The need for a circular economy for plastics has become a global concern. Plastic marine litter has been recognised as a global environmental issue, and many countries have introduced policies to reduce single-use plastics. Recycling of plastic waste should also be strengthened to reduce plastic marine litter. This report aims to provide basic information and policies on plastic recycling, including good practices in Asian countries.

Economic Research Institute for ASEAN and East Asia

PLASTIC RECYCLINGPolicies and Good Practices in Asia

Introduction

Plastic marine litter has received significant global attention in recent years. The East Asia Summit in November 2018 adopted the Leaders’ Statement on Combating Marine Plastic Debris, which committed to take concrete action on tackling marine plastics – including environmentally sound management of plastic waste using ‘3R’ and circular economy approaches1. The resolution of the Fourth United Nations Environment Assembly in March 2019 on Marine Plastic Litter and Microplastics

announced that it would establish a multi-stakeholder platform within the United Nations Environment Programmeme (UNEP) to take immediate action towards the long-term elimination of the discharge of litter and microplastics into the oceans. Many countries and cities have already initiated actions to reduce or ban single-use plastics (UNEP, 2018). A circular economy for plastics should also be strengthened to reduce plastic marine debris.

1‘3R’ – reduce, reuse, recycle – is the main approach in the Basic Act for Establishing a Sound Material Cycle Society, enacted by Japan in 2000. The ‘circular economy’ approach is emphasised by China and the European Union. China enacted the Circular Economy Promotion Law in 2008, which defines the circular economy as a generic term describing the activities of decrement, recycling, and resource recovery in production, circulation, and consumption. Decrement herein means the reduction of resource consumption and waste generation in production, circulation, and consumption. The European Commission adopted an action plan for the circular economy in 2015.

Michikazu KojimaSenior Economist

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Trade restrictions on plastic waste by China since the end of 2017 have highlighted the flaws of the world’s plastic recycling system. China had previously imported more than half of the internationally traded plastic waste, but the restrictions caused the volume of waste plastic imports in 2018 to fall to less than 1% of 2016 levels.

These changes have forced many countries to consider their plastics recycling strategies. The European Commission adopted the European Strategy for Plastics in a Circular Economy in January 2018 (European Commission, 2018), which includes various ambitious targets such as achieving a 50% recycling rate of plastics by 2030. Japan is also developing a Strategy for Plastic Resource Circulation, which aims to utilise plastic waste fully for material recycling and

energy recovery. However, many developing countries have not taken concrete actions to promote plastic recycling.

This short report attempts to provide basic information on plastic recycling and good practices, including policies and businesses.

1. Types of Plastics and Recycling Technologies

Plastic recovery technologies come in four major types: mechanical recycling, feedstock or chemical recycling, biological or organic recycling, and energy recovery. The International Organization for Standardization (ISO) guidelines for the recovery and recycling of plastics waste (ISO, 2008) define these terms (Table 1).

Table 1. Types of Plastic Recycling Technologies

Process Definition Output

Mechanical recycling

Processing of plastics waste into secondary raw material or products without significantly changing the chemical structure of the material

Recycled plastics (recyclate)

Chemical or feedstock recycling

Conversion to monomer or production of new raw materials by changing the chemical structure of plastics waste through cracking, gasification, or depolymerisation, excluding energy recovery and incineration

Chemical raw materials (monomers or other chemicals)

Biological recycling

Controlled microbiological treatment of biodegradable plastics waste under aerobic or anaerobic conditions

Compost, methane

Energy recovery Production of useful energy through direct and controlled combustion

Heat

Source: Compiled by the Author, based on ISO (2008)

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These technologies are applied to different types of plastic waste. The contents of plastic waste varies – from single type plastics to a mixture of several types of plastics or plastics that contain other waste such as paper. Depending on the physical characteristics of plastic wastes, different technologically applicable and economically suitable methods are used in recycling processes.

Biological and organic recycling can be applied to biodegradable plastics only. Waste-to-energy technology can be applied

to a mixture of plastic waste and plastic waste with other materials.

