The hottest new plastic economy will bring us $55b

The new plastic economy will bring us $55billion +5million tons of recycled plastic business opportunities

Coca Cola, Nestle, Danone, Unilever, L'Oreal and other "new plastic economic commitments" are expected to bring us $55billion and 5million tons of recycled plastic business opportunities

at the end of October 2018, the Ellen MacArthur Foundation, headquartered in the UK, and the United Nations Environment programme jointly launched the action initiative of the "global commitment for the new plastic economy" (hereinafter referred to as the "commitment")

at that time, more than 290 well-known enterprises and key organizations participated in the signing of the letter of commitment, trying to promote the realization of a more sustainable circular plastic economy from the source

"new plastic economy global commitment" was launched in October last year. As of March 2019, what progress has been made in the action initiative of the "new plastic economy global commitment"? What results have been achieved

the Allen MacArthur Foundation recently released the "2019 spring report of the global commitment to the new plastics economy" (hereinafter referred to as "this report"), which comprehensively interprets the new progress of the action initiative of the "global commitment to the new plastics economy"

"2019 spring report of the global commitment to the new plastic economy" was recently released

representatives of some participating enterprises

since the launch of the "new plastic economy global commitment", the number of enterprises signing the commitment has increased from more than 100 to more than 150

the number of participating enterprises accounts for more than 20% of plastic packaging enterprises in the world

the total income of participating enterprises adds up to more than $2trillion

participating enterprises include many top players in the industry (see the following for more details)

participating enterprises include 6 of the top 10 fastest-growing consumer goods enterprises in the world: Nestle, Pepsi Cola, Unilever, Coca Cola, L'Oreal and Mars (incorporated)

&ems sling p; Participating enterprises include four of the world's top 10 plastic packaging manufacturers: Amcor, sealed air Corporation, ALPLA group and aptar Group Inc

participating enterprises include five of the world's top 15 Retailers: Wal Mart, Schwartz group, Carrefour, target and ahold delhaize

including two large global environmental protection enterprises: Veolia and Suez

6 investors committed US $275million to establish new business models, materials, technologies and other solutions to help realize the vision of this global commitment

"new plastic economy global commitment" encourages plastic manufacturers and consumer enterprises around the world to take the lead in signing the global agreement, so that the agreement can truly become the norm of the industry

FMCG enterprises account for the largest proportion

circular economy will bring us $55billion business opportunities to the chemical industry.

raw material manufacturers have the least participation in the industry chain. For example, at present, only two major raw material enterprises indorama and Nordic chemical signed the agreement, and set the goal of significantly increasing renewable materials in the production process

the sponsors of the letter of commitment encourage global plastic manufacturing enterprises to join the agreement and become part of the circular economy, rather than relying on the continuous exploitation of raw materials. According to the research data of McKinsey & company, circular economy will bring us $55billion business opportunities to the chemical industry

at present, signing 1. First of all, Yang Xiwei, deputy chief engineer of the science and technology development and promotion center of the Ministry of housing and urban rural development, made a wonderful report on the interpretation of the new requirements for wall insulation technology in the code of building design and fire protection. The 16 government participating institutions (representatives of 10 national governments, 2 regional governments and 4 cities) in the letter of commitment are active leaders. They implement a comprehensive packaging system reform plan, including procurement, prohibition We will introduce incentive mechanisms for the use of recycled materials, establish infrastructure and coordinate the implementation of national plans

35 enterprises disclosed the consumption or supply, recycling and disposal of plastics for the first time

in this report, 35 companies publicly disclosed their annual consumption, supply and recycling of plastics for the first time. Some published data are as follows:

brands

raw material suppliers

Plastic recyclers

these 35 enterprises are involved in the annual use of 8million tons of plastic packaging, including major consumer packaging enterprises and retailers, such as Carrefour, Colgate, Danone, Mars, Nestle, Johnson, Coca Cola and Unilever

