Danone’s Halted Bali Waste-to-Energy Project Underscores Industry Challenges in Plastic Waste Management
Danone’s decision to abandon its waste-to-energy initiative in Bali highlights the urgent need for a global framework to tackle plastic waste. The project, launched in 2021 as part of the French FMCG giant’s sustainability efforts, was intended to convert non-recyclable plastic into energy. However, concerns over technology efficiency and regulatory uncertainty contributed to its discontinuation.
Technology and Regulation Pose Hurdles
The initiative, developed in partnership with local waste management firm EcoBali, faced complications that reflect broader challenges in the FMCG sector’s sustainability efforts. Danone cited issues including underperformance of pyrolysis technology—the process used to break down plastic waste into fuel—as well as regulatory roadblocks in Indonesia.
With the country still grappling with proper oversight on plastic waste management technologies, obtaining the necessary approvals for waste-to-energy solutions like pyrolysis remains complex. This uncertainty underscores how lack of clear environmental policies can hinder corporate sustainability projects, even when aligned with broader industry goals.
Implications for the FMCG Sector
Danone’s halted project comes at a time when global plastic pollution concerns are mounting, prompting governments and corporations to explore alternative waste solutions. FMCG brands, particularly those reliant on plastic packaging, are increasingly pressured to find sustainable disposal methods while balancing feasibility and compliance.
The failure of this initiative also raises questions about corporate reliance on waste-to-energy as a long-term sustainability strategy. Critics argue that such projects delay more circular solutions, such as increased recyclability and reduction in plastic usage. Meanwhile, supporters highlight the potential of waste-to-energy in regions where landfill overuse remains a primary environmental concern.
Global Plastic Agreement in Focus
The episode reinforces calls for an international plastics treaty, which is currently under negotiation by the United Nations and expected to take shape by 2025. Advocates argue that a global agreement would provide standardized policies, creating a more predictable landscape for FMCG companies investing in waste management technology. Without such agreements, companies will continue to face fragmented regulations across different markets, complicating their sustainability efforts.
As FMCG brands ramp up commitments to reducing plastic waste, industry leaders will need to assess the viability