2020 global plastic ban policy and analysis of the current status of degradable plastic production

Promote the plastic pollution control work steadily

On July 17, 2020, the National Development and Reform Commission, in conjunction with the Ministry of Ecology and Environment, the Ministry of Industry and Information Technology, the Ministry of Housing and Urban-Rural Development, the Ministry of Agriculture and Rural Affairs, the Ministry of Commerce, the Ministry of Culture and Tourism, the General Administration of Market Supervision, and the Supply and Marketing Cooperatives issued the "Notice on Solid Promotion of Plastic Pollution Control"

The "Notice on Solidly Promoting Plastic Pollution Control" is a re-issue of a document on plastic pollution control after the "Opinions on Further Strengthening the Control of Plastic Pollution" issued by the National Development and Reform Commission and the Ministry of Ecology and Environment on January 16, 2020

The notice pointed out that in order to coordinate the prevention and control of the epidemic and the treatment of plastic pollution, and to ensure that the various phased targets and tasks of plastic pollution treatment at the end of 2020 are completed on schedule, all localities must increase their political positions and further enhance the sense of urgency and urgency to do a good job in the treatment of plastic pollution.

(1) Strengthen the supervision and inspection of the banned production and sale of plastic products

(2) Strengthen the supervision and management of the prohibition and restriction of plastics in retail and catering and other fields

(3) Promote the treatment of agricultural film

(4) Standardize the collection and treatment of plastic waste

(5) Carry out special cleaning up of plastic garbage

After the notice was issued, it received market attention again

Biodegradable plastics account for less than 1%, so a full replacement is not feasible!

We examine the advanced experience of various countries such as Europe, the United States, Japan and South Korea in the treatment of plastic pollution caused by excessive and irregular use.

In terms of plastic materials, traditional plastics mainly include polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), polystyrene (PS) and polyester (PET).

From the perspective of downstream demand, the downstream of plastics mainly include packaging, construction, automobile manufacturing, electrical appliances and agriculture, among which packaging is the largest source of demand for plastics

From the perspective of scale, degradable plastics have a huge gap with ordinary plastics in terms of current demand and production capacity

Foreign experience: two-pronged approach to recycling and plastic limiting!

We examine the advanced experience of various countries such as Europe, the United States, Japan and South Korea in the treatment of plastic pollution caused by excessive and irregular use.

United States

According to the statistics of research expert M.

From the perspective of centralized waste disposal methods, in the late 1980s, the recycling rate of waste plastics in the United States was nearly 10%, and by the end of the 20th century, the recycling rate of waste plastics reached more than 35%.

From the perspective of preventing random disposal of plastic waste, the United States is also actively collecting random waste
.
For example, in Baltimore Harbor, the world’s first water truck that can permanently intercept garbage was installed in the port, "Mr.
Garbage Wheel.
" It can collect hundreds of tons of garbage from the port.
Collect about 14,000 polyethylene foam containers
.
The industries surrounding the Port of Baltimore include iron and steel, shipbuilding, aircraft manufacturing, petroleum processing, munitions, chemicals, food processing and clothing, etc.
It also has the largest steel plant on the Atlantic coast
.
The port is the busiest port in the United States.
Garbage waste once caused pollution of the port environment.
The installation of "Mr.
Garbage Wheel" effectively solved the port's garbage problem
.

In addition to upgrading the disposal of waste plastics and increasing recycling to solve the possible pollution caused by plastics, the United States has also formulated bans and charging regulations for various types of plastics from the use end, and has also taken many measures
.
So far, it is estimated that there are currently about 200 cities in the United States, including many cities such as Seattle, Portland, Oregon, Washington DC, San Francisco, and California, that have banned the use of disposable plastic bags or required taxes
.

United Kingdom

Plastic is one of the top ten import and export commodities in the UK
.
The UK imports 13 billion pounds of plastic products and machinery each year, and exports 8.
4 billion pounds
.
According to the "Understanding the Value of Recycled Plastics" report released by the British Waste and Resources Action Plan, the United Kingdom consumes 5 million tons of plastic products each year, with an average annual growth rate of about 1.
5%
.
1/3 of the plastic is mainly used in the production of plastic packaging products
.

