But risks lie ahead if Italy and the EU bfail to recognise its strategic importance
The compostable bioplastics sector continues to grow: volumes, turnover, companies and jobs are all increasing. Growth has also been seen in recycling rates for compostable bioplastic packaging, the population covered and the financial payments made to municipalities. But illegal activities and “reusable” items are also on the rise, and there is cause for concern from contradictory EU directives, the dumping of Asian products and the lack of Italian laws to support a highly innovative model. Assobioplastiche, BIOREPACK and CIC call for recognition of the sector’s value and for stronger control mechanisms
Rome, 6 July 2023 - The 9th Report on the Italian compostable bioplastics sector, presented today in Rome at the meeting organised by Assobioplastiche, the BIOREPACK Consortium and CIC (the Italian Composting and Biogas Association), provided a snapshot of a growing sector. One that invests heavily in R&D, typical of highly innovative sectors. It has many positive impacts on Italy, from the perspective of industry and synergies with other sectors, particularly agriculture, and in terms of environmental benefits, The bioplastics sector plays a key role in the growth of the valuable circular bioeconomy sector, of which Italy is a continental leader.
THE NUMBERS BEHIND A SUCCESSFUL MODEL
The value of this integrated model which, from the production of compostable biopolymers goes all the way to the organic recycling system and processing in composting plants, is clear from the numbers contained in the study produced by Plastic Consult, an independent company that conducts studies and market analysis on the plastics sector.
In 2022 the biodegradable and compostable plastics industry comprised 271 companies, including basic chemicals and intermediates producers (5), producers and distributors of granules (19), primary processors (182) and secondary processors (65). A total of 127,950 tonnes of compostable items was produced (2.1% higher than in 2021 with a growth rate of 226% between 2012 and 2022), with a total turnover of €1,168 billion (10.1% higher than 2021 and an average annual growth rate of 10% since 2021, when the result was €370 million). The number of employees, those people working for companies in the sector directly responsible for products that enter the compostable plastics chain, was 3,005 (+3.8%), representing growth of 135% in a little over 10 years.
Among the main sectors in which bioplastics are used, the greatest increase was once again noted in disposable products (plates, cups and cutlery), 23% higher than in 2021, followed by various types of packaging film (+7% for non-food uses and +3% for food packaging film) and agricultural film, up 2%. Historical sectors (carrier bags and ultralight bags) remained at best unchanged.
The results for recycling activities were equally positive: organic recycling of compostable bioplastics in 2022 reached 60.7% of the total released for consumption, 9 percentage points higher than in 2021, exceeding the targets set for 2030 (55%) 8 years ahead of time. The number of municipalities in the Biorepack consortium reached 3,700 (47.8% of all municipalities), representing 38 million inhabitants (64% of the Italian population, an increase of 3 percentage points from 2021). Consortium partners received payments of €9.3 million, €1.8 million more than in 2021, to cover the cost of the collection, transport and processing of compostable bioplastic packaging disposed of together with domestic organic waste.
No less significant were the results for processing: the 293 composting plants across the various Italian regions processed 4 million tonnes of organic waste, while a further 4.3 million tonnes of organic waste was processed by another 63 integrated plants (anaerobic digestion and composting). Biological processing of OFMSW made it possible to avoid 5.4 megatonnes of CO2 equivalent and to produce a further 2 million tonnes of compost (34% of which bearing the CIC logo), restoring 440,000 tonnes of organic carbon to the soil.
CONCERNS FOR THE FUTURE
Despite the unquestionably positive numbers in the various stages of the production chain, which confirm the soundness of the model adopted, there are clouds on the horizon and operators are naturally concerned. In the short term (2023), the overall reduction in final consumption and the drop in spending by households, suffering from the highest levels of inflation in the last decade as well as the significant increase in interest rates, point to a contraction in industrial production of compostable products this year. Even disposable compostable items, which supported the segment last year, are facing great difficulties owing to the widespread use of so-called reusable plates made of conventional plastic. International factors, which encourage people to seek lower prices, are stimulating illegal activities: the presence of non-compliant bags is clearly on the rise.
