By Faridat Salifu
In recent years, the world has witnessed a collective effort to combat the proliferation of single-use plastics. Companies set ambitious targets for reducing and reusing plastics, individuals pledged to minimize packaging waste, and innovative solutions, like London bars replacing plastic straws with eco-friendly hollow pasta tubes, emerged.
However, despite these initial efforts, our global dependence on plastics has not abated; it has escalated. Over the past three decades, plastic consumption has quadrupled, primarily due to the demand for packaging, consumer goods, and textiles, as verified by the OECD. Regrettably, recycling and reuse initiatives have struggled to keep pace, with more than 80% of plastic waste still escaping these sustainable practices.
One of the central challenges we face is the limited availability of recycled plastic, a significant hurdle for consumer goods companies, especially those in sectors like beverages. Achieving ambitious recycling targets has proven to be an uphill battle, and the scarcity of recycled plastic has driven its price up to 20-30% higher than virgin plastic, according to Barclays’ Sustainable & Thematic Research team.
Compounding this issue, recycling technology is a field in evolution. A prominent example is Lego’s recent decision to move away from using recycled bottles to manufacture its iconic toy bricks. Surprisingly, some recycling processes release more carbon dioxide (CO₂) than they save.
However, amid these complexities, there is a silver lining—a significant opportunity. Recycling plastic is not merely a choice; it is an environmental imperative. Meeting corporate sustainability goals requires an annual supply of 40 million tonnes of recycled resins, necessitating an investment of approximately $100 billion, as highlighted by McKinsey.
The encouraging aspect is the continuous development in recycling technology. Mechanical recycling, which involves cleaning and melting plastic bottles, offers a cost-effective solution, producing plastics at nearly half the cost of new materials. However, it is limited to specific types of plastics and relies on high-quality feedstock. Advanced recycling, an emerging approach that disassembles plastics at the molecular level using chemicals, holds promise in simplifying recycling processes and reducing the need for meticulous sorting.
Companies that are actively expanding recycling capacity deserve attention. Norway’s Tomra, known for its sourcing expertise, and Agilyx, a pioneer in recycling technologies, serve as noteworthy examples. Chemical giants like Eastman are planning new recycling facilities, and engineering and construction firms like Maire Tecnimont are venturing into this crucial arena.
While the plastics recycling sector is still in its early stages, the endeavor to streamline the plastic supply chain carries substantial rewards. As technology advances and investments flow into this space, there is a glimmer of hope that recycled plastic may eventually become more cost-effective than its newly produced counterpart. This offers a sustainable solution in our ongoing battle to safeguard the environment and reduce waste, making a meaningful contribution to a greener future.