Let the numbers do the talking – Europe

Posted on December 11, 2024 by DrRossH in Compostable Plastics

Bioplastics have been constrained to a niche largely due to high production prices. There is, however, more to total price than the production price of resin. Levies and fees on producers count towards a product’s final price. Just how competitive bioplastics really are against virgin plastics and other materials depends on their total price

Source: Let the numbers do the talking | Sustainable Plastics

The author calculated the total cost of bioplastics versus the alternatives by considering five cost drivers: the packaging removal tax in different European countries, the price on carbon as measured by LCA, the penalty on non-recycled content, the tax on single-use products, and polymer prices.

The first cost driver is the packaging removal tax. Countries across Europe mandate packaging manufacturers to pay for the collection of their products after use, which are then destined for recycling, landfill, or incineration.

Bioplastics will become cheaper as their lower carbon contribution is recompensated whilst alternative materials suffer higher carbon levies. Their price will remain comparatively high, however, especially in the case of PHA. Production capacity will more than triple by 2028, according to EUBP predictions, but that is likely to still be insufficient to reach economies of scale comparable with other polymers.

Bioplastics will continue to fit niche applications, but they will be a much more economical and competitive choice in 2050 than they are in 2024.