Non-compliant bags
Although the law prohibiting the use of non-compliant bags has been in force for over 10 years, and in spite of efforts by the police and the sector, the proportion of non-compliant bags rose from 22% in 2021 to 28% in 2022. Various illegal activities have been noted: one frequent example is the marketing of bags for shopping or loose food items that do not comply with any legal requirements (biodegradability and compostability certifications, renewability and related labelling). The use of false or misleading environmental slogans is also commonplace. In some cases compostability certification logos are printed on bags that do not meet the requirements under standard EN 13432, such as bags containing significant levels of polyethylene, a non-compostable raw material which is used to cut production costs. There are also instances of fruit and vegetable bags containing less than 60% bio-based raw materials. This is a fraud committed on those who buy them in good faith.
“Reusable” items
As for so-called reusable items, shelves in shops and supermarkets are increasingly stocked with plates, cups and cutlery made of traditional plastic but which are sold as being “reusable”. This is a technical ploy to get around the law that bans single-use items in order to offer products which are obviously much cheaper to produce.
“All of these phenomena cause damage from various perspectives,” explained Marco Versari, president of Biorepack. “They are eroding the growth margins of companies operating legally, which reduces their capacity to make investments that have positive impacts on employment and on finding innovative solutions with lower environmental impacts. They are also creating financial problems for municipalities involved in the separate collection of organic waste: lower quality waste collection reduces the financial payments we can provide as a consortium.”
Then there are the negative impacts for the environment. These cause serious concerns for those closely involved in the organic recycling of compostable bioplastics. “Items made from traditional plastics account for the largest quantity of irregular elements found at our composting plants,” said Lella Miccolis, president of the Italian Composting and Biogas Association (CIC). “These products “pollute” the collection of household food waste which reduces the amount of compost that can be produced at our plants. It’s worth remembering that compost is a valid alternative derived through the circular economy which helps to restore fertility to farmland without the need to use chemical fertilisers.”
The requests of the sector
A joint appeal has therefore been made by Assobioplastiche, Biorepack and the CIC: in order to fight illegal activities it is necessary to rethink and strengthen control mechanisms, in which the various law enforcement agencies are already involved.
But interventions are also needed to recognise the strategic value of the entire sector. Not least because the situation has been made even more complex by international factors: from European directives potentially capable of crippling an exemplary sector to the actions of large countries looking to establish themselves in the sector, including through dangerous dumping mechanisms.
“If countries like the United States and China have understood the opportunities presented by this market and are starting to act on multiple fronts, policies are needed to defend and value the industry which has generated innovation, employment and growth for Italy and to defend our natural capital. In the face of these prospects, we reiterate, for example, the need for recognition of the strategic value of our sector, including through a suitable ATECO/NACE classification. It is also essential to provide a subsidised VAT rate to recognise the positive intrinsic qualities of compostable bioplastics and ensure that inspection bodies are allocated the resources obtained from the fines imposed on producers of illegal products," said Luca Bianconi, president of Assobioplastiche.
ASSOBIOPLASTICHE Giuseppe Iasparra press@assobioplastiche.org Mob. +39 349 084 2408
BIOREPACK CONSORTIUM Barabino & Partners S.p.A.
Serena Galdo s.galdo@barabino.it Mob: +39 345.14.64.356
Domenico Lofano d.lofano@barabino.it Mob: +39 334.14.12.995
CONSORZIO CIC CONSORTIUM Matteo Nardi matteo@agenziapressplay.it Mob. +39 333 568 7925
BIOREPACK, the National Consortium for the Organic Recycling of Biodegradable and Compostable Plastic Packaging, is a non-profit consortium under private law, with articles of association approved by a decree from the Ministry for Ecological Transition in agreement with the Ministry for Economic Development, with the aim of ensuring development of the differentiated collection and organic recycling of bioplastics together with the organic fraction of waste (article 182 c of the Consolidated Environment Law - Legislative Decree no. 152/2006). It is made up of more than 200 companies active in the production of raw materials, processing and industrial use of UNI EN 13432-certified compostable bioplastic packaging, as well as its organic recycling.
“A balanced text which corrects distortions and recognises the value of organic recycling”
Contacts Telephone: 02 500707.1 Email: info@biorepack.org Certified email: consorzio@pec.biorepack.org Certified email for agreements: convenzioni@pec.biorepack.org
Headquarters Corso Venezia, 12 20021 Milan
Registered office Via Cola di Rienzo, 212 00192 Rome VAT Number: 15013551005 Economic and Administrative Index (REA): RM - 1562358 SDI: I7KMRGL