New Plastics Economy - Catalysing Action - 13 1 17 PDF

THE NEW PLASTICS ECONOMY CATALYSING ACTION 1
THE NEW PLASTICS ECONOMY

CATALYSING ACTION
2 THE NEW PLASTICS ECONOMY CATALYSING ACTION
THE NEW PLASTICS ECONOMY

CATALYSING ACTION
Preface4
Foreword5
In Support of the New Plastics Economy 6
Executive Summary 16
Global Momentum for a Plastics Rethink is Greater than Ever 22
The Road Ahead: Three Distinct Strategies to Drive the Transition 26
The New Plastics Economy Initiative: A Catalyst for Change 46
Appendix: Key Analytical Assumptions 52
Acknowledgements and Disclaimer 56
Endnotes57
About the Ellen MacArthur Foundation 64

Preface
In January 2016, the World Economic Forum, the Ellen MacArthur Foundation and McKinsey &
Company published the report The New Plastics Economy – Rethinking the future of plastics.
It was produced as part of MainStream – a multi-industry, global initiative which aims to
accelerate business-driven innovations and help scale the circular economy. For the first time,
the report provided transparency on global plastics material flows and associated economics.
It found that, while plastics and plastic packaging are a key part of the global economy, the
current plastics economy has significant drawbacks that are becoming more apparent by the
day. In addition, it presented a blueprint for a more effective plastics system based on circular
economy principles – in effect, a New Plastics Economy.
In May 2016, the Ellen MacArthur Foundation launched the New Plastics Economy initiative
– a bold, three-year project to mobilise the report’s recommendations, together with its
Lead Philanthropic Partner – the Eric and Wendy Schmidt Fund for Strategic Innovation; its
Philanthropic Funders – MAVA Foundation, Oak Foundation, and players of People’s Postcode
Lottery (GB); its Core Partners – Amcor, The Coca-Cola Company, Danone, MARS, Novamont,
Unilever and Veolia; and a broad group of participant companies, cities and governments
across the value chain.
This new report is one of the first key deliverables of the New Plastics Economy initiative.
It represents a logical next step to the 2016 report: from rethinking the future of plastics to
catalysing action. To trigger action, the report aims to make three original contributions to the
transition towards the New Plastics Economy:
• Three distinct transition strategies for three plastic packaging categories covering the
entire market (Redesign and innovate; Reuse; Recycle) based on a granular, segment-by-
segment analysis and a quantification of the economic value creation potential for core
aspects of the Reuse and Recycling categories
• A set of priority actions for each category, mobilising the strategies and setting a
common direction for players across the global plastics packaging value chain
• A targeted plan for the New Plastics Economy initiative to carry out in 2017 to catalyse
progress on the priority actions.
Foreword
The World Economic Forum, the Ellen MacArthur Foundation and McKinsey & Company joined
forces in 2014 to create Project Mainstream, a cross-industry, CEO-led global initiative to help
scale the circular economy by unravelling systemic stalemates. Taking a global, cross-sectoral
look at material flows, the project quickly identified plastics as one of the value chains most
representative of the current linear model, bringing undisputed functionality to a variety of
applications, but also entailing significant economic losses and severe negative externalities.
The resulting report, The New Plastics Economy: Rethinking the future of plastics, launched
at the World Economic Forum Annual Meeting 2016 in Davos-Klosters, analysed these global
flows for the first time and set out a vision for a new and effective plastics packaging system,
guided by circular economy principles, and fit for the long term. This compelling vision
provided the impetus for the Ellen MacArthur Foundation to set up an ambitious three-year
initiative, the New Plastics Economy, to act on the report’s insights and turn the vision into
reality.
The initiative has made a strong start. Leading players from the plastic packaging supply
chain have committed to it, alongside major capital cities, philanthropists, policy-makers and
academics. The momentum gathered is indicative of its exceptionally collaborative approach
that builds bridges along value chains, across silos, and between the private and public sectors
to initiate a genuine system shift. The interest it has generated echoes a growing consensus on
the need to phase out the negative impacts associated with today’s patterns of use by notably
redesigning certain materials and rethinking business models.
This new report shows that we are now firmly at the action stage. The initiative has solidified its
five building blocks – dialogue, harmonisation, innovation, analysis and outreach – and each has
catalytic actions planned for 2017. All these elements will be needed on the road ahead and the
insights presented in this paper make the next steps on that journey clear.
We look forward to following the progress of this singular and powerful initiative over the
coming years as it stimulates the innovation, redesign and new thinking needed to pave the
way towards creating a plastics system that works.
Dame Ellen MacArthur Richard Samans Dominic Waughray Prof. Dr. Martin R.
Founder and Chair of Head of the Centre Head of Public- Stuchtey
Trustees for the Global Agenda Private Partnership Founder and Managing
and Member of the and Member of the Partner
ELLEN MACARTHUR Managing Board Executive Committee
FOUNDATION SYSTEMIQ
WORLD ECONOMIC WORLD ECONOMIC
FORUM FORUM
In Support of the New

Plastics Economy
We urgently need to transform global plastic packaging material flows if we are
to continue to reap the benefits of this versatile material. This report marks a
major milestone, calling out specific actions to capture opportunities for redesign
and innovation, reuse, and recycling. It’s now up to us all to get it done.
PAUL POLMAN, CEO, UNILEVER
Resources management should not be summarised as a matter of cost optimisation

but as a powerful driver of shared value creation. This belief runs through our
entire business at Danone, fundamental to our relationships with suppliers,
partners and our customers. Danone has embedded the principles of the circular
economy in its value chain, managing now plastic as a cycle rather than as
conventional linear supply chain. We are hugely supportive of the New Plastics
Economy report as it lays out actions to turn the challenges posed by plastics
today into an opportunity that will deliver value tomorrow. I am excited that
Danone is taking a leading role in this initiative to help drive systemic change.
EMMANUEL FABER, CEO, DANONE
It will take a concerted effort involving various stakeholders to make the systemic
changes needed to transition to a circular economy. This is especially true for
plastics. Veolia believes that the New Plastics Economy initiative provides an
excellent collaborative platform to catalyse the transition. The initiative’s latest
report, “The New Plastics Economy: Catalysing action”, builds on the findings
of the previous report and provides a clear roadmap of priority actions for 2017
to drive progress towards a global plastics system that works: a system that will
capture material value and contribute to improved economic and environmental
outcomes. Veolia looks forward to its continued participation in these efforts.
ANTOINE FRÉROT, CEO, VEOLIA
Shifting towards a circular economy based systems whereby the biological and
technical cycles are linked and driven by innovative products delivered through new
supply chains and systems will not be easy, but will result in significant benefits for
the economy and environment. To make this transition successful, it is crucial to know
where we want to go and what we want to achieve, which is exactly what the first
New Plastics Economy report lays out. At Novamont we welcome this second report
which now helps develop further our collective learning and is a call to action for the
creation of tangible new links between upstream and downstream value chains.
CATIA BASTIOLI, CEO, NOVAMONT
Through innovation and collaboration, The Dow Chemical Company is committed

to advancing a circular economy to deliver economic, societal, and environmental
value. This important report by the Ellen MacArthur Foundation offers a key step in
delivering science-based solutions by providing options that help us close resource
loops for plastics and facilitate the transition towards a New Plastics Economy.
ANDREW LIVERIS, CHAIRMAN AND CEO, THE DOW CHEMICAL COMPANY
SUEZ is delighted to have contributed to this next milestone and to continue its
collaboration within the New Plastics Economy initiative. This report underwrites
SUEZ’ view of transitioning towards a plastic packaging system in line with
circular economy principles, through a concerted, cross-value chain approach.
The initiative’s Pioneer Projects, with tangible actions and concrete goals,
are a great example of how SUEZ aims to overcome plastics challenges.
JEAN-LOUIS CHAUSSADE, CEO, SUEZ
Healthy oceans can support healthy people and healthy profits; if we let them. That
means governments, business and individual citizens backing an inclusive, circular
economy. It means using legislation, innovation and consumer choices to replace plastic
related demand and pollution with better alternatives that create jobs and still look
after our planet. And it means supporting this initiative by ensuring that each us knows
how we can help rethink, reuse and recycle plastic. This report is a great place to start.
ERIK SOLHEIM, EXECUTIVE DIRECTOR, UN ENVIRONMENT
The New Plastics Economy initiative is undertaking groundbreaking efforts to prove

that positive economic and environmental progress can coexist in supply chains
that have become increasingly global. The initiative’s work complements Mayor de
Blasio’s OneNYC Plan and New York City’s goals of achieving an 80% reduction in
greenhouse gas emissions by 2050, and zero waste to landfills by 2030. At NYCEDC,
we look forward to opportunities to apply this report’s findings to promote innovative
and sustainable approaches to design, infrastructure, and new business models.
MARIA TORRES-SPRINGER, PRESIDENT AND CEO, NEW YORK CITY ECONOMIC DEVELOPMENT
CORPORATION
Carrefour fully supports the New Plastics Economy initiative. Our group
pledges to continue its worldwide efforts working with industry partners and
other stakeholders to move toward a circular model for plastics. Together
we will create innovative and tangible actions to achieve this goal.
GEORGES PLASSAT, CHAIRMAN AND CEO, CARREFOUR
The New Plastics Economy represents a huge opportunity for design, as evidenced in this
report. From more circular products and services to new business models and industry
systems, design is needed in the absence of established roadmaps or models that we
can simply re-tune or optimise. To deliver the step change in industry practices that
is required, we need to recognise that transitioning to the circular economy is one of
the biggest creative challenges of our time. The New Plastics Economy initiative plays
an important role, inspiring and supporting designers to capture the opportunity.
TIM BROWN, CEO, IDEO
The New Plastics Economy report calls attention to the vast amount of plastic packaging
material that is lost to the economy after only a single use. Amcor understands the
challenge, but we also see a tremendous opportunity to continually develop packaging
that is better for the environment throughout its life: production, use and re-use.
RON DELIA, CEO, AMCOR
Packaging has an outsized impact on our planet. As a global consumer goods company,
we need to find ways to drastically improve the environmental, as well as economic,
impact of plastic packaging, while keeping protecting and presenting our products
effectively. Mars joined the New Plastics Economy initiative as a core partner in order
to proactively drive this effort in our industry. We applaud this report and fully support
the initiative’s ongoing efforts to promote a circular economy approach for plastics.
BARRY PARKIN, CHIEF SUSTAINABILITY AND HEALTH & WELLBEING OFFICER, MARS, INCORPORATED
At Coca-Cola we’ve been a long-time proponent of circular thinking, particularly when

it comes to packaging. We introduced refillable bottles 120 years ago. As market and
consumer preferences shifted so did we, offering recyclable PET bottles and then a fully
recyclable PET bottle made partially from plants. It’s time for another change—a plastics
system fully aligned with the circular economy. The market and environment demand
it and Coca-Cola is proud to support the New Plastics Economy Initiative. We applaud
the Ellen MacArthur Foundation as they lead this innovative and responsible endeavor.
BEA PEREZ, CHIEF SUSTAINABILITY OFFICER, THE COCA-COLA COMPANY
Borealis, as a leading provider of innovative solutions in the field of

polyolefins, is committed to realising the opportunities presented by the
New Plastics Economy. The initiative has already convened all stakeholders
to work effectively together. With this new report, the initiative now offers a
roadmap to create effective markets based on circular economy principles –
an action plan where Borealis wants to take an active and leading role.
MARK GARRETT, CEO, BOREALIS
As one of the world’s leading retailers Schwarz Gruppe relies on packaging materials.
If we want to safeguard future resources, eliminate waste and save energy, it
is of central importance that we circulate resources -including our packaging-
effectively. Ellen MacArthur Foundation’s New Plastics Economy initiative is an
excellent platform to meet this challenge together with other leading companies.
GERD CHRZANOWSKI, CEO, SCHWARZ CENTRAL SERVICES (LIDL & KAUFLAND)
At TriCiclos, we understand the urgency on rethinking the plastic industry worldwide;

and strongly support the idea on setting the principles of the New Plastics
Economy through cooperation between all the actors of the value chain. We are
very proud to be involved with the New Plastics Economy initiative, contributing
with our experience on improving plastic packaging design and harmonising
collection and sorting systems towards circular economy models for packages.
This report is totally aligned with our mission, as it offers a clear way forward
to solve a highly relevant problem. We are eager to carry on the journey!
GONZALO MUÑOZ, CO-FOUNDER AND CEO, TRICICLOS
Enhancing packaging is a key driver for L’Oréal in achieving our commitments on

improved environmental and social profile of our products while providing equal or
greater benefits to the customer. This new report of the New Plastics Economy initiative
shows a tangible way forward to innovate our plastic packaging - we believe this is the
right direction to go, and are ready to drive this transition to a circular plastics system!
ALEXANDRA PALT, CHIEF SUSTAINABILITY OFFICER, L’ORÉAL
The world is at a turning point. For millennia, production and consumption

cycles were circular, consistent with the “waste = input” flows inherent in
nature. The invention of plastics fostered disposable goods and packaging
that were cheaper to replace with virgin rather than recycled materials. The
age of waste, symptom of the linear economy, unfolded globally. Today, the
companies and NGOs participating in the New Plastics Economy initiative are
pioneering steps, presented in this report, to move towards a circular economy
for plastics. This critical global initiative is urgent, timely and achievable.
TOM SZAKY, CEO, TERRACYCLE
The City of Phoenix handles more than 54,000 tons of plastics every year, and
has been actively working with local partners to boost plastics recycling over
the past few years. The report ‘New Plastics Economy: Catalysing action’ is
helping cities like Phoenix build a framework for systemic change to transition
plastics from the linear take-make-dispose model to a true circular economy.
GREG STANTON, MAYOR, CITY OF PHOENIX
A new circular plastic paradigm will create great value for business and society. Many
actions can be taken individually, but we need collaborative effort to make a meaningful
shift. This report on catalysing action by the New Plastics Economy initiative provides an
excellent view of the opportunities across the plastics value chain while explaining the
interplay between design innovation and after-use systems. The action steps put forward
are practical ideas that will help bring a new plastics economy from vision to reality.
ANDREW AULISI, SENIOR DIRECTOR, GLOBAL ENVIRONMENTAL POLICY, PEPSICO
It is incumbent on companies of every size around the world to take an honest

look at how they are using resources, and focus their ingenuity on reducing
waste. Sealed Air is committed to deliver even more value for its customers and
the wider society, by taking the next steps to make dramatic improvements
that prevent waste and reuse resources, as laid out in this new report.
JEROME PERIBERE, CEO, SEALED AIR CORPORATION
In 2016, the Ellen MacArthur Foundation provided for the first time what had long
been lacking – a comprehensive, truly global perspective on plastics innovation needs
at a societal level, and on the business opportunity for industry. Now, the 2017 report
nicely advances the thinking, with specific, actionable priorities that strike the right
balance between ‘evolutionary’ and ‘revolutionary’ – respecting current materials in the
market, while simultaneously creating space for significant new materials innovation.
MARC VERBRUGGEN, CEO, NATUREWORKS
As one of the world’s leading manufacturers of flexible packaging and labels,

Constantia Flexibles understands the importance of modern plastic packaging
design. We are delighted to see how the New Plastics Economy initiative is bringing
together other major players in the plastic packaging value chain to improve design
and thus create both economic and environmental benefits for all stakeholders.
ALEXANDER BAUMGARTNER, CEO, CONSTANTIA FLEXIBLES
Think Beyond Plastic believes in harnessing the forces of innovation and

entrepreneurship to advance the New Plastics Economy. Essential for the success
of this endeavour is building the entire innovation eco-system and mobilising the
cumulative power of the participants of the New Plastics Economy initiative.
DANIELLA RUSSO, CEO, THINK BEYOND PLASTIC INNOVATION ACCELERATOR
As a global leading provider of technology for handling post-use plastics, TOMRA aims
to be a frontrunner in the transition towards a New Plastics Economy. We engage in this
initiative because we believe it provides a common vision for the industry combined
with a unique platform for pre-competitive collaboration and action. With this report
these two elements are now complemented by tangible guidance for the way forward.
STEFAN RANSTRAND, PRESIDENT & CEO, TOMRA SYSTEMS ASA
MMBC supports the New Plastics Economy initiative as a platform for the creation
of a global circular plastics system. While MMBC has been able to achieve
significant progress in recycling plastics at a local level, we need this type of
initiative to be able to address the growing issue of plastics at a global scale.
ALLEN LANGDON, MANAGING DIRECTOR, MULTI-MATERIALS BRITISH COLUMBIA (MMBC)
P&G believes transformational change can be achieved by combining the

perspectives of all stakeholders, including industry, governments and consumers.
We are actively engaged in several multi-stakeholder collaborations that seek
to improve recycling uptake, quality and economics. The New Plastics Economy
initiative’s collaborative way of working is aligned with ours and represents
a powerful opportunity to drive positive change in the plastics system.
VIRGINIE HELIAS, VICE PRESIDENT GLOBAL SUSTAINABILITY, PROCTER & GAMBLE
Through first-hand experience, KKPKP knows how recyclable plastics create income
for waste pickers in India. The New Plastics Economy initiative attempts to ambitiously
take a detailed and long term view on the trade with a multi-pronged approach of value
enhancement - critical for informal recyclers - and format and delivery model redesign for
plastics packaging. This new report has tremendous potential to influence policy at the
global and local levels and we look forward to how it will impact the recycling economy.
MALATI GADGIL, TREASURER, KAGAD KACH PATRA KASHTAKARI PANCHAYAT (KKPKP)
The New Plastics Economy initiative represents a truly momentous and unique
opportunity to completely rewrite the rules of global resource management, in
line with the circular economy principles. Whilst the ambition is breathtaking
this report sets outs some key steps to transition to the New Plastics Economy.
The London Waste and Recycling Board is proud to be part of this initiative.
WAYNE HUBBARD, COO, LONDON WASTE AND RECYCLING BOARD
As a family owned company, Werner&Mertz is fully committed to capturing the

value of plastic packaging after use, and so creating economic and environmental
benefits. By using post-consumer recycled plastics for our branded goods
packaging, we show how recycling allows to close the loops while meeting the
highest quality standards. We whole heartedly support the New Plastics Economy
initiative and are happy to be part of this tremendous important programme.
REINHARD SCHNEIDER, CEO AND SOLE OWNER, WERNER & MERTZ GROUP
We are proud to explore together with the New Plastics Economy initiative how plastic
packaging design can enable circular material flows in addition to the delivery of
safe, high-quality products to our customers. This report shows the crucial role of
such design in moving towards a plastics system that works economically, socially
and environmentally. Crucially it offers a practical transition strategy for the different
packaging applications enabling us to turn theory into reality rapidly and with scale.
MIKE BARRY, DIRECTOR, PLAN A, MARKS & SPENCER
As an innovative recycling company, APK Aluminium und Kunststoffe

