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2790. Economic and Environmental Implications of Transferring Green Feedstock Credits

Invited abstract in session WB-23: Recycling, stream Circular Economy, Remanufacturing and Recycling .

Wednesday, 10:30-12:00
Room: 82 (building: 116)

Authors (first author is the speaker)

1. Müge Çakan
University of Mannheim
2. Moritz Fleischmann
Chair of Logistics and Supply Chain Management, University of Mannheim

Abstract

Chemical recycling represents a new option for addressing challenges related to mixed and contaminated plastic waste. The chemical composition of the resulting feedstock is equivalent to that of virgin feedstock. Consequently, a product created from a blend of recycled and virgin feedstock exhibits the same quality as a product exclusively derived from virgin feedstock. Thus, the sole distinction between a “green” and a “brown” product lies in the claimed origin of the feedstock.

This opens the option to detach recycling credits from the physical product, allowing for credit transfer without the necessity for physical transport. However, this practice, known as multi-site attribution, is controversial. While industry claims attribution flexibility to be necessary for the economic viability of plastics recycling non-governmental organizations (NGOs) strongly oppose it and position it as green-washing. Our research addresses this controversy and seeks to unravel the intricate dynamics of chemical recycling, attribution policies, and the evolving landscape of the recycling industry. Our aim is to assess the effects of various attribution policies on the environmental and economic performance of manufacturers through the application of an analytical model. Additionally, we aspire to provide policymakers with valuable insights into the ramifications of the transfer of recycling credits.

Keywords

Status: accepted

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