It's Time to Think in Solutions
13-03-2024
Arnold: “The Netherlands has knowledge, skills, and employment in the chemical sector. The products made here are used daily and often contribute to sustainability, think of insulation materials, lightweight components in cars, or sports shoes. Many companies have a vested interest in making the chemical sector more sustainable, which means many jobs and opportunities for young people.” Anne-Marie responds: “When you see how dependent we are as a society on the chemical sector, I do not want to depend on distant countries. That is why I am committed to preserving the chemical industry in the Netherlands. And although we can implement some improvements in production processes here, we must not forget that we often produce cleaner and more energy-efficient here than in many other countries. Relocating production is detrimental to the global environmental and climate issue.”
When people think of circularity, they often think of recycling paper and glass, maybe about thrift shops, and perhaps about repairing items. Few would think of the chemical sector. What is its importance, and what do you hope to achieve in this sector?
Anne-Marie: “The chemical sector relies on fossil raw materials, particularly oil. Unlike some other raw materials, oil is still plentiful. However, currently, the chain is largely linear: chemical substances are made from oil. From these, products like clothing, paints, or packaging are made. Ultimately, these are discarded and burned, releasing a lot of CO2. We are essentially aiming for the national goal of a 50% reduction in the use of primary abiotic resources (such as oil) by 2030.”
“The Green Chemistry New Economy (GCNE) program plays a significant role in this,” Arnold replies. “Technological solutions are often known, but the transition can only occur if the conditions for change are favorable. GCNE focuses on closing chains by stimulating profitable supply chains of sustainable raw materials with the help of growth fund resources. GCNE also addresses policy issues, such as the challenging dossier of end-of-waste status so that waste can actually be used for new products. Last but not least, GCNE unites a large group of financial institutions to facilitate and improve financing for business plans in this segment.”
What challenges do you face in making the chemical sector circular?
Arnold: “Perhaps regulation is the toughest but also the most crucial topic. Without stimulating regulations, such as smart blending obligations, the market conditions will not become favorable enough to compete with oil-based products. But there is also regulation that currently hampers circularity. Where rules were established for good reasons in the past, they must now be weighed and adjusted for circularity. The end-of-waste dossier is an important example; the Commodities Act makes it almost practically impossible to use waste for food packaging, for instance. But is this regulation not going too far? It is also important to achieve a balance in regulation regarding the use of bio-based raw materials for fuels or for materials. The current blending obligations, such as E10 gasoline, drive up raw material prices for fuel usage, causing the plastics sector to suffer.”
“I recognize that bio-based raw materials are currently too expensive for the plastics sector, as the market is barely willing to pay the higher price for green plastics and there are (yet) no blending obligation-like regulations in place. However, we are already stuck at an earlier stage in our pursuit of a circular economy,” Anne-Marie states. “I mean at the point of product residues. Take, for example, companies that want to accept residual streams from ships and process them in their normal processes just like other raw materials. Depending on the technology used, this product is either undiluted or diluted with water to wash it out of the ships. In all these cases, the last remnants of product are viewed as waste, causing the companies wanting to accept them to fall under waste management regulations. This adds a lot of extra complexity in the permit granting and rules that companies must comply with. And getting an end-of-waste status is still not possible. Products that should be considered good are thus classified as waste and subsequently destroyed by waste processors. Or they are transported to other countries where the regulations differ to be processed there. Preventing primary, abiotic raw materials from falling into the waste category should be the first step in the circular economy.”
The question of what waste is and how to end waste status has been an ongoing issue for some time. Is there now light at the end of the tunnel to resolve this problem?
Arnold: “We are dealing with a very complex policy issue where ultimately European regulations must provide a solution. GCNE, together with partners, is exploring to what extent we can stimulate private-sector solutions and thus expedite the process. A consistent approach is currently being worked on for the so-called PHA raw material stream from sludge processing to be allowed to manufacture plastics from there. By consistently describing a group of raw materials and application combinations for end-of-waste status while transparently weighing the risks, relief can come for individual entrepreneurs. GCNE is then investigating whether certification based on this type of uniform approach by international certifying organizations can also bring international relief. After all, the plastics industry is an international sector.”
Anne-Marie perks up: “This could also be a solution for us! We are therefore following developments around certification with great interest. Until that time, we are using our Rotterdam toolbox. We have a Rotterdam Acceleration House where all authorities monthly discuss cases of companies that are struggling with laws and regulations. Recently, we increasingly receive cases regarding end-of-waste status. We agree on a process with DCMR, the province of South Holland, the Ministry of Infrastructure and Water Management, and the Port of Rotterdam to find a solution. While we cannot solve everything this way, it does provide quicker clarity.”
What is your most important rallying cry in your pursuit of green and circular chemistry?
Arnold: “Circular chemistry is a tremendous opportunity for the Netherlands. Especially if we help entrepreneurs now with better conditions for greening, it will create excellent starting positions for our companies in the coming decades. The speed of action must increase.”
Anne-Marie: “Create legislation for a circular economy! National legislation still assumes a linear economy. All sectors within the circular economy suffer from this. The current laws set forth by the government make the national goals for the circular economy absolutely unachievable. It is exactly the frontrunners who want to stick their necks out that end up with the lid on their noses. We understand that waste management regulations have not come about without reason. Fraud in the waste management sector is a thorn in the side of legitimate companies. But with rules from the past, we end up with what we have received.”
Deltalinqs is one of the five clusters affiliated with GCNE. Does this article resonate with you? Are there topics that Deltalinqs or GCNE should jointly address with you? Let us know via our contact page.