Petcore: Recycled plastics future relies on policy

European plastics recycling policies still need fine tuning, but regulators and industry are collaborating to ensure a successful outcome, writes Chloe Kinner

The European PET industry was focused on the impact that sustainability legislation will have on the industry over the coming years at the annual Petcore Europe Conference held in Brussels this week.

The conference gathered the entire PET value chain from the region and perspectives were shared on the positives and negatives around the implementation of recycling policies.

Plastic packaging has an important role in reaching the EU's climate objectives

Dr Wolfgang Trunk, policy officer at the European Commission, and "architect" of the Packaging and Packaging Waste Directive (PPWD) revision, stated that the previous directive had failed to some extent to debunk the negative environmental image around plastic packaging, and the ambitious new proposal hopes to break away from this view and to further support the EU's 2050 climate objectives to reduce greenhouse gas emissions and become a climate neutral continent.

Plastic packaging usage and packaging waste generation is increasing, and is forecast to continue to do so throughout the directive period despite the measures and targets in place. Both the European PET industry and the Commission are in agreement that plastic packaging usage remains vital to modern life, however sustainability concerns and environmental solutions to plastic waste are essential and that legislation is needed to propel the circular economy.

Legislation underpins the future of the European recycling industry

It is clear that legislation is the impetus behind the European recycling markets now and in the future, driving innovation and investment in the industry. The European Commission aims for the PPWD "to improve the economic environment for the industry because the fragmentation of the EU market is not only in the manufacturing of the packaging but also across the entire value chain, from raw material markets to the waste management value chain. It is very important to have an internal market legal base and for the EU to have these harmonisation measures", Trunk said.

Trunk also emphasised that the "targets" set out in the directive are in fact not targets, but are actually "product requirements". This is an important distinction and big difference from the EU Single Use Plastics Directive, and intends to give more assurance about the security of the future of the recycled industry.

Overall sentiment from the sector is very positive towards the PPWD, and the industry is united in support of the core concepts of the proposal and feels that there is huge potential for the recycling markets that will be accelerated by this legislation. However, there are some mixed feelings and concerns around the implementation and details of the directive and unintended consequences of this proposal on the European recycling markets.

Mixed feelings, missed opportunities and unintended consequences

Many brands and companies have already made ambitious recycling and sustainability commitments that in some instances, go above and beyond the proposals in the PPWD. Natural Mineral Waters Europe's Head of Sustainability, Adam Gono, gave the view that the directive provides an opportunity to live up to these individual commitments, but highlighted that there have been some missed opportunities in the proposal and that some of the measures, such as the reuse targets, will be very difficult to be fulfilled by the majority of market participants, particularly with the way they have been communicated.

The recycling industry is keen to emphasise the need for clear definitions and guidance in applying the measures to the industry's reality. Monica Harting from Remondis stated that recyclers are very happy with the bold and ambitious proposal that contains ideas that have the potential to propel a circular economy forward, but it will depend on the details of how these measures will be implemented. "There is so much still to be defined, and I hope that the point of this packaging regulation is not missed by defining the wrong details."

Reuse versus recycle

The move towards reuse is a key area of concern for the industry — while there remains strong support for reuse models as part of the sustainability solution for packaging, a blanket approach across the region and industry is problematic. Director general of UNESDA, Nicholas Hodac, criticised the reuse elements of the PPWD, saying, "The proposal is detached from the reality, it does not respect the diversity that exists in Europe or within the sector, or the commercial or industrial reality."

There are concerns around the costs of reuse schemes and more work is needed to understand how these models fit with the existing systems within the European PET market. With ambitious recycling and recycled content targets already in place, accepted and embraced by the industry, a focus on reuse could cause a disruption to the progress of the industry and reduce the ability to reach other goals, for example forcing significant changes to incorporate reuse models in systems where Deposit Return Schemes (DRS) are already successfully established. It is important that the core intention of the regulation, to reduce plastic packaging's environmental impact, remains at the forefront of solutions.

Recycled imports on the horizon?

Policy makers and regulators not only play a crucial role in the advancement of the European recycling industry, but also in the protection of it. The European recycling market is the most advanced globally, and this level of progress has led to a high-value industry, that demands high prices for material. The European recycled market has the obvious potential to incentivise countries from outside the EU to explore the import opportunities. This is particularly relevant to European markets in coming years as legislation accelerates the implementation of DRS.

DRS are undoubtedly needed in Europe to increase collection and quality, and support for DRS is clear across the industry. But the cost of the schemes and the higher level of quality of waste as a result of a successful scheme will undoubtably increase bale prices domestically, that will need to be passed on through the value chain. This may increase the opportunity for imports of cheaper recycled material, that can benefit from cheaper plastic waste from non-EU countries that rely on cheaper collection systems. Currently, there are no protections surrounding imports of recycled material included in the proposed policies.

Progress is better than perfection

European recycling policies are progressive and inadvertent concerns are unavoidable. There is clearly still a lot of clarity and fine tuning needed to European plastics recycling policies. However, it is evident that the regulators and industry are fully committed to striving towards a more sustainable future for the industry, and collaboration will be key to overcoming challenges. Market participants are asking for policy makers to provide them with security they need to make the investments needed to reach targets and requirements, whether this is through further clarity on commitments or further legislation on protections, to avoid the self-fulfilling prophecy of the European recycling industry not achieving the ambitious goals. At Petcore, the European Commission affirmed its commitment to finding pragmatic solutions and emphasised that criticism should not be at the expense of progress. A sentiment that was echoed by PET industry participants.