Plastic Waste Recovery by Regional Blockchain Networks

A consortium led by Wuppertal Institute works on the question whether the use of blockchain technology in regional networks can contribute to the avoidance of plastic waste and in which business model approaches this may occur. The researchers analysed the current market situation and different business models for the use of blockchains to avoid plastic waste. Twelve selected experts along the whole plastic value chain from Germany and the UK were invited to a workshop about the current status and future options by regional blockchain networks.

The key findings from the workshop were:

• Everyone agreed about the need to generate, transmit, analyse and store reliable and safe data to create markets for plastics waste prevention.
• Solutions will likely come coupled with further digital technologies such as IOT (internet of the things) and AI (artificial intelligence)
• Look out first for applications to higher investment products and incentive-oriented-systems
• Smart contracts will be a central item for future blockchain.

Current barriers are high upfront investments which especially prevent blockchain use in low-margin markets. To be climate friendly, blockchain applications have to solve their hunger for energy and adopt renewable energy supply. Blockchain and similar applications require standard setting on the product and material level for industry scale adoption. This requires effort from a large amount of players. Incentives to create secondary plastics markets and better opportunities for sorting. The fast emergence of regulations on plastics may create overcomplexity that could keep many companies from investing into new technologies as long as regulatory uncertainty seems too high.

The workshop was part of a Climate KIC-funded Pathfinder project within the eCircular scheme.