How 22 million in carbon credits could save plastic recyclers

Companies, farmers and trees are already getting money for it, and soon plastic recyclers may too. If the Dutch government buys 22 million worth of carbon certificates (carbon credits) from plastic recyclers, it could end the wave of bankruptcies in the sector. At the same time, it could save 390,000 tons of CO2 emissions.

This is according to research commissioned by Invest-NL. If plastic recyclers get money for the CO2 emissions they avoid, that will give them additional revenue. Those could make the difference between going bankrupt and continuing to operate.

Can this solution save the moribund Dutch plastic recycling sector? State Secretary Thierry Aartsen (OV and Milieu) sees little hope for the time being, he told Change Inc. by e-mail when asked. He hopes that measures will be taken quickly at EU level to support the sector. Including an extra levy for cheap Chinese plastics.

Support badly needed

This support is badly needed. One plastic recycling company after another is going bankrupt because of unfair competition with cheap fossil-based plastics from China, which are flooding the market.

With politics for now not coming up with subsidies or other financial support any time soon, national financing and development institution Invest-NL looked for another way to help innovative companies in the sector. 'We see several parties falling over. So the question was how can we help the market and support plastic recyclers?" said Xandra Weinbeck, senior business development manager at Invest-NL.

Sustaining ecosystem

That the sector survives is important because the Netherlands wants to have a circular economy by 2050. In this, all waste is reused, including plastic. By 2030, the government wants to have already reduced the use of primary raw materials by 50 percent. The EU also wants to promote reuse and recycling. Among other things, by making 30 percent recycled material in plastic packaging mandatory by 2030 and through the future Circular Economy Act.

The only question is whether the Netherlands or Europe will soon still have plastic recycling capacity, or whether all the recyclate will also come from China. Invest-NL also sees that danger. 'We have to make sure that our ecosystem does not fall away, so that there is an infrastructure for recycling. We are good at recycling in the Netherlands. It would be a shame if that falls away. Then in 2030 we won't be on the map with what we are actually good at,' says Weinbeck.