Geopolitics Spur Transformative Shift in Recycling
The global recycling industry is undergoing a significant transformation due to rising demand for secondary materials, which is altering trade and sustainability policies worldwide. Trade expert Juan Verde made this assessment during the Bureau of International Recycling’s World Recycling Convention in Bangkok, Thailand. Verde, who has previously advised U.S. presidents Joe Biden, Barack Obama, and Bill Clinton, emphasized that sustainability initiatives are not diminishing but adapting to new economic challenges.
According to Verde, the industry now stands at a critical turning point. Traditional free-trade frameworks are being replaced by a shifting wider picture shaped by geopolitical shifts, technological progress, and supply chain instability. China’s expanding role in the market, combined with rising protectionist measures, is intensifying competition for essential materials—particularly those critical to 5G, artificial intelligence, and quantum computing. These developments will have direct consequences for recycling operations moving forward.
Economic strategies are increasingly focusing on regionalization and friend-shoring, compelling nations like the United States to relocate key industries domestically. This shift is placing greater demands on countries to develop and expand their recycling capabilities. Verde acknowledged that political changes, such as a potential return to the White House by Donald Trump, who has expressed skepticism toward climate-related policies, could temporarily slow advancements. However, he stressed that such shifts would not alter the industry’s fundamental trajectory. ‘The arrival of Donald Trump in the White House, a president who does not believe in climate change, does not change the direction,’ he said. ‘It changes the speed at which this green revolution is taking place.’
Verde’s remarks highlighted how the industry must adapt to evolving priorities while maintaining its core mission. Despite political uncertainty, he said the long-term direction of the green transition remains intact. ‘Sustainability is not being phased out,’ Verde said. ‘It is being re-labelled. I could not be more bullish about your sector, or more optimistic that you are in the right industry at the right time.’
