Todays Latest Updates: 22 July 2026

Biobased chemicals: France. Michelin ResiCare and Axens announced that they entered into exclusive discussions regarding the establishment of a strategic partnership centered on an innovative technology for the production of 5-hydroxymethylfurfural (5-HMF), a key building block for green chemistry. 5-HMF serves as a fundamental building block for the production of resins, polymers, and other more sustainable materials, enabling the gradual replacement of certain petroleum-derived molecules. This highly promising platform molecule—bio-based, non-toxic, and versatile—can be used to develop resins and adhesives as well as bio-based polymers. One notable example is polyethylene furanoate (PEF), a bio-based plastic widely regarded as one of the most credible alternatives to PET. PEF offers significant industrial opportunities across food packaging, bottle manufacturing, and textile fiber markets. Beyond polymers, 5-HMF also holds strong potential for a broad range of solvents, intermediates, and products used in fine and specialty chemicals. Link 22/07/2026.

Plastic Recycling: United Kingdom. Viridor announced that, following a local consultation and extensive efforts to identify a viable path forward, it has taken the difficult decision to close its European chemical recycling operations in Oslo, Skive and Malmo. This decision comes despite significant operational progress across the business. Since acquiring the Quantafuel platform, Viridor has achieved dry yields of 70-75%, and has demonstrated the ability to successfully recycle contaminated household plastics that cannot be processed through conventional mechanical recycling methods. The closure is due to current market dynamics and continued policy uncertainty mean conditions are not yet supporting the sector commercially. Demand for recycled material has weakened, while cheaper virgin materials continue to undercut recycled alternatives. At the same time, policy and regulation are not creating the certainty, enforcement or long-term support needed to continue operations. Link 22/07/3026.

Policy: Europe. The European Commission’s long-awaited revision proposal for Phase 5 of the EU Emissions Trading System (EU ETS) represents a landmark transition for permanent Carbon Dioxide Removal (CDR). For the first time, the world’s largest carbon compliance market is laying down the specific legal architecture to integrate high-integrity, domestic removals, signalling a massive shift from voluntary corporate offsets to state-backed compliance demand. Addressing previous uncertainty surrounding market dynamics, the Commission’s proposal outlines a centralized, intermediary purchase mechanism to preserve the ETS cap while driving liquidity. The Mechanism: The EU will not simply allow emitters to source credits directly on the open market. Instead, the Commission, acting as a centralized Removals Authority, will issue and auction 250 million additional ETS allowances (+10Mt contingency) between 2031 and 2040. Revenue Recycling: The proceeds from these auctions will be used directly to purchase an equivalent amount of permanent, domestic CDR units, ramping up to 48 million tonnes per year by 2040. Strict Eligibility: Only BioCCS (Bioenergy with Carbon Capture and Storage) and DACCS (Direct Air Capture with Carbon Storage) certified under the EU Carbon Removals and Carbon Farming Regulation (CRCF) will qualify in this initial phase. Lower-tech options like biochar are excluded from the initial rollout pending future review. Link 22/07/2026.