Energy Giant CEO Says Strict Plastic Recycling Rules Could Stifle Innovation

Plastics News China, citing Reuters, reported that OMV CEO Alfred Stern warned on Thursday at a World Economic Forum panel discussion that overly strict regulations for building a circular economy for plastics could nip emerging technologies in the bud before they can be commercialized.

The panel discussion took place in Davos, a Swiss Alpine resort. Stern pointed out that the industry is facing the "innovator's dilemma," where new processes have to compete with petrochemical supply chains that have been refined over decades. He mentioned that producing, using, and disposing of plastic materials is less expensive, while emphasizing the need for economic incentives to drive investment in collection and sorting systems.

Reportedly, the Austrian oil and gas group sees recycling as a growth opportunity and is heavily investing in it, including partnering with service provider Interzero to build Europe's largest sorting facility. Currently, the group has a mechanical recycling capacity of 200,000 tons and a chemical recycling capacity of 16,000 tons.

Stern also urged negotiators of the planned global plastics treaty to give full consideration to regional differences, and said Europe should stop exporting waste, calling it valuable raw materials that should remain in the region.