European plastics industry requires “radical” change to meet climate goals, finds Systemique

15 Apr 2022 --- The European plastics industry needs to “radically” alter its strategies and current adaptations to meet agreed-upon climate goals, finds a new report commissioned by industry association Plastics Europe. 

The report, entitled “ReShaping Plastics – Pathways to a Circular, Climate Neutral Plastics System in Europe,” was conducted by B Corp organization Systemique, which was founded to drive the achievement of the Paris Agreement and the UN Sustainable Development Goals. 

Its findings state that a redesigned plastics system must address circularity and carbon emissions simultaneously and, to do so, implement both upstream and downstream measures. The report stresses recycling alone will not suffice. 

Dr. Markus Steilemann, president of Plastics Europe, says: “The plastics industry has an important role to play in cutting emissions, reducing waste and increasing circularity. It is high time to replace fossil feedstocks by circular raw materials with a significantly lower carbon footprint. The new report shows a range of options and scenarios to get there, which we will carefully examine.” 

Recycling improvements are not enough to meet climate change targets, states the report.“It is encouraging that the report recognizes the vital role plastics play in achieving the EU’s broader net-zero emissions goals. They help deliver emissions savings in other key sectors like construction, automotive, packaging and medical, and they are indispensable for developing renewable energy technologies.”

Key findings 
The report finds that current industry and policy actions could more than double system circularity from 14% to 30% by 2030, leading to a reduction of 11 million metric tons of CO2 emissions and 4.7 metric tons less plastic waste disposed of in landfills or incinerators. 

However, these actions would still leave a “highly resource inefficient system,” and are not yet fast enough to align with the goals of the Circular Plastics Alliance, European Green Deal, or the Paris and Glasgow climate agreements. 

The report also states there is no “silver bullet” solution to reduce waste disposal and GHG emissions significantly. Upstream and downstream solutions are complementary and are most effective when deployed together. However, employing both strategies would still not be enough to reach net-zero carbon emissions by 2050. 

To achieve net-zero carbon emissions by 2050, multiple less mature, innovative technologies and approaches need to be developed and deployed in addition to proven circular economy levers to decrease GHG emissions further and decouple plastic from fossil fuel feedstocks. 

The report asserts that the next three to five years are a critical window for action. 

No illusions
Plastics Europe says manufacturers are “under no illusions” about the scale and complexity of the transition to a circular economy and have beenPlastics Europe has responded with a number of policy proposals for industry to answer the recommendations in the report. investing and innovating to address the issues across the whole plastics system for a long time. 

“They [manufacturers] are already working with partners in the plastics value chain to deliver new systems thinking, mindset and behavioral changes, higher-performing products, eco-design innovation and new infrastructure,” states the association. 

“They are also driving major advances in the [environmental] sustainability of operations, including investing in advanced recycling technologies, renewable energy and producing more plastics from bio feedstocks and other potential sources of carbon such as CO2 capture.”

However, long-investment cycles mean it will take a number of years before the full benefits become apparent, says Virginia Janssens, managing director of Plastics Europe.

“Our members are undertaking huge investments and a far-reaching reorganization of their production and technology base. To further accelerate industry’s transition, we need a new and enabling policy framework that better incentivizes investment and innovation by fostering a climate of creative competition.” 

“We must harness the power of the EU Single Market and find workable mechanisms and measures to keep the European industry globally competitive as the EU transitions to net zero.” 

New policy framework 
Plastics Europe is proposing a package of measures to help implement the report’s recommendations and accelerate the industry’s transition to net-zero carbon emissions and full circularity. These include: 

• Developing a roadmap for Plastics Europe and its members to accelerate industry’s transition toward net-zero by 2050. This transition will include interim milestones and targets and more ambitious policy recommendations.
• Ensuring all Plastics Europe policy positions are designed to accelerate the plastics system’s transition toward higher circularity and net zero emissions by 2050 – including the need to transform upstream and downstream GHG reduction and circularity levers. 
• Exploring the creation of a new multi-stakeholder platform in 2022, modeled on the report’s proposed “plastics transition committee,” designed to ensure a step-change in the intensity and effectiveness of dialogue and collaboration with policymakers and the plastics value chain. 

The report and subsequent proposals by Plastics Europe come as the industry faces severe challenges due to inflating fuel and material prices. Recently, hundreds of plastics converters and suppliers assembled to resolve disputes over these price rises, which have caused rifts within European industry over the past year. 

By Louis Gore-Langton