Plastic applications are ubiquitous, but at the same time, they also generate a lot of waste and emissions, which need to be used urgently. At present, the tightening of sustainable development goals and the introduction of new technologies are vigorously promoting the development of plastic utilization, and promoting plastic products to "turn waste into treasure". Under the new business opportunities, how can enterprises in the plastics industry effectively grasp the latest trends and get a piece of the pie?Why do plastic products need to be cleaned up?Plastics emit about 2 billion tonnes of carbon dioxide equivalent (greenhouse gases, GHGs) each year, accounting for about 4% of total global carbon emissions. The EU is a major producer and processor of plastics, accounting for 9% of global emissions. Greenhouse gas emissions run through the entire plastics value chain, and only 10% of plastic is reused. At the same time, demand for plastics is expected to continue to grow strongly, and plastic waste is expected to increase (Figure 1). 
Add **Annotation, no more than 140 words (optional)Figure 1: Sustainability Challenges: CO2 Emissions** Composition and Carbon Footprint of the Plastics Industry Chain The key measures to address the sustainability challenges of plastics are the 3 R's, namely Reduce, Reuse, and Recycle (*We are focusing on the third R's this time - plastics**. It is possible to reduce greenhouse gas emissions by extending the life cycle of plastics, while at the same time choosing less energy-intensive reprocessing instead of using virgin materials to make plastics. However, it is important to note that no matter what raw materials are used, plastic** is no easy task. —2—Plastic regulations: goal setting is an effective way to promote plastic **Since the 90s of the 20th century, the world, especially in Europe, has successively introduced relevant mandatory regulations for plastic waste disposal. At present, about 70% of plastic waste is covered by EU sustainability regulations, covering a variety of plastic application scenarios such as consumer goods and transport goods packaging, textiles, electronics, etc. But this also means that 30% of plastic waste in Europe is still unregulated, mainly from the construction, automotive, manufacturing and agriculture sectors. As a result, the world is still a long way from fully achieving a circular economy, and there are many gaps in the current regulatory framework. In 2020, 24% of plastic waste in the EU was reused, and the rest was landfilled or incinerated. In the case of plastic packaging, the rate is even higher at 30%, as almost all of the EU's current plastic regulations are focused on packaging. However, the 30%** figure is still far from the target set in the Packaging and Packaging Waste Directive introduced in 2018. The target is 50% by 2025** and 55% by 2030 (Figure 2). 
Add a comment, no more than 140 words (optional)Figure 2: The plastic waste situation in the EU27+3 in 2020 is constrained by a number of factors, which are closely related to deficiencies across the value chain (Figure 3):* targets are outdated: Targets set decades ago focus almost exclusively on household rigid plastics and films in industrial operationsLow oil prices have driven the use of cheap plastic materials:* in the absence of targets, companies prefer virgin plastics that cost less than they can sustainableThe infrastructure for waste sorting is not yet in place (e.g. for lightweight plastics or beverage packaging): especially in Southern and Eastern European countries, households are discarding most of their plastic and other waste in a messConsumer awareness still needs to be raised: Consumer constraints and guidance are insufficient to properly dispose of plastic waste;Margins in plastic collection and sorting are weak: Margins in collection and sorting are only 2-5%, mainly because collection is usually carried out by general waste vendorsLimited sorting technology: In the past, waste sorting did not attract significant technology investments due to the applicability and limited demand for complex solutions;**Technology to be upgraded :* technology has been limited to rigid plastics and mechanical versions of basic single-layer films, so it only covers a small fraction of the potential plastics in Europe. Despite these challenges and growing pressure to decarbonize, the EU's plastics regulations are expected to give a strong boost to the future of plastic materials. For example, in addition to the Packaging and Packaging Waste Directive, the Single-Use Plastics Directive mandates a 90% collection rate of plastic bottles by 2030. Targets for minimum quantities of plastics in various application scenarios are in the works, which will present many challenges, but also opportunities for market stakeholders. 
Add a note of 140 words or less (optional)Figure 3: EU Plastics**Value Chain – 3 – What's New: New regulations and new technologies are driving the development of plastics** to increase the number and intensity of regulations, and promote the new development and evolution of plastics** in the EU. As the number of professional plastic packaging collectors continues to grow, standardization of collection and sorting becomes a key performance. Currently, seven European countries (i.e., Poland, Romania, Portugal, Hungary, Austria, Greece and the United Kingdom) have committed to introducing a sedimentation return scheme (DRSS) for plastic bottles by 2025. Building on the DRS systems already implemented in EU countries such as Germany and Sweden, the new DRS system will contribute to the ** rate of PET plastics exceeding 80%. In addition, stricter separation and collection of plastics across the EU, coupled with the development of ** content targets for most polymers, will further promote the use of more high-quality plastic feedstocks** (Figure 4). 
