Page 44 - Plastics News December2018

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alternatives as part of their corporate responsibility the support of government regulation and corporate
efforts. With a global naphtha market worth $144 billion, leadership to initiate the adoption of sustainable
switching 10% of the market to sustainable feedstocks alternatives. When the transition takes place, the cost
would be a roughly $14 billion opportunity for the industry. increase will make plastics too expensive for certain low
Sustainable feedstocks come in three key value applications—e.g., disposable cups, plastic bags, and
types: types of packaging. This will result in downstream product
manufacturers likely switching to cheaper materials or
Bio-based feedstocks such as ethanol can be produced different products altogether. Considering the ubiquity
from biomass (e.g., sugarcane or wood) and turned into of plastics and chemicals in the manufacturing domain,
a variety of products, including bioplastics. it seems likely that a switch to alternative feedstocks will
Recycling plastics can considerably lower the emissions have a major effect.
of greenhouse gases (GHGs) into the atmosphere and can Despite promises that they can contribute toward more
avoid litter. Hydrogen can be produced GHG-free from environmentally beneficial transportation there are many
renewable electricity and water through electrolysis sustainability concerns about liquid transport biofuels. In
or from natural gas with carbon capture and storage. response to pressure from civil society, the European Union
Hydrogen can be combined with a sustainable carbon (EU) has introduced sustainability criteria for biofuels. A
source to build the hydrocarbons required to make hybrid regulatory system involving state and non-state
plastics. actors stipulates that retailers and producers must comply
to be eligible for fiscal support such as tax exemptions.
Flexibility in the system allows choice between different
means of compliance, including a range of voluntary
schemes. just to cite an example from EU we saw that
that it uses a broad portfolio of feedstock mainly from
within Europe, seemingly avoiding countries where any
supply conditions may be in doubt; second, larger retailers
and producers achieve compliance without the need to
provide additional social sustainability information; third,
that actors exhibit predominantly Eurocentric perspectives
All three options are necessary to meet this century’s on sustainability, express confidence that their supply
global climate goal, but chains have strong ‘sustainability performance’ and desire
long-term policy stability. We conclude that despite a
There has been a recent uptick in sustainable feedstock deep critique of the sustainability of biofuels amongst
investments. While many of these technologies are not civil society and academia, EU regulation allows for
being commercially developed yet, several pilot programs production systems that reflect a European- and climate
have demonstrated these new technologies at increasing change mitigation-centred view on biofuel ‘sustainability’ The High-Tech Show
scale. Additionally, investments in bioplastics are coming
from a variety of companies, including traditional chemical Navigating the Transformation Oct.06-10,2020
companies like DuPont and large brands such as IKEA, To navigate the sustainable manufacturing transformation
partnering with suppliers to remove fossil plastics from successfully, companies need to look beyond their business
products. Plastics recycling has also received considerable boundaries and factor in the transformation of their value www.ipfjapan.jp
attention and investment. Hydrogen investments have chains. At the dawn of this major transformation, several
been made by incumbent industrial gas producers like companies have demonstrated leadership by proactively Gateway to the high-tech Japanese market & meeting place with
Air Liquide and by new entrants (e.g., Shell, ENGIE, and navigating through the changing environment and investing the decision-makers of Japanese enterprises.
Volkswagen) that see potential for novel applications. outside their core business. In the case of climate-friendly
The Potential to Disrupt Value Chains plastics, this leadership includes advocating for the
regulation needed to catalyze change. Going forward, the
Fossil feedstocks remain relatively inexpensive to produce, most successful long-term strategies will be dynamic and
while sustainable alternatives would significantly increase involve a portfolio of different products, technologies,
the cost of plastics. As a result, the transition will require
and business models.

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