waste management & the circular economy in...

WASTE MANAGEMENT & THE CIRCULAR ECONOMY IN GERMANY

WEBINAR

25 JUNE 2020

Anne Bräutigam

Investor Consulting

Energy, Building & Environmental Technologies

www.gtai.com

© GTAI 2

Agenda

1. Market Size & Development

2. Market Opportunities

3. Research and Support Landscape

4. About Germany Trade and Invest

© Germany Trade & Invest www.gtai.com 3

MARKET SIZE & DEVELOPMENT


Waste disposal and recycling marketsWaste management services are not substitutable and provide stable

turnover.

Turnover of the German waste disposal and recycling industry

2015-2023, in bn EUR

33.8 34.4

38.2 38.2 38.5 39.5 40.1 40.6 41

0

5

10

15

20

25

30

35

40

45

2015 2016 2017 2018p 2019p 2020p 2021p 2022p 2023p

Note: This number represents around 5700 taxable privately organized companies in the Collection, treatment and disposal of waste as well as the recovery of valuable

materials segment; p=forecast; Source: Statista 2019


4.0

4.7

5.2

5.8

7.5

10.9

22.8

23.4

26.3

39.4

Switzerland

Sweden

Poland

Belgium

Netherlands

Spain

UK

Italy

France

Germany

European waste disposal & recycling marketsGermany is by far the largest market in Europe

Turnover of the waste disposal and recycling industry

2017, in bn EUR

Source: Statista & Eurostat 2019


Waste VolumeConstruction and demolition waste accounts for 53% of Germany’s

waste volume

Waste Type & Total Waste Volume in Germany

In million metric tons

Note: *preliminary data; Source: Federal Statistical Office 2020

50 47 49 52 52 50

260197

193 209 220 228

0

50

100

150

200

250

300

350

400

450

2000 2005 2010 2015 2017 2018*

Waste from waste treatment facilities

Construction and demolition waste

Other waste (incl. Production andmanufacturing activities)

Waste from extraction and treatment ofraw materials

Municipal Waste


Recycling Quotas in GermanyOnly 70% of waste was recycled in 2018

Waste volume (in kt) and recycling quota (in %) of different waste types in Germany

2018, including hazardous waste

Note: Rounding errors may occur.

Source: Federal Statistical Office 2020

70%

88%

67% 47% 55%0

50000

100000

150000

200000

250000

300000

350000

400000

450000

Total waste Construction anddemolition waste

Municipal Waste Other waste (incl.Production andmanufacturing)

Waste from wastetreatment facilities

recycling other disposal methods (e.g. landfill, incineration, energetic recovery)


German Waste Management Act (KrWG)The legal framework for waste management is the backbone of

Germany’s leading circular economy market

Source: UBA, BMUB, Waste Management Act (Kreislaufwirtschaftsgesetz)

OPTIMIZING WASTE MANAGEMENT

Objective: minimize waste generation & maximize recycling

CLARIFYING RESPONSIBILITIES

Definition of responsibilities along

the product life cycle & incentives to

manufacture durable products

PRIORITIZING THE ENVIRONMENT

Introduction of 5-level waste hierarchy giving

precedence to the environmentally best

option

AIMING HIGHER

Target: reuse or recycle 65% of all municipal waste by 2020 (EU

general target: 50%)

KEY REGULATIONS


MARKET OPPORTUNITIES


Business opportunities at a glanceMaterial flows where further improvement of recycling processes is

needed

Aircrafts Packaging Plastics Textiles

Wind Turbines E-Car Batteries Construction Waste CFK/GFK


Packaging waste

Source: Gesellschaft für Verpackungsmarktforschung mbH (GVM), 2019

Packaging waste in Germany (in million tons)

16 1615

16 16.5 16.6 17.1 17.8 18.2 18.2 18.7

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017


Packaging waste

Source: German Environment Agency 2018; German Bundestag, Drucksache 18/11274

Packaging waste type in Germany

2017

45%

17%

17%

15%

3%

paper andcardboardwood

plastics

glas

tinplate

steel and sheetmaterialaluminum

18.7 m tons total packaging waste volume


Packaging wasteThe organization of the collection, sorting and recycling of the

packaging is done by approx. ten dual systems active in the market.

1

3

6

8

10

19

23

31

Veolia Umweltservice Dual GmbH

Noventiz Dual GmbH

Landbell AG für Rückhol-Systeme

Reclay Systems GmbH

Zentek GmbH & Co. KG

BellandVision GmbH

Interseroh Dienstleistungs GmbH

Der Grüne Punkt - Duales System Deutschland GmbH

Source: Statista 2020; rounded figures

Market shares of operators of dual systems in Germany in 2019 (in %)


Packaging wastePlastics and wood packaging still have great need for recycling.

26

50

84

84

87

88

Wood

Plastics

Glas

Steel

Aluminum

Paper

Source: Federal Environment Agency 2019

Recycling share of packaging waste (2017, in %)


Packaging wasteStipulated recycling quotas increase significantly from 2022 onwards –

creating need for new and improved recycling technologies.

26

50

84

84

87

88

63%

90%

90%

90%

90%

Wood

Plastics

Glas

Steel

Aluminum

Paper

current recycling share stipulated recycling quota from 2022


Recycling share of packaging waste and quota from 2022 (2017, in %)


Construction waste

Note: * preliminary data; Source: Federal Statistical Office 2020; German Industry Association BAU 2018

Construction and Demolition Waste Volume

In Germany, in million metric tons

185193

209220 228

2005 2010 2015 2017 2018*


Construction wasteConcrete is a very stable, but not sustainable contruction material.


