Christmas Plastic Waste and the Path to Circular, Low-Emission Solutions

Between packages and gifts, Christmas brings with it an increase in plastic use: an analysis of solutions for a transition to circular materials and low-emission processes.

The Christmas season brings with it warmth, conviviality, and an explosion of consumption that, despite its magic, has a significant impact on the environment. In Europe alone, the use of packaging increases significantly in the weeks between December and January: wrapping paper, synthetic ribbons, single-use packaging, short-lived decorations, and disposable holiday items contribute to a seasonal peak in waste, much of which is plastic.

These materials, often difficult to recycle due to their glossy finishes, laminations, or food contamination, fuel a stream of waste that puts pressure on collection and recycling systems, amplifying the ecological footprint of the celebrations.

For this reason, it’s crucial to reflect on the impact of plastic: understanding where emissions come from, what technologies are already available, and what strategies can reduce them becomes an important step towards turning even the holidays into a moment of awareness. It’s precisely with this in mind that McKinsey ‘s study fits in , analyzing in depth the costs, opportunities, and potential paths toward a more circular, low-emissions plastics supply chain.

The environmental cost of plastic production

Plastic production accounts for 3% of global CO₂ emissions , with over a billion tons of fossil carbon trapped in plastic materials every year. Concerted action along the entire supply chain could reduce these emissions by 80–90% by 2050. Technologies and solutions already exist, but investment, collaboration, and sustainable business models are needed to overcome technological and infrastructural obstacles.

In 2023, global plastic production exceeded 400 million tons, generating between 1,000 and 1,200 million tons of CO₂. Added to this is a further billion tons of fossil carbon trapped in the materials themselves, which risks being released without circular waste management. Plastic is everywhere , from food containers to rocket components, and its carbon footprint varies greatly based on the type, production process, and geographic region.

The plastics production process is complex and fragmented into three main stages : the production of raw materials (which accounts for approximately 20% of emissions), the production of monomers (25-50% of emissions), and the production of the finished plastic material (30-55%). Each stage is characterized by energy-intensive processes, often powered by fossil fuels , with significant variations in efficiency and technologies employed.

Recycling and innovation: the keys to circular plastics

One of the most promising levers for reducing the climate impact of plastic is recycling, both mechanical and chemical. Mechanical recycling involves materials like PET and HDPE, which are already widely present in collection and recycling infrastructures in Europe and parts of Asia; chemical recycling, on the other hand, allows for the treatment of more complex or contaminated plastics, such as polycarbonates and PVC, but still requires innovation and investment to reach industrial scale.

A key principle highlighted by McKinsey is that of the “short loop,” or shorter recycling cycles that avoid energy-intensive steps, such as monomer production or the refining of fossil raw materials, dramatically reducing emissions and improving the overall efficiency of the supply chain. Access to and valorization of secondary materials, especially in high-volume sectors like automotive and consumer goods, is crucial to implementing these short loops and building large-scale circular chains.

Another key factor is the availability of renewable energy . The electrification of high-temperature processes, if powered by renewable sources, can multiply the positive effect of recycling, replacing fossil fuels and significantly contributing to decarbonization.

How to align the supply chain to accelerate the transition

The transition to decarbonized and circular plastics cannot be achieved by a single player. Alignment is needed between all stakeholders in the supply chain : raw material producers, processors, end users, and waste management systems. According to McKinsey, there are four main strategies that can drive this alignment:

Increasing energy efficiency : Energy-saving technologies, such as heat recovery, are already available and often cost-effective. However, they require prioritized investment by manufacturers.

Promote technological innovation : Small pilot plants can test advanced solutions such as furnace electrification or the use of hydrogen. The technological maturity of these processes could unlock massive emissions reductions.

Aggregating and activating demand : Coordinating demand from different industrial players can facilitate the construction of low-emission plants, making investments economically sustainable.

Increase short-cycle circularity : Developing new sources of secondary materials and optimizing the management of recycling flows makes short cycles effective, reducing emissions and improving the overall efficiency of the plastics supply chain.

Being a “first mover” in this process will offer competitive advantages. Renewable energy sources and alternative raw materials won’t be enough for everyone. Those who are first to implement low-emission circular supply chains will be better positioned in the future market.

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(Featured image by Lore Schodts via Unsplash)

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