The reduction of plastic waste has been receiving increasing international recognition in recent years as one of the important missions of the 21st century – one that is central to achieving a more sustainable economy and that will depend heavily on the co-ordinated efforts of governments, industries and consumers around the world. A growing number of companies, from SMEs to MNCs, are becoming actively involved in sustainability initiatives that are focusing on promoting stronger environmental awareness and reducing plastic waste in the value chain.
Recent statistics highlight that solving the global issue of plastic waste is imperative: By various estimates, somewhere between 8 and 12 million tonnes of plastic waste enter the world’s oceans each year, with a growing amount of microplastics not only devastating marine ecosystems, but also entering the food chain. According to a recent study by The Pew Charitable Trusts in partnership with SYSTEMIQ, the annual amount of plastic waste that ends up in the ocean could nearly triple from an estimated 11 million tonnes in 2016 to approximately 29 million tonnes by 2040, were business to continue as usual.
The study maps out a multi-layered approach based on the existing technological capabilities of corporations and governments, in order to address the issue and potentially achieve a plastic waste reduction of up to 80% over the next 20 years. Partial solutions include reducing the use of plastic in favour of compostable materials, increasing mechanical recycling capacities and reducing plastic waste exports to countries with underdeveloped waste management infrastructure. United commitment along the entire value chain from production to consumption will be a crucial requirement for the successful implementation of a system change over the long run.
Aside from environmental considerations, improvements in the recovery of plastic recyclables could also create substantial economic value. In early 2019, the Alliance to End Plastic Waste was founded as a non-profit organisation to tackle the issue of plastic waste leakage into the ocean and promote circular solutions around the globe. In its Progress Report 2020, the organisation estimates the value of plastic lost to the economy after first use at US$120 billion each year. According to the report, only 14% of plastic packaging was collected for recycling, while the lion’s share ended up in landfills or the environment.
The Alliance’s nearly 50 member companies have pledged a combined US$1.5 billion so far for the development of sustainable solutions to turn “waste to worth”, alleviate the impact on the environment and pave the way for a circular economy. Companies involved in the initiative include DAX-listed companies BASF, Covestro and Henkel, as well as international oil and gas heavyweights like ExxonMobil, Shell and Sinopec. Over five years, the initiative strives to promote projects in cities and communities around the world that are particularly impacted by the burden of plastic waste, to reuse and recycle plastics, tap into new income potentials and improve livelihoods.
Hong Kong’s Plastic Strategy
Plastic waste poses an urgent challenge for Hong Kong. In 2018, 4.17 million tonnes of municipal solid waste (MSW) were dumped in Hong Kong’s landfills – equivalent to 11,428 tonnes per day and up by 6.5% from 2017. The average daily disposal rate per person stood at 1.53 kg. With a total daily volume of 2,343 tonnes, plastic waste made up the third largest share of MSW at 21%, behind food (31%) and paper (24%).
From 2017 to 2018, the recovery rate of plastic recyclables in Hong Kong declined by almost half, from 13% to just 7%. This has been attributed in part to China’s restriction on recyclable waste imports from other economies including the Hong Kong SAR, which took effect at the start of 2018 and discouraged local collectors of recyclables. In the years since, Hong Kong has not only had to divert its own scrap plastic to other countries in the region, but has also become a major re-exporter of plastic waste from the world’s leading industrial countries to Southeast Asia.
In the first three quarters of 2020, Hong Kong imported large volumes of plastic waste from countries like the US (63,300 tonnes), Germany (38,400 tonnes) and Japan (29,300 tonnes), while re-exporting mainly to Vietnam (45,700 tonnes), Thailand (26,300 tonnes) and Malaysia (14,100 tonnes), as trade data from the Census and Statistics Department shows.
With plastic waste piling up in ever greater amounts, Hong Kong is striving to expand its own domestic recycling capacity. In 2018, the volume of locally recycled plastic more than quadrupled by year-on-year comparison to 55,800 tonnes. While this only covered a small fraction of the plastic waste generated that year, the steep upward trend has been noted as an encouraging sign, indicating the commitment of key players in the recycling industry and the government to pursue further advancements in this direction.
In September 2019, German recycling company ALBA Group together with the local waste management firm Baguio Waste Management & Recycling Ltd. and bottling company Swire Coca-Cola Ltd. held the ground-breaking ceremony for Hong Kong’s first polyethylene terephthalate (PET) and high-density polyethylene (HDPE) recycling plant at Eco Park in Tuen Mun. Upon its completion, the new facility will process 35,000 tonnes of plastic waste annually. The ceremony was witnessed by the Hon. Wong Kam-sing, Secretary for the Environment, who stated that the new facility would fall “perfectly in line with [the Government’s] plastic waste management and recycling work.”
Aside from ramping up domestic recycling, Hong Kong has been working on mitigating the amount of plastic and other waste in the first place. An internationally proven method to raise public awareness and drive behavioural change in the past has been the introduction of financial incentives to reduce waste. Following the example set by cities like Taipei and Seoul twenty-odd years ago, the Environmental Protection Department introduced a bill in late 2018 to establish a quantity-based charging system for MSW disposal in Hong Kong. However, after multiple discussion rounds, work on the bill was eventually discontinued by lawmakers in June this year.
In lieu of legislative action, the government has vowed to focus on alternative measures to promote waste reduction. These include pilot schemes for the collection of non-commercial recyclable waste, as well as educational programmes about waste separation and recycling for Hong Kong communities, such as the EPD’s ‘Reduce and Recycle 2.0’ campaign launched this summer. As things stand, implementing effective solutions to curb Hong Kong’s plastic consumption, will require long-term commitment and persistence from decision-makers, industry stakeholders and civil society at large.
Sustainable waste management is becoming an ever more important economic factor in Hong Kong and beyond. Given the international trend towards stricter environmental regulations and requirements, as well as increasing scrutiny from investors and consumers regarding ESG performance, providers of innovative solutions in resource efficiency and waste management could capitalise on long-term opportunities in Hong Kong and the regional market. GIC is continuously promoting environmental protection technologies and services from specialised German companies, and facilitating market access in Greater China. Plastic waste processing is sure to remain a key area of focus for the foreseeable future.
By Hendrik Hillebrecht
Related Links
- Source: Alliance to End Plastic Waste – Progress Report 2020
- Source: CENSTATD – Interactive Data Dissemination Service for Trade Statistics
- Source: Environment Bureau – Blueprint for Sustainable Use of Resources 2013-2022
- Source: EPD – Monitoring of Solid Waste in Hong Kong 2018
- Source: HKSARG – Government statement on Waste Disposal Bill 2018 Press Release
- Source: New Life Plastics Ltd. – Press Release
- Source: The Pew Charitable Trusts / SYSTEMIQ – Breaking the Plastic Wave
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