LONDON (ICIS)–Regional markets across the
globe have faced the full effects of the
pandemic and distracted governments from
developing and implementing initiatives to
create greater circularity in plastic
resources.
Like Europe, governments across the world will
remain preoccupied with the pandemic and fiscal
pressure it creates.
However, the change of administration in the US
offers the potential for new regulation
supporting environmental activity including
recycling programmes. Regulatory
developments at state level continue to build
and are anticipated to increase from 2021.
The goals of the US Plastics Pact, Ellen
MacArthur Foundation, will also come into
effect and signatories will be keen to show
progress towards these, increasing circularity
of resources including recycling.
Despite recent efforts from local governments
and associations, questions remain as to when
and where investment in the waste management
infrastructure will come from. As a result,
collection will remain a weak part of the chain
throughout 2021.
In Asia, regulation on single-use plastics bans
is likely to be reintroduced in 2021.
Conversely the level of investment and support
to develop more circular flows for plastic
wastes within the region is set to flourish,
with a specific focus on the preferred route of
recycling.
Coupled with regulatory developments, the
corporate focus on Environmental, Social and
Governance (ESG) goals will support the
appetite for greater reuse of resources in the
longer term but starting in 2021.
Brands and FMCGs will continue to expand
ambitions for more sustainable products and
packaging across regional markets, focusing in
the first instance on those markets most able
to adapt.
The greatest pressure remains the pricing
dynamics of the market, where low values
disincentivise the collection, sorting and
recycling of plastic wastes but high values act
as a disincentive to the use of recycled
polymer feedstocks and price volatility is
likely to remain a challenge for greater
adoption of recycled content throughout 2021.
That said, many markets outside of Europe
operate with informal workers who collect the
plastic waste and upon whom those markets are
dependent for recycle feedstocks.
There will be increasing support of this sector
of the industry as the supply chain recognises,
or is forced to recognise, the value of these
workers. Greater emphasis on better
working conditions and fair pay is anticipated
moving forward.
The level of investment in recycling projects
in Asia, already announced, is
substantial. With waste management
companies at the helm in many instances, larger
scale plants producing high quality recycled
polymers are set to start up in 2021 and
beyond.
This is in part to tackle the waste produced
but without a waste management system in most
markets but also to build a greater supply of
recycled material to serve the ambitions of
global and major brands particularly in
packaging and consumer goods markets.
Collaboration within the supply chain will be
prevalent in regional markets as players look
to utilise best practices as well as develop
local solutions for local needs. In the
Americas the focus on polyolefin recycle
markets as well as chemical recycling will
build on the progress made in 2020.
And naturally the California regulation on
minimum recycled content levels in plastic
beverage containers, which is influencing
discussions in other states, will drive the
supply and demand for associated recyclates
with immediate effect.
Global trade flows for plastic wastes will be
constrained as regulation such as the Basel
Convention take effect and markets reduce
exporting waste as a route to recycle.
This will allow Asian markets in particular a
stronger focus on solutions for managing local
waste and the preferred end-of-life route of
recycling. Further regulatory measures can be
expected as Asian governments take action to
protect the population and end markets from the
hazardous and unrecyclable waste from overseas
markets.
Front page picture source: Dave
Shopland/BPI/Shutterstock
Focus article by Helen
McGeough
Additional reporting by ICIS analysts Paula
Leardini and Jia Hui Tan
