What's Happening?
ICIS, a commodity intelligence provider, and CPCIF, China's leading petroleum and chemical industry organization, have released a study on the European Union's circularity regulation and its effects on global
recycled plastics demand. The study focuses on the EU Packaging and Packaging Waste Regulation (PPWR) and forecasts a significant increase in demand for recycled polyethylene (rPE), polypropylene (rPP), and polyethylene terephthalate (rPET) by 2030. The regulation mandates minimum recycled content targets, driving demand across packaging, automotive, and textiles sectors. The study also highlights the critical role of chemical recycling in meeting these targets, given the limitations of mechanical recycling.
Why It's Important?
The EU's circularity regulation is set to transform global supply chains, particularly in the plastics industry. By enforcing recycled content requirements, the regulation will influence sourcing strategies and boost demand for certified recycled materials worldwide. This shift presents opportunities for innovation in recycling technologies and challenges for industries to adapt to new standards. The study underscores the interconnected nature of global trade, as exporters to the EU must comply with these regulations, impacting their operations and market strategies. The findings are crucial for stakeholders in the plastics industry, including manufacturers, recyclers, and policymakers, as they navigate the evolving regulatory landscape.
