WASHINGTON, DC – A new report released today by the Center for International Environmental Law (CIEL) raises new and significant questions about the economic rationale for the massive wave of new infrastructure investments in“ plastics and petrochemicals. Untested Assumptions and Unanswered Questions in the Plastics Boom highlights global changes that threaten to dramatically disrupt the plastic industry at both ends of its supply chain, fundamentally altering both the costs of plastics production and the demand for plastic products.
As companies ramp up investments to create more plastic, they are banking on plastic infrastructure being profitable for decades to come. This assumes that demand for plastic will continue increasing and that plastics production will continue to be heavily subsidized by demand for the fossil fuels that supply chemicals critical to plastic production. However, the new report exposes changes in the economy, government regulations, and consumer attitudes worldwide that could make these investments much riskier than previously assumed.