Circular Economy Models in the Construction Sector: A Plastics Recycling Use Case

Abstract

AbstractThere is global desire to reduce virgin plastic use and enhance the collection and exploitation of plastics waste. Hence, governments are setting high targets for plastics recycling and using statutory instruments such as the plastic packaging tax as well as offering support to the manufacturing sector to trial increasing use of recycled plastic to stimulate end markets with the aim of reducing the amount of virgin production. The construction sector has much promise in terms of adopting circular economy principles and here we report on the results of a trial project to introduce a closed-loop supply chain model. More specifically, we seek to develop appropriate circular economy business models that manufacturers to the construction sector may adopt to enhance plastics recycling. We identify three potential circular economy models: (1) customers return direct to manufacturer, (2) customers return direct to 3rd party processor, (3) customers return to hubs, with the second chosen for trialling. Several barriers were identified, which have been categorised according to demand (perception of quality), supply (limited specialist suppliers, the provenance of the returned plastic, sourcing quality and consistent recycled material), organizational (internal policies and decision-making factors) and control (concrete contamination of end-of-life plastic products, and a lack of cost incentives). Provisional results from in-situ trials of the recycled content tubs suggest that a circular economy approach is feasible.KeywordsReverse logisticsCustomer perceptionsClosed-loop supply chain