Recycling is replacing the hidden costs of landfill

OPINION – One of the most expensive misuses of local taxpayer dollars in the U.S. is the amount of money spent disposing of recyclable beverage containers in landfills every year. This wasteful reality costs taxpayers hundreds of millions of dollars annually in unnecessary disposal fees – but it doesn’t have to be this way.

Each year, millions of tons of valuable materials – including plastic, aluminum and glass packaging – are recycled. These materials are taken to materials recovery facilities (MRFs) where they are sorted and then shipped to reclaimers who process them into easily reusable material. Paper, cardboard, metal, glass and plastic recycling generates over $5 billion in revenue annually and supports over 600,000 jobs nationwide. In the U.S. recycling market today, aluminum is sold for over $1,000 a ton on average and PET plastic is sold for over $250 per ton on average –– representing some of the highest values paid for commodities in the U.S. consumer goods market. Most valuable, is that when they are diverted from landfills, municipalities save billions of dollars annually in disposal fees.

The recycled material is in high demand. The beverage industry, in particular, has a high demand for recycled PET plastic to manufacture new bottles, which reduces use of new plastic and lowers greenhouse gas emissions.

It’s a disingenuous myth to claim that PET plastic is not easily recyclable and profitable to recycle in the United States. What is true is that approximately 60% of it is wasted in landfills, costing municipalities substantial landfill fees and missed revenue opportunities. The good news is, growing investment in domestic recycling infrastructure is introducing advanced technologies including robotics, artificial intelligence and optical sorters. These innovations strengthen recycling facilities’ ability to produce the highest quality recyclables for domestic commodity markets and local manufacturing.

Significant progress has certainly been made. The increased availability of recycled PET and innovation in bottle design have led to more 100% recycled plastic bottles on beverage shelves than ever – a win for local budgets, a circular economy and the environment. One state that we can look to for guidance is California.

While the national recycling rate for aluminum and PET beverage containers hovers around 30%, California has achieved an 80% recycling rate for PET beverage containers and over 70% for the aluminum beverage containers sold within the state. California hosts numerous recycling facilities and leading reclaimers, demonstrating the value of building a local circular economy that supports thousands of local jobs.

Other states, such as Colorado, Oregon and Minnesota, have collaborated with industry to pass Extended Producer Responsibility (EPR) legislation that enables companies to invest in local recycling infrastructure and services. Under this system, producers of packaging fund and manage improved recycling systems, unlocking access to recyclable commodities for their supply chains.

We stand at the threshold of a new growth phase for American recycling. Recycled plastic and aluminum supply is not keeping up with demand from beverage companies and others. Through policy and investments that can increase the supply of recycled materials for producers, we can boost municipal revenues and eliminate the taxpayer burden of paying to bury these valuable resources – advancing a more prosperous, resilient future.

Ron is the Founder and CEO of Closed Loop Partners, a firm focused on building the circular economy.