From the perspective of garbage recycling, according to the data in the Parliament of the British Garbage Recycling Service, in 2000, the United Kingdom recycled 13,000 tons of plastic bottles.
By 2016, it was 343,000 tons.
The current proportion of recycled plastic beverage bottles has reached 74%
.
At the same time, the UK is actively promoting DRS (Deposit Refund Scheme for All Materials) to promote the increase in the recycling rate of plastic bottles
.
For example, the British Wimbledon Tennis Championships launched the "Plastic Bottle Recycling Machine" project.
Customers will be charged a small deposit when buying beverages.
When the beverages are consumed and the plastic bottles are returned to the machine, the deposit will be returned
.
In May 2020, the British government launched a 4.
7 million pound fund to fund institutions to increase the recycling of textiles and hard-to-recycle plastic packaging, including plastic pallets, cans, bathtubs, films and packaging bags
.

From the perspective of reducing the use of plastic packaging, between 2011 and 2015, the amount of polymer used per capita in the UK decreased by more than 7%
.
This aspect has benefited from technological advancements.
For example, Streamoulding is the UK’s award-winning process and equipment solution that can reduce the weight of plastic in injection molded products by approximately 10%
.
It uses a very small amount of water as a blowing agent, which is injected into the modified nozzle during the molding process
.

On the other hand, there are also British efforts to ban plastics
.
According to a report in The Independent in 2018, Buckingham Palace announced a new garbage disposal plan, banning the use of plastic straws and plastic bottles in the royal industry
.
The new measures also include phasing out or banning the use of plastic straws in public cafes and staff restaurants
.
In April 2020, the British government decided to ban the sale and use of plastic straws, beverage stirrers and plastic swabs
.
However, in view of the fact that the new crown pneumonia epidemic in 2020 has brought tremendous pressure on the operation of enterprises and the management of the government, it has also led to the interruption of the supply chain of substitutes for disposable products.
Therefore, the Ministry of Environment, Food and Rural Affairs of the United Kingdom has replaced the British "plastic straws The implementation of the ban on blenders and cotton swabs" was postponed for six months, that is, to be postponed to October
.

Other countries in the European Union

According to statistics from the Association of European Plastics Manufacturers (APME), the EU used 51.
2 million tons of plastic products in 2018, with Germany having the largest consumption, followed by Italy, followed by France, Spain, and Poland.
The demand for plastic products in several countries is more than 3 million tons, accounting for more than 60% of European consumption
.

From the perspective of centralized waste disposal methods, according to the statistics of the European Plastic Manufacturers Association, during 2006-2018, among the plastic bags used in Europe, recyclable plastics increased from 3.
9 million tons to 7.
5 million tons, an increase of 92%; Plastic bags directly landfilled dropped from 7.
2 million tons to 3.
3 million tons, a decrease of 54%.
At the same time, plastic bags for energy recycling (mainly incineration for power generation) increased from 3.
8 million tons to 7 million tons, an increase of 84%.
The landfill rate dropped from 48% in 2006 to 18.
5% in 2018
.

From the perspective of restricting the use of plastics, in 2014, the European Union proposed to reduce the use of plastic bags by at least 80% from 2019.
The Commission proposed a "plastic restriction order" to prohibit the sale of readily available alternatives and affordable disposable plastics.
supplies, including straws, cutlery spoon, plates, cotton bars, beverages and the like bat stir bar and gas
.
In addition, the "plastic restriction order" also stipulates that EU countries must reduce the use of plastic food containers and beverage cups
.
With the introduction of the "plastic restriction order", the European Union plans to propose a "plastic ban order" in 2021.
From 2021, it will prohibit the production and sale of disposable tableware, cotton swabs, straws and other disposable plastic products.
These products will be made of paper.
, Straw or reusable hard plastic replacement
.
Plastic bottles will be collected separately according to the existing recycling model; by 2025, the recycling rate of single-use plastic bottles in member states is required to reach 90%
.
The EU also plans to realize more than half of the plastic waste can be recycled by 2030, and will expand the scale of the plastic waste recycling and sorting industry
.

Japan

From the perspective of plastic processing, the recycling rate of plastics in Japan is relatively high, and the recycling rate of plastics in Japan is close to 60%
.
In 2013, 1.
64 million tons were recycled as materials in recycling, accounting for 16%; chemical reuse (oil/gas/blast furnace raw materials) was 330,000 tons, accounting for 3%; thermal energy reuse (430,000 tons of solid fuels, waste plastics) 2.
17 million tons of power generation, 1.
27 million tons of thermal combustion) was 3.
87 million tons, accounting for 39%; unutilized (1.
52 million tons of simply incineration, 2.
65 million tons of landfills) was 4.
17 million tons, accounting for 42%
.
Among them, the reuse of materials, chemistry, and thermal energy is the effective utilization amount, and the proportion is 58%
.
In that year, the amount of recycled plastics input into raw material production products was only 970,000 tons, accounting for 59% of its material recycling volume and less than 10% of its total waste plastics
.

