According to a recent report, Plastics Europe has shared some interesting facts about recyclability and circularity of plastics in both European and global scale. More specifically, the production growth of circular plastics worldwide is studied and also the challenges that European plastic producers face, as well as the consequences these might have on the future of EU’s recycling targets.
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The Global Growth of Circular Plastics Production
Plastics Europe has recently published some “fast” facts in its report “Plastics – the fast Facts 2023”. While the report reveals a number of interesting trends about plastic production and circularity, one of the most significant statements is that of the global production of circular plastics. Specifically, the worldwide production of plastics experienced a small increase in 2022, reaching a substantial 400.3 million metric tons, marking a slight growth from the previous year.
Fossil-based vs Circular Plastics in EU
The most remarkable result, however, lies within the production growth rate of circular plastics, which witnessed a staggering increase, 16 times more than the growth rate of fossil-based plastics. Notably, circular plastics now constitute nearly 10 % of the global plastic production, signaling a significant shift towards sustainability.
In Europe, fossil-based plastics production seems to be on a downward trajectory, contrasting with the impressive surge in circular plastics, which has seen a remarkable 29.2 % increase since 2018. As of 2022, circular plastics claim a noteworthy 19.7 % share of the overall European plastics production, underlining EU’s commitment in providing a more sustainable and circular economy.
Decrease in EU’s Plastic Production
The aforementioned “Plastics – the fast Facts 2023” report also highlights a growing gap between the European and the global plastic production competitiveness. Europe’s share to the world’s plastics production has decreased from 28 %, in 2002, to a mere 14 % in 2022, while North America and China have claimed 17 % and 32 %, respectively.
The Challenges of European Plastic Producers
Despite a stable demand for plastic products within Europe, the continent’s material production has, not only dropped in relative terms, but also in absolute terms, with the decline in European plastics production being attributed to various factors, including increase energy prices, strict regulatory framework and challenges in accessing raw materials.
According to an article of Plastic Recyclers Europe on the increase of imports inside of European countries, depicts that PET imports in the EU have increased by 20 % from Q2 2022 to Q2 2023.
If these issues persist, Europe is at risk of increasing its manufacturers’ dependency on plastic imports, and since these imports might not adhere to the EU sustainability standards, they might jeopardize producers’ ability to meet both European legal targets and EU’s demand for plastics.
How can Producers recover from these Challenges?
To safeguard and rejuvenate European competitiveness, it is imperative to establish an enabling policy framework that encourages investments and ensures a level-playing field and fairness among competitors. A key proposal is the creation of a true EU equivalent to the US Inflation Reduction Act, the most significant climate legislation in US history, which offers funding, programs, and incentives for the purpose of boosting the transition to a clean energy economy.
Additionally, there is a dire need for a harmonized and consistent regulatory framework across the European plastics market. These measures will not only support plastics manufacturers but also align with EU sustainability goals, ensuring a resilient and competitive future for the European industry.
Conclusion
While the global shift towards sustainability is clearly visible from the increased production and use of circular plastics, it is vital for the competitiveness of EU plastic producers that Europe establishes a legislative framework that both enables investments and averts manufacturers from the importation of plastic. In this way, Europe will manage to compete effectively with the rest of the continents’ plastic production, while also staying in-line with its recycling targets and contributing further to the growth of plastic circularity.
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