The global plastic recycling rate is rising on heightened environmental awareness of plastic pollution caused by improper disposal of plastic waste and adoption of a circular economy approach to address the concern. The future of plastic recycling in Asia is poised for growth from a low base.
Consumer goods companies are adopting voluntary pledges to use higher post-consumer recyclables in their products, signalling a growing demand trend for recycled plastics. Close to 200 (and growing) global companies which are part of the plastic packaging value chain, jointly representing over 20% of all plastic packaging globally, are signatories to the Ellen MacArthur Foundation in collaboration with UN Environment’s global commitment to the New Plastics Economy to reduce, reuse and recycle plastics.
There is already strong regulatory support in the European Union and Northeast Asian countries like Japan and South Korea for plastics recycling. Selected Asian countries such as Singapore, Malaysia and Thailand are stepping up their regulatory efforts with new laws and national plastic roadmaps to encourage plastic recycling. China is fostering a culture of recycling by requiring compulsory household waste sorting.
Several markets such as Singapore, Malaysia, Hong Kong and Thailand also offer financial support schemes and tax incentives to companies that implement plastic waste reduction and plastic recycling.
To support the increase in supply of recycled plastics, UOB is able to offer plastic recyclers, plastic converters and integrated collectors our Plastic Recyclers Ecosystem Financing Solution. Our Ecosystem Financing solution includes a full suite of products that cover working capital and equipment financing whilst improving cash collection within the plastic ecosystem.
For end-use sector companies that demand recycled plastics such as consumer goods companies for packaging, transportation or construction companies, UOB is able to offer our Buyers Financing for Plastic Recycling Ecosystem Solution.
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