Brazil: more hindrance than help for recyclers

The recycling sector has been facing major difficulties in recent years and 2024 has been no different.

Facing serious economic problems, the current government has been increasing public debt through high levels of spending, generating inflation in what many regard as budgetary mismanagement. Social policies have been directly affecting the recycling sector through low industrial generation, low consumption of steel and other products, a slowdown in the economy and a lack of investment in infrastructure. The paper industry has returned to the linear economy, flooding the paper/packaging market and consuming reforested pulp.

The Brazilian government’s failure to demonstrate support for the recycling sector is reflected in a tax reform which should increase taxes on recycled products by approximately 27%, creating greater difficulties for the sector. New laws developed by the National Institute of Recycling INESFA, and for which the sector has been asking for support, are being stalled in Congress without much apparent interest in having them finalized.

At the same time, credit lines are scarce and very expensive, generating absurd costs and hindering not only the growth of the sector but also, therefore, protection of the environment. The market is good but effective actions are not being taken.