- What is SIP？
- Development of Circular Economy System
- Project outline
Development of Circular Economy System
What is Circular Economy?
The Circular Economy is an economic model that aims to maximize the value of resources and products, minimize resource use, and reduce waste and CO2 emissions. In addition to the traditional 3Rs (reduce, reuse, recycle), it focuses on the creation of closed-loop systems in which products, materials, and resources are reused, repaired, refurbished, and recycled for as long as possible.
From a Linear Economy to a Circular Economy
The traditional linear economy, based on a model of mass production and mass consumption under the assumption of "take, make, and dispose," generates vast amounts of waste and not only disrupts healthy material circulation but also contributes to serious environmental challenges such as climate change, natural resource depletion, and biodiversity loss. In particular, the increasing volume of plastic waste and electronic waste has created new challenges, including marine pollution and the spread of hazardous substances.
In response to this situation, it is essential to transition to a circular economy, in which products and services are designed from the outset to eliminate waste and pollution, while keeping resources in circulation for as long as possible. This transition is a key to building a sustainable future.
Plastic Issues
Plastic is a synthetic resin primarily derived from petroleum. Because it is lightweight, easy to process, and inexpensive, it has become an indispensable material used widely in everyday life, ranging from food containers and PET bottles to household appliances, automobiles, aircraft, and buildings.
On the other hand, various concerns have been raised regarding the wasteful consumption of petroleum resources and the proliferation of plastic pollution in the oceans. While these issues have traditionally been discussed mainly from an environmental conservation perspective, they are becoming increasingly important for maintaining corporate competitiveness amid the development of international regulations and standards.
Compliance with the ELV Regulation
The End-of-Life Vehicles (ELV) Regulation*, adopted by the European Union, sets targets for the recycled plastic content in new vehicles, requiring 15% recycled plastic content 6 years after its entry into force and 25% after 10 years. However, there is currently a shortage of recycled plastics that meet the high quality standards required for automotive components, raising concerns about future supply constraints.
To address this challenge, it is urgently necessary to establish a system that can collect post-consumer plastics on a large scale and ensure the stable supply and recycling of high-quality recycled materials.
* EU regulation on the treatment and recycling of ELVs; adopted by the EU Council on June 29, 2026.
From Thermal Recovery to Material Recycling
Currently, thermal recovery, in which waste plastics are incinerated to generate energy, remains the primary method of plastic waste treatment in Japan. However, because the incineration process emits large amounts of CO2, it cannot be considered a desirable solution from the perspective of climate change mitigation. Consequently, there is a growing need to reduce plastic consumption and to strengthen material recycling, in which plastics are recycled and reused as raw materials.
Source: Plastic Waste Management Institute (PWMI)
Basic Knowledge of Plastic Recycling 2026
The 3rd term of SIP: Development of Circular Economy System
This SIP project focuses on the development of a circular economy system for plastics whose use is expected to increase in the future, through the following research and development themes.
