Middle East Propels Circular Economy For Plastics

By adopting circular economy principles, GCC cities could save $138 billion and 148 million tonnes of C02 emissions from 2020 to 2030, according to new reports published in March 2019. Inspiration is simpler to discover, and significantly, it is paving the way towards increased cooperation for ambitious international sustainability efforts, as more and more circular economy models and successful initiatives emerge in different regions of the world.

The GCC polymer industry has made strides toward the circular economy, as seen by the invention of 'circular' polymers made from recycled plastic, investments in advanced recycling facilities, and sustainability programmes. Speakers at the 11th Gulf Petrochemicals and Chemicals Association (GPCA) Plastics Conference, held at the Fairmont Hotel in Riyadh, Saudi Arabia from May 25-26 with the topic "Plastics Reimagined: A Circular Future Awaits," acknowledged that more effort is needed. Challenges such as an uncompetitive recycled plastics market, inadequate knowledge about the circular economy, high investment requirements, and the high cost of products made in a circular economy model were identified in a recent GPCA report titled "The Plastic Conversion Opportunity in the GCC: Moulding a Sustainable Future Towards a Plastics Circular Economy" and released at the GPCA Plastics Conference.

In addition to unfavourable restrictions, the paper cites the complicated international supply chain of the plastics industry and a lack of coordination between stakeholders as further impediments to the region's success in establishing a circular economy. The World Economic Forum estimates that the global economy might profit by as much as $4.5 trillion from the adoption of circular economy practises between now and 2030. The Middle East Green initiative, the national visions of GCC governments, and the ability of regional signatories to meet their pledges under the Paris Agreement can all benefit from a shift from the present linear paradigm to a more circular strategy that reduces emissions.

"Reinventing Plastic for a Circular Economy," Ronald Richa, General Manager, Plastic Recycling at Veolia Middle East, recently said. He spoke on how the UAE and the rest of the globe can benefit from Veolia's status as the world's largest plastic recycling company through innovations like the RECAPP mobile app, which offers recyclable garbage collection at your door.

 Richa added, "Veolia is totally dedicated to a sustainable and circular future for the plastics economy. Production and usage of plastic must be rethought entirely to address the worldwide problem of plastic and waste pollution. A wide variety of interested parties, from petrochemical firms to brand owners and recyclers, are working to create a more robust plastic recycling infrastructure."

Spreading The Word Far and Wide

There has been an effort by NGOs and think tanks to inform the public about the plastics crisis and direct them toward workable solutions.

ChanSustainable development is being driven by organisations like the Ellen MacArthur Foundation, the Alliance to End Plastic Waste, and Mistra. As industries begin to recover from the Covid-19 pandemic, the Ellen MacArthur Foundation and a group of retailers and NGOs issued a joint statement in June 2020 committing to building a circular economy. Signatories included the CEOs of Inditex, Nestlé, Unilever, H&M Group, Danone, Coca-Cola, PepsiCo, L'Oréal, Ikea, Stella McCartney, and Barclays Bank, as well as organisations like WRAP and

The Gulf Cooperation Council (GCC) has developed a similar platform to assist local businesses in advancing their own circular economy initiatives. The petrochemical industry, consumer goods manufacturers, government agencies, and non-governmental organisations (NGOs) together make up the Coalition of Innovation in Recycling towards a Closed Loop Economy (Coalition Circle).

The circular economy model is being advocated by NGOs and think tanks at the policy level while these projects are working to involve product designers and manufacturers in innovative methods of materials efficiency. They are still vital in bringing attention to the problems and potential solutions associated with the circular economy and in encouraging new ideas, inventions, and technology in the private and public sectors.

GPCA Secretary General Dr. Abdulwahab Al-Sadoun said, "GPCA believes that the transition to a circular economy will require designing new products that are easier to reuse and recycle, as well as adopting new business models and service offerings." The World Economic Forum (WEF) estimates that at least 30% of plastic products are not recycled due to design issues. The WEF estimates that recycling and reusing plastic products can add at least 20 years to the lifespan of plastic goods, thus the industry should prioritise these initiatives. To effect change in the plastics circular economy in the region, greater collaboration, investment in research and innovation, and adoption of a life cycle approach are required.

Changing Public Perception 

As consumer expectations and public opinion regarding sustainable corporate practices change, several consumer-packaged goods companies are making ambitious commitments to limit their usage of plastics. There has been a rapid global spread of the green wave, which has reached the Middle East.

To far, more than 500 businesses have signed on to the New Plastics Economy Global Commitment, an initiative launched by the Ellen MacArthur Foundation and the United Nations Environment Programme.

Businesses and governments have made a pact through the Global Commitment to alter their plastics production, consumption, and recycling habits. They want to reduce the use of plastic in areas where it is not necessary, to develop new plastic products that can be safely recycled, reused, or composted, and to repurpose all materials to keep them in circulation and out of the environment.

Policy Changes Fuel The Circular Economy

More and more nations are passing environmental laws that limit the use of plastics. In 2019, member nations of the United Nations committed to acting by drastically lowering single-use plastic items by 2030 and increasing the penetration of recycled material on virgin polymer sales to up to 28 percent by 2035.

New regulations on plastic use have been implemented in several GCC countries. For instance, Abu Dhabi declared in early 2020 that it would ban single-use plastic bags by 2021, however, this goal is yet to get fully accomplished. The programme also calls for the implementation of a bottle return system to promote recycling. Single-use plastic bags have also been outlawed in Oman.

Nadia Al Hajji, Deputy Chief Executive Officer, Projects and Business Development, PIC, and Vice–Chair, GPCA Plastics Committee stated, “Diverse and variable plastics waste, contamination, inadequacies in the current infrastructure, and new needs of advanced recycling all contribute to the fact that less than 10% of plastics generated globally are ever recycled. Over USD 120 billion is lost annually due to plastic trash, hence an effective strategic response must be developed to solve these challenges.”

Technological Advancements Push The Envelope Further

The rapid development of recycling value chain technologies is a driving force behind the circular economy, as it allows for and promotes large-scale recycling. Mechanical technologies for sorting, separating, cleaning, and impurity extraction, as well as chemical technologies like depolymerisation, have contributed to the development of plastics recycling.

Modernising the recycling infrastructure with AI-enabled robots, for instance, can cut down on sorting costs and free up valuable material streams. Chemical recycling, which uses heat to convert long plastic polymer chains into shorter hydrocarbons, has also advanced to the point where big commercial plants may now be run profitably.

Partnerships Matter

The only way to transform the value chain is with an ecosystem in which all of the participants are interdependent and must work together. The move to a circular economy requires the correct policies, academic-industry cooperation, increased availability of industry data, and new partnerships across the plastics value chain.

Plastics manufactured by Gulf Cooperation Council (GCC) petrochemicals businesses have been vital to the growth of the region's economy, and substantial investments will further increase the sector's importance in the years to come.

Although most of their output is sold abroad, these firms are nonetheless vulnerable to the demand for virgin plastics that is affected by changing consumer attitudes, business practises, and policies in favour of a circular economy.

In order to be a part of the circular economy, it is necessary to take the initiative and develop strategies, business models, and operations that will last for the long haul. There has been some preliminary investment in recycling infrastructure and circular product portfolios by some local businesses.

If additional businesses follow the GCC's lead, the world's material flow can be reimagined by launching the next wave of the circular economy.