AG continuously strives to improve the quality and economics of plastic
packaging recycling. Connecting different players in the supply chain, from
designers to recyclers, will be crucial to create an effective plastics system,
as laid out in this report. The New Plastics Economy initiative’s collaborative
approach is exactly what is needed to turn this endeavour into a success.
KLAUS WOHNIG, CEO, APK ALUMINIUM UND KUNSTSTOFFE AG
As shown in this report, innovation is essential for a successful transition

to the New Plastics Economy. As an innovator, Loop Industries is proud to
support this shift with our high-quality depolymerisation technology.
DANIEL SOLOMITA, FOUNDER AND CEO, LOOP INDUSTRIES
As one of the leaders in the field of polyethylene recycling, RPC bpi recycled
products understands the many benefits of closing material loops. This new report
shows how we can further strengthen recycling economics, by moving towards
the New Plastics Economy - a promising journey we are pleased to be part of!
GERRY MCGARRY, MANAGING DIRECTOR, RPC BPI RECYCLED PRODUCTS
WRAP welcomes this new report on the New Plastics Economy as it provides
a global vision that builds on the extensive work WRAP has focussed on
in the UK over the last few years, including packaging design, collection
harmonisation and plastic packaging recycling infrastructure.
MARCUS GOVER, CEO, WRAP
At Surfdome many of our staff, customers, suppliers and I are regularly faced
with the results of a dated linear economy, with plastic pollution consistently
visible in our oceans. We’ve been working hard to reduce our impact on the
world, protect our waves, and the waters they belong to, but it’s dramatically
clear how the plastic pollution crisis is escalating. This report from the New
Plastic Economy initiative is vital for guiding all on the best path to improve the
negative impact and unavoidable outcome that will arise if action isn’t taken.
JUSTIN STONE, FOUNDER & MANAGING DIRECTOR, SURFDOME
Recycling Technologies believes that fundamental innovation is needed to move some of

the most challenging plastic packaging segments forward, as explained in this report. As
a recycling technology innovator, we are eager to drive industry collaboration within the
New Plastics Economy initiative towards a system in which plastics never become waste.
ADRIAN GRIFFITHS, CEO, RECYCLING TECHNOLOGIES
Transforming the current plastics system is a key priority for OVAM and Circular Flanders,
our public private partnership to boost the circular economy in Flanders. This report
is a major step towards the New Plastics Economy vision described in the previous
report, and clearly outlines the key actions for the plastic packaging value chain to
focus on. As a participant of the initiative, we are excited to start working on this plan!
HENNY DE BAETS, CEO, PUBLIC WASTE AGENCY OF FLANDERS (OVAM)
Bringing many benefits, plastics have become an indispensable part of our

daily life. Currently this versatile material also entails serious economic and
environmental disadvantages, to which a solution needs to be actively and
consequently pursued. Thanks to the Ellen MacArthur Foundation’s New Plastics
Economy initiative, renowned companies from the plastics industry, non-profit
organisations and municipalities are working together to achieve such a solution.
AXEL KÜHNER, CHAIRMAN OF THE BOARD, GREINER GROUP
New York City, under the leadership of Mayor Bill de Blasio, has set ambitious goals
to reduce our greenhouse gas emissions 80 percent by 2050 and to send zero
waste to landfills by 2030 ensuring that we create a more sustainable, resilient,
and equitable NYC. Achieving these goals from our OneNYC plan requires a shift
towards a more circular economy, with improved recycling rates and economics. The
first New Plastics Economy report has introduced a revolutionary vision for plastic
material management - this second report will inform our work and encourage a
paradigm shift in the way the global community thinks about and acts on plastics.
MARK CHAMBERS, DIRECTOR, NEW YORK CITY’S OFFICE OF SUSTAINABILITY
To ensure we can retain the benefits of plastic packaging, we have to rethink and change
how we use it, dispose of it and of course, how we create plastic material in the first
place. Solegear believes that renewable bioplastics are an important element of the
New Plastic Economy. This new report shows how to move from rethinking the plastics
system to taking action towards a circular economy - we are ready to play our role!
PAUL ANTONIADIS, CEO, SOLEGEAR BIOPLASTIC TECHNOLOGIES INC.
In line with our technology to capture more value by recycling plastics, we fully endorse
this report and its messages on how to create a more effective after-use system for
plastics. We’re excited to translate these strategic plans into actions on the ground.
RAFAEL GARCIA, CEO, CADEL DEINKING
As enthusiastic supporters of the reimagined plastics economy we know the great

value a targeted action plan will bring to the plastics cycle. The New Plastics
Economy looks at more than just the global material flow and advocates for
a fundamental redesign of the whole system. We, and the planet, cannot wait
to see the new innovations and solutions scale - time is of the essence!
MOLLY MORSE, CEO, MANGO MATERIALS
At Reflow, we are determined to put plastic recycling at the heart of 3D

printing, sparking a societal and manufacturing revolution. To ensure this
technology fits into an effective plastics system, a profound shift is needed.
The transition strategies at the core of this new report resonate with our
mission and we found its realistic yet positive message truly inspiring!
JASPER MIDDENDORP, FOUNDER AND CEO, REFLOW
Zero Waste Scotland was involved in the New Plastics Economy initiative from the
beginning, and we continue to support its aims. Scotland is a small nation making
big steps towards a more circular economy. We know that redesigning, reusing and
optimising the recycling of plastics can create new economic opportunities as well as stop
the harmful impacts of the linear economy. To achieve that goal, collective endeavours
like the New Plastics Economy initiative need widespread support and commitments
to turn ideas into action - and this report provides an excellent blueprint to do so.
IAN GULLAND, CEO, ZERO WASTE SCOTLAND
Nextek believes industry leaders should take a close look at this valuable work
of the New Plastics Economy initiative, so that they, together with governments
and NGOs, can transform the current plastics economy into a circular one.
In this way we do not only respond to pressures on resources and waste
reduction, but also create a value-adding plastics system at every level.
EDWARD KOSIOR, MANAGING DIRECTOR, NEXTEK
A wealth of innovation is ready for a New Plastics Economy, which can be unlocked
if policymakers, corporations and consumers work together. The work of the Ellen
MacArthur Foundation to start the conversation and create a new space is leading
by example. This report on actions towards a circular economy for plastics is just the
beginning, and we look forward to contributing expertise and watching it grow!
SUSANNA CARSON, FOUNDER AND CEO, BSIBIO PACKAGING SOLUTIONS
Advisory Board Members of the

New Plastics Economy Initiative
The New Plastics Economy initiative is grateful for
the support of its Advisory Board members:
LEAD PHILANTHROPIC PARTNER
PHILANTHROPIC FUNDERS
CORE PARTNERS
EXECUTIVE
SUMMARY
Executive Summary
Global momentum for a fundamental negative effects and forgo its many
plastics rethink is greater than ever. benefits, or will they carve out a future for
Plastics have become the ubiquitous it characterised by innovation, redesign and
workhorse material of the modern economy: harmonisation, based on circular economy
combining unrivalled functional properties principles?
with low cost, their use has increased
twentyfold in the past half-century. While The New Plastics Economy presents
plastics and plastic packaging are an a bold and much-needed vision for a
integral part of the global economy and plastics system that works. It provides a
deliver many benefits, their archetypically new way of thinking about plastics as an
linear, take-make-dispose value chains entail effective global material flow, aligned with
significant economic and environmental the principles of the circular economy. It
drawbacks. It is only in the past few years aims to harness the benefits of plastics
that the true extent of these drawbacks while addressing its drawbacks, delivering
has become clear. We now know, more drastically better system-wide economic
than 40 years after the launch of the and environmental outcomes. This vision,
first universal recycling symbol, that only laid out initially in the 2016 report, The
14% of plastic packaging is collected for New Plastics Economy – Rethinking the
recycling globally. Each year, USD 80-120 future of plastics, has inspired businesses,
billion plastic packaging material value policy-makers and citizens worldwide. It
is lost to the economy. Given projected forms the basis for the ambitious New
growth in production, in a business-as-usual Plastics Economy initiative, launched in May
scenario, by 2050 oceans could contain 2016 and supported by dozens of leading
more plastics than fish (by weight). Across businesses, philanthropists, cities and
the entire range of plastic products, not governments.
just packaging, concerns are raised about
the potential negative impact of certain This report is the first to provide a
substances on society and the economy. concrete set of actions to drive the
Businesses and governments are now, transition, based on three strategies
for the first time, recognising the need to differentiated by market segment.
fundamentally rethink the global plastics Thorough analytical work, including a
system. detailed segment-by-segment analysis of
the plastic packaging market, numerous
This growing recognition is triggering action interactions with players across the plastics
across the world. Policy-makers continue value chain and discussions with experts
to broaden and refine regulations for revealed that a programme of concerted
plastics, introducing landmark legislation action across three key areas could trigger
worldwide throughout 2016, such as an accelerated transition towards the New
restrictions and bans on single-use plastic Plastics Economy. The three key transition
(carrier) bags. The European Commission strategies and related priority action areas
is planning to publish a strategy on plastics are:
as part of its Circular Economy Action
Plan by the end of 2017. NGOs and the
wider public are increasingly calling for
change, with movements such as the
#breakfreefromplastic campaign gaining
traction. Front-running businesses and
industry groups are taking action. It is clear
that the topic of plastics is coming to a
head. The key question is, will societies
gradually reject the material due to its
• Fundamentally redesign the packaging
1
formats and delivery models (and after-
use systems) for small-format plastic
packaging, avoiding such small formats
where relevant and possible
• Boost material innovation in recyclable

or compostable alternatives to the
currently unrecyclable multi-material
applications as described above
Without fundamental
redesign and innovation, • Actively explore replacing PVC, PS and
EPS as uncommon packaging materials
about 30% of plastic with alternatives (converging to a few
packaging will never be key materials being used across most
reused or recycled. of the market, while continuing to
allow for innovation and entry of new
Today, these packaging applications – materials into the market)
representing at least half of all plastic
packaging items, or about 30% of the • Scale up compostable packaging and
market by weight – are, by their very design, related infrastructure for targeted
destined for landfill, incineration, or energy nutrient-contaminated applications
recovery, and are often likely to leak into the
environment after a short single use. This • Explore the potential as well as the
segment includes small-format packaging, limitations of chemical recycling and
such as sachets, tear-offs, lids and sweet other technologies, to reprocess
wrappers; multi-material packaging made of currently unrecyclable plastic
several materials stuck together to enhance packaging into new plastics feedstocks
packaging functionality; uncommon plastic
packaging materials of which only relatively
low volumes are put on the packaging
2
market, such as polyvinyl chloride (PVC),
polystyrene (PS) and expanded polystyrene
(EPS, sometimes referred to under its brand
names Styrofoam or Thermocol); and highly
nutrient-contaminated packaging, such as
fast-food packaging.
Their lack of a viable after-use pathway

and often small size make these items
particularly prone to escaping collection For at least 20% of plastic
systems and ending up in the natural packaging, reuse provides
environment, especially in emerging
economies where most of the leakage an economically attractive
occurs. Even when collected, their after- opportunity.
use material value is hard or impossible to
New, innovative delivery models and
capture at scale. Fundamental redesign and
evolving use patterns are unlocking a reuse
innovation are required: for some segments,
opportunity for at least 20% of plastic
this means reinvention from scratch; for
packaging (by weight), worth at least
other categories, it means scaling existing
USD 9 billion. New models that effectively
solutions or accelerating progress made
replace single-use packaging with reusable
so far. As many of these packaging items
alternatives are already being demonstrated
have important functional benefits, their
in the cleaning- and personal-care market
drawbacks should not be seen as arguments
by only shipping active ingredients in
to remove all these applications from the
combination with reusable dispensers.
market today; rather, they set the direction
For other applications, recent policy
and focus for redesign and innovation.
developments have demonstrated societal
Priority actions for the global plastic
acceptance of reusable alternatives,
packaging value chain include:
exemplified by large reductions in the usage countries. In addition, it would improve

of single-use bags after the introduction resource productivity and reduce negative
of relatively minor levies. This societal externalities, such as greenhouse gas
acceptance could also reinvigorate tried emissions. Even though it would lift average
and tested reuse systems, including profitability into positive territory, certain
returnable beverage bottles in cities. In technological and economic barriers would
addition, several companies have already remain for specific packaging segments,
successfully demonstrated the benefits such as flexible films. Given the current
of reusable packaging in the business- fragile economics of recycling, demand-pull
to-business market, where there remains for recycled plastics and other supporting
significant room for scaling up. As always, policy measures could trigger progress in
when evaluating the shift to, or scaling up the near term. As part of the redesigned
of, reuse models, it is important to take a and reused packaging described above will
system perspective and understand the also lead to recycling, the 50% mentioned
broad impact of each solution, including here should not be interpreted as an upper
environmental and societal aspects. Priority limit for a recycling target. In regions with
actions in the area of reuse include: high levels of leakage into the natural
environment, another critical short-term
• Innovate towards creative, new delivery action is to deploy basic collection and
models based on reusable packaging management infrastructure – requiring
dedicated and distinct efforts. This is
• Replace single-use plastic carrier bags already under way at the local level through,
by reusable alternatives for example, the Mother Earth Foundation
in the Philippines and, globally, through
• Scale-up reusable packaging in a
the Ocean Conservancy’s Trash Free Seas
business-to-business setting for both
Alliance. Priority actions for improving
large rigid packaging and pallet wrap
recycling economics, uptake and quality
include:
• Implement design changes in plastic
3
packaging to improve recycling
quality and economics (e.g., choices
of materials, additives and formats) as
a first step towards a Global Plastics
Protocol
• Harmonise and adopt best practices for

collection and sorting systems, also as
part of a Global Plastics Protocol
With concerted efforts
on design and after-use • Scale up high-quality recycling
processes
systems, recycling would
be economically attractive • Explore the potential of material
markers to increase sorting yields and
for the remaining 50% of quality
plastic packaging.
• Develop and deploy innovative sorting
Implementation of good practices and mechanisms for post-consumer flexible
standards in packaging design and after- films
use processes as part of a Global Plastics
Protocol, allowing for regional differences • Boost demand for recycled plastics
and continued innovation, would reinforce through voluntary commitments or
recycling as an economically attractive policy instruments, and explore other
alternative to landfill, incineration and policy measures to support recycling
energy recovery. It would add an estimated
USD 190-290 of value to every tonne of • Deploy adequate collection and sorting
mixed plastic packaging collected, or infrastructure where it is not yet in
USD 2-3 billion annually across OECD place
Design is essential to move ahead on all • Innovation Moonshots: Launch two

three categories above. To shift towards innovation challenges to inspire a
the New Plastics Economy, the entire generation of material scientists and
plastic packaging value chain needs to be designers to develop solutions for
involved – from packaging designers at the the 30% of packaging that requires
beginning of the chain to recyclers at the fundamental redesign and innovation.
end. The analysis in this report has revealed
that design (of materials, packaging formats • Evidence Base: Finalise the ongoing
and delivery models) plays a particularly study with the Plymouth Marine
important role and is essential to mobilise Laboratory on the socio-economic
the transition strategies for each of the impact of plastics in marine
plastic packaging categories, as reflected in environments. Bridge other knowledge
the set of priority actions. gaps such as, for example, the potential
and limitations of material markers and
In addition to the priority actions above, chemical recycling.
sourcing virgin feedstocks from renewable
sources would accelerate the transition • Stakeholder Engagement: Encourage
to the New Plastics Economy by helping the wider stakeholder group to work
decouple plastics from fossil feedstocks. towards a system shift – designers, in
particular, whose involvement is critical
To catalyse the transition, the New for successful action on each of the
Plastics Economy initiative has mobilised three transition strategies, and policy-
a systemic and collaborative approach makers, who can trigger progress in
across five building blocks – with a the near term. Launch and build on
targeted action plan for 2017. In May 2016, the Circular Design Guide – an online
the Ellen MacArthur Foundation launched reference point on circular design –
the New Plastics Economy initiative – an together with leading global design
ambitious global programme, which has company IDEO, to inspire and support
secured over USD 10 million funding to designers, innovators and change
date and involves over 40 key stakeholders makers. Engage and inform policy-
across the value chain – to accelerate the makers on the New Plastics Economy’s
shift to the New Plastics Economy. This vision and recommendations.
report forms the basis for a catalytic action
plan the initiative will use to tackle this Through these actions, the New Plastics
complex issue from all relevant angles. Economy initiative aims to set direction,
These catalytic actions for 2017 fit the five inspire innovation and build momentum
interlinked and mutually reinforcing building towards the vision of a plastics system that
blocks on which the New Plastics Economy works, moving the plastics industry into a
initiative is set up. The following actions are positive spiral of value capture, stronger
planned for 2017 (the initiative will continue economics and better environmental
to explore other areas in 2018 and beyond): outcomes.
• Dialogue Mechanism: Put cross-value

chain collaboration at the heart of
the initiative by convening a group
of over 40 leading companies, cities
and governments across the plastic
packaging value chain twice a year,
and continuously driving collaborative
pioneer projects.
• Global Plastics Protocol: Take the next

step towards a Global Plastics Protocol
by collaboratively developing a cross-
value chain perspective on the top
opportunities for design shifts; this
will allow the prioritisation of changes
that would most enhance recycling
economics and material health.
GLOBAL
MOMENTUM
FOR A
PLASTICS
RETHINK IS
GREATER
THAN EVER
Global Momentum for a

