In its most recent report, the U.S. Plastics Pact outlined numerous market-based and policy solutions for existing challenges that may inhibit adoption of PCR in plastic packaging, including collection infrastructure and virgin resin oversupply.
“Persistent challenges from infrastructure gaps to market volatility mean that we need aligned, collective action to scale impact,” wrote CEO Jonathan Quinn in the “Overcoming Barriers to Increasing the Use of PCR in the U.S.” report.
Among the challenges highlighted were:
- Insufficient collection infrastructure.
- Supply challenges including contamination, low landfill fees and consumer engagement.
- Inconsistent demand.
- Virgin plastic oversupply and subsidies.
The report emphasized that these challenges are interrelated – for example, supply is directly related to collection infrastructure and demand, which itself is related to virgin resin production. The Pact put forth both market-based and policy approaches to help clear obstacles to using PCR.
Insufficient collection infrastructure
To address inadequate collection access and sorting capabilities, the report suggests expanding drop-off programs in areas with limited or no curbside collection services. Noting that store-based collection tends to focus on film and requires both physical space and labor, the Pact included alternatives such as the community recycling units from Walmart and Texas-based D6 that collect several types of packaging.
Other solutions include requiring multifamily homes and public businesses such as restaurants to offer on-site recycling, supported by tax incentives. In some areas, requiring multifamily properties to provide such services could necessitate local policy adjustments, the report added.
Other PCR supply constraints
To reduce contaminants in post-consumer materials, the industry could fund grants or zero-interest loan programs to help MRFs improve sorting technology or for manufacturers to avoid misleading recycling claims on packaging, the report said.
In addition to including eco-modulation fees in extended producer responsibility programs, the Federal Trade Commission should update its Green Guides to address misleading recycling claims and include enforcement measures against deceptive marketing, the Pact wrote. On a local level, landfill fees should be increased both to fully fund such operations and to encourage recycling.
PCR demand
The recycling industry has traditionally been an informal, spot purchase-based environment. To help stabilize and ensure demand for PCR, which in turn encourages investment in collection infrastructure, multi-year contracts as well as alternative procurement methods are vital.
“Buyers should consider procurement strategies for PCR as they would other constrained or developing markets essential to their business,” the authors wrote. “Just as companies support industry capacity building to ensure long-term availability of critical innovation, they should adopt similar strategies for PCR procurement.”
From a policy standpoint, PCR mandates would shift the industry from its current state of being largely voluntary, and increase demand substantially, the group said.
Virgin plastic supply
It’s well known in the recycling industry that virgin plastic is oversupplied, particularly for PE, leading to pricing that’s impossible for recyclers to compete with. The report describes this pricing as artificially low due to its connection to energy production rather than actual demand for plastics.
The report suggests reevaluating the significant government subsidies to the fossil fuel industry, which further reduce the price of virgin plastics, and reinvesting revenues collected from new policies – such as tariffs – into programs that support recycling and waste reduction.
