I propose that recycling becomes a component of crafting. An ability to take apart the things we just made, and we get back a bit of the original material. I don't know what a fair amount would be, ⅓ of the original material?
It wouldn't work for every item.. I don't think the cleverest wolf can turn bone paste back into a bone ;-)
It could be as simple as specific recycling recipes we can buy and learn. "Recipe: Recycle White Scarf" would be rather helpful.. I am going to have dozens and dozens of those. Sure, we could vendor sell them, but where is the fun in that and it feels wasteful.