Only 25 companies are responsible for half of the world’s plastic production

The European Investment Bank (EIB) unveiled a new study today, that analyses the inefficiencies of the plastics value chain and their solutions. Two main findings: Plastic packaging is the biggest contributor to the plastic waste problem, and 25 companies are responsible for half of the world’s plastic production, says EIB in a press release.

Plastics production, rapid consumption and widespread discharge into the natural environment — both on land and at sea – has been rising exponentially over the past 70 years. The implementation of a fully circular economy in plastics is essential in the face of ever-increasing complexity of the underlying compounds.

25 companies

More than 500 plastic producing companies exist worldwide. However, the study shows that only 25 companies dominate the market, with a market share of 50 percent of total global plastics production. Many of these are multinationals with production facilities spread across the globe.

Plastic packaging

Plastic packaging is the biggest contributor to the plastic waste problem. 98 percent of plastic packaging is produced from virgin feedstock, the study also finds. A functioning market for recycled granulate remains largely non-existent. Furthermore, stakeholders are unable to correct dysfunctions at the later stages of the plastics value chain.

Investment gap must be closed

In the global context, the European Union is performing comparatively well in addressing plastic waste pollution and has set itself ambitious targets under the European Strategy for Plastics. Nevertheless, the report finds that an estimated investment gap of €6.7-8.6 billion must be closed to achieve Europe’s pledged goal of placing on the EU market each year 10 million tonnes (Mt) of plastic recyclates in final products by 2025. Achieving these targets requires substantial investment and a reliable end market for the recycled content. The largest gaps in sorting and recycling are identified in EU cohesion regions, centred on Central and Eastern Europe and South-East Europe.

Given the complexities of the plastics value chain, many of the necessary improvements require policy measures combined with targeted financial instruments. Policy recommendations by the study include legislative measures to tackle difficult-to-recycle plastics packaging, restrictions on composite packaging (such as packaging combining paper and plastics) and imposing quotas on recycling while boosting public awareness campaigns.

Mushrooms could be mimicked and used to replace plastics, new research shows it can be done

A research group from VTT Technical Research Center of Finland has unlocked the secret behind the extraordinary mechanical properties and ultra-light weight of certain fungi.