Berliner Boersenzeitung - To tackle plastic scourge, Philippines makes companies pay

EUR -
AED 4.120156
AFN 72.364884
ALL 90.803943
AMD 404.528384
ANG 2.007949
AOA 1029.898611
ARS 1734.077131
AUD 1.621035
AWG 2.022213
AZN 1.906081
BAM 1.955937
BBD 2.253758
BDT 138.979752
BGN 1.960881
BHD 0.42253
BIF 3354.750342
BMD 1.121894
BND 1.432207
BOB 13.298696
BRL 6.180617
BSD 1.118979
BTN 105.025369
BWP 15.374599
BYN 3.350535
BYR 21989.116896
BZD 2.250558
CAD 1.584148
CDF 2570.258612
CHF 0.919678
CLF 0.027618
CLP 1086.958598
CNY 7.486172
CNH 7.481113
COP 3675.536984
CRC 506.835563
CUC 1.121894
CUP 26.855884
CVE 110.270772
CZK 24.341896
DJF 199.263982
DKK 7.475391
DOP 68.084777
DZD 152.624682
EGP 60.451115
ERN 16.828406
ETB 180.792892
FJD 2.526282
FKP 0.835984
GBP 0.834594
GEL 2.90596
GGP 0.835984
GHS 13.075684
GIP 0.835984
GMD 83.020251
GNF 9913.739794
GTQ 8.5506
GYD 234.582278
HKD 8.799058
HNL 30.074574
HRK 7.59411
HTG 146.670291
HUF 362.320075
IDR 20262.354178
ILS 3.543827
IMP 0.835984
INR 104.947573
IQD 1699.668985
IRR 2134162.158274
ISK 137.16221
JEP 0.835984
JMD 177.762473
JOD 0.795385
JPY 177.333286
KES 145.756022
KGS 98.109695
KHR 4566.320402
KMF 492.511066
KPW 1009.704304
KRW 1510.529067
KWD 0.348718
KYD 0.932565
KZT 502.045227
LAK 25242.608639
LBP 100206.73114
LKR 372.066107
LRD 190.233348
LSL 18.477482
LTL 3.31266
LVL 0.678622
LYD 7.190505
MAD 10.932472
MDL 20.170415
MGA 5155.101381
MKD 61.541364
MMK 2355.63634
MNT 4040.44421
MOP 9.037734
MRU 45.421187
MUR 52.76234
MVR 17.288641
MWK 1940.336146
MXN 20.784538
MYR 4.548717
MZN 71.700386
NAD 18.477574
NGN 1510.069344
NIO 41.083519
NOK 10.545145
NPR 168.037795
NZD 1.990812
OMR 0.43133
PAB 1.119079
PEN 3.85047
PGK 5.036742
PHP 70.770227
PKR 310.314733
PLN 4.385572
PYG 6994.490778
QAR 4.090487
RON 5.342349
RSD 117.608052
RUB 92.555869
RWF 1655.516162
SAR 4.218787
SBD 9.084309
SCR 16.429785
SDG 674.81632
SEK 10.994205
SGD 1.434341
SHP 0.834773
SLE 25.747516
SLL 23525.555278
SOS 639.544875
SRD 42.129343
STD 23220.934893
STN 24.501719
SVC 9.791687
SYP 14586.861783
SZL 18.395799
THB 37.502602
TJS 10.272421
TMT 3.937847
TND 3.374093
TOP 2.701251
TRY 56.347225
TTD 7.589533
TWD 36.871595
TZS 2967.406681
UAH 50.976387
UGX 4582.239831
USD 1.121894
UYU 45.123166
UZS 13422.941839
VES 1006.540888
VND 28695.797549
VUV 134.628489
WST 3.11898
XAF 655.957
XAG 0.021165
XAU 0.000272750831
XCD 3.031974
XCG 2.016742
XDR 0.793237
XOF 655.957
XPF 119.331742
YER 265.336214
ZAR 18.376058
ZMK 10098.392022
ZMW 22.743596
ZWL 361.24932
SSP 6446.193262
MXV 2.33655
  • CMSD

    -0.1200

    19.81

    -0.61%

  • JRI

    0.0000

    10.77

    0%

  • BCC

    -1.8200

    74.15

    -2.45%

  • CMSC

    -0.2228

    19.53

    -1.14%

  • BCE

    0.2000

    20.34

    +0.98%

  • RIO

    0.0100

    94.17

    +0.01%

  • AZN

    -2.7400

    161.47

    -1.7%

  • GSK

    -1.1800

    48.17

    -2.45%

  • RBGPF

    0.0000

    65

    0%

  • NGG

    0.8800

    75.82

    +1.16%

  • RYCEF

    -0.7300

    19.08

    -3.83%

  • BTI

    -0.4500

    54.4

    -0.83%

  • BP

    0.4700

    43.99

    +1.07%

  • RELX

    -0.0600

    33.18

    -0.18%

  • VOD

    -0.1800

    16.15

    -1.11%

To tackle plastic scourge, Philippines makes companies pay
To tackle plastic scourge, Philippines makes companies pay / Photo: Jam Sta Rosa - AFP/File

To tackle plastic scourge, Philippines makes companies pay

Long one of the world's top sources of ocean plastic, the Philippines is hoping new legislation requiring big companies to pay for waste solutions will help clean up its act.