From the perspective of restricting the use of plastics, in 2018, the Japanese government announced a proposal to start solving single-use plastics-the "plastic ban".
The goal is to reduce the annual 9.
4 million tons of plastic waste in Japan by 25% by 2030.
The proposal A key part of this is to require companies to charge for plastic bags
.
The head of plastic waste strategy at the Ministry of Environment of Japan stated that Japan’s policy will be introduced in 2020 at the earliest, and the implementation of the new law will not be later than the Tokyo Olympics, and the price of plastic bags will be determined by businesses themselves
.
But so far, these proposals have not targeted specific measures to restrict other disposable plastic waste such as straws or cups
.

Korea

According to statistics from the Korea Statistics Agency, in 2016, South Korea’s per capita consumption of plastic products was 92.
8 kg, ranking first in the world
.
The consumption of plastic bags is 21.
6 billion, which is 6 times that of Germany and 100 times that of Finland
.
Take disposable coffee cups as an example.
South Korea consumes 26 billion disposable plastic coffee cups every year
.

From the perspective of plastic processing, in 2017, about 3 million tons of plastic packaging waste from domestic waste in South Korea was processed through methods including combustion recovery of energy and heat, incineration, material recycling, and landfill
.
The recycling rate and recovery rate of domestic plastic packaging waste are relatively low, at 13.
5% and 50.
5% respectively
.

From the perspective of restricting the use of plastics, since 2010, South Korea has implemented the "recycling metered garbage bag sales" system, and stipulates that supermarkets must not provide disposable plastic bags for free
.
Five large supermarket chains in South Korea have also signed relevant agreements with the South Korean Ministry of Environment to actively promote the use of environmentally friendly containers to replace disposable plastic bags
.
In August 2018, South Korea decided to expand the scope of the plastic restriction order, and the supermarket will ban plastics at the end of the year
.
On January 1, 2019, South Korea’s "Law on Resource Conservation and Promotion of Resource Recycling" came into effect
.
The amendment stipulates that South Korea’s 2000 large supermarkets, 11,000 supermarkets with an area of ​​more than 165 square meters, and 18,000 bakery shops nationwide must completely ban the provision of disposable plastic bags.
However, some fruits, vegetables, meat, fish, etc.
Except for goods
.
Relevant supermarkets and large-scale stores can only provide customers with metered and charged garbage bags, environmentally friendly shopping bags and empty cartons made from reprocessed waste plastics for packaging
.
In this round of restrictions on disposable plastic bags in early 2019, in addition to the above provisions, there are also penalties and incentives
.
From January to March 2019, the Ministry of Environment of South Korea joined hands with local governments to actively publicize the main content of the amendment and supervise the implementation of the comprehensive "plastic limit order" on site
.

Application fields of biodegradable plastics

Degradable plastics are mainly suitable for occasions that are not easy to recycle.
The three most important application areas are packaging, agriculture and biomedicine, with packaging accounting for 58% of the total
.

Although countries are actively increasing the proportion of plastic recycling, reducing the proportion of garbage filling, and restricting the use of various disposable plastics, there are still occasions that require one-time use and are difficult to effectively recycle, collect and process
.
Therefore, biodegradable plastics have different applications from traditional plastics
.

From a regional perspective, Europe is the main market for degradable plastics, accounting for 55% of the world, the Asia-Pacific region accounts for 25% of the world, and North America's demand accounts for 19%
.

From the point of view of downstream applications, the application scope of degradable plastics is continuously expanding, including packaging, textile fibers, and automobile transportation
.

From the point of view of materials, among polyester degradable plastics such as PLA, PBS, PBAT, PLA, and starch-based plastics, although starch-based plastics are relatively cheap and completely degradable, they have a short service life and poor mechanical properties.
Limited applications
.

At present, PLA and PBAT are the two types of biodegradable plastics that are most widely used and produced.
From the perspective of the production capacity of biodegradable plastics in 2019, PLA accounts for 25% and PBAT accounts for 24%.
The ratio is close to 50%
.

In terms of production technology, PLA has high technical barriers, and China still relies on imports
.
The domestic production company Jindan Technology is still in the process of debugging
.
PBAT is relatively mature in terms of production technology.
There are two main types, one is the process technology provided by BASF, and the other is the technology provided by the Chinese Academy of Sciences in China
.

