The Global Impact Coalition (GIC), a CEO-led initiative that originated at the World Economic Forum, has initiated a circularity pilot for automotive plastics in collaboration with seven global companies in the chemical and recycling sectors—BASF, Covestro, LyondellBasell, Mitsubishi Chemical Group, SABIC, SUEZ, and Syensqo. This effort aims to tackle the challenge of recycling plastics from end-of-life vehicles (ELVs).

Source: RecyclingToday

According to the GIC, the European Union alone incinerates or landfills 800 million metric tons of ELV plastics each year, leading to considerable environmental and economic setbacks. The GIC asserts that this pilot project is a crucial first step toward transforming these materials into valuable resources, allowing the automotive industry to significantly enhance the rate of closed-loop recycled plastics.

The pilot will be conducted in the Netherlands and Germany, involving the dismantling, shredding, and sorting of plastic fragments categorized into ten different types of polymers and automotive components sourced from 100 ELVs. The sorted plastics will then be recycled using the specific technologies of the collaborating companies. With a focus on bulk aggregation of ELV plastics, this pilot aims to test and refine a new method for dismantling, sorting, and recycling plastic fractions in real-world settings.

To ensure its success, the GIC has partnered with dismantlers, shredding companies, and sorting facilities to build a strong, interconnected network. The GIC emphasizes that by consolidating demand for a variety of ELV polymers, this initiative seeks to showcase the economic viability of large-scale closed-loop recycling systems. The project members collectively represent a substantial share of the global plastics industry.

Aligning with Regional Sustainability Mandates

The GIC states that the pilot aligns with emerging regulatory frameworks, including the EU's proposed ELV regulations, which require that by 2030, 25% of plastics in new vehicles must come from recycled materials, with a quarter of that sourced from closed-loop recycling of ELVs. The organization aims to validate the scalability of solutions capable of meeting these targets.

By optimizing processes and achieving purer polymer fractions, the GIC believes this pilot will yield actionable insights for meeting regulatory requirements. Furthermore, it seeks to demonstrate the potential for a scalable and sustainable business model that can be implemented on a global scale.