Recycling industry news
Our top news picks from August:
- Reuters: US backs global target to reduce plastic production
- Argus: Opinion: A change of tack [in support of limiting plastic production under the Global Plastics Treaty]
- Packaging Insights: EPR in the UK: Defra reveals illustrative base fees for packaging
- Walt Street Journal: Companies Haven’t Abandoned Sustainability. They’re Just Talking About It Less.
- Nikkei Asia: Honda, Nissan to recycle plastic from scrapped cars
- Trellis: Inside Delta’s plan to take single-use plastic cups off its flights
US backs global target to reduce plastic production
The US, one of the largest producers of plastics, now supports a cap on virgin plastic production and limiting the use of harmful chemicals as part of a Global Plastic Treaty. The reversal could help swing other countries during final negotiations in South Korea later this year, which is good news for recycling.
✅ Our take:
The news calls for cautious optimism, as negotiators have yet to agree on the final text of the treaty, and its implementation will depend on the outcome of US elections in November.
EPR in the UK: Defra reveals illustrative base fees for packaging
Defra released “initial” Extended Producer Responsibility (EPR) base fees for 2025, with revenue from fees expected to deliver over £1 billion per year for collection, recycling, and disposal services in the UK, creating investment opportunities in infrastructure. Illustrative base fees for plastic packaging range between £355 and £610 per tonne.
✅ Our take:
These fees are in line with those present in other European countries, but significant uncertainty remains, not least regarding modulated fees (to be introduced in 2026). What is certain is that EPR schemes are gaining steam (Michigan introduced an EPR bill in August, joining five other states that have already passed such legislation), and fees will be significant. For companies that haven’t yet considered this in their choice of packaging portfolio, there is no time to lose.
Companies Haven’t Abandoned Sustainability. They’re Just Talking About It Less.
While mentions of ESG seem to have dropped off in marketing materials and earnings calls, sustainability remains prominent in financial reports and disclosures, and the number of companies disclosing continues to rise.
✅ Our take:
Increased transparency and scrutiny are good for sustainability, and sustainability is good for business. A recent analysis by Harvard Business Review showed that corporate commitments are indeed being implemented to the benefit of investors, companies, and society.
Honda, Nissan to recycle plastic from scrapped cars
Driven by the EU’s end-of-life vehicle (ELV) legislation, most original equipment manufacturers (OEMs), including Honda, Nissan, Renault, Toyota, Subaru, BMW, and Mercedes-Benz, are increasingly looking to use recycled plastics. To that end, they are collaborating with chemical manufacturers, recyclers, the waste industry, and peers to strengthen recycled plastic supply chains.
✅ Our take:
Demand for recycled plastic from ELVs is expected to grow significantly (figures vary between 7.5% and 10% annual growth), making it increasingly challenging for OEMs to secure quality materials for vehicles. Our recent work with an OEM shows how Circular can help.
Inside Delta’s plan to take single-use plastic cups off its flights
The company’s decision, which follows a similar move by Alaska Airlines last year, is expected to cut seven million pounds of plastic cups annually. Delta is switching to “plastic-free” paper cups which contain less than 0.75% plastic, still making it hard to recycle with paper, sourced from Blulabs, also a supplier to Walmart and Disney.
✅ Our take:
Delta joins other big names like Amazon, P&G, and Unilever in switching from plastic to paper. Though not all plastic can or should be switched to paper, with paper recycling rates hovering around 70% (vs. a global average still below 10% for plastics), paper is part of the solution to the plastic pollution crisis. Circular is expanding its coverage of sustainable materials beyond recycled plastics to include paper, aluminum, and glass. Stay tuned!