Add a comment, no more than 140 words (optional)Figure 4: Percentage of plastic packaging waste and medium-term plans for DRS programmes in EU countriesHowever, the real driving force behind the new momentum of exploitation is perhaps the development of a range of innovative technologies. In terms of sorting technology, the emergence of new digital sorting technology has greatly improved the output and quality of ** items. For example, process automation is driving the highest volume, while new sorting capabilities enable closed-loop systems by color or polymer. These technologies have the potential to increase the current sorting rate by 10-20%, which can reduce losses, improve the quality of sorting and sorting, and thus improve quality. These systems require changes and significant investment from brands and sorters along the value chain. Today's technology has a high level of maturity and has the potential to disrupt the industry landscape. In terms of technology, there are currently two technologies: mechanical and chemical. Mechanical technology has been quite mature and has become the mainstream technology of the current system. At the same time, the development of chemical technology is still in the emerging stage and has great development prospects. Both technologies will benefit from advances in sorting technology and complement each other. New "wealth": the growth of plastic scale and quality improvement will boost the growth of the European Union, but the plastic processing capacity is difficult to keep up. To meet the EU's target of 55% plastic packaging**, the volume must increase from around 6 million tonnes in 2020 to around 11 million tonnes by 2030 (almost doubling). The amount of other plastics** will need to triple, from about 1 million tons to about 3 million tons. This means that the respective growth rates need to be maintained at 7% and 10%, while the overall annual growth rate of plastic** needs to be 8%. In order to handle the increased plastic, and to account for process losses, the capacity will need to be increased by at least 150% (Figure 5). 
Add a note, no more than 140 words (optional)Figure 5: The amount of plastic waste in the EU27+3 countries and the situation of virgin plastics are directly related to their base material, petroleum. Recycled plastic, although made from plastic waste, is not directly related to the oil traded on the day, but it is traded slightly higher than virgin plastic, which is the sustainability premium. With the increasing awareness of sustainability and the improvement of new technologies on the quality of products, the gap between virgin plastics and materials is expected to continue to widen, and manufacturers will usher in greater profits. —5—Seize the opportunity: Act now to take advantage of the profits of plastic raw materials and productsWith a large number of valuable products entering the market in the next few years, it is now time for industry players to act. The current high degree of market fragmentation presents a variety of opportunities for players, and the ability to capitalize on them will depend on the company's current position in the plastics value chain and the right focus of its business (Figure 6). The key objectives of an expansion strategy (typically achieved through mergers and acquisitions) include:1Expand your reach and sustainability;2.Derive growth momentum from current sustainability trends;3.Guarantee raw materials and establish a closed-loop system;4.Capture the highly profitable fruits of downstream processing;5.Expanding market shareFrom producers to specialist companies, from multinationals to regional players, many industry players across Europe have taken advantage of active mergers and acquisitions. For example, the Austrian packaging company ALPLA Group has acquired Texplast and BTBThailand's PET company Indorama was integrated through the acquisition of the Czech company UCYA vertically integrated transaction between Circular Resources, a Spanish company, and Pro der Grüne Punkt of Germany. In the future, mergers and acquisitions are expected to continue to accelerate. 
Add a note of 140 words or less (optional)Figure 6: The current state of profitability by segment is clear and there is great potential for all stakeholders in the plastics value chain. So, how can participants take advantage of these opportunities?We see a range of strategic initiatives for different companies to drive their business, strengthen their market position, and maximize profits. These actions are carried out around the extension of the industrial chain and the improvement of processing capacity, and the use and integration of new technologies (Figure 7). The focus areas of strategic development will depend on the type of stakeholders, their specific positioning and the business model. But whatever form it takes, participants need to be aware that there is a limited amount of time to capitalize on the upcoming opportunities, and that the first movers are likely to win most of the value. In order to succeed in this small and fragmented industry in the future, it is crucial to have a sound strategic direction right away. 
Add a note of 140 words or less (optional)Figure 7: Strategic Initiatives for Stakeholders in the Value Chain—6—Summarizing Waste Plastics** is a key measure to reduce primary plastic production, control plastic landfill and incineration, and further reduce industrial emissions from waste combustion. Currently, only about 10% of the world's plastic waste is reused, mainly due to weak consumer awareness, limited regulation outside the EU, and weak collection and sorting infrastructure. With the gradual improvement of market regulations and technological innovation, plastic products are about to become a new "wealth", with strong scale growth potential and high profits, we suggest that the upstream and downstream enterprises of the plastic industry chain can take effective actions to seize new opportunities, such as optimizing the management system, investing in advanced technology, and actively looking for industrial chain partners.