Plastics Rethink is Greater
than Ever
THE CASE FOR RETHINKING PLASTICS, 2016, citizens of California approved
STARTING WITH PACKAGING Proposition 67, which prohibits grocery
and other stores from providing customers
While plastics and plastic packaging are with single-use plastic takeaway bags. This
an integral part of the global economy is in addition to more 130 regulations, at
and provide it with many benefits, their a city level and county-wide, across 20
typically linear value chains currently entail states, governing plastic packaging in the
significant drawbacks, which are becoming United States alone.4 Importantly, the EU
more apparent by the day. Projected Commission aims to publish a strategy on
growth in plastics production could lead plastics as part of its Circular Economy
by 2050, in a business-as-usual scenario, to Action Plan by the end of 2017. The NGO
the oceans containing more plastics than community is also intensifying its efforts,
fish (by weight), and the entire plastics as shown by the #breakfreefromplastic
industry could be consuming 20% of total movement.5 Launched in September 2016,
oil production and 15% of the annual carbon the movement, which aims for a future free
budget. Looking at the full range of plastic from plastic pollution, grew to over 500
products (not just packaging), concerns member organisations in just a couple of
have been raised about the potential weeks.
negative impact of some substances, such
as certain phthalates in PVC and bisphenol Academic experts are increasingly studying
A in polycarbonate, on society and the plastics and their impact on the economy
economy. Plastic packaging – the focus of and society. Aside from plastics leakage
the New Plastics Economy initiative – is into the ocean, the impact of substances
plastics’ largest application, representing of concern in plastics (not just packaging)
26% of the total volume, and encountered is one active area of research. Besides
by virtually everyone daily.1 Most plastic polymers, plastics contain a broad range
packaging is used only once and 95% of of other substances, with some of them
its value, estimated at USD 80-120 billion raising concerns about complex long-
annually, is lost to the economy after its term exposure and compound effects on
initial use. Additionally, plastic packaging, human health. As discussed in The New
which is particularly prone to leakage Plastics Economy – Rethinking the future
into the environment, generates negative of plastics, while scientific evidence on
externalities, degradation of natural systems the exact implications of substances of
and greenhouse gas emissions, that have concern is not always conclusive, some
been valued conservatively by UNEP at USD stakeholders are already acting.6 They are
40 billion.2 For these reasons, plastics and motivated by different reasons – regulators
plastic packaging have gradually morphed are often driven by the precautionary
from a fringe to a mainstream issue. principle and potential cost to society, and
businesses anticipate reputational risks and
The global momentum for a plastics aim to capture potential economic value.7
rethink has triggered a broad group of For example, the European Commission
stakeholders to act. Policy-makers are continued in 2016 the development of
introducing landmark legislation worldwide, science-based criteria for endocrine
affecting plastics and plastic packaging, disruptors – chemicals which are considered
with examples from 2016 including: further within the EU chemicals policy (known
national regulations on single-use plastic as REACH; Registration, Evaluation and
bags in Indonesia, Colombia, and Morocco; Authorisation of Chemicals) to be of similar
a ban on non-biodegradable plastic cutlery, regulatory concern as substances already
cups and plates in France; and a ban on EPS classed as being of very high concern.8
packaging in San Francisco.3 In November
Front-running businesses and industry and environmental outcomes while

groups are already responding in a continuing to harness the many benefits of
variety of ways. They are improving the plastic packaging. This bold vision builds
design of their products, packaging and on and aligns with the principles of the
delivery models, including, for example, circular economy, an economic model that
public commitments on sourcing recycled is restorative and regenerative by design. To
content or eliminating single-use carrier move the plastics value chain into a positive
bags. Companies are also collaborating spiral of value capture, stronger economics
to work on solutions across the after-use and better environmental outcomes, the
value chain, such as the REFLEX, FIACE New Plastics Economy has three main
and MRFF projects to improve recycling of ambitions (see Figure 1).
flexible packaging.9 Examples of industry-
wide initiatives include the Recycling
Partnership, Closed Loop Fund and,
1 Create an effective after-use plastics
economy by improving the economics
launched in October 2016, the Polyolefin and uptake of recycling, reuse and
Circular Economy Platform.10 controlled biodegradation for targeted
applications. This is the cornerstone of
the New Plastics Economy and its first
THE NEW PLASTICS ECONOMY: A VISION
priority, which will help it to realise the
OF A MORE EFFECTIVE SYSTEM, IN LINE
following two ambitions.
WITH THE PRINCIPLES OF THE CIRCULAR
ECONOMY
2 Drastically reduce leakage of plastics
into natural systems (in particular, the
As laid out in the report, The New Plastics ocean) and other negative externalities.
Economy – Rethinking the future of plastics,
3
the New Plastics Economy offers a much- Decouple plastics from fossil feedstocks
needed, fundamental rethink for plastics by – in addition to reducing cycle losses
and plastic packaging. It presents an and dematerialising – exploring and
ambitious target state, enhancing system adopting renewably sourced
effectiveness to achieve better economic feedstocks.
FIGURE 1: THE NEW PLASTICS ECONOMY AND ITS THREE AMBITIONS
1 CREATE AN EFFECTIVE AFTER-USE

PLASTICS ECONOMY
OTHER
MATERIAL
RECYCLING STREAMS
RADICALLY IMPROVED
ECONOMICS & QUALITY
REUSE
G
DESIGN & USE I N
ST
PRODUCTION PO
M
R CO
D/O
RENEWABLY SOURCED 1 AN
AD
VIRGIN FEEDSTOCK ENERGY RECOVERY2
LEAKAGE
3 DECOUPLE PLASTICS FROM

FOSSIL FEEDSTOCKS 2 DRASTICALLY REDUCE THE
LEAKAGE OF PLASTICS INTO
NATURAL SYSTEMS & OTHER
NEGATIVE EXTERNALITIES
Source: The New Plastics Economy – Rethinking the future of plastics
THE ROAD
AHEAD:
THREE
DISTINCT
STRATEGIES
TO DRIVE THE
TRANSITION
The Road Ahead: Three

Distinct Strategies to Drive
the Transition
For the first time, a concrete set of priority
actions for the global plastic packaging
value chain to trigger an accelerated
1
transition towards the New Plastics Without fundamental redesign and
Economy has been identified. These actions innovation, about 30% of plastic packaging
are based on three major new insights. will never be reused or recycled
These insights were revealed through
thorough analytical work, including a
granular segment-by-segment analysis of
2
the plastic packaging market, numerous For at least 20% of plastic packaging,
interactions with players across the plastics reuse provides an economically attractive
value chain and discussions with over 75 opportunity
experts. The three insights, which have the
potential to drive a genuine transformation
within the plastic packaging sector
3
and herald the shift to the New Plastics With concerted efforts on design and
Economy, are (see Figure 2): after-use systems, recycling would be
economically attractive for the remaining
50% of plastic packaging
FIGURE 2: THREE DISTINCT TRANSITIONS STRATEGIES TO ACCELERATE THE SHIFT

TOWARDS THE NEW PLASTICS ECONOMY (SHARE OF PLASTIC PACKAGING MARKET BY
WEIGHT)
FUNDAMENTAL REDESIGN REUSE

& INNOVATION
30% 20%
50%
RECYCLING WITH RADICALLY

IMPROVED ECONOMICS & QUALITY
Source: New Plastics Economy initiative analysis (see Appendix for details)
1
Without Fundamental multi-material packaging; uncommon
plastic packaging materials; and nutrient-
Redesign and Innovation, contaminated packaging (see Figure 3).
about 30% of Plastic While often offering high functionality, these
packaging types do not have a viable reuse
Packaging Will Never Be or recycling pathway and are unlikely to
Reused or Recycled have one at scale in the foreseeable future.
To shift these segments to a more positive
This category, representing at least half of material cycle, fundamental redesign and
the plastic packaging items and about 30% innovation of materials, formats, delivery
of the total market by weight, consists of models and after-use systems is required.
four segments: small-format packaging;
FIGURE 3: PLASTIC PACKAGING SEGMENTS THAT NEED FUNDAMENTAL REDESIGN AND

INNOVATION
SHARE OF PLASTIC
PACKAGING MARKET PRIORITY
EXAMPLES % BY WEIGHT SOLUTIONS
SMALL-
FORMAT REDESIGN
Lids, tear-offs, caps,
sachets and generally
all items smaller than
~10% packaging formats
and/or delivery models
40 – 70mm (and after-use systems)
MULTI-
MATERIAL INNOVATE
Packaging with
inseparable layers
of different
~13% in materials and
reprocessing technologies
materials
UNCOMMON Actively explore to

MATERIALS
Uncommon
plastic packaging
materials like
~10% REPLACE
as a priority PVC, EPS, PS
by known alternatives
PVC, EPS, PS
NUTRIENT-
CONTAMINATED SCALE UP
compostable plastics for
Coffee capsules, NOT QUANTIFIED
organic waste bags, targeted applications to help
takeaway food recover nutrients of
packaging packaging contents
FUNDAMENTAL REDESIGN AND INNOVATION is needed for

>50% of plastic packaging (by no. of items),
or >30% of plastic packaging (by weight)*
* Total is not the sum of separate categories due to overlap

THERE ARE FOUR PLASTIC PACKAGING tear-offs, lids, straw packages, sweet
SEGMENTS WHICH HAVE A VARIETY wrappers and small pots, tend to escape
OF BARRIERS IMPEDING AN EFFECTIVE collection or sorting systems and have
AFTER-USE PATHWAY no economic reuse or recycling pathway.
The small size of these items means they
Small-format plastic packaging (about 10% are likely to leak out of the system into the
of the market, by weight, and up to 35%- natural environment. This can be witnessed
50% by number of items), such as sachets, in emerging countries where their low
after-use value makes them less likely to benefits, such as providing oxygen and
be collected by the informal sector (i.e. moisture barriers at reduced weight
waste management activities carried out by and costs. However, this combination of
waste pickers)11 and in advanced economies, multiple materials means that many of these
where items like lids, caps, straws and sweet applications, like those combining plastic
wrappers are consistently mentioned as and aluminium layers, are economically,
some of the plastic packaging items most and in some cases even technically,
found in litter.12 Cleaning up these small- unrecyclable.
format items after they have escaped
collection systems is particularly hard For some applications, technologies exist
precisely because they are small. Sachets that, in theory, could capture part of the
are a typical small-format example: they material value through downcycling, i.e.
are used all over the world, but particularly the process of converting materials into
in emerging markets, to sell products new materials of lesser quality, economic
such as condiments and shampoo in small value and/or reduced functionality. For
quantities, making them more convenient example, compatibilisers are chemical
and affordable. Especially in countries substances that can allow some multi-
without a formal collection system, many of material packaging to be downcycled into
these sachets end up as litter. blended materials. Still, such technologies
lead to significant loss of material value in
Even when they are collected, small-format the recycling process and likely add just one
items are hardly ever recycled due to extra use-cycle rather than creating a truly
significant technical and economic barriers. positive, virtuous material cycle.
A study ordered by the industry association,
PlasticsEurope, estimated the effective Uncommon plastic packaging materials
recycling potential for this segment to be (about 10% of the market, by weight),
zero, even in an optimistic scenario.13 The while often technically recyclable, are
main barrier is the difficulty of sorting not economically viable to sort and
small-format items – a critical step in the recycle because their small volumes
recycling process. One of the first stages prevent effective economies of scale.16
in automated sorting facilities is a screen The economics of plastics sorting, which is
that removes all small items, such as loose a critical step in the recycling process, are
dirt, stones and other materials that could highly dependent on scale. If the volume of
damage equipment in subsequent sorting a certain material is too low, the additional
steps. During this process, all items smaller sorting step becomes unaffordable. This
than 40mm-70mm fall through the mesh in is particularly relevant for business-to-
the screen, end up in the fines fraction, and consumer packaging, mainly collected as a
are sent for energy recovery, incineration or mixed plastic packaging stream, as opposed
landfill.14 Due to the small size and low value to business-to-business packaging, where
of these items, a successive layer of sorting sometimes mono-material volumes are
technology to extract the plastics from the collected in bulk.
fines fraction is not economically viable
and is unlikely to be so in the foreseeable PVC, PS, and EPS stand out as uncommon
future.15 In theory, manual sorting could plastic packaging materials to focus on
perhaps overcome the technical barriers first. They collectively represent 85% of the
small-format items pose to automated uncommon plastic packaging materials, so
sorting, but it is economically challenging dealing with these three would make a huge
given the low volume-to-time ratio of impact on this segment. Their low volumes
sorting these items. lead to poor outcomes: less than 5% of PVC
packaging is recycled in Europe,17 and PS
Multi-material packaging (about 13% of and EPS are rarely sorted from household
the market, by weight) currently cannot waste and recycled18 (although there are
be economically, and often not even occasional exceptions, including some very
technically, recycled. By combining the large-scale facilities in Germany).19 Even
properties of materials, multi-material if volumes were higher, problems remain.
packaging can often offer enhanced For instance, EPS is often used in takeaway
performance versus its mono-material food packaging such as clamshells, which
alternatives and resulting functional become heavily contaminated with organic
matter and disposed of in public bins for
residual litter, further reducing recycling significant functional benefits, their

potential. Also, these materials frequently drawbacks are not necessarily arguments to
contaminate streams of other plastics remove them all from the market today but
and harm their recycling economics. For rather to start on a path of reinvention as
example, even very small concentrations outlined.
of PVC (0.005% by weight) lead to
significant quality reductions in recycled Format and delivery model redesign
polyethylene terephthalate (PET)20 and could reduce or eliminate the need for
EPS is a known contaminant for polyolefin small-format plastic packaging items,
recyclers as it is not removed during the while providing the same or even better
float-sink separation process. In addition, functionality. Beverage cans are a classic
there are safety concerns about PVC. It example of the potential of format redesign.
often contains vinyl chloride monomers, The tear-off tab, being a small-format
which are carcinogenic to humans, and item, was difficult to collect and prone to
many additives, including phthalates, a class leakage until it was replaced in the 1970s
including substances like bis(2-ethylhexyl) by the stay-on tab that is prevalent today.
phthalate (DEHP), about which concerns The potential of format redesign can also
have been raised relating to negative effects be witnessed in innovative personal care
on human health and the environment.21 bottles and tubes for which separate, small-
format components have been designed
Nutrient-contaminated packaging is out. Examples include the flip-top cap
often difficult to sort and clean for high- for ketchup or shampoo bottles, which
quality recycling. This segment includes connects the closure to the main packaging,
applications that are prone to be mixed with or the Nephentes bottle concept, by which
organic contents during or after use. This items can be closed without a cap.22
could either be by design, such as in coffee
capsules, or because the application leads Delivery-model redesign could involve
to a high food waste-to-packaging ratio reusable or returnable packaging items, or
after use, such as food packaging for events, even reduce the need for the packaging in
fast food restaurants and canteens. Either its current form. For example, a dispenser
way, when there is high contamination could replace sachets in restaurants or
with organic nutrients, recycling becomes shops; such a delivery model would have
problematic, as organic residues and the potential to supplant billions of small-
odours might be hard to separate from the format items being used every year. The
packaging in the recycling process. Disappearing Package illustrates how
redesigning the packaging concept could
work for several packaging applications,
A COMBINATION OF REDESIGN AND
including laundry detergent pods. The
INNOVATION SOLUTIONS IS REQUIRED
new pods are water-soluble and stitched
TO MAKE PROGRESS IN THESE FOUR
together forming a sheet, so the user can
CHALLENGING PLASTIC PACKAGING
tear off a pod each time and use them one-
SEGMENTS
by-one. With the last pod, the package itself
is gone.23
Given the wide variety of barriers impeding
effective after-use pathways for the four While redesigning formats and delivery
segments, it is unlikely there will be one models is the most powerful approach
instant and effortless solution at scale for for the small-format segment, such
them all. However, when looking at each redesign efforts take time and might not
category individually, clear priority redesign be applicable to all small-format items.
and innovation areas emerge, as outlined For some targeted applications, designing
below. As always, when making progress small-format items with compostable
in these segments, it is important to take materials could be another potential
a system perspective and understand the solution – though its implementation
broader impact of interventions, including brings a series of challenges that need
the impact of packaging on packaged to be addressed first. Also, the redesign
goods. Given that these products have efforts should be combined with actions
focusing on after-use collection, sorting and
reprocessing innovations for small-format
items.
For multi-material packaging, both processes. Current applications of the

material and reprocessing technology technology are still largely confined
innovations would need to be explored. to the conversion of plastics into a
Replacing layers of different materials by (non-renewable) fuel. This provides a
one material, while maintaining the same brief second use but also leads to the
functionalities, could lead to packaging definite loss of the material and so
which is more suitable for recycling. For perpetuates a linear, take-make-dispose
example, Dow Chemical, together with model. Other issues to be explored
Printpack and Tyson Foods, developed within this process are the potentially
a mono-material, stand-up pouch with fragile economics, energy requirements
improved recyclability versus the existing and how it relates to substances of
multi-material alternatives, suitable concern.25
for a specific set of applications (e.g.,
certain frozen food segments).24 Another • Disassembly of multi-material
potential way ahead is the development laminates could provide another
of compostable multi-material packaging, alternative. Companies like Saperatec
which combines enhanced performance (delaminating),26 Cadel Deinking
due to the use of multiple layers of (delaminating)27 and APK (dissolving)28
different materials, with an effective after- are developing or scaling up
use pathway (such as composting or technologies that separate materials
anaerobic digestion). The benefits of such after use. Like the thermochemical
compostable packaging, and the conditions recycling technologies, they currently
needed for it to work, are laid out further only exist at pilot scale, with the
in this section, when discussing solutions first industrial-scale plants just built
for nutrient-contaminated applications. or planned to be built over the
To replace multi-material packaging with coming years. The potential impact
recyclable mono-material or compostable of these technologies, and how their
packaging – with similar performance, performance could be influenced by
weight, and costs – continued innovation-at- packaging design (e.g., design for easy
scale is needed. disassembly), remains to be seen.
Innovation in reprocessing technologies In summary, innovation in reprocessing

could also create new, viable after-use technologies should be explored but not
pathways for multi-material packaging relied on as the single, simple solution.
(and possibly some of the other plastic Rather, it should be investigated as part of
packaging segments for which there are the broad range of redesign and innovation
currently no technical or economic recycling activities outlined above to propel the
routes). Two prominent examples are: multi-material segment and possibly some
other plastic packaging segments for which,
• Thermochemical recycling at the moment, there are no technical or
technologies, such as pyrolysis, could, economic recycling routes.
in theory, provide a closed-material
loop for currently unrecyclable Replacing the uncommon materials PVC,
packaging items. They work by EPS, and PS in packaging with known
breaking down the material into a mix alternatives would need to be actively
of hydrocarbon molecules, which could explored. This would enhance recycling
be refined into precursors for making economics and reduce the potential
new plastics. These technologies should negative impact of substances of concern.
not be relied on as silver bullets – they As discussed in the 2016 The New Plastics
are an energy-intensive outer loop Economy – Rethinking the future of
where little material value is retained, plastics report, for many PVC, PS, and EPS
compared with, for example, reuse or packaging applications alternative solutions
mechanical recycling. Furthermore, are already in place. 29 Also, the use of these
it remains to be proven that these materials in packaging is already declining,
technologies, in practice, can realise as businesses and policy-makers alike
closed-material loops with high yields are reducing or phasing them out – their
of hydrocarbon output being fed replacement represents an accelerated
back into the polymer production
evolution rather than a revolution.30 For • Boost material innovation in recyclable

cases where no clear solutions with similar or compostable alternatives to the
cost and functionality yet exist, research currently unrecyclable multi-material
and innovation would need to be focused applications as described above
on developing alternatives.
• Replace PVC, PS and EPS, as a priority,
Of course, not all uncommon plastic as uncommon packaging materials with
packaging materials should be replaced by alternatives (converging to a few key
known alternatives. By definition, any new materials being used across most of the
material will, on introduction to the market, market, while continuing to allow for
initially have small volumes and there should innovation)
be space for such innovation – it is a core
aspect of the transition to the New Plastics • Scale up compostable packaging and
Economy. related infrastructure for targeted
nutrient-contaminated applications
Scaling up the use of compostable
materials and the infrastructure for • Explore the potential as well as the
targeted nutrient-contaminated limitations of chemical recycling
applications could help return organic and other technologies to reprocess
nutrients to the soil, thus contributing to currently unrecyclable plastic
natural capital maintenance. For example, packaging into new plastics feedstocks
when made of compostable materials,
fast-food packaging could be disposed of,
2
together with its contents, in an organics
bin. This would increase the value capture
of organic material through composting
or anaerobic digestion. Compostable
materials could also reduce the impact For at Least 20% of
of unintentional leakage, if the material
can truly degrade safely and completely
Plastic Packaging, Reuse
in a range of different, uncontrolled Provides an Economically
environments – a strong assumption that
would need serious innovation to become
Attractive Opportunity
reality across a wide range of applications. Reusable packaging was a common choice
until roughly half a century ago. Since
Of course, as laid out in The New Plastics
then, single-use, disposable packaging has
Economy – Rethinking the future of plastics,
increasingly become the preferred option.
several elements need to be in place to
Nowadays, recent innovation, evolving use
make wider use of compostable plastics
patterns, and societal acceptance are again
beneficial. These include the development
positioning reuse models as attractive
of adequate infrastructure to handle
options for some plastic packaging
such materials (e.g., separate collection
segments. The plastic packaging reuse
of organics, composting or anaerobic
opportunities identified and quantified in
digestion facilities) – infrastructure which
this update report represent at least 20%
is emerging but not yet widely available in
of today’s market, by weight (see Figure
many parts of the world.
4). The examples of personal and home-
care bottles and carrier bags alone could
Priority actions to reinvent the 30% of the
generate about 6 million tonnes of material
market without a viable reuse or recycling
savings and an economic opportunity of
pathway are:
USD 9 billion. More could be unlocked
• Fundamentally redesign the packaging as business-model innovation continues
formats and delivery models (and after- to push the boundaries of application to
use systems) for small-format plastic create a variety of attractive reuse models.
packaging, avoiding such small formats As always, when evaluating different reuse
where relevant and possible models, it is important to take a system
perspective.
FIGURE 4: SELECTED PLASTIC PACKAGING REUSE OPPORTUNITIES
PERSONAL AND
HOME CARE BOTTLES
CARRIER BAGS
3% BEVERAGE BOTTLES
2%
5% TOTAL REUSE POTENTIAL

