EU €800/tonne plastic waste levy will accelerate adoption of recycling, may drive product substitution

Europe’s new €800/tonne levy on waste plastic packaging will force chemical supply chains to take recycling more seriously and could drive product substitution.
- What we know and don’t know about the €800/tonne EU levy on plastic packaging waste
- Tax could lead to polymer substitution away from polymers which are less easy to recycle, or to other materials
- The levy could accelerate adoption of recycling technology and infrastructure
- But huge challenges as recycled polymer sector not yet developed enough
- Polymer and carbon taxes will act as a “short, sharp shock” for chemical companies and supply chain
- Move to local, sustainable production will accelerate
- Oil prices propped up by China and India building reserves which are now full
- China may switch from being the world’s largest net importer of polypropylene (PP) to net exporter by 2022
- Global PP moving towards “perfect storm” of over-capacity amid structural changes to demand
- PP producers must focus on sustainability, affordability, local supply chains

Interview with Paul Hodges, chairman of International eChem; John Richardson, ICIS senior consultant Asia; Mark Victory, ICIS senior recycling editor and Helen McGeough ICIS senior analyst, plastics recycling.