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Assessment of carbon green bonds for bioplastics in replacement with single-use plastics

The production and reuse of bio-based raw materials and inputs, as well as the manufacture of the resulting bioplastics, have become very attractive projects for collaborative financing and investment through green carbon credit programmes.

Green bond programmes offer a valuable opportunity to support sustainable initiatives that promote carbon emission reductions and the circular economy. By investing in bioplastics projects, they drive the development of innovative and environmentally friendly solutions, creating a more sustainable future.

Within the wide range of bioplastics, bio-based plastics from renewable biomass are particularly relevant due to their ability to biodegrade in various environments, such as soil, sea, water and home composting.

These projects aim to replace unsustainable single-use plastics, such as packaging and special agricultural films, with green solutions that meet environmental and sustainability objectives.

Packaging products include rigid items such as containers, cartons, boxes and trays, as well as flexible items such as films, bags of different types and uses.

In agriculture, bioplastics play a key role, with biodegradable agricultural mulch being the most widely used for solarisation, mulching and weed control. Greenhouse films, silage bags, bale wraps, seed tapes, seedling containers, nursery pots, hoop greenhouses, high tunnels and grafting bags are also used.

By 2050, the combined emissions from plastic production and incineration could reach a
significant 2.8 gigatons of CO2 per year, equivalent to the emissions from 615 large coal plants.

Emissions will continue to accumulate in the atmosphere over time. Notably, plastic production contributes to approximately 3.8% of global GHG emissions, and a significant portion, up to 50%, is attributed to single-use plastics.

BIODEGRADABLE MULCH VS. PLASTICS
Worldwide, plastic mulch consumption is 4 million tons per year, contributing to 24 million tons of CO2-equivalent annually. In contrast, the consumption of biodegradable mulch is currently only 5% of this, at 160,000 annual tons. However, by 2027, global bioplastics production is expected to triple to 6.3 million tons, with agricultural bioplastics and biodegradable mulch growing the most, reaching 441,000 annual tons and avoiding over 2.7 million tons of CO2-equivalent yearly.

In 2022, global biodegradable mulch market size was approximately USD 45.29 billion in 2022 and is expected to reach USD 99.97 billion by 2032, growing at a CAGR of 8.24% from 2023 to 2032. The United States market for biodegradable mulch films was valued at USD 44.7 million in 2022.

LIFE CYCLE COMPARISON AND CARBON FOOTPRINT REDUCTION
Bio-based bioplastics offers a sustainable alternative to traditional single-use plastics such as plastic mulch. From extraction to disposal, conventional plastics contribute significantly to GHG and carbon footprint emissions. In contrast, bioplastics made from renewable biomass and industrial waste by-products not only reduces emissions but also contributes to a circular bioeconomy.


End-of-life stages and system boundaries for biodegradable mulch and plastic mulch films

The raw materials used for bioplastics, such as plants, organic waste products, and microbial biomass, sequester carbon during growth, resulting in a neutral or negative carbon footprint. When bioplastics are produced using renewable energy sources, its environmental impact is further reduced.

Switching to bio-based bioplastics through green bond financing can help meet climate change targets and mitigate the negative impacts of single-use plastics. These bioplastics not only reduce emissions, but also promote carbon sequestration as they biodegrade in the soil. Thistransition aligns with the principles of a circular economy, reducing waste and maximizing resource efficiency.

ENVIRONMENTAL BENEFITS OF SUBSTITUTING SINGLE-USE PLASTICS WITH BIOBASED BIOPLASTICS

      1. Bio-based bioplastics use bio-based carbon, contributing to a cleaner climate.

      1. Bioplastics store and fix captured carbon (carbon farming), aiding in sequestration.

      1. Compost and biodegradation return soil carbon and diverts organic waste from landfills.

      1. Bioplastics have a carbon-neutral or negative footprint.

      1. Single-use plastics contribute to GHG emissions whereas bio-based bioplastics reduce them.

      1. Substituting plastics with bioplastics aligns with climate change mitigation targets.

      1. The transition to bioplastics promotes a circular bio-economy.

    ECONOMIC GROWTH POTENTIAL
    Market Growth: The global market for biodegradable mulch and bioplastics is expanding rapidly, with significant potential for investment returns.
    Sustainable Finance: The financing of bioplastic’s production is in line with sustainability and environmental objectives, making it an attractive option for green bonds.

    INVESTMENT OPPORTUNITIES
    Research and Development: Investment in research and development can reduce production costs and improve bioplastic’s sustainability.
    In summary, green bonds can be an effective way to finance projects that replace conventional single-use plastics with bio-based bioplastics. These bioplastics not only reduce GHG emissions and carbon footprint, but also contribute to a more sustainable and circular economy. Their raw materials have already contributed to a carbon-neutral or carbon-negative footprint during their growth, making them an environmentally responsible choice.

    1. Gülşah Yilan et al. Evaluating and managing the sustainability performance of investments in green and sustainable chemistry: Development and application of an approach to assess bio-based and biodegradable plastics, Current Research in Green and Sustainable Chemistry, Volume 6, 2023.
    2. Comments on biobased plastics, www.european-bioplastics.org.

    Dr. Jose Pedro Irigoyen, Ph.D.
    Product Development
    jose@nosoyplastico.com

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