The Transition towards Circular Economy within the Plastic Industry

Abstract

The linear economy approach of take-make-waste is one of the main drivers for the transgression of planetary boundaries. As the demand for finite resources is continuously growing and the usage of plastics is expected to grow exponentially in the future, there is an increasing need for a system change. This thesis aims to explore the development of circular economy principles within the plastic industry. The study investigates such developments from the regulatory perspective, the industry perspective, and the niche-innovation perspective. Further, the research explores how these actors influence the development of a circular economy transition and the barriers and opportunities they pose for niche-innovation companies. The research is taken the point of departure from the exploratory research philosophy and explores circular economy principles within the plastic industry through accordingly methodology. The thesis employs an abductive research approach. This study applies both qualitative data and relevant theoretical frameworks to answer the research question through the iterative process between data and theory. The findings indicate significant steps towards a change from the linear economy approach to a more circular economy. These can be identified both at the regulatory level and the industry level. Further, the findings show how the above levels influence the development of niche-innovations in the plastic industry. Thereby investigating the barriers and opportunities created and the possible creation of a window of opportunities for niche-innovation companies. This thesis intends to bridge the gap present in the field of the circular economy between practitioners and academia. Hereby, applying relevant theory to real-life cases with the aim to explore how the plastic industry can achieve a transition toward more circularity. This paper argues that further regulatory changes, open innovation, and cross-sectoral collaboration can, to some degree, help the transition and thereby reach the EU plastic recycling goals by 2030.