EPA Report Finds $28B Recycling Gap, Industry Seeks Tax Credits

A new EPA Recycling Needs Survey and Assessment reveals a $22-28 billion funding gap in U.S. recycling infrastructure, underscoring the urgent need for investment in waste management and sustainability initiatives. Conducted in collaboration with The Recycling Partnership, the report highlights that 40 million tons of packaging materials are landfilled or incinerated annually due to inadequate recycling systems.

Expanding recycling access nationwide could yield $11 billion in wages, create 200,000 new jobs, and generate $9.4 billion in municipal cost savings by reducing landfill expenses. These findings emphasize the potential of a circular economy to strengthen domestic manufacturing and advance environmental policy.

Public-Private Partnerships Key to Recycling Transformation

Industry leaders stress that public-private partnerships are essential to modernizing the U.S. recycling system. To encourage private sector investment, The Recycling Partnership is advocating for a recycling infrastructure investment tax credit. This proposed incentive would provide businesses with the financial certainty needed to expand circular economy initiatives and support the implementation of Extended Producer Responsibility (EPR) programs at the state level.

The EPA assessment serves as a critical framework for guiding sustainability investments, strengthening waste management solutions, and driving long-term economic benefits in the recycling industry.

Key Takeaways:

• The U.S. faces a $22-28 billion recycling infrastructure gap.
• Investing in domestic recycling systems could generate $20 billion in economic benefits.
• Expanding recycling access would create 200,000 jobs and increase wages by $11 billion.
• A recycling tax credit could drive private sector investment in circular economy solutions.
• The EPA report lays the groundwork for national Extended Producer Responsibility policies.

By prioritizing sustainability investment, policymakers and industry leaders can transform the recycling infrastructure, support domestic manufacturing, and advance the circular economy for long-term environmental and economic success.