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How the Circular Economy Protects the Climate

Seven metric tons of CO2 per 1,000 kilograms of aluminum—that is the average potential reduction in the carbon footprint between primary and secondary metal. By way of comparison: The average CO2 “footprint” accumulated per capita by German citizens in 2019 also amounted to just under eight metric tons of CO2. The CO2 savings potential offered by secondary aluminum has long been recognized. For the manufacturer TRIMET Aluminium SE, headquartered in Essen, the rising demand for secondary aluminum is clearly noticeable. Products made using “aluminum scrap” emit up to 85 percent less CO2.

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“Even though it is technically possible to use 90 percent recycled aluminum in production, there must first be enough ‘scrap material’ available.”

Aluminum is very durable. According to Philipp Schlüter, board member of the BDI Circular Economy Initiative and CEO of TRIMET Aluminium SE, this is both a blessing and a curse. To use secondary aluminum for the benefit of the climate, the material must first be returned to the cycle. The aluminum used in automobiles, for example, is on average not available again for 15 years. In the construction sector, the lightweight metal is tied up for up to 50 years. Renewable energy systems, storage facilities, and grids require ever-increasing amounts of metals and minerals, especially aluminum. Solar panels remain in use for between 30 and 50 years before the material is recovered.

In the context of the circular economy, durability is rightly a desirable product feature. However, the rising demand for secondary aluminum creates conflicting priorities. “Even if it is technically possible to use 90 percent recycled aluminum in production, there must first be enough ‘scrap material’ available,” says Philipp Schlüter. Already today, the demand for aluminum significantly exceeds the available scrap quantities, and demand continues to grow steadily. Product design plays a key role in avoiding this conflict of objectives. Schlüter emphasizes: “With a 90 percent recycling rate for aluminum, we have to consider right from the start how we will tap into the remaining ten percent.” In the automotive sector, for example, there are 50 different aluminum alloys used in production. Sorting and utilizing the remaining 10 percent is considerably more difficult due to the high material requirements and can therefore often only be achieved by adding primary aluminum.

“If we were to double the ‘circular material use rate’ in Germany, we could save 60 million metric tons of CO2.”

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Herwart Wilms is also a board member of the BDI Circular Economy Initiative and managing director of REMONDIS Assets & Services GmbH & Co. KG. The company is one of the world’s leading service providers for recycling and waste management, logistics, services, and water. He believes: “The rate of recycled raw material use in production processes (Circular Material Use Rate) currently stands at about 12 percent in Europe. If we were to double that rate in Germany alone, we could save 60 million metric tons of CO2.”

We can create a “demand booster” on our own, for example in the public sector. However, purchasers need guidance on how the products were manufactured. This could be modeled after the traffic-light colors used on energy labels for electrical appliances. “We could ask not only ‘how green the product is in terms of energy consumption,’ but also ‘how recyclable it is’ and ‘what percentage of it is recycled,’” says Herwart Wilms. Like Schlüter, Wilms also sees the key in product design: “Any material that is bonded to other materials and can no longer be separated is lost to recycling today.” He illustrates this using wind turbines as an example: “These are usually made of composite metals that cannot be separated or incinerated.”

For Wilms, conserving raw materials requires the use of all recycling methods. Ultimately, the goal is to develop high-quality, competitive products for the international market. He also cites the chemical industry as a driving force behind the circular economy, noting that it views CO2 as an important raw material.

“Through more efficient processes and a lower-carbon energy supply, the chemical industry was already able to cut its greenhouse gas emissions in half between 1990 and 2018, while production increased by three-quarters.”

They’re found in wind turbines and solar panels; they power electric cars and help heat and cool buildings using as little energy as possible: Without chemical products—and plastics in particular—a truly sustainable future is not possible, says Markus Steilemann, CEO of polymer manufacturer Covestro and a board member of the BDI’s Circular Economy Initiative: “The chemical industry stands ready to play a key role in supporting Germany and the world on the path to climate neutrality.” On the other hand, however, the country’s third-largest industry remains quite energy- and climate-intensive. While significant progress has been made in recent decades—thanks to more efficient processes and a lower-carbon energy supply, the chemical industry was able to halve its greenhouse gas emissions between 1990 and 2018, even as production increased by three-quarters— However, with approximately 56 million metric tons, the sector still accounts for about seven percent of Germany’s total greenhouse gas emissions.

“This must and can change,” says Steilemann. The sector has set itself the ambitious goal of becoming climate-neutral by 2050. To this end, the industry has conducted a detailed study. The result: Technologically, it is absolutely possible. But to achieve this, the industry must undergo a major transformation, and this, in turn, absolutely requires better framework conditions. In particular, we need huge amounts of renewable electricity at a very low price—starting in the mid-2030s, roughly on the scale of current electricity production throughout Germany. Only then will the necessary investments in the new technologies actually materialize. Steilemann: “The expansion of renewable energy has been at a standstill for far too long. Now the new federal government must step on the gas.”

Above all, however, we need an overarching vision—a framework within which the transformation of the chemical and plastics industries can take place. “For me, that is the concept of the circular economy, which is Covestro’s guiding principle,” says CEO Steilemann. To make production climate-neutral, the chemical and plastics industry must move away from fossil fuels and source raw materials and energy from other, environmentally sound sources. “The ABCs of renewable resources are: waste, biomass, and CO2. As we turn the page to this new chapter, we’ll succeed in keeping carbon in the cycle instead of burning it,” says Steilemann. But circularity also means designing products so that they last longer, are easy to repair, and can be recycled as effectively as possible at the end of their life. From the Covestro CEO’s perspective, there is still much work to be done in this area. In particular, chemical recycling must be advanced.

Climate Congress 2021, Industry as a Key Driver for the Green Deal, November 2021

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Susanna Minato-Torkler

Project Manager Energy, Transport and Environment
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