Textiles & clothes waste

Note: ¹calculation based on a usage time of 2 years

Source: German Association for secondary resources and waste disposal (bvse - Bundesverband Sekundärrohstoffe und Entsorgung)

Used clothes collection potential

1.25 to 1.35 million tons¹ annually

Use of old clothes (2013)

54% re-use for second-hand

21% further use as cleaning cloths

17% recycling

6% thermal use

2% waste disposal

Real collection volume (2013)

1.01 million tons


Battery recyclingThe German government aims to have between 7 and 10 million

electric vehicles registered by 2030.

Electric vehicle

battery demand in

Europe by 2028:

400 GWh


Battery recycling

Source: Statista, 2019; ZIV; ID 152721; Federal Environment Agency 2017; BMWi, 2019; EuPD-Research, 2019; European Battery Alliance, 2019; EU-Commission, 2019

Germany is prepared to create an entire battery value chain

Market potential

for automotive

batteries produced

in the EU in next

decade: 250 bn €

• Germany’s federal government has

decided to establish a strong battery

industry value chain: from material

producers through mechanical and

plant engineering to cell

manufacturers and, of course,

recycling companies.

• Germany is the location of one of

the world's first pilot plants for

recycling strategic raw materials of

electric vehicle batteries


Battery recycling

E-Bikes: Sales between 2009 and 2018

Source: Statista, 2020

150,000

980,000

1,360,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019


Wind turbine recyclingThere are currently more than 29,000 onshore wind turbines in

Germany. At the end of 2020, many plants will lose their funding.


Wind turbine recycling

4156

1814

2699

1423

4784

3851

0

1000

2000

3000

4000

5000

6000

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

Source: Fachagentur Windenergie an Land e. V. 2018

Wind energy capacity that reaches end of funding period in Germany

(in MW)



Source: Fraunhofer ICT 2013

Concrete

Steel

Composite materials

Electronic components

Copper

Aluminum

PVC

Operating fluids



50868

2235518720

59018

73584

0

10000

20000

30000

40000

50000

60000

70000

80000

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039


Glass-fibre reinforced plastic waste prognosis from wind energy turbines in Germany (rotor blades)

(in t)


RESEARCH AND SUPPORT LANDSCAPE


Environmental Technology R&D InstitutionsR&D clusters facilitate exchange between business and academia


Requirements

Environmental Innovation ProgramNon-repayable grants, availability not depending on the investment

location.

Aid intensity

Up to 30% of eligible costs

Grant volume: 2015 on average

per project ca. EUR 1.16 million

Eligible costs

Cap-ex needed to set up the demonstration plant

Commissioning of the facility (except continuous

costs of operation)

External certificates or measurements, if needed

to prove success of project

Commercial plants with demonstration character that are set up for the first time in

Germany, or combine existing technologies in a new manner

Well suited for replication

Eligible are projects in the following areas (selection) with a positive environmental impact: Waste water treatment, reduction & prevention, Waste prevention, recycling, and removal

https://www.umweltinnovationsprogramm.de/


R&D Support of the German Government7th Energy Research Programme of the Federal Government

Source: Federal Ministry of Education and Research Source: Federal Ministry of Economics and Energy


GERMANY TRADE AND INVEST


What we do

International marketing of Germany as

a business and technology location

Business location consultancy services

for international investors

Economic promotion of the new

federal states and Berlin

Export market information for the

German economy


BerlinBonn

BangkokBeijing HanoiHong KongJakartaKuala LumpurMumbaiNew Delhi SeoulShanghaiTaipehTokyo

DubaiIstanbul

Sydney

Jerusalem

AccraJohannesburgCairoNairobiTunis

Buenos AiresBogotá Mexico CitySantiago de ChileSao Paulo

ChicagoNew YorkSan FranciscoToronto Washington D.C.

Athens BrusselsThe HagueHelsinkiLondon

MadridMilan ParisStockholm

AlmatyBelgradeBudapest BucharestKiev

MoscowPragueWarsawZagreb

We are on the spot for you worldwide – ensuring

that you receive competent support.


Expanding to Germany‘s recycling sector? The role of Germany Trade & Invest

Our advisory services include:

• Market-entry information

• Tax and legal information and support

• Funding and financing options advice

• Location identification, location visit

support

• All services free of charge and strictly

confidential


SummaryThe challenges will require innovative technology. GTAI is here to

support your expansion to Germany.

Aircrafts Packaging Plastics Textiles

Wind Turbines E-Car Batteries Construction Waste CFK/GFK


Contact us for more information and individual investment support

Germany Trade & Invest is the economic development agency of the Federal Republic of Germany. The company helps create and secure extra employment

opportunities, strengthening Germany as a business location. With more than 50 offices in Germany and abroad and its network of partners throughout the world,

Germany Trade & Invest supports German companies setting up in foreign markets, promotes Germany as a business location and assists foreign

companies setting up in Germany.

Supported by the Federal Ministry for Economic Affairs and Energy on the basis of a decision by the German Bundestag.

© Germany Trade & Invest

All market data, infographic and cartographic material made available by Germany Trade & Invest has been prepared with the utmost care.

Germany Trade & Invest accepts no liability for the actuality, accuracy, or completeness of the information provided.

Ms. Anne Bräutigam Ms. Flérida Regueira-CortizoSenior Manager Investor Consulting Senior Manager Investor ConsultingT +49 (0)30 200 099-223 T +49 (0)30 200 099-230

M +49 (0)171 171 500 [email protected] [email protected]. 60 Friedrichstr. 6010117 Berlin 10117 Berlin

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