On July 14, 2020, the Ministry of Industry and Information Technology published an article "China’s polyglycolic acid (PGA) biodegradable plastics industry is accelerating.
" Medical sutures, tissue repair and other fields have good application prospects
.
In 2010, the PGA technology from coal-based synthesis gas made a breakthrough, and Shanghai Pujing Chemical Company started construction of related projects in Baotou, Inner Mongolia in 2018
.

As China's coal resources are relatively abundant, if the coal-based synthetic PGA technology is mature, it will effectively reduce the cost of degradable plastics
.
But on the other hand, due to the better degradability of PGA, it is more suitable for medical applications, but there is a temporary problem of insufficient performance in the packaging field
.

The ban on plastics has become stricter, and demand and production capacity are racing!

The ban on plastics has become stricter, and demand and production capacity are racing: as China’s ban on plastics has become stricter, and at the same time, due to regulations requiring the elimination of polyethylene agricultural mulch film with a thickness of less than 0.
01 mm, the replacement rate of mulch film will reach 10% by 2025, and by 2025 The demand for biodegradable plastics in China is expected to reach 1.
3 million tons
.
At present, the demand for degradable plastics in China is less than 100,000 tons.
In the next five years, driven by the ban on plastics, the demand for degradable plastics in China will increase substantially
.
Among listed companies, the approved capacity to be built is 1.
26 million tons, of which 160,000 tons in 2021 and 1.
1 million tons in 2022
.
The growth rate of production capacity is far greater than the growth rate of demand
.
Cinda Securities believes that due to certain technical barriers to the production of biodegradable plastics, the current operating rate of the entire industry is only 30%, especially the PLA production technology is still immature, so only companies that can take the lead in production and achieve stable production can Enjoy the bonus of stricter policies!

According to our statistics, since the National Development and Reform Commission and the Ministry of Ecology and Environment issued the "Opinions on Further Strengthening the Treatment of Plastic Pollution" at the end of 2019, 31 provinces and cities have issued specific policies
.
From the perspective of the provinces and cities that have announced the implementation plan, the goal is consistent with the requirements of the National Development and Reform Commission and the Ministry of Ecology and Environment.
By the end of 2020, plastic bags in supermarkets and convenience stores in major cities will be restricted; restrictions/bans will be expanded by 2022 Scope of use: Establish an overall mechanism of production, circulation and consumption before 2025
.

From the perspective of demand, according to IHS statistics, China’s annual average total waste plastic is 42 million tons, of which the packaging sector accounts for 59%
.
As the relevant provincial policies will only cover key areas in some key cities in 2020, the replacement ratio of biodegradable plastics may reach 1% in 2020, 3% in 2022, and 5% in 2025
.
At the same time, due to the impact of the plastic ban, the use of packaging plastics is expected to drop by 1% every year
.

In addition, due to regulations requiring the elimination of polyethylene agricultural mulch films with a thickness of less than 0.
01 mm, the replacement rate of degradable plastics in agricultural mulch films will be higher than that of packaging plastics
.
The amount of plastic used in agricultural mulch in China has stabilized at around 2.
5 million tons
.

According to Cinda Securities' estimates, by 2025, China's demand for biodegradable plastics is expected to reach 1.
3 million tons
.
At present, the demand for degradable plastics in China is less than 100,000 tons.
In the next five years, driven by the ban on plastics, the demand for degradable plastics in China will increase substantially
.

From the perspective of production capacity, as of 2019, China's total production capacity of biodegradable plastics reached 657,000 tons, accounting for 48.
2% of global production capacity
.
However, it should be pointed out that in the current production capacity of degradable plastics, there are some production capacity that cannot be started due to various reasons such as technology and cost, resulting in a low capacity utilization rate of only about 30%
.
The next two years will usher in the peak of China’s degradable plastic production capacity.
According to our statistics, among listed companies, the approved capacity to be built is 1.
26 million tons, of which 160,000 tons will be in 2021 and 2022 will be 1.
1 million tons
.
If these capacities are put into production on schedule, they will greatly exceed the growth rate of demand
.
However, it should be pointed out that in the current planned production capacity, PLA production capacity accounts for 140,000 tons.
PLA production technology is still immature, and there is a greater uncertainty in production
.
Therefore, in the case of increased demand and large-scale production capacity, only companies that can achieve stable and prioritized production can enjoy the dividends of the stricter ban on plastics!