Page 21 - Plastics News May 2020

California Governor issues order to temporarily Italy's postponed virgin plastic tax to be
suspend grocery bag charge implemented in January 2021

alifornia Governor Gavin Newsom has issued an taly's proposed €0.45/kilo (€450/tonne) tax on all
Ivirgin plastics has been postponed until 1 January
Cexecutive order that temporarily suspends charge
2021, the government confirmed this week. The tax,
on grocery bag. The order is in response to the Covid-19
initially due to come into effect on 1 July 2020, was
pandemic in California. Californians may receive free
pushed back due to the coronavirus pandemic. The tax
plastic bags at the grocery store over the next two
will impact all single use items with the exception of
months, with the state waiving a required charge to
those produced from recycled plastics or compostable
help prevent the spread of coronavirus. The suspension
bioplastics. Initial reaction to the tax from the plastics
will remain in effect for a period of 60 days. It will now
industry in the country was mixed, but the
allow retail establishments to provide reusable grocery
postponement of the tax, which was announced in
bags or recycled paper bags to customers at point of April, was welcomed by the industry. However, given
sale for free. In addition, retailers can again provide the current spread between prices in the virgin
single-use carryout bags to customers where it is not polyethylene terephthalate (PET) and recycled PET (R-
possible to provide reusable grocery bags or recycled PET) markets, the tax may do little to encourage the
paper bags. Furthermore, this order is not applicable use of more recycled content. As of 12 March, the
“to retail establishments in local jurisdictions with spread between R-PET food-grade pellets (FGP) and
ordinances governing the use of single-use carryout virgin PET was €675/tonne meaning that in the current
bags in effect before 1 January 2015”. Moreover, the market situation converters could afford to buy virgin
redemption of beverage containers in-store will be PET, pay the €450/tonne tax, and still make profit.
Additionally, some players in polymers markets such as
stopped temporarily to help reduce the spread of
PET and R-PET have previously stated concerns that the
Covid-19. The mandate for recycling centres to hold a
tax will have a negative impact on the Italian public's
minimum number of operational hours is also
perception of plastics overall, and this may be felt more
suspended temporarily, according to the order.
so in the recycled polyolefins markets. The European
Additionally, the Department of Resources Recycling
Food Safety Agency (EFSA) requires that at least 95% of
and Recovery (CalRecycle) has been directed to
the waste used in food grade recycled material
develop and issue operating guidelines. As per the
production be sourced from food-contact material and
state law, retailers are required to charge 10 cents for
be fully traceable throughout the chain. The major
bags. In September last year, the California state waste feedstock source for R-PET is used plastic drinks
legislature failed to pass the Plastic Pollution bottles, making this relatively easy to achieve. For
Reduction Act of California. Many grocery stores have other polymers, and in particular polyolefins, the
said they don't want customers to bring their own bags mixed nature of the waste makes this more difficult and
in order to slow the spread of coronavirus. more costly.

MAY 2020 21 Plastics News