With the global momentum towards embracing a net-zero emissions and broader sustainability agenda, the waste recycling service sector is coming into prominence as a key stakeholder in the global transformation process. Contrary to the perception and practice in the past, where the recycling service sector played the role of nothing more than refuse collectors, the current recycling service sector is actually the strategy-enabling mechanism for the reduction, conservation, and execution phases of the global greenhouse gas reduction and sustainability agenda.
For a broader market context, see the Waste Recycling Services Market report by Coherent Market Insights.
Waste Diversion: Cutting Emissions at the Source
One of the most direct ways recycling services contribute to net-zero targets is by reducing the volume of waste sent to landfills or incinerators. Landfills and incineration represent source sectors that contribute significantly to methane, a potent GHG that is produced as organic materials such as food scraps and yard trimmings undergo anaerobic decomposition. Methane production can be decreased straightforwardly by recycling organic materials such as food scraps and yard trimmings to compost, anaerobic digestion, and other means.
Aside from handling organic waste, the diversion of other materials such as plastics, papers, metals, and glass would also result in the avoidance of large amounts of greenhouse gas emissions generated in the process of extracting and further processing virgin materials for use. Based on an article released in January 2023 by ACS Publications, "Emissions of greenhouse gases and air pollutants from composing," composing organic materials would result in the avoidance of large amounts of methane gas released into the environment by retaining materials that could decompose and generate greenhouse gases in landfills.
(Source: ACS Publications)
Supporting Circular Supply Chains
The achievement of net-zero goals means the supply chain must be rebuilt with lower reliance on non-renewable materials and the adoption of circular economies. Recycling service companies play a crucial role in this rebuilt supply chain ecosystem. The companies harvest, process, and refine used items into grades of recycled material, which can then be reused in the production process, used as inputs for the production of new goods in the packaging, building, automobile, and consumer goods segments.
Furthermore, waste recycling services have also increasingly become involved with consumer product manufacturers to work together on designing for the recyclability of their packaging, participating in take-back programs, and engaging in closed-loop systems. This will create more sustainable supply chains with less greenhouse gas emissions, as materials will remain in use instead of being discarded as waste. Rather than seeing waste as a by-product, it is important to adopt a feedstock strategy.
Community and Economic Benefits
Recycling services also contribute to broader social and economic sustainability by creating employment across collection, processing, and technology maintenance activities. This is due to the jobs that recycling services provide to the economy. Recycling services provide jobs through the collection and recycling process. This helps the economy while still ensuring that waste does not affect the environment. There is also awareness that comes from recycling services through education. This awareness makes the community aware of the sustainability of waste. This further makes them responsible for the recycling process.
Where the development of waste management infrastructure is still at a preliminary stage, the recycling service providers may work together with the governments as well as non-governmental organizations to enhance capacity development, as well as facilitate the application of advanced waste management systems. It also aims at mainstreaming the informal sector workers involved in waste management into formal value chains.
In October 2025, the Chennai Municipal Corporation in India formalized employment for 128 ragpickers as part of a broader solid waste management initiative. Previously working informally at the Kodungaiyur dump yard, these workers were brought into structured roles that provide stable employment, training, and benefits—strengthening local economies while improving recycling efficiency and sanitation outcomes.
(Source: The Times of India)
Outlook: Waste Recycling Services as Pillars of the Net-Zero Transition
Going forward, the recycling of waste and provision of recycling services are likely to become central actors in the quest for a net-zero and sustainable future. As the target for the mitigation of climate change gets tighter and the circular economy approach develops, recycling will continue to move upstream. This will involve the design of products, material flows within supply chains, and the reduction of greenhouse gas emissions within value systems. The recycling industry can no longer continue to act as an after-market solution.
As governments, industries, and communities intensify their focus on emissions reduction and material circularity, demand for advanced recycling services, organic waste recovery, and traceable material flows is expected to rise steadily. In this context, waste recycling services are not just supporting sustainability goals—they are becoming foundational infrastructure for a low-carbon, circular economy, helping translate net-zero ambitions into measurable, on-the-ground impact.
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