The European Parliament’s ban on single-use plastics could increase costs incurred in waste management and clean-up for plastic packaging companies, according to a report by business and financial services company Moody’s.

The report said that the measures suggested by the Parliament to reduce environmental pollution caused by plastic waste are expected to increase additional investments for processing recycled materials and alternative inputs across the industry.

Organisations across packaging, retail and consumer goods domains will experience increased pressure to consider non-plastic alternatives while customers are expected to choose plastic packaging alternatives.

According to the report, the proposed EPR scheme and the proposal to use significant recycled materials for plastic bottles are expected to be a huge negative for the industry.

“The industry could see new opportunities for companies to develop value-added products due to the growing use of sustainable products.”

The ban may slow down industry growth while retailers, consumer goods companies and customers turn away from plastic packaging. It will also increase costs for plastic packaging companies, which they could not afford, the report noted.

However, the industry could see new opportunities for companies to develop value-added products due to the growing use of sustainable products, the report concluded.

Last week, the European Parliament voted in favour of a blanket ban on single-use plastics in a bid to tackle the pollution menace that is causing significant damage to oceans.

The proposed ban will result in the elimination of plastic straws, cotton swabs, as well as disposable plastic plates and cutlery from the EU market from 2021. A total of 90% of plastic bottles will be recycled by 2025.