Text size:

Last year, its "Extended Producer Responsibility" statute came into force -- the first in Southeast Asia to impose penalties on companies over plastic waste.

The experiment has shown both the promise and the pitfalls of the tool, which could be among the measures in a treaty to tackle plastic pollution that countries hope to agree this year.

The Philippines, with a population of 120 million, generates some 1.7 million metric tons of post-consumer plastic waste a year, according to the World Bank.

Of that, a third goes to landfills and dumpsites, with 35 percent discarded on open land.

The EPR law is intended to achieve "plastic neutrality" by forcing large businesses to reduce plastic pollution through product design and removing waste from the environment.

They are obliged to cover an initial 20 percent of their plastic packaging footprint, calculated based on the weight of plastic packaging they put into the market.

The obligation will rise to a ceiling of 80 percent by 2028.

The law covers a broad range of plastics, including flexible types that are commercially unviable for recycling and thus often go uncollected.

It does not however ban any plastics, including the popular but difficult to recover and recycle single-use sachets common in the Philippines.

So far, around half the eligible companies under the law have launched EPR programmes.

Over a thousand more must do so by end-December or face fines of up to 20 million pesos ($343,000) and even revocation of their operating licences.

- 'Manna from heaven' -

The law removed 486,000 tonnes of plastic waste from the environment last year, Environment Undersecretary Jonas Leones told AFP.

That topped the 2023 target and is "part of a broader strategy to reduce the environmental impact of plastic pollution, particularly given the Philippines' status as one of the largest contributors to marine plastic waste globally".

The law allows companies to outsource their obligations to "producer responsibility organisations", many of which use a mechanism called plastic credits.

These allow companies to buy a certificate that a metric ton of plastic has been removed from the environment and either recycled, upcycled or "co-processed" -- burned for energy.

PCX Solutions, one of the country's biggest players, offers local credits priced around $100 for collection and co-processing of mixed plastics to over $500 for collection and recycling of ocean-bound PET plastic.

The model is intended to channel money into the underfunded waste collection sector and encourage collection of plastic that is commercially unviable for recycling.

"It's manna from heaven," former streetsweeper Marita Blanco told AFP.

A widowed mother-of-five, Blanco lives in Manila's low-income San Andres district and buys plastic bottles, styrofoam and candy wrappers for two pesos (3.4 US cents) a kilogramme (2.2 pounds).

She then sells them at a 25 percent mark-up to US charity Friends of Hope, which works with PCX Solutions to process them.

"I didn't know that there was money in garbage," she said.

"If I do not look down on the task of picking up garbage, my financial situation will improve."

- 'Still linear' -

Friends of Hope managing director Ilusion Farias said the project was making a visible difference to an area often strewn with discarded plastic.

"Two years ago, I think you would have seen a lot dirtier street," she told AFP.

"Behavioural change is really slow, and it takes a really long time."

Among those purchasing credits is snack producer Mondelez, which has opted to jump directly to "offsetting" 100 percent of its plastic footprint.

"It costs company budgets... but that's really something that we just said we would commit to do for the environment," Mondelez Philippines corporate and government affairs official Caitlin Punzalan told AFP.

But while companies have lined up to buy plastic credits, there has been less movement on stemming the flow of new plastic, including through redesign.

"Upstream reduction is not really easy," said PCX Solutions managing director Stefanie Beitien.

"There is no procurement department in the world that accepts a 20 percent higher packaging price just because it's the right thing to do."

And while PCX credits cannot be claimed against plastic that is landfilled, they do allow for waste to be burned, with the ash then used for cement.

"It's still linear, not circular, because you're destroying the plastic and you're still generating virgin plastic," acknowledged Leones of the environment ministry.

Still, the law remains a "very strong policy", according to Floradema Eleazar, an official with the UN Development Programme.

But "we will not see immediate impacts right now, or tomorrow," she said.

"It would require really massive behavioural change for everyone to make sure that this happens."

(K.Müller--BBZ)