The European Plastics Industry Preparing for the Future Kim Christiansen, Director, North Region

Transcription

1 The European Plastics Industry Preparing for the Future Kim Christiansen, Director, North Region

2 PlasticsEurope Who are we? 2

3 The Plastics Industry: A Global Success Story Plastics Production e Mio t 2013: ~ : ~280 World 2002: : : : : 1.5 Includes Thermoplastics, Polyurethanes, Thermosets, Elastomers, Adhesives, Coatings and Sealants and PP-Fibers. Not included PET-, PA- and Polyacryl-Fibers 4 Source: PlasticsEurope Market Research Group (PEMRG) / Consultic Marketing & Industrieberatung GmbH e = estimation

4 Europe: One of the biggest markets Production by Regions: 250 Mio t w/o Other Plastics (~49 Mio t) EU Plastics: demand by Countries Global production of plastics expected to grow in line with population and industrialisation (300 mln tons by 2025) Germany, Italy, France, Spain and UK covers ~66% of the European Market Figure 1: Production by regions Source: PlasticsEurope Market Research Group (PEMRG) / Consultic Marketing & Industrieberatung GmbH Figure 2: European Plastics demand by country (k tonne/year) Source: PlasticsEurope (PEMRG) / Consultic / ECEBD e = estimation 5

5 The European Plastics Industry: A pillar for economy and society 24% of chemical industry sales 60 m ton/year production (20% of the worldwide production) 62,000 companies employ 1.4 m people Turnover of nearly 300 bn /year 26.6 bn /year to public finance and welfare Source: PlasticsEurope, Plastics - the Facts

6 Competitiveness of European plastics industry threatened by a number of game changers Strong investments in chemicals (also on public side) 3rd world s exporter of plastics machineries (11.6% global share, besides Germany and Japan) Emphasis on coalto-chemicals Energy costs reduction due to non-conventional fuels (shale gas: 36% of U.S. energy production in 2035) ~33% of world bioplastics Opportunities for Brazilian petrochemical industry Direct access to fossil resources (67% world s oil reserves and 45% world s natural gas reserves) External growth and integration processes in downstream phases Strong growth mainly in plastics converting (10%12% CAGR, more than 22,000 companies and 4 Mln employees) Key drivers: demographic and manufacturing industry (automotive, etc.) Source: the European House Ambrosetti elaboration based on different sources,

7 PolyTalk /5 Nov, Brussels 8 A platform for different viewpoints to facilitate a constructive dialogue to make a sustainable European growth a reality.

8 Perception of plastics is generally negative 9

9 The detailed view is even more concerning 10

10 11 Focus on Flagship Initiatives REPUTATION Turn around general trend regarding the image of plastics vis a vis relevant target groups by increasing positive perception from 55% to 65% by 2020 and securing that no country scores below 50% WASTE Increase Recovery of Plastic waste from 60% to 100% by 2020 HEALTH Increase confidence in the safe use of chemicals in Plastics POOR KNOWLEDGE Increase knowledge of target groups about benefits of plastics FLAGSHIP INITIATIVES Zero Plastics to Landfill by 2020 Marine Litter Chemicals in Plastics Plastics saves Energy Plastics: The Wonder Material!

11 Landfilling of plastic waste is still a major option in many countries Post-Consumer Plastic waste going to landfill (2012): above 66% 2016 >50% to 66% Scotland % to 50% 1997 below 10%, i.e. landfill ban Date of landfill ban in force Date of future landfill ban

12 Countries with landfill ban generally achieve highest recycling rates Recycling of Plastic waste (2012): < 20% 20% to < 25% 37% 34% 31% 25% to < 30% > 30% 30% 34% 30% 32% 32% EU27 plus Norway & Switzerland: 26% 20% 13

13 Energy recovery is complementary option for electricity and heat production waste Energy recovery of Plastic waste (2012): < 20% 20% to < 30% 40% to < 60% > 60% EU27 plus Norway & Switzerland: 36% Plastic waste used for incineration and industrial production in kt

14 Landfilling is still the most important treatment option for Plastics Treatment of post-consumer Plastic Waste in 2012: Municipal Solid Waste Incineration Energy Recovery 36% 8.9 mt total 25 mt Landfill 38% 9.5 mt Fuel for energy intensive industrial production, e.g. cement Recycling 26% 6.6 mt 15

15 Zero Plastics to Landfill by 2020 is a challenging but worthwhile objective Post-consumer Plastic waste landfilled in Europe: in million tonnes Business-as-usual scenario Zero Plastics to Landfill by Scenario = 80 million tonnes of plastic waste prevented from landfill, equivalent to over 1 billion barrels of oil or 78 billion EUR 16

16 80% of Europe s plastic waste is landfilled in only 5 countries Treatment of Plastic waste in kt (2012): UK Landfill Energy recovery Recycling Landfill rate 70% Italy Landfill rate 48% Spain Landfill rate 55% France Landfill rate 38% Poland Landfill rate 59% Landfill in total: kt

