Navigating the shift from fossil-based to sustainable materials in the New World

Iranpolymer/Baspar In today’s world, heightened awareness of traditional materials on the environment has brought society to a critical juncture. The time has come for a transition: From the “Old World” of fossil-based, polluting materials (PCRs) to the “New World” of sustainable alternatives. This mission encompasses excelling in the emerging market for low carbon – third generation bio-based materials and earning recognition as genuine sustainability market leaders.
Within this shift, different generations of feedstock play a crucial role. First-generation feedstock comprises of carbohydrate-rich food crops like corn, wheat and sugarcane, serving as both food and animal feed, but raise ethical concerns due to potential competition with food and water resources. Shifting to bioplastics for global packaging plastics may require a significant portion of corn production and freshwater resources.
Second-generation feedstock is derived from agricultural waste, demanding additional processing to extract fermentable sugars. However, concerns exist regarding the impact of edible oils on food resources and deforestation in this context.
The third-generation feedstock introduces a promising solution. It involves solid municipal waste, addressing urban waste challenges by converting waste into materials and reducing reliance on both fossil and bio-based resources. Various conversion technologies play an important role in this endeavour. As the world ventures into this “New World” of sustainable materials, the third generation of feedstock represents a significant step towards a more environmentally responsible future.

Efficiency and secure sales
Succeeding in the sustainable materials market hinges on two pillars: efficient production scaling and the establishment of secure future sales. Efficient scaling empowers the growing demand for sustainable production while managing costs. Secure sales create a stable foundation for growth and instill confidence in partners and investors.
For example, automotive manufacturers like Mercedes Benz are prominently adopting sustainable materials to reduce their carbon footprint as the demand for a transition toward secure, high-quality sustainable materials grows. This increased need necessitates efficient scaling of production to cater to these ever-changing market dynamics.

Collaboration for Mutual Growth
The journey into the New World is best undertaken collectively. Co-sustainable market leaders need to unite and adopt a partnership-driven approach. Together, opportunities can be explored and scaled, mitigating risks and collectively enhancing capabilities. Collaboration extends to partnerships with both upstream and downstream partners – compounders at the top of the supply chain and product manufacturers further along the production journey, as well as waste providers and communities seeking a sustainable end solution for their waste.
This collaboration serves two key purposes. First, it allows the development of technological advantages that create differentiation in the market. Collaborating with experts and applying complementary strengths paves the way for innovative solutions tailored to the specific demands of downstream industries. Second, fostering strong collaborative partnerships and ecosystems with end-customers is vital. This approach ensures the resilience of production and supply for all parties involved. A close relationship with customers allows efficient matching of supply with demand. For instance, two industry leaders, a material compounder and a manufacturer, can collaborate to create an eco-friendly material or product made from unsorted household waste. By involving end-customers in the development process, they not only differentiate their products but also efficiently match supply with demand, addressing growing consumer calls for sustainability.

Rising memand and market dynamics
The market is witnessing a substantial surge in demand from consumer product companies seeking differentiation and bolstered supply chain resilience. The aim is to satisfy not just current but also future regulatory requirements. This is essential as consumer awareness continues to grow, especially among the environmentally conscious Generation Z, which seeks genuinely sustainable products rather than greenwashing. Importantly, this heightened call is not confined to a specific industry but spans across sectors.

The construction, automotive, logistics and packaging, and commodities industries are working towards adopting sustainable materials to reduce their carbon footprint, reach maximum carbon removal qualities, increase circularity, protect nature and biodiversity and achieve durability. Durable goods, characterized by long periods between successive purchases and the ability to yield utility over time rather than being quickly consumed, highlight the importance of sustainability. Items like bricks theoretically never wear out while highly durable goods like cars continue to be useful for several years.
This commitment to sustainability is not limited to these sectors. Mass-market consumer goods corporations like PepsiCo and McDonald’s are following suit with a significant increase in demand for sustainable materials. This commitment is exemplified by many companies as they boldly shift towards fully recycled or bio-based packaging, signaling the growing need for capacity expansion.

Regulation and legislation: a double-edged sword
While the transition to sustainable materials is highly desirable, it is not without its regulatory challenges. Regulations and legislation play pivotal roles in shaping the landscape as they ensure that claims are measured, verified and validated. Two main aspects are at the forefront: regulations that drive demand and those that stimulate supply.
Regulations to increase demand often focus on encouraging or mandating bio-based materials while discouraging the use of fossil fuel-based materials, as seen in single-use plastic bans. In contrast, regulations designed to bolster supply may involve financial incentives, bans and taxes on fossil fuel-based products. Though well-intentioned, these regulations can inadvertently become barriers to the adoption of new sustainable materials, as they predominantly target traditional PCRs of the Old World.
Regulators and manufacturers need to work closely to set new standards. This includes ensuring adherence to international quality norms and enabling certification of the credentials of new sustainable materials. These measures would promote transparency and establish trust in the quality and environmental advantages of sustainable materials.

The Role of Innovation
Innovation is at the core of sustainable materials production. The aim is to develop bio-based products, such as polymers and plastics, that surpass conventional alternatives in quality and function. To achieve this, unique solutions tailored to the specific needs of downstream industries must be provided. This encompasses innovations like embodied plastics and odour control, which are unique in the market. Innovation in feedstocks, such as combining bio-waste feedstocks with recycled materials polymers, is another essential facet of the journey. The vision is a future where sustainable materials redefine standards in quality, environmental impact and functionality.
Society is at a unique tipping point. It is on the cusp of a major shift from PCRs to sustainable materials. But success is contingent on efficient production scaling, effective collaboration and adept navigation of regulatory terrain. Most crucially, innovation is the bedrock of the journey, propelling toward a future where sustainability and excellence will align seamlessly. Together, a New World is being shaped where sustainability, efficiency and innovation seamlessly coexist to drive better business in harmony with the planet.

Gali Feldboy-Klinger is the Global Sustainability Director at UBQ Materials. 

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