X-Received: by 2002:a0c:8ecc:0:b0:473:2fa4:df7c with SMTP id y12-20020a0c8ecc000000b004732fa4df7cmr22582687qvb.55.1658180520530;
        Mon, 18 Jul 2022 14:42:00 -0700 (PDT)
X-Received: by 2002:a05:622a:134e:b0:31e:f195:2560 with SMTP id
 w14-20020a05622a134e00b0031ef1952560mr4511158qtk.2.1658180520344; Mon, 18 Jul
 2022 14:42:00 -0700 (PDT)
Path: ...!news-out.google.com!nntp.google.com!postnews.google.com!google-groups.googlegroups.com!not-for-mail
Newsgroups: alt.politics.economics
Date: Mon, 18 Jul 2022 14:42:00 -0700 (PDT)
Injection-Info: google-groups.googlegroups.com; posting-host=2606:a000:bfc0:7f:253c:c34d:b3db:7c8f;
 posting-account=zTJuwAkAAADCZHWn_OD4_sCSsA2o1RHv
NNTP-Posting-Host: 2606:a000:bfc0:7f:253c:c34d:b3db:7c8f
User-Agent: G2/1.0
MIME-Version: 1.0
Message-ID: <3c275bfd-17b7-415a-a8d3-acf5433e752an@googlegroups.com>
Subject: Soda Brands Are About to Get Possessive of Their Trash
From: davidp <lessgovt@gmail.com>
Injection-Date: Mon, 18 Jul 2022 21:42:00 +0000
Content-Type: text/plain; charset="UTF-8"
Content-Transfer-Encoding: quoted-printable
Bytes: 5207
Lines: 69

Soda Brands Are About to Get Possessive of Their Trash
By Carol Ryan, July 12, 2022, WSJ

A fight is brewing over who gets first dibs on the plastic drinks bottles t=
hat consumers throw away.

Bottle trash has become a hot commodity as companies try to make their good=
s and packaging more sustainable. The price of recycled polyethylene tereph=
thalate, or PET, flake, which is usually made out of old drink containers, =
is up around 35% in Europe since January, according to data from Independen=
t Commodity Intelligence Services. Higher oil and petrochemical prices have=
 also pushed up the cost of virgin PET plastic, but not by as much.

Recycled PET became more expensive than virgin plastic in 2019 in both Euro=
pe and the U.S., not long after big consumer brands such as Coca-Cola and N=
estl=C3=A9 began making green-packaging commitments. The premium in Europe =
hit a record of =E2=82=AC460 a metric ton in late June this year, according=
 to S&P Global Platts. Prices for recycled plastic have eased slightly sinc=
e then=E2=80=94supply increases in summer months, when more bottled drinks =
are consumed and containers find their way back into the recycling system.

The relief will be temporary. Government policies that set out minimum recy=
cled content levels for plastic packaging are driving more companies into t=
he market for recycled PET. In California, companies will need to use 50% r=
ecycled material in bottles by 2030. The European Union has introduced dead=
lines covering all plastic packaging.

This will be challenging as bottle collection rates are low=E2=80=94only ar=
ound 27% in the U.S., based on the latest data available from the National =
Association for PET Container Resources. To achieve 30% recycled content in=
 bottles by the end of the decade, output of recycled PET needs to increase=
 by an annual compound rate of 45%, ICIS calculates.

The trend points to higher plastic bills for consumer staples companies. On=
e of their responses will likely be trying to prevent nonfood industries fr=
om taking all old bottles. Around 70% of used bottles go to other sectors, =
often to make clothes, carpets or cosmetics packaging, leaving less than a =
third for the industry that produces them.

That looks unsustainable as the beverage industry currently faces tougher p=
lastic regulations than fashion brands. The rollout of extended producer re=
sponsibility schemes for packaging=E2=80=94all EU countries must have one i=
n place by 2024=E2=80=94means companies that put plastic on the market will=
 pay for its collection and recycling after use in many places.

Trade bodies for the soft-drink industry say this could lead to a situation=
 where clothing companies benefit from increased investment in bottle recyc=
ling infrastructure without any obligation to pay for it. In Europe, bevera=
ge companies are already lobbying for priority access to bottle waste.

If they succeed, it would be a blow for fast-fashion chains such as H & M a=
nd Zara, who haven=E2=80=99t figured out how to recycle their own waste at =
scale. Only 14% of global polyester is made from recycled material, almost =
all of it spun from drinks bottles. Sportswear giant Nike uses over a billi=
on plastic bottles a year in its goods. Limiting access would force these i=
ndustries to invest in technology to recycle old clothes and footwear into =
reusable fibers.

Any new rules would be resisted by other sectors such as carpet makers and =
auto companies, which also rely on bottles to manufacture goods and compone=
nts. The recycling industry, currently enjoying high prices after decades o=
f poor returns, may argue that restrictions would deter investment and prov=
e counterproductive.

Still, the more beverage companies step in to fund bottle recycling program=
s, the stronger their claim on the industry=E2=80=99s increasingly valuable=
 trash.

https://www.wsj.com/articles/soda-brands-are-about-to-get-possessive-of-the=
ir-trash-11657623940