A fundamental process of mechanical recycling of plastics is melting, which transforms waste plastics to other products. Mechanical recycling of thermoset plastics is usually difficult, although they can be used in energy recovery. It is also hard to recycle plastic coated with metal, such as aluminium. Thermoplastics are recyclable, but the melting point of thermoplastics varies. Table 2 shows the melting points of the major plastics.

Table 2. Melting Points of Selected Plastics

Abbreviation Name of Plastics Product examples Melting point (°C) Specific gravity

PET Polyethylene terephthalate Bottle 255 1.29–1.40

HDPE High-density polyethylene Ceiling, packing 120–140 0.95–0.97

PVC Polyvinyl chloride Pipe, film, sheet 85–210 1.16–1.58

LDPE Low-density polyethylene Laminate film 95–130 0.92–0.93

PP Polypropylene Film, rope 168 0.90–0.91

PS Polystyrene Container, toy 100 1.03–1.06

PC Polycarbonate Lighting device 150 1.20

ABS Acrylonitrile butadiene styrene

Appliance, vehicle 100–125 1.00–1.21

Note: The actual temperatures for pelletising, injection moulding, compression moulding, and other types of

moulding are different from the melting points.

Source: Compiled from various sources.

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Mixed plastics or plastics which are difficult to be mechanically recycled may be treated in the chemical recycling and energy recovery process.

Chemical recycling means ‘conversion to monomer or production of new raw materials by changing the chemical structure of plastics waste through cracking, gasification or depolymerization, excluding energy recovery and incineration’ (ISO, 2008). Feedstock recycling and chemical recycling are synonyms. Polyethylene terephthalate (PET) to PET bottle recycling is a chemical recycling technology. Some chemical recycling facilities can accept mixed plastics. For example, blast furnaces and coke ovens for steel production, which are chemical recycling, can use mixed plastic wastes, reducing coal consumption. Plastics-to-oil technologies mainly use waste polyethylene (PE) and polypropylene (PP). The extracted oil is mainly used for boilers and diesel engines (with a mixture of diesel oil).

Waste to energy is another technological option. Waste incineration plants with production of electricity and/or heat can accept mixed plastic waste. Waste plastics can also be used to make refuse-derived fuel (RDF), which can be used for waste-to-energy plants, cement production, and others, with adequate pollution control.

The applicability of these technologies depends on various factors, such as the presence of the plastic industry and related industries (e.g. cement, steel, and iron

industries); collection systems; the volume of recyclable waste; transportation costs; and product design.

2. Product Design

To reduce the costs and maximise the benefits of recycling, especially mechanical recycling, products should be carefully designed. A global best practice for PET bottle design is the voluntary standard for the design of PET bottles, developed by Japan’s Council for PET Bottle Recycling. This prohibits the use of plastics which specific gravity is more than one, such as polycarbonate (PC) for caps and labelling to reduce the cost of separating them from bottles. Plastic labels are also carefully designed to be removed easily. Other types of plastics should be separated from PET during PET bottle recycling. However, it is difficult to sort PC from PET by gravity because the specific gravity of PC is almost the same as that of PET. Therefore, the use of PC for caps and labelling is prohibited.

Coloured pet bottles are also prohibited in the voluntary standard. Most of PET plastic waste is transformed into fiber. If the PET is coloured, the fiber made from waste PET has the same colour. White fiber, which is coloured freely, can be made from transparent PET or transparent PET with a small portion of blue colour PET. Coloured PET is restricted in the voluntary standard in Japan, because there is only limited demands for coloured waste PET and for a mixture of coloured and transparent PET.

2EPR is ‘an environmental policy approach in which a producer’s responsibility for a product is extended to the post-consumer stage of a product’s life’ (OECD, 2016: 9).

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This voluntary standard in Japan followed the enactment of the Container and Packaging Recycling Law, 1995, which applies extended producer responsibility (EPR)2 to manufacturers and importers. In other countries, governments may be able to introduce similar restrictions on caps and labelling of PET, even where EPR regulation is not implemented.

