Changes in China's recycling could cost North Jersey towns cash

A crackdown on trash halfway around the world has disrupted the U.S. recycling industry and could cost North Jersey municipalities some of the coveted revenue they earn from selling the paper, plastic and aluminum cans that residents put out at the curb.

For much of this year, China has rejected bales of recyclables shipped from the United States that are too contaminated by regular trash. China’s effort to erect what’s become known as a “green fence” against contaminated recyclables has prompted recycling companies here to start charging financial penalties to the towns and corporate clients whose recyclables are tainted with too much regular garbage.

“Make no mistake: This is a serious situation that can have major repercussions for the future of the recycling industry in the U.S.,” Chris Riviello, managing partner of Atlantic Coast Fibers, a Passaic-based recycling company, told the municipalities it serves in a recent letter.

It’s not clear how much North Jersey towns stand to lose, but some municipalities make between $300,000 and $500,000 on recycling.

And towns in Bergen County could be especially vulnerable because they use a system in which their recycling hauls are more likely than those in Passaic County to include regular trash.

Given the region’s proximity to the Port of Newark, much of the recyclables collected in North Jersey, particularly paper, gets sent abroad, where mills turn it into new products. Much of it is sold to China, which bought $11.3 billion in scrap metal, plastic and paper from the U.S. in 2011.

China’s action — and the response by recyclers — has come at a time when towns, especially those in Bergen County, have been trying to entice more residents to recycle by embracing simpler single-stream recycling programs. Residents can combine paper, cardboard, glass, aluminum and plastic in one container rather than separating them.

Some experts say single-stream recycling increases the amount of material collected by up to 30 percent and provides more revenue to the towns that sell their recyclables. But given China’s crackdown, some in the industry question the wisdom of having moved to a single-stream system. They say that so much garbage gets mixed in with the recyclables that it significantly reduces its value.

“It’s easier to recycle when you have single-stream. But it’s also easier for residents to throw non-recyclables into the mix,” said Jerry Lobosco, senior vice president with Green Sky Industries, a Clifton-based recycling company with many municipal clients in the region.

Lobosco said his company sends about 95 percent of its paper and cardboard to Asia — principally China, but also to South Korea, Taiwan, Indonesia and India.