[Plastic Waste War] Recycling Plastic but Facing Environmental Charges? ... 'Circular Economy' Hindered at Every Turn

Lack of Standards and Practical Guidelines for Chemical Recycling Performance Calculation
Greenhouse Gas Reduction Should Be Recognized and Added to Green Products

LG Chem plans to operate a plastic waste pyrolysis plant in Dangjin, Chungnam, next year. This plant, which applies a supercritical method that decomposes plastic using steam as a heat source, will produce 20,000 tons of plastic waste pyrolysis oil annually. Although the plant's completion date is approaching, operating it under current conditions would only result in losses. This is because there is no buyer under existing laws.

The "Petroleum and Petroleum Substitute Fuel Business Act" (Petroleum Business Act) prohibits the use of non-petroleum raw materials at refineries. This means pyrolysis oil cannot be used. However, a recent resolution by the National Assembly's Industry, Trade, and Small and Medium Enterprises Committee to amend the Petroleum Business Act to allow the use of eco-friendly refining raw materials other than petroleum has finally provided a clue to resolving LG Chem's dilemma.

[Image source=Yonhap News]

As the 21st National Assembly, which is nearing its end, has decided to amend a key law that has hindered plastic waste recycling, the petrochemical industry is feeling relieved.

However, the industry complains that regulations that hinder companies from advancing toward the globally emerging "plastic circular economy" are lurking everywhere. They also point out the need for support measures to smoothly induce business transformation in line with the carbon-neutral era.

The petrochemical industry is demanding that waste disposal fees be reduced for products made by chemically recycling plastic waste. Waste disposal fees are a system that requires manufacturers of products, materials, or containers that are difficult to recycle and may cause waste management problems to bear the processing costs. These fees are imposed on pesticides, gum, disposable diapers, cigarettes, and plastics. Currently, a fee of 15 to 150 KRW per kilogram of plastic products must be paid.

However, fees are exempted if a certain percentage of the product is recycled, but there are no standards or practical guidelines yet to calculate the performance of chemical recycling. This means that even products made from 100% chemically recycled materials must pay the fees.

There are two main methods of recycling plastic waste: physical and chemical. The physical method involves shredding plastic waste and remaking plastic products, but it is often difficult to recycle depending on the type of plastic or impurities, and the quality deteriorates. The chemical method involves decomposing plastic at high temperature and pressure to use it as raw material; this method is more complex and requires higher initial investment than the physical method.

There is another problem. To chemically recycle plastic waste, companies must purchase shredded plastic waste. However, under current law, it is unclear whether shredded plastic waste is considered a "recycled product." If it is not a recycled product, a separate license for "waste recycling business" must be obtained, and it will be subject to regulations under the Waste Management Act.

The problem would be resolved if shredded plastic waste is recognized as a circulating resource under the Framework Act on Resource Circulation. However, since the Framework Act on Resource Circulation is scheduled to be fully revised into the "Act on Promotion of Circular Economy Society" (Circular Economy Promotion Act) starting January 1 next year, related discussions have not progressed quickly. The Circular Economy Promotion Act stipulates that the Minister of Environment can designate necessary items as circulating resources. The petrochemical industry is urgently requesting that shredded plastic waste be designated as a circulating resource.

Support to induce plastic waste recycling is also urgent. The Ministry of Environment plans to provide recycling subsidies for chemical recycling but is currently considering only the pyrolysis method. The petrochemical industry argues that other recycling methods such as depolymerization or solvent extraction should also be included as support targets to promote diverse recycling methods.

They also want greenhouse gas reduction achievements from chemical recycling to be recognized or for chemically recycled products to be designated as green products to encourage their use. Green products are defined under the Act on Promotion of Purchase of Green Products as products that minimize energy or resource input and the generation of greenhouse gases and pollutants. Local governments and public institutions are required to purchase green products when procuring goods.

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