This time, we'll be highlighting some of the most impactful developments in the US and China from our "Market Report" articles.
In the United States, a new bill, the "Tracking Plastic Act," aimed at standardizing the traceability of recycled plastics (PCRs) contained in products, has been introduced to the U.S. Senate and is generating significant buzz in the North American recycled plastics market. Meanwhile, in Asia, China has announced a shift in its recycled plastics policy from "quantity" to "quality," and demand is shifting towards high-quality recycled materials.
These are all relevant issues for Japanese companies. We have summarized the key points you should be aware of in a digest format.
US and China: Emphasis on the "quality" of recycled plastics is advancing through both regulations and policies; Japanese companies are not immune.
(1) United States | "Plastic Traceability Bill" introduced in the Senate to standardize PCR traceability
A new bill, the "Tracking Plastic Act," has been introduced to the U.S. Senate, aiming to standardize the traceability of recycled plastics (PCRs) in products and prevent greenwashing (false environmental labeling).
The background to this is the proliferation of mandatory recycled material use regulations and environmental labeling rules implemented individually in various states across the U.S., such as California and Washington, and concerns about false labeling of PCR (polymeric polymer) content that does not reflect actual usage. The bill is expected to establish a new federal working group comprised of the Environmental Protection Agency (EPA), the Federal Trade Commission (FTC), and the U.S. Department of Agriculture (USDA), and to develop common guidelines for measuring and reporting PCR usage under the leadership of the National Institute for Standardization and Technology (NIST). The scope will cover major industries such as packaging materials, construction and infrastructure, and automobiles.
The American Plastics Recycling Association (APR) and major environmental organizations also support this movement, and going forward, the ability to prove traceability, including the origin and processing process, in addition to the ability to procure recycled materials, is becoming a practical requirement for entering the North American market.
(2) China | Recycled plastics policy shifts from "quantity" to "quality"
The "15th Five-Year Plan for Green and Low-Carbon Industrial Development (2026-2030)," published by China's Ministry of Industry and Information Technology, sets a target of 22 million tons of recycled plastic waste per year by 2030.
However, China's waste plastic collection volume has already reached approximately 20 million tons per year, meaning the 2030 target represents only about a 10% increase from the current level.
Therefore, the key point of this policy is not so much an increase in the amount of plastic collected, but rather a shift from "quantity" to "quality," including high-quality PCR production, high-value-added use in automobiles, home appliances, and electronics, chemical recycling of low-quality and mixed waste plastics, and an increase in the proportion of recycled materials used.
It is highly likely that China's recycling market will shift towards one that prioritizes how waste plastics are reused, at what quality, and using what technology.
The above is a digest of some of the articles.
If you are interested in the contents, please apply for the market report using the link below. We send out market reports by email at the beginning of each month.
