How do political steering instruments influence the integration of chemical recycling into plastic recycling networks? A case study for Germany

A steadily increasing plastic production requires the treatment of ever greater
amounts of plastic waste. Plastic waste that is unsuitable for mechanical recycling is
incinerated in Europe, generating large amounts of CO2 . Chemical recycling of such
plastic waste offers an alternative to reduce the climate change impact (CCI) of plastic
waste treatment and contributes toward closing the plastic loop. This paper presents a
strategic location optimization model designed to effectively integrate chemical recy-
cling facilities into existing waste treatment networks. The model optimizes material
flows for both operational costs and CCI and is extended by using a goal program-
ming approach to balance both objectives. The study focuses on two significant waste
streams: (1) lightweight packaging, which in Germany accounts for 59% of post-
consumer plastic waste, with 34% of it being unsuitable for mechanical recycling, and
(2) automotive plastic waste, which as engineering plastics from the automotive sec-
tor presents a challenge for recycling due to its complex composition. Moreover, the
study explores scenarios to evaluate political instruments and quantifies their impacts
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on the German plastic waste treatment network. It quantifies the impact of an increase
of a legal national recycling rate and the extension of emission trading systems to the
German waste sector as it was implemented in early 2024. Raising the recycling rate
to 65% or introducing a CO2 emission fee of 45€/t CO2 could reduce the waste treat-
ment network’s CCI by up to 64% while increasing the circularity and decarbonization
of plastics.