Big oil producers are pinning their future growth on the world’s insatiable appetite for plastic. — AFP pic
But oil producers now see plastics as the biggest driver of future demand, according to a new report by financial think tank Carbon Tracker and sustainability and development group Systemiq. It said the industry now plans to invest at least US$400 billion in the next five years to expand supply for so-called virgin plastics by a quarter, but warned that this risked huge losses for investors.
Some 350 million tonnes of plastic are produced annually — about half in Asia, 19 per cent in North America and 16 per cent in Europe. This has spurred governments to mandate greater recycling, impose tighter restrictions on waste disposal and in some cases introduce bans on single-use items. The Carbon Tracker report forecast that mounting pressure to cut plastic use could slash growth in demand for virgin plastic from 4 per cent a year to below 1 per cent, with demand peaking in 2027.