Other examples of the importance of product design for the recycling of plastic waste include reducing the number of plastic types in a product and labelling the different types of plastic. By creating incentives for producers to apply design to recycling, or by requiring producers to apply a specific design for recycling, plastic recycling can be facilitated.

3. Collection Programme: Source Separation

A source separation programme is critical to promoting plastic recycling. The method of such a programme should be determined based on the downstream of the recycling chain, i.e. industries using plastic waste for their production.

As explained in the first section, some plastics are not recycled well mechanically. In addition, recyclable plastics need to be properly sorted to conduct mechanical recycling. The quality of plastic waste depends on the purities of specific kinds of recyclable plastics.

To organise a plastic waste collection programme, the first step is to understand

what kind of plastic waste can be recycled or sold in the region. Several options are available for local government recyclable waste collection programmes.

The first option is to establish or support buy-back centres and drop boxes for recyclable waste, with source separation. Programmes should focus on recyclable waste that can be sold or utilised. They also should provide incentives for households to bring clean plastic waste, by offering a higher price for clean rather than unwashed plastic waste. Bank Sampah, a waste bank in Indonesia, is an example of a buy-back centre. Bank Sampah buys the recyclables directly from waste generators, publishes the buying prices on its website, and assigns different prices to clean and dirty plastics (Table 3, Figure 1). Junk shops, local government buy-back centres, and recyclable waste collection companies follow a similar strategy. For example, a buy-back centre operated by Marikina city government in the Philippines has such a strategy. Wongpanit, a franchise chain collecting plastic waste in Thailand, advertises prices on shopfronts (Figure 2) and its website to encourage consumers to bring plastic waste to shops. Conventional waste pickers or junk shops usually collect recyclable waste as cheaply as possible. On the other hand, the waste bank in Indonesia, buy-back centres, and companies such as Wongpanit are transparent about the buying prices. Therefore, different strategies are used to collect recyclable waste, compared with conventional waste collectors who try to collect recyclable waste as cheap as possible.

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Table 3: Buying Prices at Malang Waste Bank, Indonesia, 1 July 2018(Rp/kg)

Figure 1. Waste Bank in Malang, Indonesia

Figure 2. Price Board at Wongpanit Headquarter, Thailand

Type of plastic Clean Dirty

Clear PET bottle 3,300 1,600

Coloured PET bottle 1,800 1,300

Polyethylene 1,150 675

Polypropylene cup 6,000 3,800

kg = kilogram, PET = polyethylene terephthalate.

Note: Exchange rate on 30 June 2018: $1.0 = Rp14,279.6. Prices for cash purchases.

Source: http://banksampahmalang.com/download/daftar_harga_bsm_1_per_1_

juli.pdf (accessed 24 February 2019).

Source: Photo taken by the author in March 2014. Source: Photo taken by the author in December 2013.

The second option is for local governments or private companies commissioned by local governments to conduct a source separation and collection programme. Separate collection and transportation of waste are key to such a programme. If recyclable waste is loaded and transported along with other waste, people may consider their source separation worthless. If local governments ask their residents to sort waste into recyclable and other waste, they should arrange separate collection and

transportation of such waste. For example, many local governments in Japan ask residents to dispose of combustible waste and recyclable waste separately, by using different plastic bags and on different days. Marikina city in the Philippines asks citizens to dispose of organic waste in a plastic bag with green ribbon, while other waste is collected in bags without a ribbon.

If a source separation programme collects various types of plastic waste together with

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other recyclable waste, or collects various types of plastic waste together, sorting centres should be established. Mixed recyclable waste or mixed plastic waste is sorted by machine and by hand. Developed countries mainly use machines in sorting facilities because of the high cost of labour, while developing countries tend to have workers sort waste manually by type of recyclable and sell it to junk shops.

Another effective strategy is to collaborate with religious institutions. Some temples and churches receive recyclable waste donations and sell it to junk shops and dealers. The revenue is used for social activities.

