IHS Markit Calls for Boosted Investment in Advanced Plastic Recycling

SEATTLE (Scrap Monster): The latest analysis report by IHS Markit highlights the need for multi-billion dollar investment to achieve a circular plastics economy by 2050. A portion of the future investment to meet growing plastics demand should be shifted towards advanced recycling methods.

By 2050, the global plastics industry would require to invest approximately $1.5 trillion in order to meet growing demand for consumer plastics. Over $300 billion of the total capital spending meant for new plastics production capacity could be redirected to mechanical and chemical recycling processing capacity.

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The worldwide municipal solid waste volumes are projected to reach around 3.7 billion metric tons in 2050, compared with levels of 2.1 billion metric tons in 2020. Assuming that plastics represent nearly 12% of this waste stream, the global plastic waste is projected to reach over 425 million metric tons by 2050. Most of the increase will likely occur in Southeast Asia, India and Africa, mainly due to higher population growth and standard of living in these areas.

The analysis states the projected increase in mechanical recycling will not be able to close the gap and that chemical recycling will also be essential in achieving ambitious circularity goals.