Weekly Brief

Potential for Asia- Pacific Leadership in Handling Plastic Waste

Utilities Tech Outlook | Monday, March 13, 2023

Asia-Pacific regions should implement a comprehensive waste management strategy to reduce plastic waste and promote recycling and circular economy practices.

FREMONT, CA: In 2023, the act of throwing something away no longer means disposing of unwanted materials in unused areas or landfills, as this traditional approach is not compatible with sustainable living due to the increasing amount of waste worldwide. Instead, there is a growing awareness of the need to adopt a circular model of use, where waste is recycled and repurposed instead of discarded. Although different waste materials present unique challenges, plastic pollution has become a significant focus due to its prevalence.

In 2021, the Asia-Pacific region was responsible for manufacturing more than half (52 per cent) of the world's plastic, which amounted to 390.7 million tonnes globally. Due to the vast extent of plastic production in this region and the presence of major plastic producers, APAC has the potential to take the lead in transitioning towards a circular economy for plastic packaging.

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The statistics concerning plastic production and consumption are significant for all nations. China accounted for the highest plastic production globally, generating 32 per cent of the total plastic materials production in 2021. Several other Asian countries, including Japan and the rest of Asia, also had a considerable impact on plastic production, with Japan contributing three per cent and the remaining Asian countries producing 17 per cent of the world's plastic.

Given the profitability of the plastics industry, it is expected that between 2021 to 2026, the APAC plastic packaging market would grow at a compound annual growth rate (CAGR) of 3.2 per cent. The market for single-use plastics in APAC, which is a supplier and consumer of plastic, is expected to grow at a 5.66 per cent CAGR by 2030. With an 11 times higher rate of usage than Indonesia, Japan stands out for its extensive use of single-use plastics like water bottles and grocery bags.

Setting the Global Agenda on Plastic: The Role of NGOs and Regulators

Governments and corporations have recently made stronger promises to reduce plastic waste and packaging, with a focus on the transition to a circular economy and the setting of specific goals. A worldwide, legally binding agreement will be put into effect by the end of 2024, according to a resolution the United Nations Environment Assembly adopted in 2022. More than 20 per cent of the plastic packaging market's signatories to the Ellen MacArthur Foundation's Global Commitment include businesses like The Coca-Cola Company and PepsiCo that have ambitious 2025 goals for reducing plastic waste and advancing the transition to a circular economy.

The Ellen MacArthur Foundation's Plastic Pact was established as a global initiative to coordinate national and regional efforts in implementing circular economy strategies for plastic. However, the ANZPAC Plastics Pact, which includes Australia, New Zealand, and Pacific Island nations, was not included in this endeavour, and the initiative was also less effective in the APAC region. In 2021, India introduced its Plastics Pact, which follows the same principles of encouraging public-private partnerships to address plastic waste.

China recently revealed its plan to tackle plastic pollution over the next five years, which involves prohibiting the use of non-degradable plastic bags in supermarkets, shopping malls, major cities, and food delivery services. On the other hand, Japan implemented the Plastic Resource Circulation Act in 2022, after establishing the Japan Partnership for Circular Economy (J4CE) in the preceding year. The  J4CE aims to enhance collaboration between public and private sectors and promote the circular economy concept among various stakeholders.

The global corporate community is actively striving to establish, improve, and disclose their circular economy objectives, in light of recent developments. Businesses are concentrating on setting short-term goals for producing packaging that can be easily recycled, reused or composted, increasing the percentage of recycled materials in their products, and eventually adopting product stewardship-based strategies. This indicates that companies are increasingly acknowledging their role in managing waste generated after consumers use their products, and are integrating waste management into the product lifecycle.

The worldwide shift towards corporate product stewardship aligns with the European Union's implementation of Extended Producer Responsibility (EPR) schemes, which must be incorporated into the laws of all EU member states by 2024. While there is currently less enthusiasm in the APAC region for enacting regulations related to product stewardship, it would be a reasonable next move for APAC firms that operate globally and want to plan for the future to take product stewardship into account.

Plastic waste is a major environmental issue that affects the entire world and now it has become an urgent problem that needs to be addressed. The Asia-Pacific region is a major contributor of plastic waste producing 17 per cent of the total world's production. One of the key opportunities for Asia-Pacific leadership in managing plastic waste is to implement a comprehensive waste management strategy. This strategy should include measures such as reducing plastic use, improving waste collection and disposal systems, and promoting recycling and circular economy practices. By taking a holistic approach, the region can significantly reduce the amount of plastic waste that ends up in landfills, barren landscapes and oceans.

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