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DELAYING RECYCLED DEMAND The tax would add € 450 / tonne to the price of virgin plastic in Italy , but the postponement led many sources to expect companies that were considering
increasing the use of recycled plastics to stick with virgin material for now . In the polyethylene terephthalate ( PET ) market , those companies that were following the development of the legislation will now continue to use PET rather than switch to recycled PET ( R-PET ) according to one beverage brand . This view was echoed by
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others , with a converter serving the market stating companies will stay with virgin polymer for the next two years without the financial inventive to move to more recycled content . One virgin polyethylene ( PE ) and polypropylene ( PP ) producer now sees less pressure to both a circular economy solution as well as investment in the recycling sector . Other comments from market sources reiterated the fact that , without this tax in place , the businesses in or serving the Italian market have lost their incentive to move to higher recycled content levels , especially at a time when prices for recycled material such as R-PET and recycled polystyrene ( R-PS ) are commanding a significant premium over their virgin counterparts
IMPACTING INVESTMENT Another common thread running through the reactions to the delay was the impact it could have on investment in certain recycled sectors . One virgin PS source said it expected a slow down in the development of R-PS , highlighting the current gap between higher-priced R-PS and virgin PS preventing companies from exploring the recycled market more . Adding € 450 / tonne to the price of the virgin material is a substantial step to disincentivize the use of PS and driving people towards R- PS . A second PS market participant said countries need a mechanism like a tax to promote recycled
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content and the absence of such a driver will make investment in R-PS harder . From the brand side , a large FMCG said having the tax in place would help incentivize its customers to use more recycled content , but for the time being it would have to rely on its own and its customers ’ sustainability targets ( those that have them ) to continue to support the argument for the use of recyclate .
WIDER RECYCLING ISSUES While the delay of the tax only impacts the Italian market , it points to a wider issue seen across both European and global markets when it comes increasing recycled material usage . Without the financial incentive of something like a tax , or without the legal obligation of a regulation , directive or law , many companies right now will choose margins over sustainability especially in a tough macroeconomic climate . A good example is the upcoming implementation of the Single Use Plastics Directive ( SUPD ), which amongst other things , mandates the use of 25 % R-PET in PET beverage bottles from 1 January 2025 . Many R-PET market participants have yet to see demand for R-PET reach the levels expected ahead of implementation . The problem is linked to the lack of clarity around how the SUPD will work – how the 25 % will be measured ( by individual unit or country-wide incor-
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Italian technology plast / October 2024 |
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www . plastmagazine . it |
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