Fourteen million tons of plastic enter the ocean annually, and microplastics are turning up everywhere—from our food to our bodies. Once focused on mitigating damage, the industry is now beginning to lead with design. Companies are rethinking plastic at the molecular level, challenging long- held assumptions about what’s recyclable—and how.
“A decade ago, plastic pollution was barely part of the global conversation,” says Jacob Duer, CEO of the Alliance to End Plastic Waste. “While climate change has long been a central focus, plastic waste only gained significant attention in the past eight years. Despite its relatively recent prominence, the response has been remarkably swift.” That response now includes governments, corporations and NGOs mobilizing toward a common goal: to close the loop on plastics. A major turning point could be the upcoming U.N. Global Plastics Treaty. Negotiations are underway to establish a legally binding international agreement that addresses the full life cycle of plastics—from production to disposal. According to the U.N. Environment Programme, key proposals include cutting plastic pollution by 80 percent by 2040, setting global design standards, phasing out problematic plastics and enforcing extended producer responsibility. While consensus among 195 nations is no small feat, momentum is building. Duer remains optimistic that a finalized agreement is within reach by year’s end.
Innovation is emerging as the linchpin of change. Companies like Encina are rethinking recycling from the ground up. Dave Roesser, CEO, explains: “We take plastics and, in a single step, use a catalyst developed over a decade to convert them directly into specific chemicals.” These chemicals— benzene, toluene and xylene—can be reintroduced into the supply chain as feedstock for new plastics. “It skips intermediate steps, making it more efficient and reducing emissions.” Traditional pyrolysis, often used to break down plastics, typically requires high heat and produces a mix of oils and gases that need further refinement. Encina’s catalytic approach reduces complexity and environmental impact.
Montreal-based Polystyvert is tackling plastics long considered unrecyclable. Nathalie Morin, CEO, describes their solution: “Our dissolution and purification technology ... reduces the carbon footprint by up to 90 percent compared to virgin plastic. It’s cost-effective and offers a low- carbon-footprint solution for recycling highly contaminated plastics.” By focusing on materials like polystyrene and ABS, they’re transforming contaminated waste into high-quality feedstock.
At the same time, companies are beginning to address one of the biggest hidden hurdles in plastic recycling: dark plastics. Though technically recyclable, plastics colored with carbon black evade many infrared sorting systems used in automated recycling facilities. “Around 30–35 percent of all plastics are black or dark, so this technology has tremendous potential, especially as regulations around recycling grow stricter,” says Michael Wilson, CEO of Vibrantz Technologies. Companies are now exploring new pigment technologies and additive solutions that allow black plastics to be detected by optical sorters—an important step forward in increasing recyclability at scale.
“Carbon black is everywhere. Black plastic computer frames, keyboard keys and even synthetic fibers in clothing often contain it. Beyond colour, it prevents UV degradation in plastics, making it essential for outdoor materials like black plastic pipes,” says Mark Leigh, Tokai Carbon CB. “Recycling carbon black is challenging. During rubber curing, carbon black fully integrates into the material, making extraction in its original form nearly impossible, like trying to remove flour from a baked cake.” However, he is not discouraged: “We are working with Bolder Industries, the leading U.S. pyrolysis company, to convert tire pyrolysis oil (TPO) into carbon black, a process certified by ISCC as sustainable. This allows us to apply a mass balance approach—if 1 percent of our feedstock comes from TPO, 1 percent of our product can be labelled sustainable.” Smart packaging may also play a critical role. “These invisible watermarks enhance automated sorting for multilayer packaging ... improving recycling efficiency as well as quality,” says Duer, referencing initiatives like HolyGrail 2.0 that use digital watermarking to enhance waste stream identification.
Still, infrastructure and technology alone aren’t enough. “Building a plant costs over a billion dollars,” Roesser notes. Encina scrapped plans for a $1.1 billion plant in Pennsylvania due to permitting delays and design complications, pivoting instead to the Gulf Coast, where “the regulatory environment ... supports innovation.”
For early stage companies, financial pressure looms even larger. “Securing funding for clean-tech companies, especially in recycling, is challenging,” says Morin. “Our primary challenge now is avoiding delays in commercialization.” She sees Europe as a bright spot: “Europe has a stronger regulatory focus on sustainability, with specialized investors in recycling.”
Altana AG sees greater momentum for sustainability-focused initiatives in Asia than in more established regions like Europe and North America. This is largely attributed to Asia’s ongoing economic development and its position at a different stage in that cycle. Altana CEO Martin Babilas believes that this is where the most impactful solutions will be most sought after: “One of our products replaces unrecyclable laminates with a recyclable coating, maintaining the same barrier performance. This makes me confident that investing in sustainability-focused R&D will help us grow.” Recycling alone won’t solve the plastic crisis. Companies are investing across the value chain—from feedstock innovation and chemical recycling to bio-based materials and circular business models. Success will depend on scalable tech, better infrastructure and, above all, systemic collaboration. The road is long, but no longer uncharted.