Europe faces challenges in meeting plastic bottle recovery target

The European recycling industry is going to miss a 2025 target for recycling PET bottles unless there is a reversal of the slowing growth rates in recycling, according to a new study by ICIS.

The study also found evidence that bottle-deposit schemes are working better as an incentive than market prices for recycled material.

The report found the PET bottle collection rate in Western Europe has risen from 58 per cent in 2016 to 63 per cent in 2018, and is projected to reach 65 per cent in 2019.

Under the European Parliament Single-use Plastics Directive, the industry is required to reach recovery rates of 778 per cent by 2025 and 90 per cent by 2029, but the collection volume growth rate is currently falling.

ICIS estimates that the volume of collected material will need to increase by seven per cent per annum in the 2029 target is to be met.

Helen McGeough, ICIS Senior Analyst, said: “The rise in demand for rPET began early on in 2018 as supply issues for virgin PET resin carried over from the end of 2017. This pushed up demand from sectors that could easily use either feedstock.”

“This in turn pushed up prices, as supply was constrained, since collection activity did not increase in line with demand. The drive for food-grade rPET came later in 2018, once the SUP Directive was passed.”

“Despite the boost in demand for rPET, collection failed to match those growth rates, reaching 2.1 million tonnes in 2018, just 2.4 per cent growth on 2017 volumes.”

“Tight supply saw PET bale prices rise 20 per cent in 2018, compounded by the growth in reclamation capacity during the year that expanded to meet the downstream demand for rPET products.”