How Recycling Can Solve the Growing Waste Crisis

Japan is globally recognized as a leader in recycling and its commitment to Sustainable Development Goals (SDGs), including achieving carbon neutrality by 2050. However, there are criticisms—fair or not—regarding the lack of a solid framework and limited collaboration between the government, manufacturers, and recyclers. As a company that bridges this gap and promotes advanced recycling technologies, what is your analysis of Japan’s recycling sector, and what do you see as the key obstacles to its improvement?

Japan’s recycling system evolved significantly during the 1990s and 2000s with the primary goal of reducing waste. Given Japan’s limited landmass, minimizing the amount of trash sent to landfills has always been a critical priority. Incineration has been the main method used to achieve this, as it significantly reduces the mass of waste.

In the 2000s, new recycling laws were introduced targeting specific sectors, such as automotive packaging, construction materials, and food waste, further driving efforts to reduce landfill use. These laws have effectively helped companies reduce the volume of garbage that ends up in landfills.

However, while these measures have been successful in waste reduction, they lack a broader perspective on the circular economy. The current system prioritizes reducing and recycling waste but often overlooks the opportunity to create new value from discarded materials. For example, the goal of recycling in Japan is primarily to minimize waste for incineration, rather than to upcycle or add new value to materials.

This is particularly evident in sectors like packaging and PET bottle recycling, where there is no distinction between downcycling and upcycling—everything is grouped under the broad term of recycling, with the focus on waste reduction rather than repurposing materials into higher-value products.

Japan’s existing framework does not yet fully embrace the concept of treating waste as a resource that can be transformed into something valuable. A shift in mindset and infrastructure is needed to move beyond waste minimization toward a truly circular economy that prioritizes creating new value from discarded materials.

Japan is facing a significant population crisis, with the current population of 125 million expected to decline to 100 million by 2050, and potentially halve by 2100. This presents two major challenges: a shrinking labor pool and a decreasing domestic market. Many companies are turning to internationalization as a key strategy to address these issues. How much of your approach to tackling these demographic challenges is centered on internationalization, and what other strategies are you implementing to adapt to this changing environment?

It’s true that Japan’s declining population poses significant challenges to our domestic operations, making it crucial for us to expand internationally and establish a global presence. The key question for us, however, is identifying what our core business should be as we enter new markets.

We have proprietary PET chemical recycling technology developed in Japan that holds great potential for application overseas. But beyond the technology itself, our mission is to emphasize the importance of creating new value through recycling. Recycling should not be seen merely as a means to reduce waste but as a process to transform trash into valuable resources. By doing so, we aim to add a fresh perspective to how waste is perceived globally.

Since 2010, we have collaborated with retail stores on a project that collecting clothing that is no longer needed directly from consumers. This program embeds the concept of the circular economy into daily life by involving consumers in the supply chain. Once they’ve finished using a product, consumers are encouraged to bring it back to designated collection points at retail stores, where it can enter the recycling process. Raising awareness and participation in this initiative is critical to its success.

For example, the apparel I’m wearing today is made from recycled materials. Its new value lies not only in its design but also in the fact that it was created from clothing that consumers contributed as waste, giving it a second life. By fostering a shared understanding of the value of recycled products and the recycling process itself, we believe we can inspire greater consumer engagement in recycling efforts and drive demand for recycled products globally.

Continuing on the topic of internationalization, your company has focused efforts on Europe and the Middle East, with initiatives in France and the UAE. I understand you’re also exploring opportunities in North America and Southeast Asia. What shape will this expansion take, and which specific countries or markets are you targeting?

To make recycling a significant economic value, it’s essential to make it more cost-effective. Let me explain our production strategy to achieve this. Globally, there are about eight billion people, and billions of apparel items are manufactured and discarded every year. While recycling clothing from one item to another is important, achieving a global impact requires economies of scale.

To achieve this, identifying the optimal location to minimize recycling costs and produce PET resinefficiently is critical. PET resins are commodities—no matter where they are made, their quality is essentially the same. The key differentiator is cost. If we can produce recycled PET resin at a lower cost than virgin PET resin made from crude oil while maintaining equal or superior quality, they become a more economically attractive option for users.

Electricity costs play a decisive role in the overall cost of running chemical recycling plant. For this reason, we are particularly interested in regions with low-cost renewable energy, such as the Middle East, where electricity can cost about one-sixth of what it does in Japan. Establishing a mass production base for recycling in such economically viable areas is a key focus for us.

Currently, we are conducting an in-depth analysis of recycling infrastructures and renewable energy policies across various nations to determine the best location for our future production base. This strategic approach will allow us to make recycling not only environmentally sustainable but also economically viable on a global scale.

You have established various partnerships, including collaborations with major beverage and cosmetics company domestically, and with Axens for recycling technology. Additionally, you’ve strengthened your operations through the acquisition of PET REFINE TECHNOLOGY CO., LTD.. Is there a difference between your domestic and international strategies for partnerships? What does your ideal partnership look like, and what qualities do you seek in a potential collaborator?

Partnerships are pivotal in advancing our business, as creating meaningful global change requires a massive joint effort. Given the limitations of our balance sheet and capital for establishing multiple plant, identifying the right local partners is critical to achieving our goal of a global circular economy.

