New Plastics Economy report offers blueprint to design a circular future for plastics

SWINDON, 19th JANUARY 2016 – The World Economic Forum and Ellen MacArthur Foundation have released today the report The New Plastics Economy: Rethinking the future of plastics. The report was produced by the World Economic Forum and Ellen MacArthur Foundation as part of Project MainStream. Analytical support was provided by McKinsey & Company, and financial support by the MAVA Foundation. Recycling Technologies collaborated together with more than 40 other participants in the report which provides for the first time a vision of a global economy in which plastics never become waste, and outlines concrete steps towards achieving the systemic shift needed.

Adrian Griffiths, CEO, Recycling Technologies comments: “We are delighted to be part of the New Plastics Economy report. Recycling Technology’s innovation has created one of the world’s most significant developments in the field of recycling end of life plastic material, by creating a highly commercial, distributed solution for a multi-billion pound global problem. Our approach utilises a series of scaled chemical processes to convert residual plastic waste into Plaxx™ – an ultra-low Sulphur hydrocarbon product. We hope that this will help the UK and other nations achieve the new European circulatory targets and reduce the need to import virgin oil feedstock.”

The new report acknowledges that while plastics and plastic packaging are an integral part of the global economy and deliver many benefits, their value chains currently entail significant drawbacks. Assessing global plastic packaging flows comprehensively for the first time, the report finds that most plastic packaging is used only once; 95% of the value of plastic packaging material, worth $80-120 billion annually, is lost to the economy. Additionally, plastic packaging generates negative externalities, valued conservatively by UNEP at $40 billion. Given projected growth in consumption, in a business-as-usual scenario, by 2050 oceans are expected to contain more plastics than fish (by weight), and the entire plastics industry will consume 20% of total oil production and 15% of the annual carbon budget.

In this context, an opportunity beckons for the plastics value chain to deliver better system-wide economic and environmental outcomes, while continuing to harness the benefits of plastic packaging. The New Plastics Economy, outlined in this report, envisages a new approach based on creating effective after-use pathways for plastics; drastically reducing leakage of plastics into natural systems, in particular oceans; and decoupling plastics from fossil feedstocks.

Achieving such systemic change will require major collaboration efforts between all stakeholders across the global plastics value chain – consumer goods companies, plastic packaging producers and plastics manufacturers, businesses involved in collection, sorting and reprocessing, cities, policymakers and NGOs. The report proposes the creation of an independent coordinating vehicle to set direction, establish common standards and systems, overcome fragmentation, and foster innovation opportunities at scale. In line with the report’s recommendations, the Ellen MacArthur Foundation will establish an initiative to act as a cross-value-chain global dialogue mechanism and drive the shift towards a New Plastics Economy.

The report’s findings are timely: knowledge and understanding of the circular economy among business leaders and policymakers is growing, as demonstrated by the European Commission’s recent circular economy package and associated funding announcements; new technologies are unlocking opportunities in material design, reprocessing and renewable sourcing; developing countries are investing in after-use infrastructure; and governments are increasingly considering – and implementing – policies around plastic packaging. The New Plastics Economy: Rethinking the future of plastics provides a fact-base and a vision to inform the choices that need to be made.

To read the full report, visit:

www.ellenmacarthurfoundation.org/publications

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Notes to editors:

This report was produced by the World Economic Forum and Ellen MacArthur Foundation as part of Project MainStream. Analytical support was provided McKinsey & Company, and financial support by the MAVA Foundation.

Project MainStream: This report is the product of Project MainStream, an initiative that leverages the convening power of the World Economic Forum, the circular economy innovation capabilities of the Ellen MacArthur Foundation, and the analytical capabilities of McKinsey & Company. MainStream is led by the chief executive officers of nine global companies: Averda, BT, Tarkett, Royal DSM, Ecolab, Indorama Ventures, Philips, SUEZ and Veolia. MainStream aims to accelerate business-driven innovations and help scale the circular economy. It focuses on systemic stalemates in global material flows that are too big or too complex for an individual business, city or government to overcome alone, and on enablers of the circular economy such as digital technologies.

The Ellen MacArthur Foundation was created in 2010 to accelerate the transition to a circular economy. The Foundation’s work focuses on four areas: insight and analysis, business and government, education and training, and communication. With its Knowledge Partner, McKinsey & Company, the Foundation works to quantify the economic potential of the circular model and to develop approaches for capturing this value. The Foundation collaborates with its Global Partners (Cisco, Google, H&M, Intesa Sanpaolo, Kingfisher, Philips, Renault, Unilever), and its CE100 network (businesses, governments and cities), to develop circular business initiatives and build capacity. The Foundation is creating a global teaching and learning platform on the circular economy as well, encompassing work with leading universities, schools and colleges, and online events such as the Disruptive Innovation Festival.

McKinsey & Company is a global consultancy. McKinsey is a recognised thought leader in the area of resource productivity, environmental economics and sustainable business practices across all sectors, functions and geographies. McKinsey is an initiator of Project MainStream together with the World Economic Forum and the Ellen MacArthur Foundation. This report has been supported by a team from the McKinsey Center for Business and Environment, and is the sixth publication developed together with the Ellen MacArthur Foundation in the context of a knowledge partnership.

Recycling Technologies has created one of the world’s most significant developments in the world of turning waste to energy, by creating a highly commercial distributed solution for a multi-billion pound global problem. Recycling Technologies has been formed to commercialise the development of the plastic recycling technique established originally by the University of Warwick. Some of the UK’s leading experts on Plastics, Waste Management and Engineering Processes make up the Recycling Technologies team that provides direction and delivery for the business. The company provides innovative solutions to help customers achieve financial gains through turning residual plastic waste into a valuable resource. Its flagship machine, the RT7000, converts unsorted residual plastic waste – that is currently disposed of in landfill or incinerators – into a valuable low sulphur hydrocarbon known as Plaxx™.

Media contacts:
Paula Elliott
Recycling Technologies Media Office
Tel: + 44 (0) 1189 497736
Email: [email protected]