>20%
OF PLASTICS PACKAGING MARKET
?%
GROCERY
PALLET WRAPS 7% LARGE RIGID PACKAGING 3% OTHER REUSE OPPORTUNITIES

(E.G. E-COMMERCE PACKAGING)
PERSONAL AND HOME-CARE BOTTLES: 95% transport cost savings. Packaging and
INNOVATIVE DELIVERY MODELS COULD transport savings together would represent
RESULT IN 80%-90% PACKAGING an 80%-85% reduction in greenhouse gas
MATERIAL SAVINGS emissions versus today’s traditional single-
use bottles.35 Such delivery models could
Innovative delivery models can create value also apply to other products that mainly
by encouraging the reuse of packaging in consist of water, such as laundry products,
the home. Such new models could affect sprays for lawn and garden use, pet-care
a range of segments, including laundry products and even the beverage market, as
liquid, home cleaning, as well as bath and demonstrated by Sodastream36 and MiO37.
shower products. Many of these goods,
which usually come in single-use bottles, CARRIER BAGS: REUSABLE BAGS COULD
mainly consist of water, with only a small REPLACE OVER 300 BILLION SINGLE-USE
volume of so-called “active ingredients”. A CARRIER BAGS PER YEAR, GENERATING
delivery model using refillable bottles, for USD 0.9 BILLION IN MATERIAL COST
which only such active ingredients are sold SAVINGS
and shipped, can offer significant material
and transport savings. Splosh31 – with About 330 billion single-use plastic carrier
dissolvable sachets – and Replenish32 – with bags are produced every year – that is
refill pods – show these models are viable. over 10,000 bags per second.38 They have
Their innovative delivery models could lead an average use period ranging from only
to 80%-90% packaging material savings a couple of minutes to a few hours, after
and 25%-50% packaging cost savings, which many leak into the environment
offering clear incentives for businesses and and almost none is recycled.39 In emerging
customers alike.33 If such reuse models were economies, the economics of waste picking
to be applied to all bottles in beauty and are not favourable enough for collecting
personal care as well as home cleaning, carrier bags as it takes so long to aggregate
this would amount to about 3 million a significant mass of material.40 In advanced
tonnes or at least USD 8 billion packaging economies, bags are prone to leak into
cost savings.34 In addition, shipping only the natural environment – plastic bags are
active ingredients would result in 85%- among the most-found plastic packaging
litter items.41 Public awareness of this an attractive alternative with the potential
problem is growing and, with reusable for lower material costs and a considerably
alternatives available, so are regulatory lower carbon footprint than single-use
interventions: at least 35 countries alternatives.48 Moreover, reuse models for
worldwide have taken action to tax or beverage bottles, both plastic and non-
ban single-use carrier bags.42 Also, front- plastic ones, have a proven track record.
running businesses are acting, as shown by
the retailer Carrefour, which announced at The success of return systems for beverage
the UN Climate Change Conference 2016 bottles relies on several factors: cost of raw
in Marrakech its commitment to eliminate materials relative to other input costs; cost
all free single-use carrier bags throughout and distance of collection and redistribution
its worldwide integrated store network by infrastructure; level of differentiation of
2020.43 Encouragingly, these outcomes have packaging; regulatory framework; and use
often been achieved by very small charges pattern.49 Each of these factors needs to
on bags and without major resistance, be considered to evaluate the potential
indicating the readiness and acceptance benefits of reusable bottle systems for any
of the public for this type of policy. For specific case.
example, studies reported an instant 80%-
95% drop in usage of single-use carrier bags The success of refillable bottles at home
and a reduction of over 90% in the share of or on the go is impacted by the availability
plastic bags in the total visible litter items in of refill stations (e.g., drinking water
the first year after such an intervention.44 fountains) and user preferences. As the
global reusable water bottle market (valued
If all countries in the world were to achieve by Transparency Market Research at about
95% replacement of single-use carrier USD 7 billion in 2015) is estimated to grow
bags by reusable alternatives, this would by more than 4% year on year between
represent an annual reduction of over 300 2016 and 2024, reuse models are again
billion single-use plastic bags. Even when positioned as an attractive alternative.50
considering rebound effects in terms of
increased production of reusable bags Considering the success factors, a reuse
and bin liners (as single-use bags often model is estimated to offer economic and
get a second use as bin liner), this would environmental benefits for at least 10% of
lead to over 2 million tonnes of material all beverage bottles worldwide, or at least
savings and USD 0.9 billion material cost 2% of the global plastic packaging market.
savings.45 The latter is excluding additional Whether such a system should be based on
cost savings in collecting and reprocessing returnable (deposit) bottles or user refillable
carrier bags after use and a reduction in bottles depends on the exact application
negative externalities related to the leakage and local circumstances.
of single-use carrier bags, such as impacts
on infrastructure and the environment. BUSINESS-TO-BUSINESS LARGE RIGID
PACKAGING: ALTHOUGH IMPLEMENTED
BEVERAGE BOTTLES: REUSE SYSTEMS IN SOME SECTORS, RETURNABLE
COULD OFFER ECONOMIC AND PACKAGING COULD CREATE FURTHER
ENVIRONMENTAL BENEFITS IN THE RIGHT ECONOMIC VALUE BY INCREASING ITS
CIRCUMSTANCES USE, POOLING, STANDARDISATION AND
MODULARISATION
Beverage bottles are a major plastic
packaging application, representing at least Large rigid business-to-business packaging
16% of the market (by weight).46 While items, such as pallets, crates, foldable boxes,
widely collected for recycling, the material pails and drums (i.e. cylindrical containers
value loss of single-use beverage bottles used for storing and shipping bulk cargo),
after each use cycle is still significant; have a sufficiently high material value to
even for PET bottles in Europe, this loss is make reuse business models profitable.
over 50%.47 As shown by various studies, They are often used 20 to 100 times
reuse models – be it returnable bottle depending on the application and the vast
systems (with or without deposit) or majority are recycled afterwards.51 These
refillable bottles at home or on the go – plastic reusable packaging items often
can, given the right local conditions, offer replace non-plastic alternatives, such as
cardboard boxes or wooden pallets. A study a range of industries, such as postal (e.g.,
on the Schoeller Allibert’s Maxinest® tray Royal Mail), automotive (e.g., Honda) and
for food and grocery distribution shows healthcare (e.g., Baxter Healthcare UK).58
that as soon as this reusable packaging is Reusable pallet wrappers, offered by
used 20 times, it is environmentally and companies like Reusa-wraps, Envirowrapper
economically beneficial versus single-use and Dehnco, have already been adopted
cardboard boxes. In reality, this type of by other companies across various sectors
product is estimated to have over 90 use such as Aldi, Universal, AkzoNobel,
cycles, on average, before being recycled.52 Budweiser, Coca-Cola, Pepsico, Verizon and
The critical part of this reuse business Microsoft.59 Taking the modularisation and
model is the reverse logistics where crates standardisation of business-to-business
or pallets are sent back, often empty. To packaging one step further, and developing
overcome this, pooling solutions companies containers that can be interlocked to act
like Brambles offer logistics services, as one unit, might even avoid the need
managing a shared pool of standardised for wrapping altogether. This concept has
pallets and crates across a wide and dense been developed and researched by the
network of companies, leading to significant MODULUSHCA project,60 which is aligned
logistics savings. with the Physical Internet vision.
There is still economic potential to be

DELIVERY MODEL INNOVATION AND
captured by implementing standardised
CONTINUED INCREASE OF SOCIETAL
returnable rigid packaging systems at scale.
ACCEPTANCE, AND EVEN PREFERENCE,
Currently, large differences exist in both the
COULD UNLOCK FURTHER PLASTIC
use of reusable transport packaging and the
PACKAGING REUSE OPPORTUNITIES
share of pooled versus non-pooled reusable
packaging, both between and within
Alongside the above examples, other
industries.53 These differences indicate the
opportunities for reuse business models
potential to capture further efficiency gains
exist or could be envisioned across different
and, therefore, economic value. In addition,
sectors. Repack, for example, is a system
as mentioned in The New Plastics Economy
for reusable transport packaging in the
– Rethinking the future of plastics, global
rapidly growing and packaging-intense
standardisation and modularisation could
e-commerce market. After unpacking the
facilitate pooling and help to realise the
delivered item, people can simply fold the
vision of the Physical Internet, a logistics
packaging, drop it in the nearest postbox
system based on standardised, modularised
to send it back, free of charge, for reuse,
and reusable containers, using open
and receive a voucher for doing so.61 The
networks across industries with pooled
Repack example illustrates an innovative
assets and protocols.54
way of dealing with the reverse logistics
challenge, often a key factor for successful
BUSINESS-TO-BUSINESS PALLET WRAP: implementation of reuse models. With
SCALING UP EXISTING REUSE SOLUTIONS innovators exploring new delivery models
COULD CREATE ECONOMIC AND and people increasingly accepting – or even
ENVIRONMENTAL VALUE actively seeking – such reusable packaging,
multiple reuse opportunities are likely to be
Single-use pallet wraps (e.g., stretch discovered and successfully deployed.
wraps and shrink hoods) are currently
the default choice to stabilise and secure
TO CAPTURE THE REUSE OPPORTUNITY,
products on pallets during transport,
A SET OF PRIORITY ACTIONS HAS BEEN
leading to an estimated annual pallet
IDENTIFIED:
wrap film production of 5 million-6 million
tonnes.55 Globally, most of the material
• Innovate towards creative, new delivery
value of these films is lost after one use
models based on reusable packaging
cycle – even though in some regions,
large and sometimes medium enterprises • Replace single-use plastic carrier bags
have dedicated collection systems for by reusable alternatives
commercial film.56 Several reusable
solutions to address this material value loss • Scale up reusable packaging in a
are available.57 Lid and strap systems, as business-to-business setting for both
provided by Loadhog, are already used in large rigid packaging and pallet wrap
important functional benefits, have lower

3 value in the after-use recycling system and
drive up its costs. Also, the entire system of
collection and sorting is highly fragmented,
which prevents economies of scale and the
With Concerted Efforts delivery of consistent, high-quality material
on Design and After- streams to recyclers. Furthermore, both
use Systems, Recycling virgin and recycled plastic prices have been
volatile and declining for many plastic types
Would Be Economically between 2012 and 2015, especially for PET,
Attractive for the when the price of recycled PET dropped by
30%-40%.66
Remaining 50% of Plastic
Packaging A MUCH-NEEDED COLLABORATIVE
APPROACH TOWARDS PACKAGING
The uptake, economics and quality of DESIGN AND AFTER-USE SYSTEMS COULD
plastic packaging recycling are currently INCREASE RECYCLING ECONOMICS BY
in a fragile state. At the moment, only USD 190-290 PER TONNE COLLECTED FOR
14% of plastic packaging is collected for RECYCLING67 (USD 2-3 BILLION ANNUALLY
recycling globally62 – a number that reflects IN THE OECD REGION).
the economic challenges of gathering
and processing a diversity of packaging A concerted, cross-value-chain, global
formats and materials through fragmented approach is required to improve plastic
and sometimes under-developed after-use packaging recycling uptake, economics
systems. Although recycling economics are and quality. Many – often local and
stronger for some packaging applications, small-scale – initiatives aim for these
such as PET beverage bottles, on average, improvements, demonstrating the broad
the cost of collection, sorting and recycling awareness and appetite for change.
outweighs the generated revenues. However, collectively they have not scaled
Estimates suggest that in Europe this cost up to the extent required, as evidenced by
is about USD 170-250 per tonne collected, the current 14% global recycling rate. As
compared with the cost of collection and described in The New Plastics Economy –
disposal of plastic packaging as part of Rethinking the future of plastics, a Global
residual waste63 – an average across widely Plastics Protocol provides a common
different collection and sorting systems, target state to innovate towards, that
regulatory and geographical conditions and would overcome existing fragmentation
packaging types. This net cost estimate and enable the creation of effective
excludes the additional environmental and markets. It would guide convergence of
societal benefits of plastics recycling such packaging design (materials and formats)
as: reduced greenhouse gas emissions; and after-use systems (collection, sorting
reduced environmental impacts on land and reprocessing) towards best practices,
use, biodiversity and air quality; and job while allowing for regional differences
creation. For example, one tonne of plastic and innovation, thus improving recycling
collected for recycling avoids emission of economics.
an estimated one tonne of carbon dioxide
equivalent greenhouse gas compared with a Implementation of good practices in
mix of landfill and incineration with energy packaging design and after-use processes
recovery.64 This alone has an estimated as part of a Global Plastics Protocol could
societal value of more than USD 100 per generate a value improvement of USD
tonne of plastics collected for recycling.65 190-290 per tonne of plastics collected,
lifting economics into positive territory.
There are several reasons for these fragile As detailed below, this improvement,
economics of collection, sorting and representing USD 2-3 billion a year for
recycling. Plastic packaging materials OECD countries, requires concerted action
and formats are diverse and there is a both on packaging design and after-
further threat from continued, unrestrained use systems – neither of these mutually
diversification into new materials and reinforcing areas would be able to trigger
formats, which, while often bringing this system shift on their own. Implementing
such a set of good-practice levers would be emissions and other negative externalities.
no small feat but, if done successfully, would While implementing such a Global Plastics
move recycling economics into positive Protocol would lift the average profitability
territory (on average) (see Figure 5). In of plastic packaging recycling, significant
this way, it would reinforce recycling as an challenges remain for specific packaging
attractive, cost-competitive alternative to segments, such as technological barriers
landfill, incineration, or energy recovery for sorting post-consumer films. Also, the
by increasing the capture of material estimates in this report are based on current
value and resource productivity, as well plastics prices. If these change significantly,
as decoupling the system from fossil the economics of the recycling situation
feedstocks and reducing greenhouse gas could become very different too.
FIGURE 5: POTENTIAL IMPACT OF GLOBAL PLASTICS PROTOCOL IMPLEMENTATION ON

THE ECONOMICS OF PLASTIC PACKAGING RECYCLING (AVERAGE FOR MIXED PLASTIC
PACKAGING COLLECTED IN EU MEMBER STATES)
POTENTIAL QUANTIFIED POTENTIAL OF

MIXED PLASTICS COLLECTED*
NET VALUE PER TONNE OF
(USD/tonne)
IN THIS REPORT BY CONTINUED

IMPLEMENTATION OF INNOVATION
GOOD PRACTICES AS AND FURTHER
IMPROVE PACKAGING DESIGN PART OF A GLOBAL HARMONISATION
(90–140 USD/tonne) PLASTICS PROTOCOL
HARMONISE COLLECTION AND

SORTING SYSTEMS, AND SCALE UP
HIGH-QUALITY RECYCLING
(100–150 USD/tonne)
20 – 40
0
EXTENT OF
IMPLEMENTATION OF
GLOBAL PLASTICS PROTOCOL
IMPLEMENTATION OF BOTH
LEVERS COULD GENERATE A
VALUE IMPROVEMENT OF
190–290 USD/tonne
-170 – -250
CURRENT AVERAGE NET COST
* Value is calculated as average net cost/benefit of collection, sorting and recycling relative to net cost of
collect/dispose alternative; and as an average across geographies, materials and formats – some market
segments have much better economics, some have worse.
Source: New Plastics Economy initiative and SYSTEMIQ analysis (see Appendix for details)
PACKAGING DESIGN IMPROVEMENTS after-use revenues – and how much – if it

COULD CREATE AT LEAST USD 90-140 is recycled, or whether it will lead to the
PER TONNE OF PLASTIC PACKAGING additional cost of disposal otherwise. Non-
COLLECTED. recyclable items entering the recycling
stream incur an estimated additional net
Packaging design has a direct and cost of up to USD 300-350 per tonne
significant impact on the economics of collected, compared with designs that are
collection, sorting and recycling. The easily recyclable.68 For example, with their
choice of materials, colours, formats and low recyclability compared to clear bottles,
other design factors determines whether
a packaging item will generate positive
opaque PET bottles (about 5,000-6,000 Implementing four areas of packaging

tonnes sold in France alone each year)69 design changes could have a positive
add an estimated USD 1-2 million a year impact on recycling economics
in avoidable costs to the French recycling amounting to USD 90-140 per tonne
system.70 collected (USD 1.1-1.6 billion in
OECD).71
FIGURE 6: ECONOMIC VALUE CREATION POTENTIAL OF SELECTED DESIGN CHANGES IN

FOUR AREAS (ABSOLUTE VALUE FOR OECD REGION; USD; VALUE PER TONNE OF MIXED
PLASTIC PACKAGING COLLECTED, USD/TONNE)
FORMAT DESIGN POLYMER CHOICE

