Government to Support Small and Medium Enterprises in Reducing Plastic Waste

by AJP Posted : July 22, 2026, 12:04Updated : July 22, 2026, 12:04
Government efforts to reduce plastic waste will focus on small and medium-sized enterprises (SMEs) that generate significant amounts of waste plastic. The Ministry of Climate, Energy and Environment announced on July 22 that it will launch a tailored technical diagnosis program starting July 23 as part of the '2026 Circular Economy Performance Management Technical Diagnosis and Guidance' initiative. This program aims to analyze the production processes and waste management practices of manufacturers that produce large quantities of waste, providing recommendations to enhance recycling rates and reduce landfill and incineration.

This year, the government will select 10 SMEs that primarily incinerate their waste plastic to assess the current status of waste generation and recycling potential for each process. The government plans to offer customized implementation strategies to reduce plastic use at the manufacturing stage and to utilize unavoidable waste plastic for producing recycled materials and pyrolysis oil.

To ensure that the diagnosis results lead to actual investments, the government has also prepared follow-up support. Starting next year, it will link support for building smart eco-factories with assistance for waste reduction and recycling facility installation. Financial support will also be provided to companies needing process improvements, including loans for environmental improvement facilities and interest support for green asset-backed securities.

The government expects that through this initiative, approximately 14,100 tons of waste plastic currently incinerated out of the 39,500 tons generated annually by the targeted companies can be redirected to recycling, while also reducing the overall waste plastic generation through process improvements.

Expanding plastic recycling is seen as a key task to achieve both carbon neutrality and resource circulation. Transitioning from an incineration-focused waste management approach to recycling methods, such as producing recycled materials and pyrolysis oil, is expected to contribute to reducing carbon emissions and enhancing the supply of circular materials, thereby strengthening the competitiveness of the industry.

The Ministry of Climate will continue to monitor the implementation status of companies through on-site inspections and the 'Olbaro System' after the technical diagnosis. This initiative has been in place since 2018 to support improvements in waste management practices and expand recycling.




* This article has been translated by AI.