Circular economy

Plastic recycling: the crisis continues – collection services are at risk of being suspended

Giorgio Quagliuolo, president of the Corepla consortium: action is needed to tackle businesses’ energy costs and encourage the use of recovered materials

 (Adobe Stock)

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

The crisis in plastic packaging recycling, which came to a head last year, continues: ‘The supply chain is now under pressure that is no longer sustainable. The build-up of waste at collection and sorting centres has reached critical levels and risks jeopardising the continuity of the service. Without urgent and extraordinary measures, the suspension of separate waste collection in large parts of the country is a real risk, which has already materialised to some extent,” emphasises Giorgio Quagliuolo, who returned as chairman of Corepla – the consortium for the collection, recycling and recovery of plastic packaging – at the start of June.

“Recently in Europe,” continues Quagliuolo, “45 recycling plants have been closed, and in Italia two plants are already at a standstill whilst another two are due to undergo refurbishment shortly; processing capacity has fallen. This is a critical moment.” Competition from products sourced from non-EU countries at very low prices, combined with rising costs – particularly energy costs – has put companies under pressure.

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The president of Corepla emphasises that this crisis primarily affects the less valuable types of plastic: mixed polyolefins (polyethylene and polypropylene) and other packaging that is difficult to recycle. It is no coincidence that these are the categories for which the Conai consortium, in agreement with Corepla, has this year approved the largest increases in the environmental levy – that is, the fee that producers must pay to ensure the proper end-of-life management of the packaging they place on the market – with effect from 1 October.

With regard to the treatment of packaging waste, the consortia have, by law, a subsidiary role in relation to the market: if the market is unable to manage the materials collected in an economically sustainable manner, the consortia are required to step in, paying recyclers to process those fractions that nobody wants, so as to ensure that the waste is disposed of in all circumstances. The larger the quantities to be processed, the higher the costs will be; these costs must therefore be covered by the levy paid by producers.

“We are facing a structural crisis from which it is difficult to envisage a way out. The price rises for virgin plastic caused by the blockage of the Strait of Hormuz have boosted demand for recycled plastic, but that is not enough,” summarises Quagliuolo, whilst also suggesting some solutions: “Increasing the authorised processing capacities of plants – although I fear this will take a long time – and, as a last-resort emergency measure, implementing energy recovery for non-recyclable waste streams.”

At present, space is needed to store the plastic collected from the waste collection scheme. And immediate operational measures are required. This is what the Veneto Region called for in early July, convening an urgent technical meeting with stakeholders in the supply chain – including Corepla – to manage the situation, not least in view of the high temperatures and the risks, such as fire, to which large quantities of plastic are exposed.

‘The problem with plastic is paradoxical: the more you collect, the more you lose. It is, in fact, a material that has not a surplus but a deficit in the supply chain: if I spend 100 on recycling, I get 50–60 from the sale of the recycled product, depending on the type of plastic. And the difference is covered by the environmental levy,” Quagliuolo continues. “Yet the plastics industry is a sector that continues to grow, drives innovation and has a significant economic impact, given that for every euro generated, the associated economic activity triples. We are Italia’s eighth-largest sector, accounting for 10 per cent of GDP. It is a supply chain that deserves to be protected.”

The consortium has a number of proposals in this regard: ‘We need to tackle costs, and energy costs are the biggest problem. We need to encourage the use of secondary raw materials, through tax breaks and tax credits, for example. And by applying the Minimum Environmental Criteria (CAM) in public sector procurement: there is a law providing for this, but it is completely ignored. Penalties are needed for those who fail to comply. And checks are needed on materials arriving from abroad, to certify that they comply with EU regulations. If the situation persists, the major risk is that separate waste collection will come to a halt. We will do everything we can to ensure that this does not happen.”

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