USD 0.5–0.8 bn USD 0.3–0.5 bn
(50–70 USD/tonne) (25–40 USD/tonne)
TOTAL DESIGN
IMPROVEMENTS
QUANTIFIED
PIGMENT CHOICE
USD 1.1–1.6 ADDITIVE CHOICE
USD ~0.2 bn BILLION USD ~0.1 bn
(15–20 USD/tonne) (90–140 USD/tonne) (>5 USD/tonne)
Source: New Plastics Economy initiative and SYSTEMIQ analysis (see Appendix for details)
The four areas for which impact has been tonne of recycled PET produced.72
quantified are (see Figure 6): Input from industry experts and studies
indicate that up to 15% of mixed plastic
1. Format design (USD 50-70 per tonne). packaging collected is lost during
Format design improvements can sorting and recycling because of format
have a direct and significant impact on design issues.73 Assuming that format
the recycling economics, depending design improvements, excluding the
on the type of packaging. Examples changes below, can reduce material
include design choices relating to: losses by 7.5% of plastic packaging
labels; sleeves; inks and direct printing; collected (i.e. half of the estimated
glues; closures and closure liners; losses), this would lead to economic
(silicone) valves, pumps and triggers; benefits of USD 50-70 per tonne of
attachments and tear-offs; and the mixed plastic packaging collected.
form or shape of the packaging. For
example, one industry study from 2. Polymer choice (USD 25-40 per
the Association of Plastic Recyclers tonne). As pointed out earlier, plastic
identified that full sleeve shrink labels materials uncommon in packaging
on PET bottles alone could affect are rarely recycled because they do
recycler economics by USD 44-88 per not benefit from economies of scale
in sorting and recycling, and they avoidable cost of about USD 200 per
can also hinder the recycling process tonne of such packaging collected for
of more prevalent polymers. As an recycling, compared with packaging
example, replacing PVC in packaging without carbon black. Looking at the
applications by more common total plastic packaging market, it is
polymers would remove a source of estimated that if all carbon black (used
contamination in the PET recycling in 1.5%-2% of packaging, by weight)
process and thus positively impact was replaced by other pigments
the yield and recycled PET price. In already available, this would generate
addition, such replacement would an economic benefit of USD 3-5 per
turn collection and disposal costs of tonne of mixed plastic packaging
unwanted PVC into increased recycling collected.77
volumes and revenues. Combining
these effects, replacing all rigid PVC 4. Additive choice (at least USD 5 per
(1.5%-2% of plastic packaging market) tonne). Packaging design guidelines
by more widely recycled polymers and expert interviews highlight that
would lead to an economic benefit of certain additives used in plastic
USD 15-20 per tonne of mixed plastic packaging have a negative impact on
packaging collected. In addition, recycling, even though the precise
replacing PS and EPS as packaging extent is unclear.78 For example, PET
materials (6% of the market) with bottle-to-bottle recyclers have reported
more common polymers would discolouration of the recycled material79
improve system economics in a similar due to certain additives, leading
way, by an estimated USD 15-20 per to an estimated 30% decrease in
tonne of mixed plastic packaging revenues, or up to USD 300 per tonne
collected. As noted earlier in this of recyclate at current prices, for that
report, implementing this change is an specific material. If 2% of the bottle-
acceleration of an existing evolution to-bottle recycled PET is impacted in
rather than a revolution. The shares of this way, it represents a USD 0.5-1 per
these materials in the global packaging tonne of plastic packaging collected
market are already declining.74 across the board. In addition, certain
additives affect the density of plastics,
3. Pigment choice (USD 15-20 per tonne). leading to avoidable losses during
Colouring plastics using pigments float-sink sorting processes.80 For each
reduces the value of the recycled tonne of plastic affected in this way,
materials (up to USD 100-300 per the additional cost to the after-use
tonne of recyclate).75 Therefore, moving system is an estimated USD 300-350.
a greater share of plastic packaging Assuming 2% of polyolefins collected
from coloured or opaque materials for recycling are lost in this way,
to clear or light-coloured translucent replacing them by additives without
materials would create substantial value density effects would increase the
in the after-use system. As an example, value by about USD 3-5 per tonne of
shifting an estimated three quarters mixed plastic packaging collected.
of coloured rigid plastic packaging More research is needed to understand
represents an economic opportunity of the full effect of plastic additives,
USD 10-15 per tonne of mixed plastic particularly if the recycling system
packaging collected. Werner & Mertz continues to move to higher-quality
is one example of a company explicitly processes and products.
choosing not to colour its high-density
polyethylene (HDPE) detergent bottles The above estimates can be considered
to allow the material to serve again as conservative as they provide a snapshot
a bottle in its next-use cycles.76 Also, of economic opportunities from improving
phasing out the carbon black pigment packaging design in the current after-use
in plastic packaging would reduce system, without the more complex effects
losses in the sorting process, as it is not and interdependencies that could lead to
detected by near-infra-red machines higher economic benefits. For example,
commonly used for automatic sorting. the impact of certain design improvements
These sorting losses result in an
is likely to be more apparent in a higher- benefits of this approach and have already
quality recycling setting, compared with started implementing a convergence
down-cycling processes that are more agenda – a Global Plastics Protocol could
tolerant of diverse inputs and are still play an important role in guiding this
common nowadays. convergence worldwide.
To successfully implement the design At the reprocessing stage, a further

changes above, communication between scale-up of high-quality recycling, that is
packaging designers at the front end and often low-quality today, could generate
the after-use processors at the back end an estimated benefit of USD 30-40 per
is an important enabler. Such feedback tonne collected (USD 0.3-0.5 billion in
loops would also help to understand further OECD). Increasing the share of high-quality
design-improvement potential. recycling for plastic packaging would
enable more high-value applications for
AS A KEY COMPLEMENT TO DESIGN the recycled material, with a corresponding
IMPROVEMENTS, HARMONISATION OF increase in sales prices for recycled plastic.
AFTER-USE SYSTEMS COULD ENHANCE This approach has been adopted for
RECYCLING ECONOMICS BY AN PET bottle-to-bottle recycling facilities
ESTIMATED USD 100-150 PER TONNE OF and is starting to be developed for other
COLLECTED PLASTIC. segments of the packaging market,
particularly PE and PP.85 While these two
Currently, collection and sorting systems plastic types, compared with PET, might
are highly fragmented, negatively present additional challenges to achieving
impacting the recycling economics. As high-quality recycling (e.g., absorption of
discussed in more detail in The New Plastics chemicals or odours), several companies
Economy – Rethinking the future of plastics, have proven the feasibility of recycling these
after-use systems often operate at a small materials into high-quality applications
scale and with widely differing approaches, including packaging (e.g., through the use
even within a given country or city. This of hot-washing and degassing).86 Assuming
disparity not only causes confusion for that 25% of PE and PP recycling would shift
the wider public but also makes it hard to higher-quality recycling, the additional
for packaging designers to design for one revenues, even minus the additional
target system, and it prevents the creation costs and yield losses, would generate an
of economies of scale in the after-use estimated benefit of USD 25-40 per tonne
system. This fragmentation also hinders of mixed plastic packaging collected.
delivery of consistent, high-quality material
New technologies and approaches may
streams to recyclers, who frequently source
provide further opportunities to improve the
materials from different collection systems
economics of the recycling system. There
and sorting plants. This complicates their
are multiple examples of such innovative
operations and increases costs.81
technologies and approaches, even though
Converging after-use collection and it is too early in their development to
sorting systems towards good practice quantify the potential impact. Material
could improve plastic packaging recycling markers, such as chemical tracers or digital
economics by an estimated USD 80-110 watermarks, are currently researched and
per tonne collected (USD 0.8-1.3 billion in piloted but industry views vary widely
OECD). This improvement estimate assumes on their importance, feasibility and cost
that 75% of the total potential of successful effectiveness.87 Such markers could provide
harmonisation would be captured, including new sorting possibilities in regions where
a range of good practices such as a cost automatic sorting is available, resulting, for
structure in line with large-scale sorting example, in an increasing opportunity to
facilities in Europe.82 Of course, given the supply higher-value food grade plastics.
fragmented nature of the existing systems, Global convergence on marking standards
such a harmonisation effort would take would be required to maximise the impact.
time. Encouragingly, multiple countries Finding a solution for sorting different types
and regions (including British Columbia of flexible plastic packaging, a segment
in Canada83 and the UK84) recognise the representing approximately one third of
post-consumer packaging (by weight) and
a production of around 1 trillion units a year, and improvements in the high-quality

could significantly increase the volume of recycling processes outlined in this report.
packaging available for recycling – although For example, the establishment of high-
the impact on economics remains unclear.88 quality PET bottle-to-bottle recycling is
Furthermore, depolymerisation (a chemical often attributed in part to strong demand
recycling process breaking down polymers for recycled content from beverage
into their monomer building blocks) could companies89 and California’s Rigid Plastic
offer additional opportunities for high- Packaging Container Law (requiring
quality recycling – a technology currently producers of rigid containers to use at
most advanced for polyesters like PET. least 25% recycled content)90 has been
mentioned as a boost to HDPE recycling
Combining continued innovation with US-wide.91 Similarly, these incentives could
further harmonisation of packaging have an important impact on recycled PP
design and after-use systems would and PE uptake, where high-quality recycling
drive a virtuous, positive spiral for the supply and demand is emerging but not yet
uptake, economics and quality of plastic widely seen.92
packaging recycling. While the direct
economic impact of implementing a Global A range of other supporting policy
Plastics Protocol would be sizeable, making measures could help trigger progress in
recycling economically viable would also the short term. Next to creating a demand-
move the system into an upward spiral. pull for recycled plastics, regulatory
There would be a financial incentive to frameworks can provide other enabling
collect and recycle more. Higher volumes conditions for enhancing the uptake,
would create further economies of scale economics and quality of plastic packaging
and allow separation of purer grades, recycling. Such policy measures could
which, in turn, would increase yield. include: recycling targets; levies and/or
This would set a direct incentive for yet bans on landfilling and incineration; carbon
more collection and an indirect incentive or resource taxes; extended producer
for better material designs. Therefore, responsibility (EPR) schemes supporting
innovation and harmonisation both of after-use systems; deposit-for-recycling
packaging design and after-use systems are systems; and others. Within this context,
mutually reinforcing and the positive thrust it should be noted that, as part of the
they could generate would close the loop redesigned and reused packaging will
for a significantly higher share of plastic lead also to recycling, the 50% mentioned
packaging, including more challenging in this chapter should not be considered
segments. This upward spiral would as an upper limit for a recycling target.
eventually allow leakage and economic In addition, regulatory policies could
value loss to be overcome as recyclate specifically support the adoption of good
quality steadily converges towards virgin design practices through, for example,
material value. eco-design rules or more granular
(adaptive) EPR schemes with contributions
GIVEN THE CURRENT FRAGILE RECYCLING differentiated per packaging design
ECONOMICS, A DEMAND-PULL FOR criteria. All these policy measures come
RECYCLED PLASTICS AND OTHER with advantages and disadvantages, which
SUPPORTING POLICY MEASURES IS would need to be carefully examined in
NEEDED TO START BUILDING POSITIVE local context before implementation. They
MOMENTUM IN THE NEAR TERM. have not been the focus of this report but
merit further investigation.
Measures to support demand for recycled
plastics would provide a critical incentive DUE TO THEIR DIFFERENT STARTING
for system improvements. Voluntary POINTS, MATURE AND EMERGING
industry commitments, public procurement ECONOMIES REQUIRE DISTINCT PATHS
policies and regulations can all create TOWARDS ADOPTING A GLOBAL
a demand-pull that can build positive PLASTICS PROTOCOL, BUT IMPROVING
momentum in the near term. Moreover, PACKAGING DESIGN IS A CRITICAL LEVER
increased demand for higher-quality FOR BOTH.
plastics, including for packaging, can be
an impetus specifically for investments
Unlike mature markets, emerging • Harmonise and adopt best practices for
economies often require the deployment collection and sorting systems, also as
of basic collection infrastructure as a part of a Global Plastics Protocol
critical short-term action. In most mature
economies, the vast majority of plastic • Scale up high-quality recycling
packaging gets picked up in a formal processes
collection system, whereas in emerging
economies, a substantial share often • Explore the potential of material
goes uncollected and ends up in natural markers to increase sorting yields and
systems or clogs urban infrastructure. In quality
such regions, a critical first step often is
• Develop and deploy innovative sorting
deploying basic collection infrastructure.
mechanisms for post-consumer flexible
This report does not look in detail at the
films
solutions to plastics leakage in these
countries, as they have been proposed by
• Boost demand for recycled plastics
other initiatives, including local projects
through voluntary commitments or
such as the Mother Earth Foundation and
policy instruments, and explore other
Coastal Cleanup, both in the Philippines,
policy measures to support recycling
and global efforts such as the Trash Free
Seas Alliance®, initiated by the Ocean • Deploy adequate collection and sorting
Conservancy.93 infrastructure where it is not yet in
place
Adopting a Global Plastics Protocol that
improves packaging design and after- Figure 7 presents an overview of the
use processes would make an important priority actions identified for global plastic
contribution to both mature and emerging value chain. These actions will mobilise the
economies. While the impact modelling distinct transition strategies for the three
in this report is mainly focused on OECD plastic packaging categories (covering the
countries, many of its insights are relevant entire market) as discussed in this chapter.
for both mature and emerging markets.
This particularly holds true for design
improvements. Various studies indicate that
waste-pickers operating in the informal
sector collect high-value but not low-
value plastics.94 This means designing
plastic packaging for increased after-use
value would result in higher collection
rates and possibly higher incomes for
waste-pickers – and would improve the
economics of deploying formal collection
infrastructure. At the same time, adoption
of a Global Plastics Protocol would offer
the opportunity to ensure the use of benign
materials worldwide, reducing exposure to
substances of concern.
PRIORITY ACTIONS TO ENHANCE THE

UPTAKE, QUALITY AND ECONOMICS OF
RECYCLING ARE:
• Implement design changes in plastic

packaging to improve recycling
quality and economics (e.g., choices
of materials, additives and formats) as
a first step towards a Global Plastics
Protocol
FIGURE 7: PRIORITY ACTIONS FOR THE GLOBAL PLASTIC PACKAGING VALUE CHAIN TO
MOBILISE THE THREE TRANSITION STRATEGIES TOWARDS THE NEW PLASTICS ECONOMY
30% 20% 50%
FUNDAMENTAL RECYCLING WITH

REDESIGN REUSE RADICALLY IMPROVED
& INNOVATION ECONOMICS & QUALITY
• Fundamentally redesign • Implement design changes
the packaging formats and in plastic packaging to
delivery models (and after- • Innovate towards creative, improve recycling quality
use systems) for small-format new delivery models based and economics (e.g. choices
plastic packaging, avoiding on reusable packaging of materials, additives, and
such small formats where formats), as a first step towards
relevant and possible a Global Plastics Protocol
• Boost material innovation in

• Harmonise and adopt best
recyclable or compostable
• Replace single-use plastic carrier practices for collection and
alternatives to the currently
bags by reusable alternatives sorting systems, also as part
unrecyclable multi-material
of a Global Plastics Protocol
applications as described above
• Replace PVC, PS, and EPS, as a

priority, as uncommon packaging
• Scale up reusable packaging
materials with alternatives
in a business-to-business • Scale up high-quality
(converging to a few key
setting for both large rigid recycling processes
materials being used across most
packaging and pallet wrap
of the market, while continuing
to allow for innovation)
• Scale up compostable packaging

• Explore the potential of
and related infrastructure
material markers to increase
for targeted nutrient-
sorting yields and quality
contaminated applications
• Explore the potential as well

as the limitations of chemical
• Develop and deploy innovative
recycling and other technologies,
sorting mechanisms for post-
to reprocess currently
consumer flexible films
unrecyclable plastic packaging
into new plastics feedstocks
• Boost demand for recycled

plastics through voluntary
commitments or policy
instruments, and explore
other policy measures
to support recycling
• Deploy adequate collection

and sorting infrastructure
where it is not yet in place
Source: New Plastics Economy initiative analysis

THE NEW
PLASTICS
ECONOMY
INITIATIVE:
A CATALYST
FOR CHANGE
The New Plastics Economy

Initiative: A Catalyst for
Change
The New Plastics Economy is an ambitious, The New Plastics Economy focuses on
three-year initiative to build momentum five interlinked and mutually reinforcing
towards a plastics system that works. building blocks to create the enabling
Applying the principles of the circular conditions for a transformative system
economy, the initiative brings together key shift. These building blocks are: Dialogue
stakeholders to rethink and redesign the Mechanism; Global Plastics Protocol;
future of plastics, starting with packaging. Innovation Moonshots; Evidence Base;
Launched in May 2016, the initiative is and Stakeholder Engagement. Since its
spearheaded by the Ellen MacArthur inception, the initiative has made significant
Foundation, in collaboration with a broad progress across all these key elements.
group of leading companies, cities, Based on the analysis and insights from this
philanthropists, policy-makers, designers, report, the New Plastics Economy initiative
academics, students and NGOs. has now defined a series of focus catalyst
actions to drive further progress in 2017
(see Figure 8).
FIGURE 8: OVERVIEW OF THE NEW PLASTICS ECONOMY INITIATIVE’S FIVE BUILDING

