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EU Plastics Strategy Opens Doors for Rethinking Business Models

150 000 to 500 000 tonnes of plastic waste are dumped in the oceans yearly – from the EU alone*. And this only accounts for a small percentage of worldwide plastic litter, as 80% of all plastic waste enters the oceans from Asia. While we are watching the large plastic vortices in the ocean, perhaps as we sip a drink through a plastic straw from a convenient plastic cup, we forget that these are ‘single use’ plastics. Now the EU plans to put an end to that – opening up avenues for new products, changing lifestyles, and entire new business models.

European plastic waste looks relatively good on paper. That is mostly because about half of it is shipped to Asia, out of sight, out of mind. Waste management in many Asian countries is notoriously poor and much of the shipped and locally disposed of plastic waste has ended up in the oceans. Furthermore, many Western companies have introduced western-style consumer products for the Asian market, all of which are wrapped in plastic, knowing very well that there are no end-of-life solutions for the packaging in many of the receiving countries. This is further compounded by extra small individual portions of food, toiletries and cosmetics catering to modest local incomes.

The EU recognises a certain responsibility yet also demonstrates leadership: it now wants to clamp down on ‘single use’ plastic items such as straws, coffee cups, lids and stirrers, as well as cutlery and take away packaging. In a first step, the EU will assess the impact of different ways of taxing such items, with the goal that 55% of all plastics be recycled by 2030. This includes plans to require clearer labelling of recycled or recycleable plastic for consumers, as well as a potential ban on microplastics in cosmetics.

These upcoming changes signaled by the European strategy should drive companies to rethink their products, their consumers’ lifestyles and business models.

Alexis Figeac, Team Leader at the CSCP and Consortium Coordinator of the European R2Pi – Transition from Linear to Circular project illustrates the business opportunities: “Businesses can tap into the opportunities that arise from material alternatives to plastic or by rethinking business strategies. Alternative forms of packaging in particular bio-based ones may be the way forward. Why use plastic packaging for high-value products such as cosmetics when the same functionality may be achieved from wood-derived ligno-cellulose? Indeed such innovations from the likes of Sulapac, winner of the Green Alley Award 2017, or Eatapple for straws ought to be adopted by established industrial players.”

These strategies are part of implementing Circular economy thinking, i.e. keeping materials in the economic cycle, strengthening customer loyalty and enabling a business to anticipate and be compliant with future regulatory developments.

Despite the business opportunities, Alexis Figeac also sees a clear need for the new European strategy: “While the strategy of the pioneers serves as a behavioural nudge to the initiated, the new European directive is, presently, the only way to mainstream sustainable alternatives. Moreover, it is centred on items which are not essential by any means. It does not require overhauling of major material circuits, as would, for example, result in a European-wide deposit scheme for plastic bottles not to mention plastic packaging.”

For further information please contact Alexis Figeac.

*European Commission (2018). EU Strategy for plastics in the Circular Economy – brochure. Circular Economy package.

Photo by Caroline Attwood on Unsplash

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