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U.S. And Europe Legislation And Economic Incentives And Bio-based Feedstock

U.S. And Europe Legislation And Economic Incentives And Bio-based Feedstock

Published: Nov, 2024
Report ID: GVR-MT-100286
Format: PDF, Horizon Databook

No. of Pages/Datapoints: 100
Report Coverage: 2024 - 2030

U.S. Legislation And Economic Incentives (Current & Future)

State	Legislation/Economic Incentive	Description
California	SB 54 (Plastic Pollution Prevention and Packaging Producer Responsibility Act, 2022)	Requires producers of plastic packaging to ensure that their products are recyclable or compostable by 2032. This includes bio-based and biodegradable packaging materials. Bio-based and biodegradable feedstocks that meet compostability standards may be favored under this legislation, as producers must shift to materials with less environmental impact. Features: Mandates a 25% reduction in single-use plastic packaging by 2032. Requires producers to use recyclable or compostable packaging materials, including those made from bio-based sources. Sets up a producer responsibility organization (PRO) to oversee compliance and recycling efforts.
California	SB 1383 (2016)	Aimed at reducing organic waste, including food waste, through composting and diverting organic materials from landfills. Bio-based and biodegradable feedstocks that are compostable could be integrated into organic waste diversion programs. Producers of compostable materials must ensure their products are truly biodegradable in state composting facilities.
Oregon	Plastic Pollution and Recycling Modernization Act (SB 582, 2021)	Requires producers of packaging materials, including those made from plastics and bio-based materials, to fund and manage the recycling of their products. Bio-based and biodegradable materials, if classified as packaging, fall under this law. Producers must pay for the cost of managing the end-of-life of their materials, incentivizing the use of easily recyclable or compostable materials. Producers of covered materials (packaging, food service ware, and paper products) must join a Producer Responsibility Organization (PRO) and pay membership fees. Fees are structured to incentivize recyclability, use of recycled content, and reduction in packaging volume.

Projected Economic Incentives

Bio-based Materials

Bio-based materials are gaining significant attention for their potential to reduce reliance on fossil fuels and support environmental sustainability. Governments worldwide are introducing various incentives to encourage the use of these materials, particularly in industries such as packaging, automotive, and construction. These incentives typically include tax breaks, research and development (R&D) grants, and manufacturing subsidies for incorporating renewable biomass. For instance, the European Union’s Horizon Europe program is funding initiatives focused on developing bio-based alternatives to conventional plastics. In North America, the U.S. Department of Agriculture (USDA) offers support through the BioPreferred Program, giving manufacturers that use bio-based materials an edge in securing government contracts.

As economies increasingly adopt circular practices, the demand for bio-based materials is expected to rise, offering long-term advantages to companies that act early. Regulatory frameworks are also evolving. In Europe, under the Circular Economy Action Plan, tighter regulations are expected, pushing industries to shift from traditional plastics to more sustainable options. The European Green Deal is anticipated to further boost funding for bio-based innovation, emphasizing cost reductions and scaling up production.

Adoption Trends of Bio Materials

Consumer Demand For Sustainability

Consumer demand for sustainable products is one of the strongest drivers for the adoption of biomaterials. Over the last decade, more and more consumers have become more environmentally conscious and are looking for products that have minimal negative impact on the planet. This trend is particularly noticeable in areas such as packaging, fashion and personal care, where the use of biodegradable, bio-based and environmentally friendly materials is becoming increasingly common. A growing awareness of issues such as plastic pollution, deforestation and climate change has led to consumers preferring products made from sustainable and renewable resources such as biomaterials.

In response, companies are prioritizing sustainability in their products and packaging to meet this consumer demand. Many brands are promoting the use of bio-based materials as part of their commitment to reducing carbon footprints, minimizing waste and conserving natural resources. The rise of eco-labels, certifications such as “biodegradable” or “compostable,” and increased transparency in supply chains have also helped increase consumer confidence in sustainable products. As consumers continue to value sustainability, the use of biomaterials is expected to increase and companies are making them a key feature of their product offerings to remain competitive in the market.

Corporate Social Responsibility (CSR) Initiatives

Company	CSR Goals/Initiative
NatureWorks LLC	NatureWorks is dedicated to reducing its environmental footprint. This includes ambitious goals for improving energy efficiency, reducing carbon emissions, and managing water usage effectively. They also collaborate with partners to minimize environmental impacts across their supply chains.
Corbion nv	Corbion offers biodegradable solutions that are safe for both users and the environment. The company has developed a lactic acid production process that enhances recycling and resource efficiency, aiming for minimal waste. They have successfully scaled this process to a demonstration level, indicating potential for industrial application. While majorly using sugar-based crops, Corbion is also exploring alternative feedstocks such agricultural by-products and waste materials to produce biochemicals and bioplastics.
Danimer Scientific	The company is dedicated to reduce and eliminate plastic waste while shifting towards biodegradable solutions. In 2021, Danimer played a key role in the launch of the U.S. Plastic Pact’s Roadmap to 2025, committing to support four targets related to the circular economy. Initiated in August 2020, the U.S. Plastics Pact is a collaborative effort led by The Recycling Partnership and the World Wildlife Fund (WWF), functioning as part of the Ellen MacArthur Foundation’s global Plastics Pact Network. This initiative aims to unite various stakeholders across industries to tackle plastic waste at its source by the year 2025.

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