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California pumps millions into clean PET fund

The US state of California is providing US$ 10 million (EUR 8.8 million) in funding to the plastics recycling sector to reward facilities producing ‘ultra clean’ bales.

The California Department of Resources Recycling and Recovery (CalRecycle) will pay up to US$ 160 per tonne of recycled polyethylene (PET) bales that have 2% or less contamination, Resource Recycling reports.

The money comes from the California Beverage Container Recycling Fund and covers the 2021-22 fiscal year.

Amy Cameron, CalRecycle’s assistant director for recycling, hopes the financial support will increase the sorting and separation of plastics in the short term. She underlines that claims can be submitted retroactively to 1 July 2021.

The organisation says packaging producers are far from reaching the required target for 2022 of 15% recycled content in bottles. There is still some time to improve the figure as penalties do not go kick in until 2023.

Meanwhile, market players anticipate a shortage of recycled PET, which could cause material bottlenecks for leading brands.

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