Blockchain – combating the plastic pollution problem
Every year, 11 million tonnes of plastic enter the ocean globally, and APAC nations account for about half of land-based sources of marine litter. The problem is exacerbated by the emergence of developing economies, which are projected to generate 60% more plastic waste than developed countries by 2030.
According to a recent study, Indonesia, Vietnam and Malaysia have received European plastic waste especially from the Netherlands during 2021. From an average of 18.3 million pounds per month in 2020 to 41 million pounds in 2021, there was a significant increase in plastics exported to developing countries.
SAP Asia Pacific and Japan (APJ) partnered with the Japanese chemical company DIC Group to launch the pilot for GreenToken by SAP, with the aim of increasing circularity and sustainable results in the chemical industry through better recycling of plastic waste.
Most of DIC’s products are made of polystyrene, a synthetic resin used to produce plastic containers. The chemical company led an initiative to innovate new technologies and collection systems together with its partner for recycling products that are usually unsuitable for recycling, such as polystyrene.
“Chemical recycling is the key to accelerating the transition to a circular economy, but plastic from chemically recycled plastic waste cannot be separated from plastic from conventional sources. Our solution proves that it is truly circular plastic and provides complete, controllable supply chain transparency. It means more confidence in recycling from customers and ultimately less waste in the environment, says James Veale, co-founder of SAP’s GreenToken.
Most customers are unaware of the sources where their suppliers get their goods. GreenToken tracks the raw materials’ path from the beginning of material production, through processing and inspection, to physical properties and real-time information at the recycling plant.
Unique properties from the origin of raw materials and recycled goods, carbon footprints and sustainability certification data are all important details. This provides transparency for customers, so that they can clearly understand how much recycled material is included in recycled plastic products. Furthermore, blockchain eliminates duplicate fact certificates by generating a unique token for each certificate that ensures that materials are not counted twice in the circular economy.
According to SAP, GreenToken can also be used in agriculture, energy saving, metals and ores, hydrogen and the carbon industry to increase the need to realize a sustainable society.
Photo credit: iStockphoto / solarseven
