Saving billions through recycling: Systemiq report outlines plan to slash PET emissions as demand grows

A new report by strategic advisory group Systemiq has found low circularity rates for PET packaging in the US, and recommends a range of measures — including material reduction and reuse — to improve the industry’s footprint. 

The findings show that approximately 90% of PET/polyester feedstocks are sent to disposal after one use and 10% mechanically recycled. 

Systemiq used detailed system modeling to quantify the impact of applying proven circular approaches (reduce, reuse, recycling) under different scenarios.

It outlines recommendations for the government and the private sector to achieve the benefits of an ambitious scenario. The study was commissioned and financed by Eastman.

The report was led by Systemiq and supported by Closed Loop Partners, The Recycling Partnership and Eunomia.

The PET and polyester packaging sent to landfill or incinerated each year would have an estimated financial value of US$7 billion if they were recycled.Saving billions in financial value

Packaging and textile materials account for one-third of the annual material waste footprint of a typical US citizen, PET/polyester makes up 30% of all plastic packaging and textiles, and its demand is growing faster than for other packaging and textile materials. 

PET plastic — known as polyester when spun into fibers — is a versatile material and the building block for products used daily in the economy, particularly in packaging and textiles. PET packaging applications include plastic bottles for beverages, cleaning products, food trays and clamshells. 

Production and disposal of PET/polyester uses 320,000 barrels per day of oil-equivalent fossil fuels (2% of US demand) and generates 120 million metric tons of GHG emissions per year — similar to all annual emissions from the US state of North Carolina. 

The 7.9 million metric tons of PET/polyester packaging and textiles sent to landfill or incinerated each year would have an estimated financial value of around US$7 billion if they were recycled. 

Boosting recycling to 70%

The study emphasizes the transformative potential of ambitious and complementary circular economy approaches — including reducing avoidable material use, scaling packaging reuse and textiles resale and expanding recycling through mechanical and depolymerization technologies. 

Depolymerization recycling, an emerging technology that can work alongside established mechanical recycling approaches, offers the opportunity to recycle polyester textiles and harder-to-recycle PET packaging into virgin-quality recycled materials, reducing fossil fuel reliance and cutting emissions. 

By 2040 — compared to a continuation of historical trends — Systemiq says that applying these measures could result in environmental benefits such as:

• Increase recycling rates for PET packaging to 70% (up from 23%), and for polyester textiles to 19% (up from 1%).
• Reduce virgin PET/polyester consumption and waste sent to landfill and incineration by half.
• Cut projected GHG emissions for packaging by approximately 60%.

Policy and industry actions needed

The report calls for “swift and bold” action from US policymakers and industry leaders to bring circularity to the PET industry.

Policymakers can take decisive action by implementing well-designed EPR laws. For example, this includes encouraging product design for circularity through eco-modulation of fees, incentivizing US domestic infrastructure, and Bottle Bills where appropriate. 

Policymakers can also expand collection and sortation capabilities, set mandates to boost demand for post-consumer recycled content (rPET), and de-risk private sector investments.

Industry leaders can accelerate the transformation by reducing unnecessary consumption of packaging and textiles, designing products for reuse and recycling, scaling textiles collection, and increasing the use of domestically sourced rPET.

The study further emphasizes the need for collaboration between government, industry and investors to create the enabling environment, investment flows and industry adoption required to deploy new and proven technologies, such as AI-based waste sortation and depolymerization recycling, at scale.