Export fee in UAE Dirhams                               Types of Industrial Waste    

• 400   AED / Tonne                                        Scrap steel    
• 140   AED / Tonne                                        Paper waste    
• 400   AED / Tonne                                        Used cooking oils.    
• 100   AED / Tonne                                        Rawhide    
• 100   AED / Tonne                                        Aluminum waste   
• 400   AED / Tonne                                        Copper waste, scrap    
• 300   AED / Tonne                                        Electrical and electronic gadgets and equipment scrap.   
• 100   AED / Tonne                                        Waste pneumatic tires.    
• 100   AED / Tonne                                        Solid plastic trash.    

R. Keerthana connected with industry experts for their views on the move. Here are their comments 

Anshul Gupta, CEO, PGI Group: 

According to Gupta, the export duty on the materials such as metal scrap, plastics, rubber, and various other types of wastes is a clear message from the government to ensure that the industry works together to transition towards a circular economy and keep up the commitments made during COP28 to realise the ambition of zero waste to landfills, “The government has made it clear that we must – all of us – have this goal in mind, and export duty is a step in that direction," he said.  

“This will encourage more and more companies to consider recycling within the country and create value addition to their products seamlessly. It would be safe to say that these regulations are being framed to align with the core benefits/purpose of recycling. For instance, recycling of plastic/ ashes can be used in various types of industries such as construction,” he said.  

The move will promote investment in various sectors and facilitate the setting up of more industries in the country, which would then create more jobs and value-added products. Ultimately, this will support decarbonisation of industries and climate mitigation, he said. 

Karl W Feilder, Founder, Neutral Fuels: 

Feilder welcomed the move, saying that it is a wonderful opportunity to move towards a circular economy. “We have been advocating a policy to discourage export of valuable raw materials such as used cooking oil, glass, and plastic. And we welcome the UAE’s move to introduce export fees on industrial waste,” he said. This will not only promote local recycling, but also reduce the carbon footprint associated with international transportation. 

By prioritising domestic recycling, communities can not only reduce their environmental impact but also create economic opportunities through the reuse and repurposing of materials within their own borders. Such policies could potentially lead to more efficient resource management and contribute to overall efforts to mitigate climate change and promote a circular economy. 

In an earlier interview with us, Feilder highlighted how a substantial portion of used cooking oil is exported overseas, particularly to Europe and how it diminishes the potential for creating a sustainable biodiesel market within the country. “The economic dynamics of fuel prices play a pivotal role, with European oil prices outstripping local rates. The import-export paradigm necessitates a shift in perspective and policy to enhance local recycling and fuel production.” he had stated. 

Rana Hajirasouli, Founder, The Surpluss 

“This very welcome move can help encourage economies of scale to form around recycling, local industry, and reduce dependence on imports and virgin materials.” These materials are quite valuable and are in high demand, globally,  Hajirasouli pointed out. Citing the benefits of using recycled aluminium, she explained, “Recycling aluminium, for example, saves more than 90% of the energy needed to make aluminium from virgin sources, and this same amount of energy used to make a single aluminium can from bauxite ore is the same energy overhead that can be used to make 20 additional cans from recycled aluminium.” 
Hajirasouli further opined: The business impact can particularly help local manufacturers and remanufacturers of materials. For instance, used cooking oil can be converted into biofuel, by increasing moderate tariffs, this could assist in discouraging export of the precious commodity and increase the throughput into local biodiesel production plants, making it more competitive to shift to a circular economy. Moreover, higher rawhide retention can assist local leather industries diversify traditional crafts and assist small businesses. On the other hand, there will be cost increases for export-oriented businesses, which may incentivise them to contribute domestically to local industry, instead. While there may be short-term costs for export-facing businesses, in the long-run, there are major advantages for resource conservation, broader sustainability, and more diversified industries that increase waste to value practices, and additional green job growth.

Commenting on how the move can help transition towards circularity, she said, “This would be an excellent opportunity for small businesses to shift to a circular economy, finding opportunities for local sourcing.” This will allow the 90% of UAEs SME sector to tap into innovation and new market opportunities which have historically been dominated by large companies due to their access to capital and resources, she further added. 

She explained how this could help domestic businesses. “While traders may want to diversify their contributions and rethink their business models, it is excellent news for key players catering to production within the domestic economy and take advantage of reducing price fluctuations. Moreover, we can see a strong move to shift away from the linear (take-make-dispose) economy to a more circular one that emphasises retaining the utmost value from resources, and reduction of emissions associated with the international transport of industrial waste, and potentially, new, more sustainable industries emerge.”