Plastic production in Europe in 2023 decreased by 8.3%, according to the industry organization Plastics Europe. According to its managing director, Virginia Janssens, the decline was stronger than expected.
At the same time, global plastic production grew by 3.4%, in particular due to the scale-up of production in China and the United States. According to S&P Global, China accounted for 60% of the growth in petrochemical capacity last year.
The share of European suppliers in the global market will decline to 12% in 2023 from 28% in 2006. In addition, due to declining demand, the volume of mechanical plastic recycling in Europe last year fell for the first time since 2018, Plastics Europe noted. This is the most common recycling method in the region.
In October, the industry organization Plastics Recyclers Europe pointed out the alarming nature of the downward trend in the European plastic recycling market, which is why many companies are leaving it. Among other things, the market is under pressure from an oversupply of virgin plastic outside Europe.
Businesses are also dissatisfied with European legislation aimed at achieving ambitious climate goals. According to the companies, it is “stifling growth,” the FT writes. American ExxonMobil (SPB: XOM) and Saudi Arabia’s SABIC this year announced their intention to close petrochemical plants in Europe. LyondellBasell, Versalis, and Trinseo are also going to close their sites or revise their plans for them.
A bill on limiting the use of disposable plastic products may be registered at the Verkhovna Rada in October, Minister of Environmental Protection and Natural Resources Roman Abramovsky has said.
According to him, the bill provides for a year after its adoption, a ban on production, import and sale of a number of disposable plastic goods in Ukraine, which are proposed to be replaced with similar ones made from alternative harmless materials, including corn starch.
“From such materials, practically without changing the technology, you can make the same products as from plastic. There will be no big problems for re-equipment of production. We are constantly in contact with business and manufacturers, and most confirm that significant transformations will not be needed […] We came to the conclusion that it is inexpensive, 10-15% of capital investments,” the minister said during a press breakfast in Kyiv on Wednesday.
The bill proposes to limit the use of plastic disposable tableware, cutlery, straws, food containers, lids for drinks containers, sanitary cotton swabs, plastic base-holders for balloons and other products made from polystyrene and oxo-biodegradable plastic.
In addition, special labeling is provided for goods that do not fall under the restrictions (wet wipes, feminine hygiene products, diapers, cigarettes with filters).
At the same time, manufacturers of such products are subject to extended liability, in particular, they will be required to recycle a certain share of the plastic produced.
“The discussion about liability is still ongoing, although the bill is already ready for registration. This is a difficult issue, since excessive liability is associated with corruption risks. Today, the following figures are proposed: the primary fine for the provision of prohibited products on the market is from UAH 18,000 to UAH 51,000, repeated violation within one year – from UAH 85,000 to UAH 175,000,” Abramovsky said.
At the same time, the minister noted the lack of statistical information on production of plastic products in Ukraine.
