circular economy for plastics<\/a> is not possible without recycling. Increasing recycling rates will make a key contribution to reducing and eventually eliminating plastic waste in many countries, especially emerging and developing economies.<\/p>\nIn terms of key barriers, many emerging and developing economies still lack basic waste collection infrastructure, which allows plastic waste to leak into the environment rather than being valorised and kept in circulation.<\/p>\n
Insufficient funding for waste management systems lies at the heart of the plastic waste challenge, with an estimated US $2.1tn needed by 2040 to eliminate plastic leakage into the environment. Countries across the globe are currently hindered by chronic underinvestment in waste management infrastructure, particularly collection infrastructure, which is the least profitable and, therefore, the most underfunded aspect of waste management.<\/p>\n
Additionally, the transition from a linear fossil-based economy to a circular economy requires economic incentives to drive adoption. The most effective incentives are those that reduce the cost of capital, either through blended (development and philanthropic funding + private sector) finance, through mechanisms that improve the certainty of revenue, for example, Extended Producer Responsibility schemes and mandated recycling targets, or through cost subsidies such as land rents, utility costs, and labour costs.<\/p>\n
Arun<\/strong>: <\/strong>Globally, plastic waste management largely follows a linear economy model, relying on incineration and landfill disposal, with only 10-15% of plastic waste recycled, varying widely across markets. Enhancing recycling and reuse is key to promoting a circular economy, where all stakeholders \u2014including producers, distributors, and consumers\u2014work toward better waste management and reduction.<\/p>\nHowever, economic, technical, environmental, and regulatory barriers hinder progress. For instance, upstream processes like collection, sorting, and cleaning are costly, making mechanical recycling of mixed streams challenging.<\/p>\n
Major challenges include:<\/p>\n
\nInsufficient waste collection infrastructure leaves much of the global population without proper disposal options.<\/li>\n High contamination of post-consumer waste makes recycling inefficient and costly.<\/li>\n Low demand for recycled plastics leads to economic viability issues.<\/li>\n Uncontrolled dumping and burning of municipal waste exacerbate environmental pollution.<\/li>\n<\/ul>\nAddressing these barriers through policy interventions, infrastructure investment, and industry collaboration is essential to accelerating the transition toward a sustainable circular plastics economy.<\/p>\n
Public-private partnerships (PPPs) are highlighted as critical to recycling success. How do these collaborations ensure a reliable feedstock supply and drive economic feasibility?<\/h3>\n Martyn: <\/strong>PPPs are very relevant to collection and recycling, where most collection schemes are a public sector responsibility in providing waste management as a community service but contracted out to private companies to invest in the required infrastructure and manage the operations, selling the output materials.<\/p>\nSeveral Alliance projects involve a private sector entity establishing a collection system and sorting infrastructure, which will be handed over upon completion to the municipality for operation, for example, the ParikraM project with Recity in India.<\/p>\n
PPPs as well as other strategic partnerships, play a vital role in ensuring the success of certain recycling projects. For example, partnering with end-users in industry for manufacturing of saleable products enhances the viability of the operation, ensuring revenue can be generated downstream.<\/p>\n
Establishing strategic and public-private partnerships can help catalyse a connected value chain to unlock wider opportunities. These partnerships connect upstream feedstock support through effective collection systems, which ultimately supply and link downstream recycling activities.<\/p>\n
PPPs can also be considered with respect to financing, for example, in enabling the sharing of price and volume risks to ensure sustainable margins for the recycler. In addition, blended finance can help to attract the required financing for a project. For example, the Alliance seeks to derisk the investment in a project by other debt providers and equity contributors through grants and concessional loans.<\/p>\n
What are the most important lessons from your new Playbook, and how do you envision governments and businesses replicating and scaling these solutions in diverse economic contexts?<\/h3>\n Martyn: <\/strong>Basic recycling is a way to kickstart a recycling economy \u2013 it doesn’t need complex supportive legislations and economic interventions \u2013 and can be driven by local entrepreneurs ahead of the strong government support that is required to accelerate the transition to circular solutions.<\/p>\nIn order to maximise impact, adequate collection infrastructure is essential for a consistent supply of feed, and innovative solutions should be used to enhance lifecycle impact and resource utilisation. In addition, multiple revenue streams are needed to maintain the economic viability of business and educational campaigns are crucial when building a skilled workforce to foster buy-in.<\/p>\n
Arun: <\/strong>To scale these solutions across diverse economic contexts, governments and businesses could:<\/p>\n1) Foster supportive partnerships:<\/strong> Collaborate with industry and local municipalities for steady feedstock supply and end-product conversion and sales channels<\/p>\n2) Ensure context-appropriate technology:<\/strong> Utilise sorting and recycling equipment that aligns with local conditions, waste compositions, and buyer requirements<\/p>\n3) Implement<\/strong> financial interventions: <\/strong>Strengthen market mechanisms through EPR regulations and plastic credit systems to support a sustainable recycling business model<\/p>\n4) Develop<\/strong> certifications\/standards<\/strong>: Ensure fit-for-purpose products meet industry standards, as this can build a sustainable customer base and enable scalability<\/p>\n5) Test, iterate and scale: <\/strong>launch pilots, monitor progress, and adjust strategies to the local context before full-scale implementation.<\/p>\nBy embracing these strategies, governments and businesses can boost recycling rates, stimulate economic growth, and contribute to environmental sustainability.<\/p>\n
What’s next for the Alliance and BCG, and how do you plan to expand on the success of this Playbook to drive further innovation in waste management?<\/h3>\n Martyn: <\/strong>We will continue to share the learnings and experiences gained through the projects we fund. Our objective is to share our knowledge so that like-minded organisations can build on what we have done.<\/p>\n","protected":false},"excerpt":{"rendered":"Discover how mechanical recycling is transforming mixed plastic waste into valuable products, supporting a circular economy. <\/p>\n","protected":false},"author":15,"featured_media":55722,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[24433],"tags":[610,24543],"acf":[],"yoast_head":"\n
Mechanical recycling: A key solution for a circular plastics economy<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n