17 Landfill ban in Germany has triggered recycling & energy recovery of plastic waste kt Energy recovery Mechanical Recycling Landfill Decision on landfill ban 41% 36% 10% 37% 38% Landfill ban in force 1% 42% 56% 0 14% Source: Consultic, Produktion, Verarbeitung und Verwertung von Kunststoffen in Deutschland

18 Current revision of the Landfill Directive provides chance to stop landfilling Green Paper on Plastic Waste Consultation on Waste targets Prodi report Revision of targets - Waste Framework Directive - Landfill Directive - Packaging & PWD Communication: Towards a circular economy: A Zero waste programme Proposal on Lightweight Plastic bags Codecision in EP + Council Marine Litter Consultation Quantitative Headline Reduction Target Marine Litter Measures Jan Dec Jan Dec Jan Jan

19 Towards a Circular Economy in Europe the political agenda European Commission s proposal to achieve a Circular Economy key issues: Landfill ban for all recyclables by 2025, incl. plastics should include also all other recoverables! Higher recycling targets, also for plastic packaging (45% by 2020, 60% by 2025), based on output Design of products in order to reduce environmental impact Extended Producer Responsibility schemes cover all waste management costs Aspirational marine litter reduction target of 30% by 2020 Food waste reduction target of 30% between 2017 and

20 Landfill Directive 1 st Jan st Jan st Jan (nonbinding) BAN Recyclable waste incl. plastics, metals, glass, paper & cardboard + other biodegradable waste Max 25% of total municipal waste generated in previous year All non-residual waste, with a max of 5% of the total amount of municipal waste generated in the previous year 21

21 Landfill restriction requires massive changes in PL, ES, IT and the UK a.o. Treatment of municipal waste in EU 28 + CH & NO in 2012: 2025: max. 25% landfill 22

22 Selected key concerns WFD 2008/98/EC Recycling targets based on weight of material arriving at the gate of the recycling plant New COM proposal Idem minus weight of material discarded during the recycling process due to impurities PPWD 94/62/EC Recycling targets based on weight of material arriving at the gate of the recycling plant New COM proposal Idem minus weight of material discarded during the recycling process 23

23 Calculation methodology Comparison of the two calculation methods: Input based approach (today): Commission s proposal (output based approach): Recognized as: 500 kg recycling 250 kg energy recovery 250 kg landfill Source: BASF 24

24 Impact of proposed targets Total plastic packaging waste generation in kt in 2012 Situation today Recycling 2012 based on input Recycling 2012 based on output (60% efficiency) between input & output calculation in % in kt in % in kt in % in kt France , ,3% % 201 Germany , ,9% % 438 Italy , ,8% % 298 Spain , ,1% % 183 UK , ,5% % 298 total / average , ,8% % which stands for 68% of the European market Shift to output would lower current recycling rates by 40% or 1.4 mt resulting in an average plastic packaging recycling rate of 20% - which is lower than the old target for

25 Impact of proposed targets Total plastic packaging waste generation in kt in 2020 Recycling target 2020 based on output Situation in 2020 of 2012 & 2020 recycling based on output in % in kt increase in kt France % % 805 Germany % % 793 Italy % % 635 Spain % % 413 UK % % 901 total / average % % target based on output would require 2.6 times more recycling than today. 26

26 Impact of proposed targets Situation in 2025 Total plastic packaging waste generation in kt in 2025 Recycling target 2025 based on output of 2012 & 2025 recycling based on output in % in kt increase in kt France % % Germany % % Italy % % Spain % % 737 UK % % total / average % % target would require 4 times more recycling than today 27

27 Selected key concerns WFD 2008/98/EC When applying extended producer responsibility, Member States shall take into account the technical feasibility and economic viability and the overall environmental, human health and social impacts, respecting the need to ensure the proper functioning of the internal market. New COM proposal ANNEX VII Minimum requirements for EPR When developing and applying EPR, Member States shall: / / 2. ensure a clear definition of the roles and responsibilities of the actors involved in the implementation of the extended producer responsibility / / 6. ensure that financial contributions / /: 6.1. cover the entire cost of waste management, including separate collection and treatment, adequate information to waste holders, data gathering and reporting, 6.2. take into account the revenues from the sales of secondary raw materials originating from waste; 6.3. are calculated in function of the true cost of the end-of-life management of individual products placed on the Union market which are covered by the scheme; 6.4. support litter prevention and clean-up initiatives. / / 8. define proportionate sanctions in case of non-attainment of the targets and/or non-respect of these requirements; / / 28

28 Timeline Omnibus: Waste Review European Parliament Selection of S&D rapporteur + shadows rapporteurs Council of the EU Working party on the Environment Consideration of IA + Examination of proposal Italian Presidency until ENVI Council Orientation debate Waste Package + 2 more meetings in Sept st Sept June September Oct Nov 17th Dec 29

29 THANK YOU Kim Christiansen Director, North Region PlasticsEurope 30