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Material Flow Cost Accounting as a Resource-Saving Tool for Emerging Recycling Technologies

Author

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  • Caitlin Walls

    (ABCircular GmbH, Magnusstraße 11, 12489 Berlin, Germany
    Institute of Applied Resource Strategies IARS, SRH Berlin University of Applied Sciences, Ernst-Reuter-Platz 10, 10587 Berlin, Germany)

  • Almy Ruzni Keumala Putri

    (Institute of Applied Resource Strategies IARS, SRH Berlin University of Applied Sciences, Ernst-Reuter-Platz 10, 10587 Berlin, Germany)

  • Gesa Beck

    (ABCircular GmbH, Magnusstraße 11, 12489 Berlin, Germany
    Institute of Applied Resource Strategies IARS, SRH Berlin University of Applied Sciences, Ernst-Reuter-Platz 10, 10587 Berlin, Germany
    Fraunhofer Applied Research Center for Resource Efficiency ARess, Brentanostr. 2a, 63755 Alzenau, Germany)

Abstract

Material Flow Cost Accounting (MFCA) is an environmental management accounting method that allocates costs to material and energy flows through a process, thereby enabling a simultaneous reduction in environmental impacts alongside an improvement in business and economic efficiency. This study illustrates the versatility of MFCA beyond its usual application to existing production and manufacturing processes. In this paper, MFCA is used to assess the financial viability of two emerging recycling technologies, IRETA2 (Development and Evaluation of Recycling Routes to Recover Tantalum from Electronic Waste) and ReComp (Development of an Innovative, Economically and Ecologically Sensible Recycling Method for Metallised ABS and PC/ABS Composite Waste). These two projects differ in their process structure. Whilst IRETA2 is a strictly linear recycling process, ReComp consists of two process streams, split according to the treatment of its two material fractions. For both projects, the lab-scale experimental results were used to develop an MFCA model of the recycling process scaled at each project partner’s facilities. MFCA was utilised to calculate the projects’ overall profit or loss, the impact of the final products’ market conditions and processing rate (in the case of IRETA2), or machinery capacity (for ReComp) on the overall results. The results show that neither IRETA2 nor ReComp are financially viable based on the current output products’ market value and quantity produced. However, through a sensitivity analysis, it is demonstrated that IRETA2 could become financially viable if the processing rate or market conditions were to improve. Additionally, ReComp could become financially viable if there was an increase in machine capacity. Finally, this paper also explores possible implications of MFCA when applied to emerging recycling technologies on EU policy and strategy, particularly those related to the EU Green Deal, such as extended producer responsibility and supply chain acts.

Suggested Citation

  • Caitlin Walls & Almy Ruzni Keumala Putri & Gesa Beck, 2023. "Material Flow Cost Accounting as a Resource-Saving Tool for Emerging Recycling Technologies," Clean Technol., MDPI, vol. 5(2), pages 1-23, May.
    • Handle: RePEc:gam:jcltec:v:5:y:2023:i:2:p:33-674:d:1148850
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    References listed on IDEAS

    as
    1. Thuy Thanh Tran & Christian Herzig, 2020. "Material Flow Cost Accounting in Developing Countries: A Systematic Review," Sustainability, MDPI, vol. 12(13), pages 1-18, July.
    2. Shaio Yan Huang & An An Chiu & Po Chi Chao & Ni Wang, 2019. "The Application of Material Flow Cost Accounting in Waste Reduction," Sustainability, MDPI, vol. 11(5), pages 1-27, February.
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