Braskem Netherlands

Rotterdam, 24 January 2023 Why the EU should add biobased plastics content targets in the Packaging and Packaging Waste Regulation Almost 40% of European plastics consumption comes from packaging, but currently, more than 98% of the European plastics production derives from fossil fuels. Braskem therefore calls on the European Parliament and Member States to include biobased content targets for plastics, alongside recycled content mandates, in the Packaging and Packaging Waste Regulation. It is essential that these biomass-based plastics are drop-in solutions, meaning they fit into traditional plastic packaging value chains and are fully recyclable within existing recycling streams1. Adding such targets would actively promote the use of, and investments into, sustainable renewable sources.

…streams1. Adding such targets would actively promote the use of, and investments into, sustainable renewable sources. This would support the plastic packaging sector’s shift away from its dependence on virgin fossil resources, a vital step towards achieving climate neutrality. The targets should be compliant with stringent sustainability criteria - including the protection of biodiversity and ecosystems, negating inadvertent effects of land use change, and protecting human rights – to ensure the development of biobased materials are sustainable in the long term, as also stated in the EU policy framework on biobased, biodegradable and compostable plastics.

…in the long term, as also stated in the EU policy framework on biobased, biodegradable and compostable plastics. The EU has set as its objective to become a climate neutral circular economy and the European Commission has set an ambitious objective to have at least 20% of the carbon used in the chemical and plastic products come from sustainable non-fossil sources by 20302. We firmly believe that incentivising biobased products that demonstrate a reduced carbon footprint, considering their carbon storage potential when compared to fossil-based equivalents, is an important solution to help achieve a carbon neutral circular economy (please see Annex I for the benefits of bio-based plastics).

…solution to help achieve a carbon neutral circular economy (please see Annex I for the benefits of bio-based plastics). Therefore, Braskem calls for a 10% stand-alone target for biobased plastic content in the Packaging and Packaging Waste Regulation, complementing the existing recycled content and reuse targets, to be set for 2030, while more ambitious targets should be required for 20403. The rationale behind setting biobased content targets 1. Biobased plastic targets will have a positive climate impact by reducing the carbon footprint of packaging, due to their carbon removal potential 4,5. 2. Biobased raw materials are needed to complement recycled feedstocks by covering unavoidable material losses in production, collecting and recycling6,7. 3. Biobased feedstocks (e.g.

…by covering unavoidable material losses in production, collecting and recycling6,7. 3. Biobased feedstocks (e.g. biofuels, such as bioethanol and bionaphtha), provide an immediate alternative to the use of fossil resources, and drop-in biobased plastics manufacture at reduced infrastructure costs since downstream investment into polymerization and conversion aren’t needed. 1 Biobased plastics are made from biomass, not fossil fuels. These should not be confused with biodegradable or compostable plastics that refer to the end-of-life outcomes of the materials. 2 COM2021(800) – Sustainable Carbon Cycles, Industrial Sustainable Carbon challenge, page 17 3 The bio-based content targets should be separate from the proposed recycled content targets. 4 Stegmann P., Daioglou V., Londo M., van Vuuren D. & Junginger M. Plastic futures and their CO2 emissions.

…targets. 4 Stegmann P., Daioglou V., Londo M., van Vuuren D. & Junginger M. Plastic futures and their CO2 emissions. Nature 612 272-276 (2022) 5 Biobased plastics sustainable sourcing and content. (European Commission, 2022) 6 The new plastics economy – rethinking the future of plastics. (Ellen Mac Arthur Foundation) 7 The circular economy for plastics – A European overview (Plastics Europe, 2022) Ref. Ares(2023)896935 - 07/02/2023 More about Braskem Braskem is a Brazilian petrochemical company with its EU headquarters in Rotterdam. With 40 industrial plants spread across Brazil, United States, Mexico and Germany, the company produces over 16 million tons of thermoplastic resins and other petrochemicals per year. Braskem is the world’s leading biopolymers producer and has committed to produce 1 million tons of biobased plastics by 2030.

…is the world’s leading biopolymers producer and has committed to produce 1 million tons of biobased plastics by 2030. Braskem’s I'm Green™ portfolio is the world's first biobased plastic produced on an industrial scale, a polyethylene made from sugarcane the renewable alternative to polyethylene, a thermoplastic resin widely used in products for consumer goods packaging such as food and beverages, personal and home care products, toys, trash cans and plastic bags. Our portfolio features approximately 40 grades in the HDPE, LDPE and LLDPE families. For further information please contact: Katarina Molin, Head of EU External Affairs & Advocacy [email protected] Annex I – Benefits of biobased plastics Responsibly sourced biobased plastics with a lower environmental footprint that can be proven through LCA analysis, present significant advantages that we highlight here.

…environmental footprint that can be proven through LCA analysis, present significant advantages that we highlight here. 1. Biobased plastics play a key role in the transition to a circular economy, ensuring the material stays in the loop without compromising its quality. o Biobased plastics makes reference to the feedstock of the plastics, i.e. biomass, and should not be confused with biodegradable or compostable plastics. o Biobased plastics have the same properties and utility as existing fossil-based plastics, as they have identical chemical structures. o As an example, Braskem’s drop in biobased plastics in its I'm Green™ portfolio are fully recyclable via the mechanical route8, making them low-carbon, high-quality and circular.

I'm Green™ portfolio are fully recyclable via the mechanical route8, making them low-carbon, high-quality and circular. 2. Enabling sustainable value chains, while contributing to rural development by stimulating local bio-economies. o Biobased feedstock can present a significant sustainability advantage throughout the value chain. o Biobased plastics stimulate the creation of jobs, often in rural areas, especially by increasing the role of primary producers in local bio-economies. o To be accepted, biobased feedstock must be cultivated and processed following the principles of sustainable development, meaning preserving high biodiversity areas, avoiding deforestation, keeping fertilisers and pesticides use to a minimum - thus contributing to the preservation of biodiversity - optimising biomass for food and renewable energy in parallel9.

…thus contributing to the preservation of biodiversity - optimising biomass for food and renewable energy in parallel9. 3. A shift to renewable feedstock would reduce the dependency on fossil fuels and support the transition to a carbon neutral economy. o Renewable materials can be produced globally, and their production can be tailored regionally. Therefore, this ensures independence from finite, unevenly distributed resources, while creating a more resilient industry with a variety of supply chains. o Biobased plastics’ carbon footprint can be significantly lower than fossil-based plastics, given the carbon removal capacity during its life cycle. Data has shown that in many cases, the carbon footprint could even be negative, as more carbon is captured than emitted. o In fact, if 10% of plastics switch to biobased feedstock, the consumption of 4,4Mt of fossil feedstock and the emission…

…report, 2022), Table 0-1 Summary of key potential costs and benefits to society, page xiii

(European Commission report, 2022), Table 0-1 Summary of key potential costs and benefits to society, page xiii 4. Targets for biobased content would support the transition to a circular and resource efficient economy. o As mentioned, drop-in biobased plastics are fully recyclable, thus contributing to the EU’s objective for all packaging to be recyclable. o Biobased feedstocks are usually produced alongside food products like sugar and maize. This enables the agricultural sector to produce more with less. As an example, sugar mills are evolving to biorefineries that produce sugar, ethanol, electricity, biogas and compost that helps fertilizing their own plantations, maximising the feedstocks’ potential and improving the resilience of the sector. o As mentioned, almost 40% of the 52,4Mt of virgin plastics consumption in Europe comes from packaging, but currently, more than 97% of this…

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