"Individuals have no inclination to purchase recyclable chemicals unwillingly"
The planet is hunting for a resolution to its excessive plastic waste problem. The EU is planning to establish recycling quotas for packaging by 2030. Particularly, the chemical sector has been advocating for this, recognizing a potential profit opportunity in so-called chemical recycling. However, industry expert Christian Schiller accused firms like BASF of lobbying in ntv's "climate lab," arguing that it would harm Germany: "The industry is essentially creating its own market, as only it can operate chemical recycling," says the founder of Hamburg recycling company Cirplus. According to him, the time-tested process is pricey, generates harmful by-products, and has never functioned reliably. "Without coercion, no one would buy these recyclates," says Schiller, fearing a repeat of the German auto industry's mistakes.
ntv.de: How is plastic or plastic waste currently recycled?
Christian Schiller: Primarily, not at all. Two-thirds of German plastic waste is used for energy, which is just another name for burning. In fact, oil is being burned here since 99% of all plastics are derived from oil.
What happens to the other third?
It is gathered, washed, shredded, and then melted again. Then it can be utilized once more for plastic items. However, it is usually "downcycled," resulting in a less valuable product from the shampoo bottle, for example, due to the high packaging standards not typically being met with recycling. Nevertheless, it is feasible to recycle plastics in a high-quality manner. The best illustration is the deposit bottle we return to the supermarket. It is shredded, melted, and poured into a new bottle - approved for food. The material can thus be cycled eight to ten times. The efficiency of recycling thus depends less on the plastic and more on how we handle it. The deposit bottle is already quite clean when it re-enters the cycle.
The issue is consumers who don't separate their waste properly?
That's a convenient argument for the industry. In reality, identifying different types of plastic with the human eye is impossible. Technologies exist that could do this, and products could be designed to make recycling easier. For instance, instead of having different plastics glued together in the center console of a car, we could design it separately. However, using new plastic is cheaper than recycling. This is the business model of the chemical industry: their refineries need to keep running all year round to provide new plastic to the market.
Is there an economic argument for recycling?
From an economic standpoint, yes, this has also been recognized by the EU Commission and the German government. That's why the national circular economy strategy is being put in place now. We are a resource-poor continent, but we have an abundance of oil products in the form of packaging, vehicles, etc., in Europe. Why don't we utilize this instead of continuing to depend on economies that control oil and gas?
But is recycling not profitable for the chemical industry?
If the business model is to produce petrochemical products like gasoline or plastic from oil, there is little financial incentive in repeatedly cycling the products. This is the domain of waste management. For chemical companies, no value is created in this area.
In any case, the chemical industry wants to slow down the legislation. But it has realized that it cannot continue like this. Therefore, it is now also betting on something called "chemical recycling". Behind this are many technologies that have been known since the oil crisis in the 1970s and have never worked, but are always presented as future technologies. For the chemical industry, however, they are interesting because only it can operate this chemical recycling. In simplified terms, old plastic chains are broken down under high pressure, with high energy consumption and also with relatively many toxic by-products to make new plastic. However, there are only pilot plants so far.
What exactly is the industry's plan?
Normally, industry associations are not in favor of regulation, but in this case, the chemical industry is pushing for recycling quotas because it knows: chemical recycling is extremely expensive, and there is actually no market for these recyclates. Without coercion, no one would buy them. The EU packaging regulation is under development and will be finalized in November. It actually prescribes minimum recycling quotas. From 2030 onwards, there are different specifications depending on the type of packaging - one range is only theoretically fulfilled by chemical recycling, for example for food packaging. The industry is creating its own market, as the packaging companies would then have to use a minimum proportion of chemically recycled products.
Can it already be said how much more expensive these packages would be later?
For normal consumer goods, the packaging price accounts for between five and ten percent. If the packaging becomes twice as expensive, consumers will certainly notice it.
Is there a sensible alternative to chemical recycling?
Mechanical recycling is far superior to chemical recycling in terms of ecology and energy consumption. Much less energy is required, and it has been tested on the market for much longer. The chemical industry also claims that mechanical recycling has priority. However, it invests so little that it is still in its infancy technologically - also because it is cheaper to produce new plastic. And now the industry wants to invest billions in chemical recycling. That's my criticism of the chemical industry.
Isn't it understandable that the branch invests where it sees a market?
Originating from Hamburg, I hail from a place that values the honorable merchant. This individual is dedicated to their product from production to usage, and even extends their care to the post-use phase. In my opinion, the chemical sector should assume responsibility for the substances they introduce to the market, declaring, "We won't merely maintain our giant chemical factories, but instead, we'll invest our vast profits into technologies providing the maximum ecological benefit within a circular economy." Yet, this is not what's happening. Why not? A significant portion of the industry's wealth is tied up in their sizeable chemical parks. These plants must keep running.
Could a functioning circular economy potentially threaten these profits?
Plastics will continue to be utilized in the future, however, their sources will predominantly shift towards recycled plastics and those not extracted from oil. These emerge as the two primary fields in the chemical industry.
Which German corporations fail to excel in these domains?
At least in the capacity they could. BASF, the world's leading chemical company, holds minimal influence within the German waste management sector. The industry's global leader in this area is French-based Veolia. Recognizing this emerging market could afford us technological dominance. I anticipate an industry aware that its business model is dwindling to evolve and adapt.
This almost feels reminiscent of the car manufacturers' predicament with diesel.
I perceive this risk. The industry is investing its capital in chemical recycling, a technology either ineffective or ecologically disadvantageous to the point of being undesirable. In order to inject an economic incentive into this ancient industry, we must utilize the circular economy strategy, keeping carbon as environmentally friendly as possible within the cycle. This could ultimately yield substantial future earnings. The packaging regulation mandates excessive quotas for the utilization of recycled materials in Europe. Failure to meet these recycled material quotas can result in the inability to sell a product. This constitutes a formidable sword and a vast market: India is set to implement similar legislation effective from 2025, presenting a remarkable opportunity for the German chemical industry. However, this necessitates a departure from traditional business models.
Clara Pfeffer and Christian Herrmann engaged in conversation with Christian Schiller. The discourse has been condensed and polished for improved comprehension. Listen to the complete conversation in the "Klima-Labor" podcast.
Despite the planet's urgency to tackle its plastic waste problem, the chemical industry is advocating for chemical recycling as a potential profit opportunity. However, industry critic Christian Schiller argues that it would harm Germany, stating, "Without coercion, no one would buy these recyclates."
The German government and EU Commission acknowledge the economic argument for recycling, as Europe is rich in oil products in the form of packaging and vehicles. However, the chemical industry's business model relies on keeping refineries running for petrochemical production, resulting in little financial incentive for recycling.
