Manufacture of plastic packaging goods — Contribution to the transition to a Circular Economy

Sector: Manufacturing
Description

Manufacture of plastic packaging goods by processing of new or spent (i.e. recycled) plastics resins using such processes as compression molding, extrusion molding, injection molding, blow molding and casting.

Scope of Assets

This activity includes construction, operation, upgradation and procurement of equipment for the manufacturing of the plastic articles for the packing of goods:

-Plastic bags, sacks, containers, boxes, cases, carboys, bottles etc.:

PSIC/ISIC code

22201 - Manufacture of plastic articles for packing goods (ISIC 2220)

Technical Screening Criteria

Substantial contribution criteria

The activity complies with all of the following criteria1:

  1. With regards to feedstock used and circular design, the activity complies with one of the following criteria:
    • Use of circular feedstock criteria:
      • At least 65% of the packaging product by weight consists of recycled post-consumer material for non-contact sensitive packaging and at least 50% for contact sensitive packaging
    • Design for reuse criteria:
      • The packaging product has been designed to be reusable within a reuse system and fulfils the requirements for the use of circular feedstock:
        • At least 65% of the packaging product by weight consists of recycled post-consumer material for non-contact sensitive packaging and at least 50% for contact sensitive packaging
      • The system for reuse is established in a way that ensures the possibility of reuse in a closed-loop or open-loop system.
    • Use of bio-waste feedstock criteria:
      • At least 65% of the packaging product by weight consists of sustainable bio-waste feedstock (includes industrial bio-waste, agricultural based bio-waste, forest based bio-waste and municipal bio-waste, and it excludes primary biomass unless there is agreed sustainability criteria).
      • Agricultural based bio-waste used for the manufacture of plastic packaging complies with the criteria:
        • National authorities have monitoring or management plans in place in order to address the impacts on soil quality and soil carbon.
        • It is not raw material obtained from land with a high biodiversity value
        • Agricultural biomass shall not be made from raw material obtained from land with high-carbon stock
        • Raw material obtained from land that was peatland provided that the cultivation and harvesting of that raw material does not involve drainage of previously undrained soil
      • Forest based bio-waste used for the manufacture of plastic packaging complies with the criteria:
        • It will not use forest biomass derived from unsustainable production
        • Management systems are in place at forest sourcing area level to ensure that carbon stocks and sinks levels in the forest are maintained, or strengthened over the long term
  2. The packaging product demonstrates recyclability in practice and at scale by complying with all of the criteria specified below
    • The unit of packaging is designed to be recyclable, so that it can be sorted and recycled at the end of life and that the resulting recycled material is of such quality that it can be used again in packaging applications.
    • In order to ensure the same, the materials in the unit of packaging:
      • are the same material (mono-material solution) or,
      • are compatible with the existing recycling streams and sorting processes or,
      • must allow for separation of its non-recyclable components, either manually by consumers or within the existing sorting and recycling processes
    • The minimum recycling rate set by the national legislation is to be reached.2
    • The sorting and recycling processes for the packaging are available at the Technology Readiness Level 9 as defined by ISO 16290:2013.
  3. The below listed hazardous substances are not used in the manufacture of the packaging material:
    • The substances identified as Substances of Very High Concern (SVHCs) based on their hazardous properties, which include being carcinogenic, mutagenic, toxic to reproduction (CMR), or persistent, bioaccumulative, and toxic (PBT) or very persistent and very bioaccumulative (vPvB), or possessing other properties that cause serious effects to human health or the environment such as:
      • Substances that are respiratory sensitizers (substance that has the potential to cause respiratory hypersensitivity in humans), except enzymes.
      • Substances that are respiratory sensitizers (substance has a demonstrated potential to cause an allergic reaction in the skin of a substantial number of people).
      • Substances and mixtures that cause chronic harm and are toxic to the aquatic environment.
      • Substances and mixtures that are hazardous to the ozone layer.
      • Substances or mixtures based on the severity of their toxic effects on specific organs or organ systems after repeated or prolonged exposure.
      • Substances and mixtures that cause harmful effects on specific organs or organ systems following a single instance of exposure.
  4. Compostable plastic materials in packaging applications are used only for very lightweight plastic carrier bags; tea, coffee or other beverage bags; tea, coffee or other beverage pads and sticky labels attached to fruit and vegetables.
Complementary measures and practices

Any of the eligible complementary measures and practices mentioned below can be applied to support transition to circularity:

  1. The following Internet of Things (IoT) based measures are eligible to streamline use of secondary raw materials, waste management operations and increase resource use efficiency:
    • Data Analytics: Advanced analytics can be used to identify trends, optimize resource allocation, and optimize resource use during operations
    • Mobile apps to integrate the supply chain by linking manufacturing facility operators to buyers and sellers of secondary raw materials.
  2. The measures to upgrade the electrical systems with renewable energy sources and energy efficient systems to accommodate the power requirements of the facility and enhance the reliability, safety, efficiency and scalability of electrical infrastructure, reducing the risk of overloads, outages and disruptions to operations.
  3. The measures implemented to prevent and control potential environmental pollution, including dust control, ddor management, noise control, water pollution prevention, litter control and fire prevention.
  4. Additionally Research, development and innovation (RDI) programs specifically to enable circular design and production are eligible, including construction, upgradation and operation of pilot and demonstration facilities.
Exclusionary and ineligible practices
Do No Significant Harm (DNSH)
Minimum Social Safeguards (MSS)

Notes

  1. 1. The relevant Philippines national legislations are: - RA 9003 Ecological Solid Waste Management Act of 2000 - DAO 2001-34 Implementing Rules and Regulations of RA 9003 - RA 11898 Extended Producer Responsibility Act of 2022 - DAO 2023-02 Implementing Rules and Regulations of RA 11898 - RA 6969 Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990 - DENR Administrative Order No. 2013‑22 - Revised Procedures and Standards for the Management of Hazardous Wastes - DENR Administrative Order No. 1994-28 - Interim guidelines for the importation of recyclable materials containing hazardous substances
  2. 2. The Philippines does not prescribe a single minimum recycling rate across all materials. However, under RA 11898 (EPR Act), mandatory recovery targets for plastic packaging start at 20% (2023) and increase to 80% by 2028, representing the primary national benchmark for recycling and waste diversion.