EU considers expanding mandatory recycled content to construction, automotive and packaging industri

        According to ICIS., a representative of the EU executive body confirmed last week that the European Commission is considering extending mandatory recycled content targets to the construction, automotive and packaging sectors.

        Possible tightening of rules to make full use of existing recycling infrastructure

         "The Commission will make recommendations on mandatory recycled content in the packaging, vehicle and construction product sectors. This will further stimulate the market for recycled plastics and release market demand." Aurel Ciobanu-Dordea, Director-General for the Environment of the European Commission said. He said the measures would be in addition to existing EU requirements for polyethylene terephthalate (PET) beverage bottles to contain at least 25% recycled PET (R-PET) by 2025 and at least 30% recycled content in all beverage bottles by 2030.

        Ciobanu-Dordea said during a Q&A session at the ICIS Global Plastics Recycling Policy Summit in late May that the Commission's focus is not on building new infrastructure, but on tightening rules to make better use of existing infrastructure. He explained that creating recycling conditions could be achieved through more detailed member state coordination rules, which would require some technological innovations, but would not necessarily require a large-scale expansion of recycling infrastructure, but rather the efficient use of existing facilities. "Using more precise and detailed rules, but sometimes they can also be seen as more restrictive," Ciobanu-Dordea added.

        Raw material shortages drive recycled polyolefin prices skyrocketing

        According to ICIS., market participants often lack sufficient collection and sorting capacity to meet their ambitious sustainability goals, which is particularly prominent in the packaging industry, which is also the biggest bottleneck facing polymer recycling.

        Currently, the sources of scrap bales for the three main recycled polymers, recycled PET (rPET), recycled polyethylene (r-PE) and recycled polypropylene (r-PP), are somewhat limited. In addition to energy and transportation costs, the shortage and high prices of scrap bales have driven the value of recycled polyolefins to record highs in Europe, resulting in a growing disconnect between new and recycled polyolefin prices, which has existed in the r-PET food-grade pellet market for more than a decade.

        “In its speech, the European Commission pointed out that the main factor leading to the failure of plastic recycling is the fragmentation of collection practices and infrastructure, and emphasized that plastic recycling requires coordinated action from the entire recycling industry.” said Helen McGeough, senior analyst for plastic recycling at ICIS. "The ICIS Mechanical Recycling Supply Tracker records total production from European facilities producing r-PET, r-PP and r-PE operating at 58% of installed capacity. According to relevant data analysis, improving the quantity and quality of feedstock can help improve the efficiency of existing recycling and drive investment in new capacity."

        Chemical recycling is expected to ease the recycling of mixed waste plastics

        Currently, the shortage of scrap bales and the high prices of recycled polymer flakes and pellets have waste plastic managers and recyclers exploring how to use mixed waste plastics to make up for the shortage, especially in non-packaging applications such as construction.

        Many non-packaging applications can use lower quality polymer grades than packaging, and as the packaging industry increasingly increases the share of single material grades, non-packaging applications are expanding the types of polymer grades they use. Mixed waste plastics (especially mixed polyolefins) are difficult to separate, costly, and have low economic benefits, but with the mature application of chemical recycling technology, the recycling of mixed waste plastics has improved.

        Deposit Return Schemes Have Advantages and Disadvantages

        In addition, although the European Commission does not intend to expand the current infrastructure, they are considering forcing all EU countries to introduce a deposit return scheme (DRS).

        Under a deposit return system, buyers pay a deposit for their packaging when they receive it, and they hand it over at a deposit return point (where it is usually sorted upon entry) and receive their deposit back. Deposit return schemes incentivize consumers to collect plastic packaging, thereby increasing the collection rate of plastic packaging, and since plastic packaging is usually sorted at the entrance to the collection point, this can also reduce pollution. However, deposit return scheme systems rely on high enough deposits to incentivize customers and have the potential to undermine well-functioning curbside collection schemes, which are often heavily funded by countries and companies.