Plastic's Cost: Environmental Impact And Economic Value

Plastic is a versatile and useful material, but it comes at a cost. It is estimated that the global cost of plastic to society and the environment is AU$5 trillion per year. The price of plastic varies depending on its grade and type, with prices ranging from 0.5 cents per pound for Grade C film to 8.13 cents per pound for Polypropylene (PP). The price of plastic has been steadily increasing, with some types of plastic experiencing notable price rises in recent months. Despite the cost of plastic, it is often difficult to see the price tag on plastic products as the cost of plastic packaging is often invisible.

The cost of plastic packaging

The price of plastic varies depending on its grade and use. For example, the national average price of post-consumer PET beverage bottles and jars is currently 13.94 cents per pound, while Grade C film remains at a low 0.5 cents per pound. Polypropylene (PP) has seen a dramatic rise in price, now trading at 8.13 cents per pound, a 51% increase from last month.

The true cost of plastic packaging is often not reflected in the price of products. Consumers may pay indirectly through taxes or service fees for the management of plastic waste. Additionally, the environmental impact of plastic packaging, such as pollution and harm to wildlife, is a cost that is often not considered.

The price of plastic recycling

The price of plastic is not always clear. When you buy a plastic product, you are paying for the plastic packaging, but the cost of this is invisible. For example, when you buy a bottle of shampoo, you are paying for the plastic bottle, but when you throw it away, it is not recycled for free. The cost of managing plastic waste is often hidden and paid for indirectly through taxes or service fees. According to WWF and global consultancy Dalberg, the true cost of plastics to society and the environment is AU$5 trillion a year.

Additionally, the production of plastic has environmental costs. Plastic is made from crude oil, with 10% of crude oil becoming plastics. This requires the extraction of oil, which has environmental impacts and contributes to climate change.

The price of plastic per pound

The price of plastic also depends on its type. For example, in March 2023, the national average price of post-consumer PET beverage bottles and jars was 13.94 cents per pound. In contrast, the national average price of natural high-density polyethylene (HDPE) was 68.22 cents per pound.

The price of plastic can also vary over time. For example, in March 2022, polypropylene (PP) was trading for 29.44 cents per pound. By March 2023, it was trading at 8.13 cents per pound. One year later, in May 2024, the national average price of post-consumer PP was 6 cents per pound.

The price of plastic is also influenced by market trends and demand. For example, in March 2023, prices for PET, natural HDPE, colour HDPE, and PP increased by 6%, 10%, 45%, and 51%, respectively, over the past month. This was due to the upward trend in curbside plastic bale prices, which started several months earlier.

The cost of plastic to the environment

Plastic is a versatile material with many applications, from packaging to fabrics, furniture, machines and tools. However, its production and disposal come at a significant cost to the environment.

The production of plastic requires the extraction of crude oil, with 10% of crude oil becoming plastic. In 2020, 367 metric tonnes of virgin plastics were produced from oil, while only 1 metric tonne of bioplastics was produced from plants. This heavy reliance on fossil fuels contributes to greenhouse gas emissions and climate change.

Once produced, plastic waste is a significant issue. Approximately 40% of plastics are used for packaging and are often thrown away within a month. Less than 10% of plastics are recycled, with the majority ending up in landfills or the ocean. The cost of managing this waste is significant, and often goes unnoticed or unpaid. For example, the WWF and global consultancy Dalberg estimated the true cost of plastics to society and the environment at AU$5 trillion in a single year.

The impact of plastic waste on the environment is severe. Only 0.5% of plastics in the ocean are on the surface, with the rest accumulating in the water and affecting marine life. The presence of plastic in the ocean can lead to the ingestion of plastic by marine animals, entanglement, and the release of toxic chemicals.

The cost of plastic to society

Plastic is a versatile material with a wide range of applications, from food containers to packaging. However, the true cost of plastic to society is often hidden from consumers. While we may see the price tag on a plastic item, we rarely consider the cost of the plastic packaging or the environmental impact of our purchases.

The price of plastic varies depending on its grade and application. For example, Grade C film plastic is currently valued at a low 0.5 cents per pound, while polypropylene (PP) has seen a dramatic rise in price, now trading at 8.13 cents per pound. The national average price of post-consumer PET beverage bottles and jars is 13.94 cents per pound, with some regions trading as high as 17.00 cents per pound. These prices can fluctuate from month to month, with recent reports indicating an upward trend in plastic prices.

The production of plastic comes at a significant environmental cost. In 2020, 367 metric tonnes of virgin plastics were produced from oil, contributing to the depletion of this finite resource. Additionally, less than 10% of plastics are recycled, with the majority ending up in landfills or the ocean. The management of plastic waste is a costly endeavour, often paid for through indirect means such as taxes or service fees.

The environmental impact of plastic extends beyond the issue of waste management. Plastic pollution has far-reaching consequences for ecosystems and wildlife, with an estimated 0.5% of plastics in the ocean floating on the surface of the water. This pollution has a significant economic impact as well. According to estimates by WWF and global consultancy Dalberg, the true cost of plastics to society and the environment is approximately AU$5 trillion per year. This figure represents the hidden costs that consumers ultimately bear.

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