Europe Urged to Transition to Fossil-Free Plastics to Meet Climate Goals
A new report by Systemiq highlights the urgent need for Europe to transition to fossil-free plastics to meet its climate goals. The report, titled 'Accelerating the Production of Fossil-Free Virgin Plastics at Scale', warns that nearly 80% of plastics produced in Europe use virgin fossil feedstocks, which could emit up to 180 Mt of CO2 equivalent per year by 2050.
Systemiq identifies regulatory uncertainty and commercial risks as significant barriers to the adoption of the green-methanol-to-olefins (MTO) process. The report calls for clearer policies and improved market confidence to accelerate the production of fossil-free virgin plastics at scale, including MTO. MTO offers fully segregated supply and traceability, matching the cost of abated fossil production, and is compatible with existing infrastructure.
The report suggests four priority actions to achieve this transition. These include mobilizing early-adopter customers, forefronting fossil-free plastics in EU frameworks, legally defining green methanol-based plastics, and introducing demand-side targets and carbon pricing. Europe's MTO production could lessen fossil import reliance, improve supply chain resilience, and boost job retention in the chemical and plastics sector, with up to €30-40 billion in new investment. Even with EU initiatives, only up to 50% of plastics demand will be met by recycling by 2050, requiring approximately 28 million tonnes of virgin plastics annually. MTO uses sustainable biomass, captured biogenic CO2, and other renewable carbon sources to produce recyclable polyethylene and polypropylene, reducing emissions by up to 7 tonnes per tonne of plastic produced.
Systemiq's report underscores the critical role of fossil-free plastics in Europe's transition to a low-carbon economy. By accelerating the production of these plastics at scale, particularly through the MTO process, Europe can significantly reduce emissions, improve supply chain resilience, and strengthen its clean tech leadership. The report serves as a call to action for policymakers, industry players, and consumers to embrace this transition and create a more sustainable future for plastics.
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