With the Plastics Recycling Show Europe coming up in just two more weeks in the RAI in Amsterdam, the focus of this issue of Sustainable Plastics is, unsurprisingly, recycling. Mass balance, demand management of recyclate use and an in-depth look at the ramifications of the Plastics Packaging Waste Regulation are among the topics discussed – as they will be too at the show.
PRSE is currently the biggest recycling show in the world and it is completely sold out. Its growth has been phenomenal – yet it will have escaped no one’s attention that the plastics recycling industry has been on the receiving end of some hard knocks over the past two years, despite it being the declared mainstay upon which the circular economy for plastics rests. After all, the plastics recycling industry plays a crucial part in the transition towards a circular plastics economy by keeping valuable resources in the loop, reducing the dependency on virgin raw materials, thereby also decreasing the EU’s carbon footprint.
Yet various recyclers have reduced their production to a minimum; others have simply gone out of business. According to the latest figures, dating from the end of 2022, the total European installed plastics recycling capacity was at that time 12.5 million tonnes, almost double that recorded in 2018. But what is troubling is that the average yearly growth of installed capacity during that period reached 16%, yet showed a year-on-year dive in growth from 17% to 10% between 2021 and 2022.
The reasons are well known and oft cited: high energy costs and the ample availability of excessively low-priced virgin resins in the market combined with low demand and inflationary pressure, which, among other things, has pushed the cost of labour steadily upward.
All very true.
But what about the current legislative advancements and technological developments around plastics recycling - and the economic benefits likely to follow from these? They hold potential for a future that is less bleak.
And consider these thoughts: Plastics recycling offers significant energy savings versus virgin plastics production and helps reduce greenhouse gas emissions. A recent report from Oxford Economics found the production of recycled plastics had grown by 19% over the past five years, more than twice as fast as the growth in total plastics produced. Recycling is also happening in the developing world: the Asia Pacific region, for example, was the global leader in recycled plastic production volume in 2022, equivalent to approximately 55% and 20 million tonnes.
Moreover, by investing in plastic recycling infrastructure, communities can create employment opportunities, boost local economies, and foster sustainable development. This is a benefit that applies worldwide. Recycling plastic leads to lower waste management costs as the volume of plastic waste sent to landfills decreases.
In short, recycling means business. It’s what PRSE is celebrating - and I hope you’ll be there.