It is meaningless to collect a type of plastic waste separately without channelling such waste to the appropriate destination. Local governments should know what kind of plastics can be sold or recycled in the region. This information can be used to determine what kind of plastics should be collected separately from other waste.

Waste pickers in many developing countries collect recyclables and sell them to junk shops. Even if a source separation programme is not conducted, waste collection workers usually separate and sort waste. In terms of recycling, such efforts help to reduce the waste dumped in landfills. However, it can reduce transportation cost if recyclable waste is separately collected and delivered to the recycler directly. In addition, the efficiency of collecting and transporting waste decrease if lorries have to wait for separation works by collection workers at

the curve side. .

Nonetheless, a significant amount of recyclable waste – mixed with other waste – is still transported to landfill sites. Waste pickers also collect recyclable waste on landfill sites, which may affect their health. Waste separation at source could reduce the number of waste pickers. Source separation programmes could also reduce the volume of waste to be transported to landfill sites, allowing local governments to enlarge their collection service areas.

4. Reducing Transportation Costs

The waste collected is sent to recycling companies. To reduce the transportation costs of waste plastics, the private sector or government should invest in machines to reduce the volume of plastic waste.

Most plastic waste is bulky, especially PET bottles and expanded polystyrene (EPS) or styrofoam. To transport these plastic wastes efficiently to recycling factories, technology to reduce the volume is crucial. Baling or shredding machines are typically used for waste PET bottles. Compacting machines are used for EPS to reduce the volume to about by 98% (Figures 3 and 4). Otherwise, it is too costly to transport bulky EPS to recycling factories.

In some areas far from recycling facilities, without such investment, recyclable waste cannot be sent to recycling companies economically.

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Figure 3. Compacting Machine for EPS Figure 4. Compacted EPS

Note: Expanded Polystyrene.

Source: Photo taken by the author in July 2018 at

the Recycling Center in Kunitachi city in Tokyo,

Japan.

Note: Expanded Polystyrene.

Source: Photo taken by the author in July 2018

at the Recycling Center in Kunitachi city in

Tokyo, Japan.

5. Ensuring Demand for Recycled Products

It is also important to ensure that demand exists for recycled products. Some recycled products may not satisfy the level of quality desired by customers or defined in conventional industrial standards for products made from virgin materials. To ensure an adequate level of quality for recycled products, and to reduce the transaction costs between the suppliers and buyers of recycled products, industrial standards should be developed for recycled goods.

The Government of Japan has put significant effort into establishing such standards since 2000 (Kojima and Atienza, 2010). Table 4 shows some examples of the Japanese Industrial Standards for recycled plastic products.

Figure 5 shows an example of a recycled product. The material, which looks like wood, is made from waste plastics and wood powder. It is more durable than wood. JIS A5741 defines the nature of the goods; the symbols to be placed on the goods, depending on the content of recycled materials; and various quality standards such as density, strength, the water absorption rate, and the level of hazardous substances.

These standards can be used in green public procurement programmes. Stipulating such industrial standards in tender documents or contracts increases the demand for recycled products. Investment in plastic recycling and collection of plastic waste are also stimulated.

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Figure 5. Wood-Plastic Recycled Composite Used at Subway Station Exit in Tokyo

Source: Photo taken by the author in February 2012.

6. Chemical Recycling and Energy Recovery

As mentioned in section 1, mixed plastics or plastics that are difficult to recycle mechanically may be able to be treated through chemical recycling. An exception is bottle-to-bottle recycling of PET. To make

new PET bottles from waste PET bottles, high-purity waste PET is a precondition. However, other chemical recycling and energy recovery processes use various plastic wastes, including a mixture of some types of plastics.