BLOCKS AND 2017 CATALYST ACTIONS
PACKAGING
REDESIGN
CHALLENGE
MATERIALS STUDY ON THE
INNOVATION SOCIO-ECONOMIC
CHALLENGE IMPACT OF PLASTICS
IN MARINE
ENVIRONMENTS WITH
PLYMOUTH MARINE
PERSPECTIVE LABORATORY
ON THE TOP CLOSING
OPPORTUNITIES OTHER
FOR PACKAGING KNOWLEDGE
DESIGN SHIFTS GAPS
CIRCULAR
INNOVATION DESIGN GUIDE,
COLLABORATIVE MOONSHOTS WITH LEADING
PIONEER GLOBAL DESIGN
PROJECTS COMPANY IDEO
GLOBAL EVIDENCE
PLASTICS BASE
PROTOCOL
CROSS-
NEW
VALUE CHAIN
PARTICIPANT PLASTICS ENGAGING AND
INFORMING
WORKSHOPS
TWICE A YEAR ECONOMY POLICYMAKERS
• 2017 PLAN •
DIALOGUE STAKEHOLDER
MECHANISM ENGAGEMENT
Source: New Plastics Economy initiative analysis
The Dialogue Mechanism places cross- It brings together a group of global

value chain collaboration at the heart of consumer goods companies, retailers,
the New Plastics Economy initiative. plastics producers and packaging
manufacturers, governments, cities and rewired by digitisation, automation and

businesses involved in plastics collection, artificial intelligence. Fields as disparate
sorting and reprocessing. This group as biology, engineering and design
informs the other building blocks and the are merging, making the time for such
initiative’s direction more broadly, together moonshots now.
with the joint philanthropic-business
advisory board and a group of civil society In 2016, over 100 experts from academia,
representatives. industry, start-ups and disruptive innovators,
NGOs and emerging markets were engaged
Concrete actions within the Dialogue in exploring which areas of innovation could
Mechanism include biannual participant be mobilised as a priority and through
workshops and the implementation of which mechanisms. Three key insights
collaborative pioneer projects. The first emerged through these consultations:
two participant workshops took place in
May 2016 and December 2016, bringing • The Innovation Moonshots programme
together a group of about 40 participant should initially focus primarily on
organisations and initiating the first the most challenging segment of
collaborative pioneer projects. the market; i.e. the 30% of plastic
packaging for which currently there is
In 2017, the initiative will continue to host no viable reuse or recycling pathway.
six-monthly participant workshops and
drive implementation of the collaborative • Alongside innovations aimed at
pioneer projects launched in 2016. solving today’s priority challenges, the
initiative should explore the potential
The Global Plastics Protocol aims to of more disruptive innovations, which,
provide a common target, helping to if successful, could redefine the entire
overcome existing fragmentation and plastics system in the future. Just a
enable the creation of effective markets. few examples of such innovations
Today’s ineffective plastics economy is the include: 3D printing and other
result of decades of highly fragmented, additive manufacturing; a universal
uncoordinated and incremental innovation, identification system for all (packaging)
which has not been able to make progress materials; high-quality chemical
on economic value capture and negative recycling of complex and contaminated
externalities. By fundamentally rethinking material streams; and triggers for
the system and driving convergence, biodegradation (e.g., like a banana
the Global Plastics Protocol enables the skin).
creation of effective markets.
• There is no one silver bullet moonshot;
In 2016, the potential economic impact of multiple innovations are required to
a Global Plastics Protocol was assessed further accelerate the transition to the
and the analysis clearly indicated that the New Plastics Economy.
implementation of changes to design and
after-use systems as part of such a protocol In 2017, the Innovation Moonshots
would improve the economics of plastic programme will focus on the 30% of plastic
packaging recycling. packaging for which fundamental redesign
and innovation are required. It will inspire
In 2017, the initiative will take the next a generation of material innovators by
step towards the concrete development launching a challenge to find recyclable or
of a Global Plastics Protocol. It will compostable alternatives to materials for
collaboratively determine the top which there is no viable reuse or recycling
opportunities for design changes to pathway today. It will ignite a programme
enhance recycling quality and economics, as of redesign by launching a contest to
well as material health. redesign formats and delivery models that
can address, for example, some of the most
The Innovation Moonshots programme challenging small-format packaging.
aims to mobilise innovations that could
redefine what is possible across the whole
system and create the conditions for a
new economy. The global economy is being
The Evidence Base offers a robust Huffington Post Arianna Huffington, have

foundation from which to guide quoted the report publicly. Their recognition
improvement and inform the global of the report indicates its contribution to
debate. It closes critical knowledge gaps raising awareness of plastics issues and –
by building an economic and scientific importantly – the need for solutions. The
knowledge base from which to draw report was one of the most successful
insights. topics on social media to date of the
World Economic Forum, with an estimated
In 2016, the initiative has focused its reach of millions of people. Members of
Evidence Base efforts on the creation the New Plastics Economy initiative team
of this report. This included a granular, have presented the initiative’s vision and
segment-by-segment analysis of the plastic recommendations at over 20 conferences
packaging market to define an action and high-level meetings, including the
plan for the global value chain that would World Economic Forum Annual Meeting
accelerate the transition to the New Plastics 2016 in Davos-Klosters, the Our Ocean
Economy. This analytical work has been 2016 conference, the UN COP22 climate
supported by SYSTEMIQ. conference in Marrakech, and multiple
high-level industry and policy-maker events.
In 2017, the initiative will drive progress on To understand how future generations of
different knowledge pieces by: designers and innovators could be informed
and inspired at scale, the initiative piloted
• Finalising an ongoing study, together
in November a prototype workshop on
with Plymouth Marine Laboratory, to
redesigning plastic packaging specifically
understand the socio-economic impact
tailored to school pupils in Scotland, who
of plastics in marine environments – a
learned about the New Plastics Economy
large-scale literature review is ongoing
and participated in an immersive plastics
to extract insights, understand existing
packaging redesign activity.
knowledge gaps and determine
research priorities In 2017, the initiative will continue to reach
out to the wider stakeholder group, with
• Bridge other knowledge gaps such
a focus on designers, whose involvement
as, for example, the potential and
is essential for successful action on each
limitations of material markers and
of the three transition strategies outlined
chemical recycling
in this report, and on policy-makers, who
can trigger progress in the near term
Stakeholder Engagement involves a wide
by setting the right enabling conditions.
set of key players across the system to
The initiative has partnered with IDEO, a
learn from, to inform and to work with on
leading design and innovation consultancy,
amplifying solutions. Businesses, policy-
to develop the Circular Design Guide – an
makers, students, educators, academics,
inspiring, online reference point on circular
designers, citizens, NGOs, industry
design, to inspire and support designers,
associations and other stakeholders all play
innovators and change-makers to rethink
a role in transitioning to a new system – the
and redesign products, delivery models and
initiative learns from, informs and engages
the broader ecosystems. Being co-created
all these stakeholders.
and prototyped with leading universities,
In 2016, insights and recommendations from entrepreneurs and corporates, it is available
The New Plastics Economy – Rethinking as a freely accessible website featuring over
the future of plastics reached millions of 20 practical methods (circulardesignguide.
people around the world. Thousands of com), which will be further developed in
news articles were published across five 2017. In parallel, the initiative will build
continents highlighting the report’s insights, on the prototype workshop piloted in
including coverage in in the Financial Scotland to explore how to reach an entire
Times, USA Today, The Guardian, Times of next generation of designers at scale.
India, CNN and Al Jazeera. High-powered Policy-makers will be further engaged and
individuals including US Secretary of State informed through sharing latest insights at
John Kerry, Academy Award-winning actor various meetings and gatherings.
Leonardo DiCaprio, various Members of the
European Parliament, and founder of The
How to measure success? The success

of these actions will be measured against
the three ambitions of the New Plastics
Economy. A key metric to measure
success in creating an effective after-use
plastics economy – the focus ambition
of this update report – is the share of
plastic packaging going into a circular
after-use pathway (i.e. reuse, recycling or
composting).
Regarding drastically reducing leakage

of plastics into natural systems and other
negative externalities, a key metric could
be volume (tonnes) of plastics leaked into
the environment. Success in reducing other
negative externalities, such as the impact
of substances of concern on human health
and the environment, would need separate
metrics.
For decoupling plastics from fossil

feedstocks, a key metric could be the
quantity of oil and gas used as virgin
feedstocks for plastic packaging.
Decreasing this volume could be realised
by increasing reuse and recycling rates,
reducing total production volumes, and
exploring and adopting renewably sourced
feedstocks.
Taking the actions outlined in this report

will contribute to achieving these ambitions,
which together represent a systemic shift
and the advent of an economically and
environmentally effective plastics system – a
New Plastics Economy.
APPENDIX: KEY
ANALYTICAL
ASSUMPTIONS
Appendix:
Key Analytical Assumptions
The insights described in this report are the Assuming none of the business-to-business
result of a detailed segment-by-segment rigid plastic packaging is multi-material, this
analysis of the plastic packaging landscape, represents 3% of total plastic packaging
many of which are revealed for the first market volume. For the purposes of this
time. By its very nature, this requires report, it was estimated that around 26%
assumptions, which are laid out below. (by weight) of all flexible plastic packaging
When the analysis uses existing data, the is multi-material, which represents 10%
sources are mentioned. of the total plastic packaging market by
weight. This estimate is based on a US
ANALYSIS ON “REDESIGN AND INNOVATE” report on the flexible packaging market
SEGMENT (30% OF MARKET, BY WEIGHT) produced by the Flexible Packaging
Association98 and on analysis by the New
Small-format packaging. The charity Plastics Economy team. This is in line with
WRAP95 found that about 12% (by estimates made by other industry experts
weight) of plastic household packaging in during interviews. Together, this represents
materials recovery facilities (MRFs) ends 13% of the plastic packaging market by
up in the fines fraction (the samples were weight.
put on a 45mm x 45mm wire mesh and
Uncommon packaging plastic types.
any articles that fell through the screen
Volumes of plastic materials other than PE,
without assistance were classified as fines).
PP and PET used in rigid and flexible plastic
Application of the 12% to the share of
packaging are based on Smithers Pira
household packaging (about 70% of the
market reports.99 100 The main uncommon
plastic packaging market) in combination
plastic packaging materials are PS (4.7% of
with the assumption that in business-to-
plastic packaging market by weight), PVC
business packaging the proportion of
(2.5%) and EPS (1.3%). All others combined
small-format items is only a third of that
represent another 1.4% of the total global
used in business-to-consumer packaging,
plastic packaging market by weight.
results in an estimate of 9.5% of the market
Together, this represents around 10% of the
being made up of small-format items. This
plastic packaging market by weight.
is in the same order of magnitude as the
Austrian company Denkstatt’s estimate of Overlap. The three segments mentioned
7.5% based on data from Gesellschaft für above overlap to some extent. A few
Verpackungsmarktforschung, the German straightforward assumptions were made
Society for Packaging Market Research.96 when estimating this overlap, such as: share
of small items is the same for uncommon
The share of small-format plastic packaging
packaging plastics and common packaging
items in the market has been estimated
plastics; and all uncommon packaging
based on a segmentation of the plastic
plastics used in films are part of multi-layer
packaging market volume by packaging
films. Under these assumptions, the overall
type. This has been arrived at by allocating
size of the segment requiring fundamental
a lower-bound and upper-bound estimated
redesign and innovation is estimated
average weight to each of those packaging
at about 30% of the total global plastic
segments (e.g., small format 1g-3g; PET
packaging market by weight.
bottles 10g-15g, etc.). This resulted in an
estimated 35%-50% of all plastic packaging Share of plastic packaging items. This
items being small-format. category represents at least 50% of all
plastic packaging items (and 30% of market
Multi-material packaging. In 2011, the
by weight) as it includes: (a) 35%-50% of
French Extended Producer Responsibility
all items which are small-format packaging
organisation, Eco-Emballages, reported
(see above); and (b) multi-material
that over 6% (by weight) of rigid household
packaging, uncommon plastic packaging
plastic packaging was multi-material. 97
materials and nutrient-contaminated tonnes;106 and estimated global single-use

packaging, which are collectively estimated carrier bag production of 500 to 1,000
to represent around 20% of the market by billion bags a year.107 The conversion from
weight (taking into account the overlap volume (tonnes) to units (bags) is based on
discussed, and excluding small-format a study by Zero Waste Scotland.108
items) and at least as much in terms of
number of items. The latter is based on the Beverage bottles. The starting point for
vast majority of multi-material packaging this analysis was a global production figure
being flexible packaging (so low weight of 12.5 million tonnes of PET beverage
items), and typical applications of the other bottles.109 In Germany, around 20%-25%
materials (e.g., PS used for yoghurt pots, of PET beverage bottles are refillable.110
PVC used for pharmaceutical blister packs, Acknowledging that not all regions in the
nutrient contamination happening in a world have the infrastructure or ability
takeaway food context) assumed to have at to organise such return-systems, the
most an average packaging weight. applicable, densely populated region was
approximated by the global urbanisation
rate (52%).111 Combining these numbers, a
ANALYSIS ON “REUSE” SEGMENT (20% OF
reuse model is estimated to offer economic
MARKET, BY WEIGHT)
and environmental benefits for at least 10%
of all beverage bottles worldwide, or at least
Exchange rate. The euro to US dollar
2% of the global plastic packaging market.
exchange rate used was USD 1.185 per
EUR 1, which is the average exchange rate Business-to-business large rigid packaging.
for January 2014 to October 2016.101 This The share of large rigid items in the global
exchange rate has also been used for the plastic packaging market is based on the
analyses on recycling. UK share of large rigid items in the total
non-bottle rigid business-to-business
Personal- and home-care bottles. Analysis
plastic packaging market (35%) applied to
for this sector was based on confidential
the share of non-bottle rigid business-to-
data from companies active in this segment.
business plastic packaging in the global
Numbers shown in this report assume 10 to
plastic packaging market (6%).
15 refills per bottle. The percentage savings
from these companies’ business models Business-to-business pallet wrap. The
were applied to all bottles (i.e. PET, HDPE volume of pallet wrap is based on a global
and others) in the beauty and personal- production of stretch wrap used as pallet
care sector, as well as in home care, based wrap of around 4 million tonnes (taken from
on Euromonitor 2015 data.102 The economic HJResearch, Global Stretch Wrap Industry
value opportunity depends on the type of Market Research 2016). This number is then
reuse model and the underlying costs and expanded to include stretch and shrink
revenues. The potential for refill models hoods based on the European split of pallet
based on selling and shipping active wrap by type (stretch wrap represents 70%
ingredients only could go beyond personal of total pallet wrap in Europe, and stretch
and home-care applications, but this was and shrink hoods the other 30%; outlined in
not included in the analysis. the Applied Market Information Ltd – AMI
consulting, Palletisation Films Europe 2016
Carrier bags. This analysis starts from a
report), leading to an estimated annual
global annual production of 2.5 million
pallet wrap film production of 5 million-6
tonnes or around 330 billion units of single-
million tonnes.
use plastic carrier bags – an estimate based
on a calibration of data from different
sources, including: the number of carrier ANALYSIS ON “RECYCLE” SEGMENT
bags put on the market in the UK;103 a (REMAINING SHARE OF THE MARKET)
Denkstatt report showing that plastic carrier
bags represent 3.2% of after-use plastic Baseline model. The baseline for the
packaging in the EU by weight;104 US single- recycling analysis is calculated from EU
use plastic packaging production of around member states (EU-28) average costs,
100 billion bags;105 European single-use yields and net greenhouse gas emissions of
plastic packaging production of 0.77 million collection, sorting, recycling and disposal
of plastic packaging as published by
Plastic Recyclers Europe (PRE)/Deloitte.112 changes have been assumed in the volumes
It follows the 2012 baseline inputs in that collected. The effect of higher capital
published model with adjustments made investment costs on operational cost (which
for the average price decrease in recycled already includes amortised investment
PET since 2012. Operational costs include costs) is not incorporated in the model.
amortised investment costs for each stage The inputs used for quantifying the impact
and use EU-28 average costs of sorting and of these levers have been drawn from
recycling, assuming no export of plastics for published material, case examples, expert
recycling outside the EU. All numbers are interviews and assumptions as shown below.
EU-28 averages and it should be noted that For calculating the effect of packaging
the economics of recycling vary significantly design improvements, a synergy effect on
across countries, regions, packaging types the average price of recycled plastic (+8%)
and uses of packaging (e.g., consumer or is assumed to account for the cumulative
industrial). The estimated net cost of mixed effect of applying design and after-use
plastic packaging collection, sorting and levers together (effect of higher-quality
recycling also assumes local processing recycling on average plastic prices).
without the export of plastics for recycling
outside the region. Format design. The report uses a top-
down estimate of the effect of improving
The analysis covers the costs related to format design specific to types of plastic
the share of plastic packaging collected packaging. Examples include design choices
for recycling (about 40% of all plastic relating to labels, sleeves, inks and direct
packaging put into the market in EU, with printing, glues, closures and closure liners,
collection systems in many countries valves, pumps and triggers, attachments or
targeting the packaging that is easiest to tear-offs, and form or shape of packaging.
recycle113). Costs related to other plastic Expert interviews and published reports
packaging items not collected for recycling indicate that format design changes (not
(e.g., a segment of residual waste collection) including material, pigment and additive
are not part of the scope of this analysis. All changes already considered in other design
cost-per-tonne values are costs per tonne of levers) could avoid material losses during
plastic packaging collected for recycling. sorting or recycling of up to 15% of plastic
packaging collected (compared with 38%
The baseline has been adapted to allow material loss in the overall sorting and
a more granular approach for modelling recycling process).116 This lever assumes that
system improvements: by consumer versus format design improvements would reduce
industrial; by resin type; and by format the overall material losses by 7.5% (half of
(flexible, rigid). Several experts in collection, the material losses attributable to format
sorting and recycling have reviewed the design issues).
data inputs for the baseline model.
Material choices.
When the costs of collection, sorting, and
recycling are compared with collection • PVC: One percentage point increase
and disposal of plastic packaging as part in recycling yields is assumed
of residual waste, disposal was modelled for PET recycling due to avoided
as a 50/50 ratio between landfill and sorting losses prior to the extrusion
incineration with energy recovery. This gives (reprocessing) stage as the removal of
an estimated average cost of collection and PVC would lead to unintended losses
disposal of residual waste of USD 200 per of recyclable material. A small increase
tonne.114 in the average price of recycled PET
is modelled (+3%) to account for the
Results expressed as total value for OECD effect of PVC contamination on optical
have been scaled up from the EU-28 and mechanical properties of recycled
analysis, as based on the plastic packaging PET, and the substitution of rigid PVC
volume collected for recycling in OECD for alternatives that are more likely to
countries, which is estimated at 11 million be recycled, reduces cost and increases
tonnes a year.115 value for the recycling system.
Lever quantification. Levers are applied to • EPS/PS: It is assumed that EPS and PS
the baseline model assuming an inferred in plastic packaging are not recycled
effect on cost, yield and recyclate price. To in most countries because they are
keep costs comparable to the baseline, no present in small volumes and do not
warrant investment in additional sorting Harmonised collection and sorting.

