The current oversupply of virgin plastics for most countries and brand producers is also driving the rapid decline in virgin prices.1 Going forward, what is the role of a production cap on these market dynamics, especially its impact on prices of recycled resin? The answer requires stakeholders at the upcoming International Negotiating Committee (INC5) in Busan, South Korea, to view the risks and. [...] The adoption of a production cap is designed to support the gradual reduction of virgin fossil-sourced plastics to nurture a growing part of the economy and simultaneously support climate and environmental policy goals. [...] However, the price trend for virgin plastics is on a downward path globally,2 and the viability of mechanical recycling improving.3 The winners and losers of the energy transition are still being sorted out. [...] A global production cap is a starting point for public policies that support a more robust adoption of recycling and other interventions and favor a decrease in the production of virgin plastics. [...] And the terms and condition of the marketplace in many areas contain technical, logistical and political forces that undermine recycling scalability and reliability, notwithstanding relative price competitiveness.6 The price of recycling will also vary by the final use of the recycled product.7 A cap can be expected to increase the short-term price and profitability of the virgin plastics.
Mentioned Organizations
- Pages
- 8
- Published in
- United States of America