Some types of waste-to-energy plants can

Table 4. Sample Japanese Industrial Standards for Recycled Plastic Products

JIS Code Type of JIS

JIS A5731 Recycled plastics inspection chambers and covers for rainwater

JIS A5741 Products of wood-plastic recycled composite

JIS A5742 Products of wood-plastic recycled composite – assembled decks

JIS K6930 Reclaimed granulate moulding materials of agricultural polyvinyl chloride film

JIS K6931 Reclaimed plastics bars, rods, plates, and piles

JIS K6932 Recycled plastics stakes

JIS A9401 Recycled plastics medial strip block

JIS A9402 Recycled plastics buffer for parking

JIS K9797 Un-plasticised poly(vinyl chloride)(PVC-U) three-layer pipes with recycled solid core

JIS K9798 Un-plasticised poly(vinyl chloride)(PVC-U) three-layer pipes with recycled foamed core

JIS = Japanese Industrial Standard.

Source: Compiled by author from Japanese Industrial Standards Committee (http://www.jisc.go.jp/, accessed 24

February 2019).

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also accept mixed plastic waste. Developed countries such as Japan have many waste incineration plants, which burn municipal solid waste and generate electricity and heat. China has also rapidly increased its waste-to-energy plants.

Waste plastics can be used to make RDF (Figure 6), which can be used for power generation (Figure 7), cement production,

Figure 6. RDF from Household Waste Used in RDF Power Plant at Omuta,

Fukuoka, Japan

Figure 7. Waste-to-Energy Plant using RDF in Samut Prakan, Thailand

RDF = Refuse-Derived Fuel.

Source: Photo by the author in December 2010.

RDF= Refuse-Derived Fuel.

Source: Photo taken by the author in March

2018.

Guidelines on Usage of Refuse Derived Fuel in Various Industries, which recommended the use of RDF in waste-to-energy plants and the cement industry (Ministry of Housing and Urban Affairs, India, 2018). The committee stated that thermal power plants, the iron and steel industry, and brick kilns are not yet ready to use RDF.

and other purposes. In some developing countries such as Brazil and Thailand, RDF is made from landfill waste. The caloric value of landfill waste is higher than household waste because landfill waste is rich in plastic, because organic matter in landfills is discomposed, and water contents are reduced.

To promote the use of RDF, India’s Solid Waste Management Rules, 2016 stated that ‘All industrial units using fuel and located within one hundred km from a solid waste based refused [sic] derived fuel plant shall make agreements…to replace at least 5% of their fuel requirement by refused [sic] derived fuel so produced’ (Clause 18). An expert committee from India’s Ministry of Housing and Urban Affairs developed the

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The Government of India’s imposition of such requirements on industries shows that governments can require industries to utilise RDF or other recyclable waste.

7. Extended Producer Responsibility

Applying EPR is another option to promote recycling. Many types of responsibility, including financial and physical responsibility, are assigned to producers in various countries.

Even in the EPR system, the role of local governments is crucial. The Organisation for Economic Co-operation and Development (OECD, 2001) pointed out that local governments have crucial roles in implementing and monitoring EPR systems, such as collecting and sorting waste and monitoring the flow of waste destined for producers’ collection schemes. Based on cases in Europe, Cahill, Grimes, and Wilson (2010) found that the results were significantly more positive where local authorities engaged in the implementation of EPR systems than where they had limited engagement.

In developing countries, many local governments – except rich cities – are not able to deliver waste collection services fully in their jurisdictions. Central and local governments in developing countries need to put more effort into improving their waste management, even if EPR systems are introduced.

To identify appropriate measures for each

country, governments should understand the status of plastic recycling and conduct dialogue with stakeholders, including producers (domestic manufacturers and importers), recyclers, consumers, and local governments.

One of the starting points for promoting producers’ activities is a voluntary agreement between governments and the private sector for reducing and recycling plastics. Singapore launched the Singapore Packaging Agreement in 2007 to reduce packaging waste. Its government also awards companies that significantly reduce or recycle packaging and container waste. Such initiatives incentivise private sector actions to reduce the use of plastic and stimulate investment in plastic recycling.

8. International Trade in Plastic Waste

In 2016, 14 million tons of plastic waste was traded internationally. More than 60% of this was sent to China, some of which transited via Hong Kong. Plastic waste was used as raw material for various products such as toys, photo frames, dolls, carpets, and textiles.