equipment. The model estimates Improvements are based on expert input
the effect of substituting EPS/PS for on the effect of harmonising collection
materials that are more likely to be and sorting systems and adopting
recycled (e.g., PET, PE, PP resins). best practices. Collection and sorting
Recyclers also indicated that PS can performance are tightly linked, since
affect the extrusion (reprocessing) of harmonised collection makes for easier
other plastics. This effect, however, is sorting. To avoid double-counting of effects
not included in the calculation. the following assumptions are made:
Pigment choices. Packaging with carbon • Sorting yields for rigid packaging
black pigment cannot be detected by increased to good-practice estimates of
near-infrared (NIR) sorting equipment 85% (rigids) and 90% (PET bottles).
used in most sorting facilities. Calculations
assume that packaging with carbon black • Average sorting cost is reduced to
is collected for recycling at the same proven good-practice example of
average rate as other plastic packaging, about USD 120 per tonne (as already
then lost into the residual waste stream achieved by large-scale sorting facilities
during sorting. The share of packaging with in Europe120).
carbon black follows published estimates at
1.5%-2% of packaging.117 This lever assumes • Small increase in recycling yield
all carbon black is replaced by other NIR- (two percentage points) to account
detectable pigments. It is assumed that for improved quality of inputs to
opaque PET bottles are not to be recycled, reprocessing facilities.
based on recycler input, and for this
• No change in collection cost is
calculation they have been switched to a
modelled as it is assumed that good-
recycled alternatives (assumed to be 0.25%
practice cost reductions would be
of the packaging stream118). In addition,
balanced out by additional transport
calculations assume a switch from coloured
distances (since large sorting facilities
packaging to clear or light-coloured
would be further apart).
translucent plastics, with an average 10%-
20% increase in price for clear or light-
• For the purposes of modelling, it is
coloured recycled plastic (depending on the
estimated that good-practice effects
type of plastic). Share of coloured plastics
(i.e., all assumptions listed above) are
(excluding carbon black) in the packaging
achieved in 75% of cases, as not all
stream is estimated at 25% based on
regions have a high enough population
published information.119 This improvement
density to allow for large-scale sorting
lever assumes that three quarters of that
plants, and lower collection and
segment could be switched.
transport costs; and for other, non-
technical (e.g., geopolitical) reasons.
Additive choices. A small effect of additives
in plastics used for packaging is included in
• No effect on quality of recycled
this model (in total, about USD 5 per tonne
product is modelled, although this
of mixed plastics packaging collected)
would be expected if the raw material
to account for discolouration of recycled
supply to recyclers was improved.
PET, and density issues causing avoidable
losses in the recycling system (e.g., losses Shift to high-quality recycling for PE and
in float-sink separation). Calculations PP. Higher-quality polyolefin recycling
assume 2% of the recycled bottle PET is would enable significant (about 50%)
impacted by discolouration and 2% of increases in the average sale price for
polyolefins collected for recycling are lost recycled plastics, offset, however, by higher
at the reprocessing facility due to density- (by about 15%) recycling costs and reduced
affecting additives. The effect of additives is (by five percentage points) recycling yields
a subject for further investigation and could due to more rigorous sorting.121 It is assumed
become more significant in higher-quality that 25% of the polyolefin market would
recycling processes. move to higher-quality recycling under a
good-practice model.
Acknowledgements
and Disclaimer
ACKNOWLEDGEMENTS
Special thanks for their multiple contributions and active involvement to the New Plastics
Economy’s Advisory Board members; the New Plastics Economy’s participant companies
and cities across the value chain (for a full list see http://www.newplasticseconomy.org/); and
the many experts from academia, industry and NGOs who contributed to the report. Special
thanks go as well to Frans Van Houten (CEO, Philips) for his leadership of Project Mainstream
during the establishment of the New Plastic Economy initiative and his ongoing support as the
Chair of the World Economic Forum’s Circular Economy Leaders Network. The New Plastics
Economy initiative is also grateful for the analytical support from SYSTEMIQ, a new kind
of enterprise, created specifically to tackle system failures and deliver improved economic,
environmental and social value.
DISCLAIMER
This report has been produced by a team from the Ellen MacArthur Foundation, which takes
full responsibility for the report’s contents and conclusions. While the New Plastics Economy
Advisory Board members, participants and experts consulted have provided significant input
to the development of this report, their involvement does not necessarily imply endorsement
of the report’s contents or conclusions.
To quote this report, please use the following reference:
World Economic Forum and Ellen MacArthur Foundation, The New Plastics Economy –
Catalysing action (2017, http://www.ellenmacarthurfoundation.org/publications).
Endnotes
1 World Economic Forum, Ellen MacArthur 9 Carrefour committed to eliminating all
Foundation and McKinsey & Company, free single-use carrier bags throughout its
The New Plastics Economy – Rethinking worldwide integrated store network by 2020
the future of plastics (2016, http://www. (http://www.carrefour.com/current-news/
ellenmacarthurfoundation.org/publications). cop22-carrefour-committed-to-eliminating-
all-free-single-use-carrier-bags-throughout,
2 Ibid. 2016).
3 Earth Policy Institute and various web 10 PlasticsEurope, EuropeanPlasticsConverters
sources covering plastic regulation. and PlasticsRecyclersEurope.
4 The New York Times, “California Proposition 11 Ocean Conservancy and McKinsey Center
67 – Plastic Bag Ban Veto Referendum – for Business and Environment, Stemming the
Results: Approved”. (2016, http://www. Tide: Land-based strategies for a plastic-free
nytimes.com/elections/results/california- ocean (2015); World Business Council for
ballot-measure-67-uphold-single-use-bag- Sustainable Development, World Resources
ban). Forum, and Empa, Informal approaches
5 #breakfreefromplastic: towards a circular economy (2016).
http://breakfreefromplastic.org/. 12 ARCADIS, Marine Litter study to support
6 World Economic Forum, Ellen MacArthur the establishment of an initial quantitative
Foundation and McKinsey & Company, headline reduction target – SFRA0025
The New Plastics Economy – Rethinking (2015). European Environment Agency, Top
the future of plastics (2016, http://www. marine litter items on the beach (http://
ellenmacarthurfoundation.org/publications). www.eea.europa.eu/data-and-maps/daviz/
marine-litter-items-on-the-beach, 2015). The
7 The size of the impact on economy and Litter Monitoring Body, TOBIN Consulting
society has been estimated by T. M. Attina Engineers, System results 2014 (2014).
et al., Exposure to endocrine-disrupting
chemicals in the USA: a population-based 13 Both in their “realistic” and “very optimistic”
disease burden and cost analysis (The scenario Denkstatt estimated the maximum
Lancet Diabetes & Endocrinology, 2016); recycling potential of small packaging
and L. Trasande et al., Estimating burden items to be zero. Denkstatt, Criteria
and disease costs of exposure to endocrine- for eco-efficient (sustainable) plastic
disrupting chemicals in the European recycling and waste management – Fact
union (Journal of Clinical Endocrinology & based findings from 20 years of Denkstatt
Metabolism, Endocrine Society, 2015). studies, Background report for associated
presentation (2014).
8 The development of criteria for identifying
endocrine disruptors is done in the context 14 Expert interviews; size of mazes confirmed
of the implementation of the Plant Protection by following sources: Triple/S Dynamics,
Product Regulation and Biocidal Products Inc., The place of the trommel in resource
Regulation. However, specific provisions recovery (http://www.sssdynamics.com/
are included in several other pieces of the news/articles/2015/10/26/the-place-
EU legislation that regulate the marketing of-the-trommel-in-resource-recovery,
and use of chemical substances, including 1992), Redwave, Case studies (http://
REACH, which are relevant for substances www.redwave.at/en/download/case-
in plastics. For more details, see European studies/), Plazma, Material Recovery
Commission website on endocrine disruptors: Facility (http://www.plazma.com.tr/
http://ec.europa.eu/environment/chemicals/ our-products/material-revocery-facility-
endocrine/index_en.htm and European mrf.html); UK Environment Agency,
Commission, Roadmap for defining criteria Waste Pre-Treatment: A Review (2002);
for identifying endocrine disruptors in the PlasticsNews, APR studying ways to recycle
context of the implementation of the plant small containers (http://www.plasticsnews.
protection products regulation and the com/article/20161103/NEWS/161109933/
biocidal products regulation (2014). apr-studying-ways-to-recycle-small-
containers#utm_medium=email&utm_
source=pn-sustain&utm_campaign=pn-
sustain-20161103&email_sustain, 2016).
15 Multiple experts confirmed they are not exposure to phthalate esters and behavioral
aware of any sorting facilities recovering syndromes in children at 8 years of age:
small-format plastic items from the fines Taiwan Maternal and Infant Cohort Study
fraction. Also Denkstatt estimated the (Environmental Health Perspectives, 2015); L.
maximum eco-efficient material recycling López-Carrillo et al., Exposure to Phthalates
rate to be zero for this segment, even in and Breast Cancer Risk in Northern Mexico
their “very optimistic scenario” (Denkstatt, (Environmental Health Perspectives 118,
Criteria for eco-efficient (sustainable) plastic 2010).
recycling and waste management: Fact
based findings from 20 years of Denkstatt 22 http://www.merged-vertices.com/portfolio/
studies, Background report for associated nephentes/
presentation, 2014). 23 http://www.disappearingpackage.com/
16 PVC 2.5% of global plastic packaging market; 24 Rick Lingle, Tyson Foods debuts the
EPS 1.3%; PS 4.7%; other less common first 100 percent recyclable stand-up
packaging plastic together 1.4%. New Plastics pouch (Packaging Digest, http://www.
Economy Analysis based on Smithers packagingdigest.com/flexible-packaging/
Pira, The Future of Global Rigid Plastic tyson-foods-debuts-first-100-percent-
Packaging to 2020 (2015) and Smithers Pira, recyclable-stand-pouch, 2013).
The Future of Global Flexible Packaging to
2018 (2013). 25 Experts indicate there is a risk
regarding substances of concern (e.g.
17 VinylPlus reported that 24,371 tonnes of pyrolysis produces filtrates containing a
PVC rigid films were recycled in EU-28 range of substances), even though perceived
(including Norway and Switzerland) in 2015 lower than for incineration (e.g. generation of
(VinylPlus, Progress report 2016 (2016)). gaseous substances of concern is generally
Comparing this with the 433,000 tonnes of lower). As explained, further detailed
rigid PVC packaging consumption and an research is needed and falls outside the
estimated amount of 150,000 to 250,000 scope of this report.
tonnes of PVC in flexible packaging in
Western Europe (both based on Smithers 26 Saperatec delaminates composite materials
Pira, The Future of Global Rigid Plastic using micro-emulsions. It plans to build a
Packaging to 2020 (2015)), results in a first industrial-scale plant for multi-material
recycling rate of approximately 4%. This packaging in 2017 (http://www.saperatec.de).
is likely an overestimation, given the
denominator only includes Western Europe 27 Lab-scale activities to delaminate multi-layer
and the numerator might include non- film indicated that it is possible to separate
packaging rigid PVC film. the layers and remove the ink that was
between them (http://cadeldeinking.com/
18 Expert interviews with owners of sorting en/).
facilities, experts in sorting technology and
producer responsibility organisations. 28 APK dissolves one polymer (at a time), which
may be present in one or more layers. It has
19 Ibid. one industrial-scale plant in operation today
(https://www.apk-ag.de/en/).
20 Plastic Recycling Machine, Professional
Manufacturer of PET Bottle Washing Lines 29 Alternatives for common PVC, EPS and PS
(http://www.petbottlewashingline.com/pvc- packaging applications (not exhaustive):
in-pet-bottle-recycling/); some of the world’s World Economic Forum, Ellen MacArthur
biggest soft drinks companies even request Foundation and McKinsey & Company,
PVC contamination levels below 0.001%. The New Plastics Economy – Rethinking
Waste Management World, Tackling Complex the future of plastics (2016, http://www.
Plastic Recycling Challenges (2015); expert ellenmacarthurfoundation.org/publications).
interviews with sorters and recyclers.
30 Smithers Pira, The Future of Global Rigid
21 Phthalates – most commonly used as a Plastic Packaging to 2020 (2015); Smithers
plasticiser in PVC – raise concerns about Pira, The Future of Global Flexible Packaging
adverse effects on human health and the to 2018 (2013). Examples include: Unilever
environment: A. C. Gore et al., Executive has already largely phased out PVC from
Summary to EDC-2: The Endocrine Society’s their packaging (source: Unilever website)
Second Scientific Statement on Endocrine- and also Walmart is avoiding PVC where
Disrupting Chemicals (Endocrine Reviews possible (source: Walmart, Sustainable
37, 2015); S. H. Swan et al., First trimester Packaging Playbook (2016)). Marks & Spencer
phthalate exposure and anogenital distance has done the same with PVC and PS (source:
in newborns (Human Reproduction, Oxford Marks & Spencer, Food Packaging Charter,
Journals, 2015); Y. J. Lien et al., Prenatal Plan A (2008); Liz Gyeke, M&S meets “Plan
A” packaging target (PackagingNews, http:// 43 http://www.carrefour.com/current-news/

www.packagingnews.co.uk/news/marks- cop22-carrefour-committed-to-eliminating-
and-spencer-packaging-target-08-06-2012, all-free-single-use-carrier-bags-throughout
2012)); McDonald’s began to phase out its
iconic clamshell foam hamburger box in 1990 44 Department of Housing, Planning,
and is now phasing out styrofoam beverage Community and Local Government, Plastic
cups. Alternatives exist for EPS, for example, bag levy (http://www.housing.gov.ie/
as shipment protection (e.g., Ecovative’s environment/waste/plastic-bags/plastic-
mushroom-based Myco Foam, see http:// bag-levy, 2016); Zero Waste Scotland, Carrier
www.ecovativedesign.com/) or for fish boxes Bag Charge “one year on” report (2015); in
(e.g. CoolSeal Packaging, see www.coolseal. Ireland, the share of plastic bags of the total
co.uk). visible litter items instantly decreased from
5.0% to 0.32%. Source: The Litter Monitoring
31 http://www.splosh.com Body, TOBIN Consulting Engineers, System
results 2014 (2014).
32 http://www.myreplenish.com
45 Zero Waste Scotland, Carrier Bag Charge
33 New Plastics Economy analysis based on “one year on” report (2015).
confidential data provided by Splosh and
Replenish. 46 SmithersPira, Demand for PET Packaging
Material to reach USD 60 billion by 2019
34 See Appendix. (2014, http://www.smitherspira.com/
35 New Plastics Economy analysis based on news/2014/april/demand-for-pet-packaging-
confidential data provided by Replenish. material-in-2019); Transparency Market
Research, Plastic Packaging Market: Global
36 http://www.sodastream.com Industry Analysis, Size, Share, Growth, Trends
and Forecast, 2014-2020 (2015).
37 http://www.makeitmio.com
47 In Europe, the collection-for-recycling rate of
38 Conservative estimate based on comparison PET bottles is around 60% (PETCore, http://
of different sources. See Appendix. www.petcore-europe.org/news/over-66-
billion-pet-bottles-recycled-europe-2014).
39 CalRecycle, 2009 Statewide Recycling
Expert interviews reported around 20%-25%
Rate for Plastic Carryout Bags (http://
yield losses during recycling and average
calrecycle.ca.gov/plastics/atstore/
reduction in value between recycled and
AnnualRate/2009Rate.htm, 2009).
virgin PET of 0% for bottle-to-bottle, around
Recycling.co.uk, Recycling carrier bags
20% for bottle-to-fibre to sheet and around
(http://www.recycling.co.uk/carrier-bags);
30% for bottle-to-strapping. According to
EU Commission, Impact Assessment for a
Project MainStream analysis, globally only
Proposal for a directive of the European
around 7% of PET bottles are recycled back
Parliament and of the Council amending
into bottle-quality PET; in Germany this is
Directive 94/62/EC on packaging and
32%, according to IK Industrievereinigung
packaging waste to reduce the consumption
Kunststoffverpackungen e.V.
of lightweight plastic carrier bags (2013); EU
Parliament, Directive (EU) 2015/720 of the 48 For more details, see Ellen MacArthur
European Parliament and of the Council of Foundation, Towards a Circular Economy –
29 April 2015 amending Directive 94/62/ Opportunities for the consumer goods sector
EC as regards reducing the consumption of (2013; http://www.ellenmacarthurfoundation.
lightweight plastic carrier bags (2015). org/publications/).
40 Ocean Conservancy and McKinsey Center 49 Ibid.
for Business and Environment, Stemming the
Tide: Land-based strategies for a plastic-free 50 Transparency Market Research, Reusable
ocean (2015). Water Bottle Market – Global Industry
Analysis and Forecast 2016–2024 (2016).
41 ARCADIS, Marine Litter study to support
the establishment of an initial quantitative 51 Based on expert interviews.
headline reduction target – SFRA0025
(2015); European Environment Agency, Top 52 The study reports that this reusable tray
marine litter items on the beach (http://www. is beneficial versus single-use cardboard
eea.europa.eu/data-and-maps/daviz/marine- boxes as of 12 use cycles from an economic
litter-items-on-the-beach, 2015). perspective and as of 20 use cycles from
an environmental point of view. Source:
42 Earth Policy Institute, The Downfall of the Schoeller Allibert, Returnable transit
Plastic Bag: A Global Picture (2014). containers prove their green credentials
(https://logismarketuk.cdnwm.com/ip/
linpac-allibert-maxinest-stacking-nesting- and disposal systems in EU countries and

