a complete prohibition.

Other non-OECD markets in Asia, Africa, Latin America and the Middle East could also be affected. The commercial impact will depend on the final material classifications and the limited exemptions that Brussels decides to introduce.

A strategic material for European industry

European aluminium producers regard scrap as a source of lower-carbon feedstock for smelters and recycling plants. Producing aluminium from recycled material requires approximately 95% less energy than manufacturing primary metal from mined bauxite.

Retaining more scrap within the EU could therefore reduce energy demand, lower industrial emissions and decrease dependence on imported primary raw materials.

It could also support the supply of aluminium for transport, construction, packaging, electricity networks, defence equipment and clean-energy technologies.

Exports have expanded as overseas processors compete for European material. EU aluminium scrap shipments reached a record 1.27 million tonnes in 2025, approximately 50% above their 2019 level, according to industry data.

European producers argue that this flow is removing valuable secondary resources from the bloc at a time when companies are being asked to invest in decarbonisation and increase industrial resilience.

The proposed restriction reflects a wider change in EU policy. Materials previously treated mainly as tradable waste are increasingly being considered strategic inputs that should remain available to European manufacturers.

Recyclers warn about excess supply

The recycling industry disputes the claim that Europe is experiencing a structural shortage of aluminium scrap.

The Bureau of International Recycling, which represents 37 national recycling federations, has argued that the EU already generates more aluminium scrap than its domestic industry can process.

It warns that restricting exports without expanding European recycling and remelting capacity could create an internal surplus, push down scrap prices and weaken the commercial incentives for collection and sorting.

Lower prices would benefit some metal users, but they could reduce revenue for recycling companies and make the recovery of lower-quality materials less viable. The result, according to industry opponents, could be lower collection rates and an increase in waste that cannot be processed economically inside the bloc.

The policy debate therefore concerns more than the location of recycling. Brussels must determine whether European processing capacity can absorb the material that would no longer be exported and whether additional industrial investment can be delivered quickly enough.

The effect will also vary across scrap grades. High-quality aluminium used in closed industrial loops has different markets and processing requirements from mixed or contaminated material collected from consumer products.

Existing waste rules were already becoming stricter

The EU’s revised Waste Shipment Regulation, adopted in 2024, already introduced tighter controls on exports.

A complete prohibition on plastic-waste exports to non-OECD countries is scheduled to apply from 21 November 2026. For other non-hazardous waste, non-OECD countries were invited to request authorisation from the Commission by demonstrating that they can manage specific materials under acceptable environmental conditions.

The first authorised-country list is due by 21 November 2026. From 21 May 2027, exports to non-OECD destinations not included on that list will be prohibited.

Twenty-four countries had submitted applications by the initial February 2025 deadline, including India, Indonesia, Malaysia, Vietnam, Thailand, Egypt, Morocco, Saudi Arabia and several EU candidate countries.

Séjourné’s planned delegated act would go further by moving from a conditional authorisation system towards a wider prohibition, although its relationship with the existing country-list mechanism remains to be defined.

Industrial policy meets circular economy

The proposal exposes a central tension in Europe’s circular-economy strategy.

Keeping more secondary materials inside the bloc could help manufacturers lower emissions, secure feedstock and reduce exposure to external supply disruptions. But export restrictions alone will not create the plants, energy supply or demand required to process the additional scrap.

For the measure to support European industry without damaging recyclers, it may need to be accompanied by investment in sorting, remelting and manufacturing capacity, as well as clearer standards for different waste qualities.

Overseas buyers, meanwhile, will need to find alternative suppliers or invest in greater domestic collection. This could raise international scrap prices and accelerate similar resource-retention measures in other producing markets.

The Commission’s decision marks a shift from a targeted aluminium measure to a broader attempt to control the movement of recyclable resources. Its industrial impact will ultimately depend on whether Europe can process and use the materials it intends to keep.