Coca Cola announced that its annual plastic consumption was 3million tons

these enterprises are the first to publish information on the use of plastic packaging, which is a great progress in creating a transparent mechanism. Some enterprises, such as Danone, not only disclose the amount of plastic packaging, but also further classify it by materials and packaging types

"2025 target" refers to 5million tons of recycled plastics

according to the statistics of this report, a total of 107 FMCG companies, retailers and packaging manufacturers have committed to manufacturing 100% recyclable, renewable or degradable plastic packaging by 2025

FMCG companies and retail enterprises also promised to increase recycled materials for plastic packaging by an average of 25% by 2025, roughly ten times the current global average

some participating enterprises also set higher 2025 goals, such as Werner Mertz and positiv A and IWC Schaffhausen promised to use 100% recycled materials, the bio-d Company Ltd promised to use 75% recycled materials, Diageo and L'OCCITANE en Provence promised to use 40% recycled materials, and L'Oreal, MS, paccor and sealed air promised to use 30% recycled plastics

Nordic chemical and indorama, two resin manufacturers, promise to transfer their business model from the existing primary plastic material to the recycling material model by establishing specific recycling material targets

by 2025, the total amount of recycled plastics promised to be used by participating enterprises, including FMCG enterprises, retailers and packaging manufacturers, will reach 5million tons, which is by far the largest commitment on the use of recycled plastics in plastic packaging

this also reveals a clear signal of market demand: the investment potential of high-quality recycling industry is infinite, which will not only allow the plastic market to continue to survive and develop, but also avoid the problem of marine plastic pollution

achieving these recycling goals will significantly reduce the manufacturing of primary plastics and reduce carbon dioxide emissions by 7million tons per year - which is equivalent to permanently removing 1.5 million vehicles from the road

in addition to the industry's commitment to abolish unnecessary or problematic plastics and establish innovative business models, more actions are needed in dealing with plastic problems

for example, unnecessary or problematic plastic packaging can be abolished by redesigning products, innovating and creating new logistics models. Enterprises are required to fully implement the plastic recycling mode and reduce the need for disposable plastic packaging

at least 10 enterprise participants promised to launch reuse and filling pilots through terracycle's loop platform

at present, the enterprises that have signed the letter of commitment have made the following progress:

innovation in the packaging mode from one-time use to reuse: at least 40 brands and retailers will try or expand the reuse and refill plan. At least 10 enterprise participants promised to launch reuse and filling pilots through terracycle's loop platform

some enterprises have begun to invest in new logistics models on a large scale. For example, Pepsi Cola has purchased sodastream enterprises for us $3.2 billion. In short, in order to truly reduce waste plastic pollution, abolish unnecessary plastics and innovate new logistics models by 2025, we must vigorously promote

compared with the pace of change in the past few decades, the industry goals and action plans in this global commitment have represented a major development

however, this is still a big step away from truly solving the plastic problem, especially in terms of abolishing unnecessary plastics and innovating from disposable plastics to recycling mode. This global commitment also requires further practical actions to deal with the global waste plastic pollution problem

in addition, goals need to be translated into concrete actions. Many participating enterprises have implemented or are implementing practical action plans or routes. Many investment projects, innovation and transformation plans need to be translated into practical actions

for example, the world economic forum has launched the global plastic action cooperation plan, and France and the United Kingdom have developed the National Plastic pacts, bringing together all stakeholders (whether public utilities or private enterprises) to jointly promote plastic circular economy solutions

plastic pack launched in France will list problematic or unnecessary packaging

in terms of large-scale, comprehensive and high-speed equipment, in addition, many financial institutions with assets under management of more than $4.2 trillion have signed the global commitment, and they will also play an important role in accelerating the action

encourage investment institutions to participate in the transformation of plastic circular economy

to achieve the goals set by the global commitment, a lot of investment is needed in these areas, including packaging design and new business model innovation of materials, production line reform, recycling infrastructure construction, etc