Why our plastic problem needs a new way of thinking – and how circular solutions can help
This blog is based on a paper Circular Plastic Ecosystems – Collaboration Dynamics and Strategic Specialization by Ville-Veikko Piispanen, Kristina Leppälä and Hanna Lehtimäki presented at the EURAM2025 conference 23.-25.6.2025, Florence, Italy. PlasticsCircularity Business Finland, 257/31/2024.
Every year, the world produces more than 450 million tons of plastic, and nearly all made from fossil fuels. Plastic has become so ingrained in our daily lives because it’s lightweight, durable, and versatile, powering everything from healthcare devices to food packaging and global supply chains. But here’s the catch: most plastic is designed for single use, and it doesn’t break down naturally. Today, only about 9% of all plastic ever produced gets recycled. The rest ends up in landfills, oceans, or scattered across landscapes, causing serious harm to ecosystems and even our health. Experts warn that by 2050, the oceans could contain 250 million tons of plastic.
This plastic boom doesn’t just pollute the planet; it also drives climate change. The production of plastics consumes a significant share of the world’s oil, with estimates suggesting that by 2040, plastics could use up 20% of global oil supplies. Plus, the waste management and disposal processes, especially incineration, add to greenhouse gas emissions.
Given these urgent challenges, how do we turn the tide?
Our research into circular plastics ecosystems reveals that solving this puzzle requires more than just recycling. Companies need to specialize based on their core strengths and collaborate transparently, building trust to share knowledge and resources. For example, some firms focus on polymer production, partnering selectively with recycling innovators to keep their operations efficient and focused. Others build expertise in niche areas like medical plastics or expanded polystyrene, forming alliances to overcome scaling barriers.
But collaboration isn’t easy. Ecosystem governance must strike a delicate balance with centralized coordination to align goals and distributed innovation to foster creativity. Without shared visions and clear accountability, circular economy efforts risk becoming symbolic gestures rather than real transformation.
The biggest hurdles include fragmented stakeholder interests, regulatory gaps that either block innovation or impose overly strict rules, and low consumer demand for recycled materials especially where regulations are weak. Limited investment in recycling technology and infrastructure further stalls progress, while circular solutions often compete for scarce financial and human resources.
To truly make circular plastics the new normal, we can’t accelerate the transition if everyone just acts on their own. Strategic partnerships built on trust, transparency, and shared responsibility are essential. Policymakers, businesses, and consumers must collaborate to align incentives, modernize infrastructure, and stimulate market demand for sustainable materials.
In short, solving the plastic crisis requires a systemic shift not only in how plastics are produced and used, but also in how organizations work together and innovate within a circular economy framework.