FAQ: International Strategies for a Circular Economy
17.04.2025
The circular economy is no longer just an ecological ideal in the plastics and rubber industry—it’s becoming a driver of innovation and competitiveness. From Europe and North America to Asia, governments, businesses, and associations are developing strategies to conserve resources, promote recyclates, and reduce emissions. But how do these approaches differ? And how successful are they? Our FAQ provides insights.
At K 2025, companies will be showcasing the progress they have already made and other solutions for the future under the guiding theme of ‘Shaping the circular economy’.
Thomas Franken, Director K Messe Düsseldorf
1. What does circular economy mean in the plastics industry?
Circular Economy (CE) in plastics means keeping materials in the loop—through reuse, recycling, the use of recyclates, and recycling-friendly product design. The goal is to reduce resource consumption and waste while increasing economic efficiency. At K 2025, CE will be featured in its own dedicated area within „The Power of Plastics Forum at K 2025 – Green – Smart – Responsible!“, offering in-depth information for visitors. You can also explore this page on the K-Mag: Circular Economy in the Rubber and Plastics Industry.
2. What are some examples of international circular economy strategies?
EU: The European Green Deal includes initiatives like the Circular Plastics Alliance, which aims to strengthen the market for recycled plastics through recyclate quotas and digital product passports. Regulatory frameworks such as the Circular Economy Action Plan (CEAP), the Packaging and Packaging Waste Regulation (PPWR), and the Single-Use Plastics Directive (SUPD) drive the shift through mandatory recycling targets, recyclate content requirements, and extended producer responsibility (EPR).
China: Within its 14th Five-Year Plan (until 2025), China is pursuing a national circular economy strategy to improve resource efficiency and build the necessary industrial infrastructure, such as modern collection and sorting systems and battery recycling programs.
Japan & South Korea: Both countries pursue CE through early legislation, technological advancement, and strong public participation.
Japan: The Plastic Resource Circulation Act (2022) mandates recycling plans and promotes recyclate use. Companies have been required to participate in collection and recycling systems since the 1990s.
South Korea: The Act for Promotion of Transition to a Circular Economy Society follows a systemic, tech-driven approach: recyclability targets, design-for-recycling principles, and specific regulations for hard-to-recycle products. Companies benefit from innovation incentives such as temporary exemptions.
USA: State-level EPR programs and voluntary industry initiatives dominate. A lack of federal coordination results in low recycling rates and minimal recyclate usage. Local municipalities oversee participation in recycling programs—leading to a fragmented system.
Latin America: The integration of informal collection systems into official recycling structures continues to progress. Countries like Chile “Ley REP”, Colombia “Basura Cero”, and Brazil “voluntary industry solutions” are establishing national take-back programs. Uruguay incentivizes packaging recycling under the Integrated Waste Management Law (Ley 19.829).
3. How are companies implementing these strategies?
Global leaders like SABIC, Dow, and Borealis are developing chemical recycling processes, closed-loop systems, and digital material flow platforms. Worldwide, platforms now connect suppliers and buyers of recyclates.
4. What are the biggest global challenges?
- Fragmented regulatory frameworks
- Limited availability of high-quality recyclates
- Price disparities between virgin materials and recyclates
- Lack of infrastructure, especially in developing regions
5. Which technologies are advancing the circular economy?
- Chemical recycling (e.g., pyrolysis, depolymerization)
- AI-based sorting and quality control systems
- Digital tracking tools (e.g., blockchain, product passports)
- Lifecycle analysis tools
6. How can design for recycling be strengthened globally?
Global standards (such as ISO), industry-specific design guidelines, and open-source tools help ensure products are designed for recyclability right from the start.
7. What role does policy play?
International forums like the UNEP Plastic Treaty or the OECD Global Forum define overarching frameworks. National policies provide incentives for investments and innovations in circular solutions.
8. What does this mean for SMEs globally?
Small and medium-sized enterprises benefit from funding programs, digital platforms, and partnerships. However, they must navigate increased compliance costs and raw material prices. Creativity is key:
Ulrich Reifenhäuser, Chairman of the Exhibitor Advisory Board of K:
"Well-established paths and processes are being scrutinised and reassessed at all levels, and the risks of introducing innovations are being accepted more readily. The focus on customer needs is increasing once again and new solutions should bring successful improvements. For this reason alone, K 2025 will showcase a range of new and further technological developments."
9. How is the global market evolving?
While Europe is regulatory-driven, Asia and North America are developing new technologies and business models. The overall trend is toward more connected and circular value chains.
10. What can individuals and businesses contribute?
Opting for reusable over disposable products, sorting waste correctly, choosing products with recycled content, and supporting circular solutions across the value chain are all effective steps.
Exhibitors & products around recycling
- Recycling plants
- Separating and sorting systems for waste
- Size reduction equipment (crushers, shredders, grinders)
- Compounding lines
- Recyclates
Simone Ernst (Editorial team K-Mag)