Report

Balanced policy support for biobased and recycled plastic

To get on track in realising net zero greenhouse gas (GHG) emissions and a circular economy in the Dutch chemical industry in 2050, significant steps need to be taken towards 2030. The Dutch stakeholder organisation ‘Groene Chemie, Nieuwe Economie’ (GCNE) is seeking to create balanced governmental support of both recycled plastic and biobased plastic, in order to shift away from virgin fossil-based plastics and move towards circular chemistry. It also aims for a fair stimulation of biomass in both fuel and material applications in order to reach a level playing field between both applications.

The current situation in the Netherlands is that the use of biomass for fuel applications is supported more than chemical and material applications. The recycled and biobased polymer obligation (Nationale Circulaire Plastic Norm), which is planned to be introduced in 2027, does provide an incentive for the use of biobased plastic. However, there are currently insufficient incentives for an increasing uptake of biobased plastics. Both the use of recycled plastic and biobased plastic will be needed to move to a circular economy.

Policy options such as the inclusion of incentives for biobased plastics in Extended Producer Responsibility (EPR) systems and the introduction of a minimum subtarget for biobased plastic in the recycled and biobased polymer obligation could contribute to the realisation of a balanced policy support of both recycled and biobased plastics in the Netherlands. Furthermore, anticipated EU policy instruments such as a European polymer obligation and an Industrial Sustainable Carbon Regulation have the potential to contribute to a level playing field between biomass use for fuel and material applications, as well as between between circular plastics and virgin fossil plastics, depending on their detailed design.