Following China’s restriction on the import of plastic waste at the end of 2017, the import of plastic waste by some Southeast Asian countries – such as Malaysia, Thailand, and Viet Nam – increased in 2018. Some of the imported recyclable waste is a mixture of various kinds of plastic waste, which is difficult to recycle. Even if

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imported wastes are recycled, the recycling process often causes pollution problems. The residual from recycling is also dumped improperly and burned openly. Where such malpractice was observed, countries banned or tightened the import of plastic waste.

Although insufficient statistical data are available, the demand for products made from plastic waste has not decreased, even after Chinese restrictions on the import of household plastic waste. The generation of plastic waste has not decreased either. However, the capacity for sorting, shredding, washing, and pelletising plastic waste is not sufficient in the world – except in China. Previously, China had produced raw materials such as plastics pellets, by sorting, shredding, washing, and pelletising imported plastic waste (Figure 8).

Based on interviews, plastic recyclers in Asia may not want to invest in sorting, shredding, and washing facilities because they believe that China may allow the import of some types of plastic waste in the near future or they fear that the country in which they invest in a recycling facility may prohibit the importation of plastic waste in the future.

Such uncertainties affect the decisions of companies investing in recycling facilities. Plastic recyclers want to ensure a stable supply of inputs, i.e. plastic waste. Import restrictions on plastic waste are not a favourable policy for recyclers. If recyclers are forced to rely on domestic plastic waste, they may not secure enough volume. Governments should create a conducive business environment for investment in the plastic recycling industry.

Appropriate import regulations should be considered, taking into account differences in the quality of plastic waste. The Philippines allows the import of washed and sorted plastic waste but requires prior notice and consent for importing unsorted and unwashed plastic waste.

In the prior notice and consent process, the government checks whether the recycling facility has enough capacity to wash and sort the plastic wastes. If this assessment is positive, the government allows the import of unsorted and unwashed plastic waste.

Figure 8: Insufficient Capacity for Plastic Recycling

Source: Author.

Plastic waste generator

Production of goods

Sorting, shredding,

washing

Insufficient capacity in world

Pelletising

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When a recycler is planning to invest in a recycling facility in a country, one of the important condition is the availability of recyclable waste. It is better for the recycler to get plastic waste from various sources, including domestic sources and foreign sources. If a country prohibits import of plastic waste, recyclers may not want to invest in the country. If the government allow only recyclers with pollution control measures to import recyclable waste, recyclers without pollution control may invest in pollution control.

9. Conclusion

This paper has shown various policy options across the supply chain for plastic waste and recycled products. The first step in formulating policy for a circular economy of plastics is to conduct a survey to understand the current recyclable plastics market, including the value of plastic waste, the existing collection system, the destination of recyclable waste, the capacity of the plastic recycling industry, and the demand for recycled plastics.

An appropriate source separation programme is one of the starting points for promoting recycling. Such a programme should determine the type of plastic waste to be targeted and consider downstream recycling industries.

Plastic recycling industries also need a recycled products market. In remote areas, reduced transportation costs for plastic waste are key to creating recycling flows. To reduce the transaction costs, industrial standards can be used for recycled products. Governments can also stimulate the market for recycled products by using such standards in green procurement programmes. To promote plastic recycling, governments need to understand the supply chain of recycled products – from product design, waste generation, collection and transportation, and recycling, to production using recycled plastics. Governments should also formulate appropriate policies by identifying bottlenecks in the plastics recycling chain.

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About ERIA

The Economic Research Institute for ASEAN and East Asia (ERIA) is an international organisation providing research and policy support to ASEAN and the broader East Asia region and the ASEAN and East Asia summit processes. ERIA’s policy research focuses on three pillars: deepening economic integration, narrowing development gaps, and achieving sustainable development in the region.

ERIA’s establishment was formally agreed amongst 16 heads of government at the Third East Asia Summit in Sinagpore on 21 November 2007. It works closely with the ASEAN Secretrariat, researchers, and research instutes from East Asia.

ERIA is based in Jakarta, Indonesia.