The PET Supply Crisis:

A Problem in Need of a Solution

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Container Recycling Institute 2006

Two Crucial RPET Supply Issues

Supply from current collection infrastructures is stagnant and cannot meet demand for scrap bottles

More and more volume is going to Asian markets

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1388 17132169

29063445

4017

4637

986 10711538 2196 2687 3220

3634

402 642 631 710 758 797 1003

0

1000

2000

3000

4000

5000

1992 1994 1996 1998 2000 2002 2004

Recycled

Sold

Mm lbs

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Source: “2004 National Post-Consumer Plastics Recycling Report.” R.W. Beck, Inc. for the American Plastics Council. 2005.

PET Bottle Recycling Not Keeping Pace with Sales

1992 - 2004

RPET Exports are Growing(millions of pounds)

656 89

588 183

599 170

600 234

522 275

520 321

0 300 600 900

1998

1999

2000

2001

2002

2004

DomesticExported

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Source: “2004 Report on Post Consumer PET Container Recycling Activity.” NAPCOR. 2005.

1. Voluntary mechanisms are inadequate

2. Stakeholder initiatives have failed3. Deposits have a proven record of

success

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Voluntary systems are inadequate

0

10

20

30

40

50

60

70

1992 1994 1996 1998 2000 2002 2004

% of Population Served by Curbside

PET Bottle Recycling Rate

Aluminum Can Recycling Rate

Percent

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our c

e: B

ioC

ycle

, A

mer

ican

Pla

stic

s C

oun c

il, A

lum

inum

A

ssoc

iatio

n, U

S C

ham

ber

of C

omm

e rce

Stakeholder initiatives have failed to create new supply of scrap bottles

NAPCOR Initiatives

BEAR Multi-Stakeholder Project

APC Initiatives

NSDA Efforts

BPEC Efforts

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Deposits have a proven record of success

0

10

20

30

40

50

60

1992 1994 1996 1998 2000 2002 2004

PET Soda

Custom PET

53%

10%

34%

15%

Percent

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Source: “2004 National Post-Consumer Plastics Recycling Report.” R.W. Beck, Inc. for the American Plastics Council. 2005.

* 11 states require deposits on PET Soda bottles

Recycling Rates for PET Soda Bottles* vs Custom PET

Why is the deposit system so successful?

Modeled after the beverage industry’s system for collecting refillable beer, soft drink and milk bottles that was in place for many decades

Refundable deposits provide a financial incentive to return container for recycling

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There is a solution to the PET supply crisis.

New and expanded container deposit laws would increase the supply of scrap PET bottles.

Waste News, November 24, 2003 with permission Leo Michael, editorial cartoonist

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Washington, DC 20036202.263.0999

email: CRI@Container-Recycling.org

Visit us on the web at:www.container-recycling.org

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