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An unstoppable march towards a circular future

If this year of 2018 that we’ve just bid farewell to has been characterised in any way, it is likely for having been the year of Europe’s definite support of the Circular Economy; there were major legislative changes, such as the modification of 4 important directives that, in fact, update the entire EU waste framework Directive. The transition towards a new economy, more circular and sustainable, is already underway, affecting all the agents in the value chain, from production to consumption.

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Waste management is a key factor in this change of economic model. We are no longer only talking about the traditional approach to waste management with an environmental objective. Now, this management plays a leading role also in economic terms.

Circular economy and EPR

If waste management is a key pillar in the Circular Economy, then Extended Producer Responsibility (EPR) systems are also key elements for waste management. The before-mentioned is stated by the Waste ‘Framework’ Directive itself and different organisations such as the OECD, in various reports in this regard. The United Nations High Commissioner in Spain for the 2030 Agenda, Cristina Gallach, with whom we have had the luxury of talking to for this issue of our magazine (and whom I take this opportunity to sincerely thank for her participation, and her words) has also adopted a similar approach.

Another key element in the promotion of the Circular Economy, and in which ERP systems have much to say and contribute, is eco-design: to consider the products from the perspective of their durability and recyclability before and during their manufacture. Indeed, in 2018, a report from the Centre for European Policy Studies (CEPS) on policies to promote the Circular Economy highlighted the importance of linking ERP systems with the drive of eco-design, which could be very beneficial for promoting waste hierarchy.

EAt SIGAUS, we have been working in this line for a long time through our Business Prevention Plans, which encourage and give visibility to innovation in the oil sector. It has supported eco-design for many years, with more durable, less polluting, more recyclable oils…

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Looking ahead to a 2019 that combines geopolitical uncertainties and a forecast of certain economic decline, our mechanisms to continuously adapt to the market become highly significant again.

Steps forward in 2019

In 2019, we expect further steps forward, increasingly tangible, in this unstoppable march towards a more circular future. In the specific area of used oils, during the first quarter, it is expected that the European Commission will define a questionnaire to be used to send information on industrial oils and used oils collected and treated in different countries. To this effect, the Commission is requesting information from national governments, and we have contributed our experience and opinion to the Ministry for Ecological Transition.

Without a doubt, this information will be the basis for potential new EU policies on used oil, as a possible European regeneration goal. In our case, we are well prepared for this provision of data, and in recent years, we have modernised and improved our information systems, achieving full waste traceability, monitoring all collection operations, and the geolocation of each point that this hazardous waste generates in our country.

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The volatility of oil

From the market viewpoint, there was a slight growth in 2018, marked by the volatility of oil prices. During the spring and summer months, the escalation of oil prices was notable, from 65 to 85 dollars, forecasts had even mentioned reaching the psychological value of 100 dollars a barrel, with the last quarter dropping prices down again to close to 50 dollars. The consequence of this recent drop, in respect of used oil, is that it can negatively affect its value and, therefore, the demand for this waste, thus slowing down the positive increase of used oil management of the last two years, and make the intervention of SIGAUS decisive.

Looking ahead to a 2019 that combines geopolitical uncertainties and a forecast of certain economic decline, our mechanisms to continuously adapt to the market become highly significant again, as they allow to introduce, month by month, more financing into management if the value of used oil declines; also relaxing our costs when such value rises and management requires less aid.

Goodbye to Manel Ribasés

I would like to end by remembering a key figure in the history of used oil management in Catalonia and Spain, Manel Ribasés, who died last December, after more than 20 years’ as General Director of Cator, one of the two major regeneration companies.

I will always remember his contribution to and support of SIGAUS since our foundation, and his collaboration in the development of established management procedures. He has been, without a doubt, a point of reference for the sector, and will always be an example to us all for his great professionalism, positivity and proximity. We will keep him alive in our memory.