Plastic pollution has become an increasingly pressing environmental issue that calls for a collaborative effort from governments, corporations, and citizens. Despite accounting for only a small portion of plastic consumption, the beverage sector has great potential to mobilize change in society given how widely its products are used and consumed in our daily lives. Swire group has long been an active supporter of green development. As one of the world's largest bottlers, Swire Coca-Cola Ltd., a subsidiary of Swire Group, has been fully committed to improving the recycling rate of plastic beverage packaging. The Company has set up a recycling plant in Hong Kong S.A.R. to process post-consumer polyethylene terephthalate (PET) and high-density polyethylene (HDPE) every day, and convert it into ultra-clean recycled PET flakes (quasi-food grade) and recycled HDPE grains.

In China, although over 90% of post-consumer bottles are recycled, 84% of them are utilized to make artificial fibre other than being reused for beverage packaging. The major obstacle is the ambiguity of the relevant laws. Food grade applications of recycled PET bottles are neither explicitly prohibited nor permitted. In light of successful practice in most developed countries and regions to allow the use of certified recycled PET for food packaging, and in order to avoid major policy adjustments, this study suggests making a clear distinction between "reclaimed materials" and "recycled materials" in the current regulations, and setting up standards of qualified recycled materials for food-grade applications.

As one of the world leaders in terms of PET bottle recycling rate, China is already in a strong position to enter the next stage of increasing its utilization rate, in order to counter petroleum shortages, environmental pollution and raising unemployment in the country.

Following the global trend of restricting the use of plastic, China is ready to seize the opportunity to develop its PET recycling industry to alleviate shortages in raw materials for domestic businesses in the long run, and enable the country to reap the rewards from owning advanced technology and products in the international market.

We further suggest leveraging the advantages of the Guangdong-Hong Kong-Macao Greater Bay Area in its high mobility of funds, technology and talent, to make it a forerunner in the circular economy and an industry leader. We suggest introducing world’s latest technologies and building the first modern large-scale waste beverage bottle processing production line in the Greater Bay Area, under the guidance and policy support of the government. The next step will be to further extend upstream and downstream to build a green supply chain system with complete functions, comprehensive support, matching components, and stable structure in the region.

The concept of the new plastic economy requires all plastic packaging to be 100% reusable, recyclable, or compostable. Landfill sites, incineration, and energy recovery are therefore not among the options for handling plastic waste. En route towards the new plastic economy, China must stay at the forefront of technological innovation, improve the collection mechanism of recyclable materials, and strengthen publicity to form green production and living. Only by taking these steps can we create a better "green" era and pass it on to our future generations.

Download the full report：Circular Economy: An Essential Step Towards a Green Future