Plastics industry needs to invest this decade to meet Paris targets – Borealis exec

LONDON (ICIS)–This is the decade which the plastics industry needs to make investments to get to a fully circular plastics system and comply with the Paris Agreement, an executive at trade group PlasticsEurope said.

Lucrece Foufopoulos, steering board member at Plastics Europe and executive vice president of polyolefins, circularity, and innovation and technology at Austria’s polymers major Borealis, spoke following the release of ‘ReShaping Plastics’, an independent report commissioned by PlasticsEurope to evaluate Europe’s progress towards climate and sustainability targets.

Due to the long-term nature of investment cycles in the chemicals industry, critical action on funding is needed in the next three-five years to enable a circular economy and net zero greenhouse gas (GHG) emissions by 2050.

The report also highlighted that, while some measures are already in place to tackle climate change and mitigation, not enough is being done in line with Paris and Glasgow climate agreements, the European Green Deal, or the Circular Plastics Alliance.

Foufopoulos said that independent experts were given carte blanche to come forward to assess the current situation, and identify pathways to circularity and carbon neutrality, with PlasticsEurope aiming to put together a roadmap from the findings later this year.

She added that legislation will be necessary to ensure a fully circular plastics system.

“Policy will be critical, and this may also strengthen the EU’s single market avoiding country by county specificity. Getting policy in place will enable sustainable players that have financial means to invest in and embrace the single EU market, as well as strengthening what will be a critical market,” said Foufopoulos.

The report identified that there was no “silver bullet” to reduce waste and GHG emissions, and that the most effective way to meet these targets was to use a host of different solutions, including chemical recycling.

Critics of chemical recycling argue that it is cost prohibitive, but Foufopoulos stated that the cost of not tackling emissions is significantly higher.

“I don’t think we have fully grasped what the consequences could be … If you take into account that costs and investment are relatively high, this is nascent technology in its infancy – as we increase [uptake], the scale costs will come down as the technology matures,” she said.

“We do not anticipate that the carbon tax will come down, so if you factor that in this is a viable technology.”

Borealis has worked on the chemical recycling space by signing an exclusive supply deal for pyrolysis oil with Belgian company Renasci; however, in order for the technology to take off it will require involvement of all stakeholders, said Foufopoulos.

“This is going to be the important thing for us all to coordinate mobilisation and responsibility of all stakeholders, so obviously the thing that need to come first is legislative framework that enables things to happen. That needs to come urgently so governments have a role to play,” she said.

“Industry has a role to play investing in technology. Chemical recycling a key part of that but I believe the industry needs to in embrace innovation at its heart … Today, legislators needs to take responsibility and not hold back certain solutions that we know to work by holding them hostage and not acting fast enough.”

Part of this is focussing on reusable technology. While this is somewhat at odds with the ambitions of plastics producers, Borealis is incorporating it in their business plan, such as their investment in Bockatech, which produce lightweight packaging materials designed to be reused.

“Yes, it comes at reduction of plastics use by keeping things longer in circularity, but at Borealis our approach is following the cascade of material use holistically: it is essential to reduce carbon footprint, once those products have reached full use we will do the double loop, recycle can inject them back into the system,” said Foufopoulos.

“We believe strongly in re-use, and we continue to invest in certain applications of this technology – it is something we don’t take lightly.”

Front page picture source: Richard Sowersby/Shutterstock

Focus interview by Morgan Condon