Bloom ESG predicted that in the near future a new generation of environmental certificates, called carbon insets, will become a revenue stream for recyclers. | Chayanuphol/Shutterstock
In the near future, ITAD and e-scrap recyclers should expect industry consolidation and the rise of a new kind of environmental certificate that could create revenue streams for recyclers, advisory firm Bloom ESG predicted in a new white paper.
Bloom has offices in London, Amsterdam and Lisbon. Its latest white paper, “Monetizing Electronics Recycling & Reuse,” notes that the e-scrap industry is “at the centre of the new circular economy, where it is contributing to the low-carbon economy and mineral security.”
“At the same time, the fractured e-waste industry is being professionalized operationally, and is ripe for consolidation to scale to the level required by the challenge of meeting the needs of Tier 1 tech firms,” the white paper added.
According to the paper, only about 22.3% of the e-scrap generated in 2022 was documented as having been properly collected and recycled, “leaving $62 billion worth of recoverable natural resources unaccounted for.”
In addition, worldwide generation of e-scrap is rising five times faster than recycling capacity, creating an “unique opportunity for processors, electronics manufacturers and investors,” the paper noted.
Bloom predicted that in the near future a new generation of environmental certificates called carbon insets will “create new revenue and ‘business development currency’ for processors.” Carbon insets are certified avoided emissions in a company’s value chain.
“Today, there is no tangible way for avoided emissions to be transferred between processor and
their client,” the white paper stated. “However, if a large OEM or technology firm had the ability to purchase certified avoided emissions certificates from their ITAD partner they would be able to demonstrate tangible progress towards their Scope 3 net-zero emissions reduction target. And the processor would benefit from a new service offering and high-value certification revenue.”
Bloom recommended in a recent In My Opinion article that e-scrap and ITAD facilities start to position themselves to take advantage of the coming changes.