Reverse logistics in Brazil revolutionizes sustainable management of used oil

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Reverse logistics for lubricants in Brazil

According to a report by the United Nations (UN), Brazil has one of the lowest recycling rates in the world: only 4% of all waste generated by society is recycled in the country. This is despite the approval of the National Solid Waste Policy (PNRS), implemented in 2010, which promotes the obligation of shared responsibility among all agents in the production chain.

However, not all sectors have adapted to the legislation. For this reason, the Ministry of the Environment (MMA) has been preparing, throughout this year, a series of new decrees and ordinances to detail sectoral goals and the roles of each agent in the process of proper disposal of waste (reverse logistics).

Despite the low recycling rate in the country, the reverse logistics of Used or Contaminated Lubricating Oil (OLUC) is a reference not only in compliance with standards, but also in its practical application.

This re-refining system, a type of reverse logistics that transforms used lubricating oil into a new product, is based on legislation that began to be formed in 1963, with the Resolution of the National Petroleum Council – 6/63, reaffirming the importance of ensuring the national supply of base oil from OLUC residue, essential for the lubricant industry.

Re-refining: sustainable reverse logistics

The regulation prohibited the inappropriate disposal of oils and established re-refining as the only suitable destination for the residue.

Aylla Kipper

“OLUC’s reverse logistics in Brazil is an example of pioneering, with a robust regulatory structure and an operational model that demonstrates the viability of coordinated actions between the chain’s agents. Our legislation stands out worldwide as an example of success, with solid results that prove its effectiveness. We are certainly a global case study in sustainability,” says Aylla Kipper, head of institutional relations and sustainability at Lwart Soluções Ambientais and president of the Environmental Association for the collection, management and re-refining of OLUC (AMBIOLUC).

In addition to being a pioneer, Brazil continues to lead the way: with growing environmental concerns and the implementation of new environmental laws and standards, which culminated in the peak of the sector’s maturity with the publication of Conama 362 and formalized the concept of shared responsibility even before the publication of the PNRS. “It was a regulatory milestone that assigned clear responsibilities to everyone involved in the chain from production to consumption of lubricating oils, reinforcing the commitment to the environment,” explains Aylla.

Currently, Brazil is the world leader in reverse logistics for used lubricating oil. According to the study “The Road Ahead for the Global Used Oil Market”, carried out by Kline, the country allocates more oil for re-refining than economic powers such as the United States, Japan and Canada.

“Re-refining is an essential process not only for saving natural resources, but also for environmental protection, by avoiding the incorrect disposal of waste that could cause serious damage,” highlights the executive.