produce-trays-carbon-footprint-research- across different packaging types, and,
proves-that-maxinest-has-the-potential-to- therefore, could differ significantly for
deliver-significant-environmental-savings-for- specific countries or packaging types. See
every-customer-745278.pdf). Appendix for more details.
53 Expert interviews and confidential data. 64 Calculation for greenhouse gas emissions
avoided based on Deloitte, Increased EU
54 World Economic Forum, Ellen MacArthur Plastics Recycling Targets: Environmental,
Foundation and McKinsey & Company, Economic and Social Impact Assessment –
The New Plastics Economy – Rethinking Final Report (2015). A 50/50 ratio between
the future of plastics (2016, http://www. landfill and incineration with energy recovery
ellenmacarthurfoundation.org/publications) is assumed.
55 Volume of pallet wrap is based on global 65 United Nations Environment Programme,
production of stretch wrap used as pallet Valuing Plastic: The Business Case for
wrap from HJResearch, Global Stretch Wrap Measuring, Managing and Disclosing Plastic
Industry Market Research 2016 (2016) and Use in the Consumer Goods Industry (2014).
expanded to include stretch and shrink hoods A social cost of USD 113 per metric tonne
based on European split of palletisation wrap of CO2e was used to value greenhouse gas
by type from Applied Market Information Ltd emissions, which is the value identified in the
– AMI consulting, Palletisation Films Europe UK government’s Stern report as the central,
2016 (2016). business-as-usual scenario.
56 Expert interviews. 66 The price trend differs per plastic type,
57 Packaging Revolution, Reusable Wraps grade and geography and refers to US price
and Strap Systems Help Eliminate Need for data on specified dates each year from
Stretch Wrap (http://packagingrevolution. 2012-2013 to 2016. Statement on recycled
net/lids-straps-wraps/, 2010). PET refers to average historical recycled PET
prices in the US, published by plasticnews.
58 http://www.loadhoglids.com com and highlighted in industry media
including Recycling Today (http://www.
59 Company websites: http://www.reusawraps. recyclingtoday.com/article/paper-plastics-
com; http://www.envirowrapper.com/ recycling-conference-pet-reclaimers/, 2016).
product-overview.php; http://www.dehnco.
com/palletwraps/reusable-stretch-film- 67 This is the total benefit divided by the
alternative.cfm; http://www.palletwrapz.com. tonnage of all plastic packaging collected
for recycling. The benefit per tonne collected
60 http://www.modulushca.eu is much higher for the specific segment(s)
61 http://www.originalrepack.com impacted.
62 World Economic Forum, Ellen MacArthur 68 Assuming non-recyclable item gets collected
Foundation and McKinsey & Company, for recycling and is removed at recycling
The New Plastics Economy – Rethinking facility and incurs cost of collection, sorting,
the future of plastics (2016, http://www. residual waste disposal, and estimated
ellenmacarthurfoundation.org/publications). one third of recycling cost (for recycler to
sort out the material). Cost of treatment is
63 This is the additional cost of collection, compared to a substitute item that follows
sorting and recycling over the cost of average cost and yield for collection, sorting
collection and disposal of plastic packaging and recycling plastic packaging. Average cost
as part of residual waste. The cost of and yield data based on Deloitte, Increased
collection, sorting and recycling plastic EU Plastics Recycling Targets: Environmental,
packaging and of disposal of residues and Economic and Social Impact Assessment –
contamination minus the sales of recycled Final Report (2015).
plastics is around USD 325-485 per tonne
collected, assuming all sorting and recycling 69 Cotrep, The impact of the increase in
activities take place in OECD (i.e., no white opaque PET on the recycling of PET
export to non-OECD countries). The cost of packaging (http://www.cotrep.fr/fileadmin/
collection and disposal of plastic packaging contribution/mediatheque/avis-generaux/
as part of residual waste results in a net cost anglais/packaging-and-additives/20131205-
of around USD 170-250 per tonne collected, Note_introductive_PET_opaque_EN_
assuming disposal consists of a 50/50 ratio publi%C3%A9e.pdf, 2013).
between landfill and incineration with energy 70 Assuming between 50% and 75% of PET
recovery. All cost figures are averages across bottles are collected for recycling in France.
very different collection, sorting, recycling
71 Numbers in this and following sections have 81 Interviews with European plastics recyclers
been rounded for ease of communication; consistently highlight the challenge of
this explains small difference between diverse, variable and contaminated source
economic benefit of individual levers, and materials.
total economic benefit.
82 See Appendix for more details.
72 APR Shrink Label Working Group (2014,
http://www.plasticsrecycling.org/resources/ 83 Multi-Material British Columbia, a non-
reports/sleeve-label-study). profit organisation, is financed by industry
to manage residential packaging recycling
73 Estimate for design-related material losses programmes. For more details, see
in plastics packaging recycling stream (from World Economic Forum, Ellen MacArthur
collection to reprocessing) is based on overall Foundation and McKinsey & Company,
average of 38% material loss (from Deloitte, The New Plastics Economy – Rethinking
Increased EU Plastics Recycling Targets: the future of plastics (2016, http://www.
Environmental, Economic and Social Impact ellenmacarthurfoundation.org/publications).
Assessment – Final Report (2015)); recycler
feedback and published reports including 84 WRAP, A framework for greater consistency
RRS, MRF Material Flow Study (2015); WRAP, in household recycling in England
Design of Rigid Packaging for Recycling (2016, http://www.wrap.org.uk/content/
(2013). consistency).
74 Price difference for coloured versus clear 85 By way of example, according to experts,
or light-coloured translucent recyclate only a handful of polyolefin recycling plants
is dependent on the resin, market and have hot-washing processes in place, while
application. Estimated range is based on this is the standard for high-quality PET
interviews with recyclers. recycling. Recently, companies like QCP
(http://www.qcpolymers.com) started to
75 Ibid. deploy these processes for PE and PP as well,
aiming to produce high-quality polyolefin
76 Werner & Mertz website states: “colouring recyclates ready for use in packaging again.
of the plastic is avoided as this is the only
way to continue maintaining a recyclate in 86 Werner & Mertz has recently launched a
the technical cycle and make sure the used 100% post-consumer recycled HDPE bottle
bottles can serve as raw material source (Werner & Mertz Professional presents its first
for new bottles”. (http://wmprof.com/en/ PE-bottle based on 100% Post-Consumer-
int/news_7/2016/world_innovation__first_ Recycled (PCR) HDPE (http://wmprof.com/
pe_bottle_based_on_100___pcr__hdpe/ en/int/news_7/2016/world_innovation__first_
world_innovation__first_pe-bottle_based_ pe_bottle_based_on_100___pcr__hdpe/
on_100___pcr__hdpe.html). world_innovation__first_pe-bottle_based_
on_100___pcr__hdpe.html, 2016)); QCP
77 WRAP, Development of NIR Detectable Black is another example of a recently founded
Plastic Packaging (2011). recycling company aiming for high-quality
78 Interviewed recyclers; APR, Design guidelines recycling of PE and PP (interviews, http://
from the Association of Plastic Recyclers www.qcpolymers.com).
(2016) mentions negative impact of certain 87 A broad range of interviews with industry
additives on recycling and recyclate quality. experts highlights varied opinions on the
(http://www.plasticsrecycling.org/images/ potential benefits, feasibility and economic
pdf/design-guide/Full_APR_Design_Guide. viability of material markers, tracers or
pdf). watermarks for plastics packaging –
79 Interviewed recyclers; APR, Design guidelines highlighting the importance of further work
from the Association of Plastic Recyclers on this topic.
(2016) state: “Of particular concern are 88 Euromonitor International, Smaller is Better
additives which cause the rPET to discolour as Global Packaging Growth is Shaped
or haze after remelting or solid stating since by Variation in Pack Sizes (http://blog.
rPET with poor haze or discolouration is euromonitor.com/2016/06/smaller-is-better-
greatly devalued and has limited markets.” as-global-packaging-growth-is-shaped-
80 APR, Design guidelines from the Association by-variation-in-pack-sizes.html, 2016); The
of Plastic Recyclers (2016) state: “Of REFLEX Project (http://www.reflexproject.
particular concern are…dense additives that co.uk).
increase the density of the blend making it 89 Interviews with industry experts highlighted
sink, thus rendering the package unrecyclable the role of demand from beverage companies
per APR definition.” in driving higher-quality PET.
90 Law requires mandatory share of recycled 102 Euromonitor International, Data exported on
content or meeting one of the other September 29th, 2016.
compliance options such as source reduction,
refillable packaging or reusable packaging 103 WRAP, Plastic packaging composition 2011
(source: website of California’s Department (2013).
of Resources Recycling and Recovery, http:// 104 Denkstatt, Criteria for eco-efficient
www.calrecycle.ca.gov/). (sustainable) plastic recycling and waste
91 Interview with Container Recycling Institute. management – Fact based findings from
20 years of Denkstatt studies, Background
92 QCP is an example of a recently founded report for associated presentation (2014).
recycling company aiming for high-quality
recycling of PE and PP (interviews, http:// 105 US International Trade Commission,
www.qcpolymers.com); Werner & Mertz has Polyethylene Retail Carrier Bags from
recently launched a 100% post-consumer Indonesia, Taiwan, and Vietnam (2009);
recycled HDPE bottle (Werner & Mertz Conserving Now, Plastic Bag Consumption
Professional presents its first PE-bottle Facts (https://conservingnow.com/plastic-
based on 100% Post-Consumer-Recycled bag-consumption-facts/).
(PCR) HDPE (http://wmprof.com/en/int/
news_7/2016/world_innovation__first_ 106 European Commission, Impact Assessment
pe_bottle_based_on_100___pcr__hdpe/ for a proposal for a directive of the European
world_innovation__first_pe-bottle_based_ Parliament and of the Council amending
on_100___pcr__hdpe.html, 2016)); Several Directive 94/62/EC on packaging and
companies, including Unilever, IKEA, Walmart packaging waste to reduce the consumption
and Colgate, announced recycled content of lightweight plastic carrier bags (2013).
targets for their packaging, which will likely
107 SeatlePi, Plastic left holding the bag as
require significant high-quality recycled PE
environmental plague (2004).
and PP.
108 Zero Waste Scotland, Carrier Bag Charge
93 http://www.oceanconservancy.org/our-work/
“one year on” report (2015).
trash-free-seas-alliance
109 Smithers Pira, Demand for PET Packaging
94 For example, in the Philippines, waste-pickers
Material to reach USD 60 billion by 2019
collected up to 90% of certain types of
(http://www.smitherspira.com/news/2014/
plastic bottles with high after-use value. Low-
april/demand-for-pet-packaging-material-
value plastic items, in contrast, are neglected;
in-2019, 2014).
collection rates are close to 0%. Source: The
Ocean Conservancy and McKinsey Center for 110 Reloop, Beverage Sales By Container Type,
Business and the Environment, Stemming The Germany 2000-2015 (http://reloopplatform.
Tide: Land-based strategies for a plastic-free eu/beverage-sales-by-container-type-in-
ocean (2015). austria-4/)
95 WRAP, WRAP Plastics Compositional Analysis 111 World Urbanization Prospects – 2011
at MRFs (2015). Revision.
96 Denkstatt, Criteria for eco-efficient 112 Deloitte, Increased EU Plastics Recycling
(sustainable) plastic recycling and waste Targets: Environmental, Economic and Social
management: Fact based findings from Impact Assessment – Final Report (2015).
20 years of Denkstatt studies, Background
report for associated presentation (2014). 113 Deloitte, Increased EU Plastics Recycling
Targets: Environmental, Economic and Social
97 Eco-emballages, Amélioration de la Impact Assessment – Final Report (2015).
recyclabilité des emballages en plastique The approximate 40% often includes the
autres que bouteilles et flacons (2013). easiest to recycle items; for example, Belgium
only collecting bottles, many regions not
98 Flexible Packaging Association, Flexible
collecting household flexible packaging.
Packaging Industry Segment Profile Analysis
Sources: Fostplus website (www.fostplus.be);
(2013).
summary of plastic film collection in Europe
99 Smithers Pira, The Future of Global Rigid studies by WRAP (WRAP, Film reprocessing
Plastic Packaging to 2020 (2015). technologies and collection schemes (2012)).
100 Smithers Pira, The Future of Global Flexible

Packaging to 2018 (2013).
101 Historical exchange rates from www.usforex.

com
114 Source for the disposal cost: Deloitte, 117 WRAP, Development of NIR Detectable Black
Increased EU Plastics Recycling Targets: Plastic Packaging (2011).
Environmental, Economic and Social Impact
Assessment – Final Report (2015). The 118 Cotrep, The impact of the increase in
collection cost for residual waste is based white opaque PET on the recycling of PET
on an analysis of EU datasets and expert packaging (http://www.cotrep.fr/fileadmin/
interviews. contribution/mediatheque/avis-generaux/
anglais/packaging-and-additives/20131205-
115 EPA, US collection-for-recycling volumes Note_introductive_PET_opaque_EN_
from Environmental Protection Agency publi%C3%A9e.pdf, 2013)
Report (2013); Japan from Packaging Waste
Management Institute Report (2014); EU- 119 WRAP, Plastics Compositional Analysis
28 from Plastic Recyclers Europe/Deloitte at MRFs (2015); WRAP, Design of Rigid
report (2015); APC, Australia from Packaging Packaging for Recycling (2013); WRAP,
Covenant Report (2014-2015); other Development of NIR detectable black plastic
collection volumes are extrapolated from packaging (2011); Cotrep, Preliminary note on
web research and population data. the impact of the increase in white opaque
PET on the recycling of PET packaging
116 Examples: RRF, MRF Material Flow Study (2013).
(2015) (http://www.plasticsrecycling.org/
images/pdf/resources/MRF-material-flow- 120 Expert interviews.
study-FINAL.pdf); Container Recycling 121 Estimates for price, cost and yield impacts of
Institute, Bottled Up (2013) (http:// higher-quality polyolefin recycling processes
www.container-recycling.org/index.php/ are from industry interviews.
publications/2013-bottled-up-report; Material
loss of 38% from collection to recycled plastic
production is based on Deloitte, Increased
EU Plastics Recycling Targets: Environmental,
Economic and Social Impact Assessment –
Final Report (2015).
About the
Ellen MacArthur Foundation
The Ellen MacArthur Foundation was established in 2010 with the aim of accelerating the
transition to the circular economy. Since its creation the charity has emerged as a global
thought leader, establishing the circular economy on the agenda of decision makers across
business, government and academia. With the support of its Core Philanthropic Funder, SUN,
and Knowledge Partners (Arup, IDEO, McKinsey & Company, and SYSTEMIQ), the Foundation’s
work focuses on five interlinking areas:
EDUCATION
Inspiring learners to re-think the future through the circular economy framework
The Foundation has created global teaching, learning and training platforms built around
the circular economy framework, encompassing both formal and informal education. With
an emphasis on online learning, the Foundation provides cutting edge insights and content
to support circular economy education, and the systems thinking required to accelerate a
transition.
Our formal education work includes Higher Education programmes with partners in Europe,
the U.S., India, China and South America, international curriculum development with schools
and colleges, and corporate capacity building. Our informal education work includes the
global, online Disruptive Innovation Festival.
BUSINESS AND GOVERNMENT

Catalysing circular innovation and creating the conditions for it to reach scale
Since its launch, the Foundation has emphasised the real-world relevance of the circular
economy framework, recognising that business innovation sits at the heart of economic
transitions. The Foundation works with its Global Partners (Cisco, Danone, Google, H&M,
Intesa Sanpaolo, NIKE Inc., Philips, Renault, and Unilever) to develop scalable circular business
initiatives and to address challenges to implementing them.
The Circular Economy 100 programme brings together industry leading corporations, emerging
innovators, affiliate networks, government authorities, regions and cities, to build circular
capacity, address common barriers to progress, understand the necessary enabling conditions,
and pilot circular practices, in a collaborative, pre-competitive environment.
INSIGHT AND ANALYSIS

Providing robust evidence about the benefits and implications of the transition
The Foundation works to quantify the economic opportunity of a more circular model and to
develop approaches for capturing its value. Our insight and analysis feeds into a growing body
of economic reports highlighting the rationale for an accelerated transition towards the circular
economy, and exploring the potential benefits across stakeholders and sectors.
The circular economy is an evolving framework, and the Foundation continues to widen its
understanding by working with international experts, key thinkers and leading academics.
SYSTEMIC INITIATIVES
Transforming key material flows to scale the circular economy globally
Taking a global, cross-sectoral approach to material flows, the Foundation is bringing together
organisations from across value chains to tackle systemic stalemates that cannot be overcome
in isolation. Plastics was identified through initial work by the Foundation with the World
Economic Forum and McKinsey & Company as one of the value chains most representative of
the current linear model, and is therefore the focus of the Foundation’s first Systemic Initiative.
Applying the principles of the circular economy, the New Plastics Economy initiative, launched
in May 2016, brings together key stakeholders to rethink and redesign the future of plastics,
starting with packaging.
COMMUNICATIONS
Engaging a global audience around the circular economy
The Foundation communicates cutting edge ideas and insight through its circular economy
research reports, case studies and book series, using multiple channels, web and social media
platforms. It uses relevant digital media to reach audiences who can accelerate the transition,
globally. The Foundation aggregates, curates, and makes knowledge accessible through
Circulate, an online information source dedicated to providing the latest news and unique
insight on the circular economy and related subjects.
© ELLEN MACARTHUR FOUNDATION 2017

Charity Registration No. 1130306 • OSCR Registration No. SC043120 • EU transparency register N°389996116741-55

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THE NEW PLASTICS ECONOMY CATALYSING ACTION 1

THE NEW PLASTICS ECONOMY

THE NEW PLASTICS ECONOMY

In Support of the New Plastics Economy 6

Global Momentum for a Plastics Rethink is Greater than Ever 22

The Road Ahead: Three Distinct Strategies to Drive the Transition  26

The New Plastics Economy Initiative: A Catalyst for Change 46

Appendix: Key Analytical Assumptions  52

Acknowledgements and Disclaimer 56

About the Ellen MacArthur Foundation 64

In Support of the New

Resources management should not be summarised as a matter of cost optimisation

Through innovation and collaboration, The Dow Chemical Company is committed

The New Plastics Economy initiative is undertaking groundbreaking efforts to prove

At Coca-Cola we’ve been a long-time proponent of circular thinking, particularly when

Borealis, as a leading provider of innovative solutions in the field of

At TriCiclos, we understand the urgency on rethinking the plastic industry worldwide;

Enhancing packaging is a key driver for L’Oréal in achieving our commitments on

The world is at a turning point. For millennia, production and consumption

It is incumbent on companies of every size around the world to take an honest

As one of the world’s leading manufacturers of flexible packaging and labels,

Think Beyond Plastic believes in harnessing the forces of innovation and

P&G believes transformational change can be achieved by combining the

As a family owned company, Werner&Mertz is fully committed to capturing the

As an innovative recycling company, APK Aluminium und Kunststoffe

As shown in this report, innovation is essential for a successful transition

Recycling Technologies believes that fundamental innovation is needed to move some of

Bringing many benefits, plastics have become an indispensable part of our

As enthusiastic supporters of the reimagined plastics economy we know the great

At Reflow, we are determined to put plastic recycling at the heart of 3D

Advisory Board Members of the

LEAD PHILANTHROPIC PARTNER

• Fundamentally redesign the packaging

• Boost material innovation in recyclable

Their lack of a viable after-use pathway

exemplified by large reductions in the usage countries. In addition, it would improve

• Implement design changes in plastic

• Harmonise and adopt best practices for

Design is essential to move ahead on all • Innovation Moonshots: Launch two

• Dialogue Mechanism: Put cross-value

• Global Plastics Protocol: Take the next

Global Momentum for a

Front-running businesses and industry and environmental outcomes while

FIGURE 1: THE NEW PLASTICS ECONOMY AND ITS THREE AMBITIONS

1 CREATE AN EFFECTIVE AFTER-USE

3 DECOUPLE PLASTICS FROM

The Road Ahead: Three

FIGURE 2: THREE DISTINCT TRANSITIONS STRATEGIES TO ACCELERATE THE SHIFT

FUNDAMENTAL REDESIGN REUSE

RECYCLING WITH RADICALLY

FIGURE 3: PLASTIC PACKAGING SEGMENTS THAT NEED FUNDAMENTAL REDESIGN AND

UNCOMMON Actively explore to

FUNDAMENTAL REDESIGN AND INNOVATION is needed for

* Total is not the sum of separate categories due to overlap

residual litter, further reducing recycling significant functional benefits, their

For multi-material packaging, both processes. Current applications of the

Innovation in reprocessing technologies In summary, innovation in reprocessing

evolution rather than a revolution.30 For • Boost material innovation in recyclable

FIGURE 4: SELECTED PLASTIC PACKAGING REUSE OPPORTUNITIES

In Support of the New Plastics Economy 6

Global Momentum for a Plastics Rethink is Greater than Ever 22

The Road Ahead: Three Distinct Strategies to Drive the Transition 26

The New Plastics Economy Initiative: A Catalyst for Change 46

Appendix: Key Analytical Assumptions 52

Acknowledgements and Disclaimer 56

About the Ellen MacArthur Foundation 64