Sustainability, Energy Transition, ESG

Optimizing The Value in Waste Plastic – Is It to Make More Plastic?
June 14, 2024
Companies Mentioned:
HDPE, PE, PP, PET, PS, PET, PVC, Ethanol, Hydrogen, Syngas
Commodities Mentioned:
OMV, Westlake, Air Products, Dow, LyondellBasell, Borealis, Indorama, TotalEnergies, Braskem, Sabic, Nova Chemicals, ExxonMobil, LG Chem, Shell, Mitsubishi Chemical, Coca-Cola, Fulcrum Bioenergy, Eastman, Issaquena Green Power
Subjects Covered:
Recycling, Renewables, Carbon Capture, Emissions, New Energy, Hydrogen, ESG Investing, Climate Litigation, Clean Fuels, Critical Minerals

C-MACC Weekly Sustainability and Energy Transition Report

Optimizing The Value in Waste Plastic – Is It to Make More Plastic?

  • 1st Topic of the Week: The drive for plastics recycling is too prescriptive and will likely drive too much expense for products that may also not have the best carbon footprints. Recycle mandates, especially in Europe, could drive severe spikes in pricing when supply runs short, which seems likely given limited incentives to invest today.   
  • 2nd Topic of the Week: Mandates run the second risk that they can be repealed if the political will to enforce them is not there, and the recent results in Europe suggest eventual change – perhaps not from sustainability goals but from the ideology that is driving costs higher than they need to be.
  • Otherwise: We look at why offshore wind may be good for consumers but not industry, and we compare very different sustainability messages from OMV and Westlake this week.

Exhibit 1: We have assumed that recycling fixed costs have improved at the same rate that CPI has risen – this may be too optimistic, although it may be conservative where that has been aggressive work to improve collection and sorting.

Source: Bloomberg, C-MACC PXI and C-MACC Analysis

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