Carbon Tracker urges government to act as plastics demand won't rescue the oil sector

Carbon Tracker urges government to act as plastics demand won't rescue the oil sector

The Carbon Tracker has published an analyst note on plastic demand in the oil and petrochemical industries. The note states that the demand for plastic is likely to 'peak as the world starts to transition from a linear plastic system to a circular one and governments act to hit climate targets. The implication is peak oil demand and hundreds of billions of dollars of stranded petrochemical capital expenditure.' The author notes that there 'plastics are uniquely vulnerable' as they 'impose a massive untaxed externality upon society'. However, the author believes that there are technology solutions to this by reducing 'demand through better design and regulation' substituting ' with other products such as paper' and increasing recycling. The note concludes that plastic demand will not rescue the oil sector, but urges the government to act now as the coronavirus (COVID-19) 'shock is likely to reduce plastic demand by around 4% this year and give policymakers more room to act.'

You can view the full analyst note here but note that a login is required.

Source: The Future’s Not in Plastics: Why plastics demand won’t rescue the oil sector

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