In the Middle East, for example, we are actively exploring collaborations with oil production companies and waste management organizations to establish a strong local base. The region offers immense potential due to its cost-efficient energy resources and its growing focus on sustainability, making it an ideal area for such partnerships.

However, building partnerships is inherently challenging. While contracts are relatively straightforward, as they often involve one-sided commitments, true partnerships require a deep and mutual understanding. Without thorough alignment, a partnership is likely to fail. That’s why I prioritize building relationships where both parties fully comprehend each other’s objectives and focus on sharing economic benefits to ensure long-term success.

Building on the importance of partnerships, what unique qualities does your company bring to the table, and what added value can you provide to your partners in advancing the circular economy?

Our primary strength lies in the technology we have accumulated over the past decade in the development, operation, and management of chemical recycling plants. This extensive knowhow is a valuable asset that our partners can leverage to achieve shared goals.

Founded in 2007, JEPLAN has established itself as a global innovator in recycling technologies, driving the circular economy across sectors such as packaging, textiles, PET bottle, and fashion. Among these, which sector do you believe holds the greatest potential for growth? Additionally, do you see opportunities to extend your technologies into other segments?

While we are often recognized as an apparel and PET bottle recycling company, our core technology is focused on recycling polyethylene terephthalate (PET), a versatile plastic widely used across global industries such as tires, electronics, automobiles, and other devices. We are actively advancing recycling efforts for all PET-related materials. That said, PET bottles remain the easiest to recycle and continue to have the highest demand in the recycling market.

We touched on some recycling challenges earlier, such as waste that limits reuse and the CO2 emissions from virgin PET production. Your proprietary technologies address these issues by chemically recycling PET waste into high-purity raw materials suitable for continued reuse. Could you elaborate on how these technologies overcome these challenges and highlight their key technological advantages compared to others in the industry?

The uniqueness and strength of our technology lie in its ability to remove impurities at an exceptionally high level, a capability unmatched by conventional recycling methods. Typically, recycled products experience quality degradation, but our proprietary technologies regenerate high-quality raw materials, enabling the end product to be recycled repeatedly many times at its original standard.

Regarding CO2 reduction, the highest emissions occur at the end of a product's lifecycle, particularly during burning or incineration. While recycling production does require energy, our proprietary technology allows the same material to be recycled indefinitely without compromising quality. This repeated use significantly reduces CO2 emissions. Furthermore, we are increasingly focusing on integrating renewable energy into our processes, which brings the total CO2 emissions from our operations close to zero.

In 2018, you launched your own apparel brand, BRING™, which has since become a leader in sustainable fashion. What inspired you to start this startup, and what are your ambitions for its future? Can we expect to see standalone BRING stores in the coming years?

The motivation behind starting BRING™ was to demonstrate the tangible potential of our work while creating new value that people could experience and appreciate firsthand. Regarding stores, we took a significant step in this direction by opening a shop in Ebisu in 2021.

BRING EBISU *Closed in December 2024

BRING™ opens its second directly managed store, BRING CIRCULAR TAKAO in Octorber 2023

We’re not an apparel company, so we can’t compete with brands like A well-known apparel that you can find anywhere. Instead, the purpose of creating BRING™ was to make the outcomes of our recycling efforts tangible. People can truly understand the value of our work when they see and experience the results firsthand. For example, while our t-shirts may look ordinary, they’re made from apparel waste, and we explain this process to customers to help them appreciate the regeneration.

Ultimately, our goal isn’t just about selling clothing—it’s about showcasing the potential of our recycled materials. By creating products that people can see, feel, and use, we’re able to promote the value of our PET resins and drive demand for sustainable solutions.

In 2018, you acquired PET REFINE TECHNOLOGY to strengthen your capabilities in the chemical recycling sector. In August 2024, you introduced HELIX™, a brand of recycled PET resin developed using your proprietary chemical recycling technology, designed primarily for beverage and cosmetics packaging. Could you elaborate on the motivation behind this acquisition and share more details about the HELIX™ brand?

The acquisition of PET REFINE TECHNOLOGY was a strategic decision to revitalize an older-style plant and integrate it with our latest technologies. This approach allowed us to supply products more cost-efficiently by reducing the initial investment required for establishing new facilities. At the time of acquisition, plant was not operational, but after three years of extensive renovations, we resumed operations in 2021.

This acquisition has been instrumental in overcoming what is often referred to as the “Death Valley,” where many products struggle to progress from research and development to becoming commercially viable. Strengthening our production capability through this acquisition has enabled us to provide more versatile and competitive offerings, solidifying our position in the chemical recycling market and meeting the diverse needs of our clients.

PET REFINE TECHNOLOGY CO., LTD.

HELIX™ was created to transform the perception of resin, which is traditionally seen as a commodity. Resin is typically evaluated based on its functionality, quality, and cost. By establishing a distinctive brand identity for our resin and associating it with the circular economy, we aimed to elevate its value and make it stand out in the market. HELIX™ represents not just high-quality recycled PET resin but also our commitment to sustainability and innovation, making it a symbol of our mission to contribute to the circular economy.

Second from the right is HELIX™, chemical recycling process for PET bottles

I have a more personal question for you. As the president and founder of this company, let’s imagine we return for another interview in five years. What dreams or goals would you hope to have achieved for the company by then?

In 2007, I co-founded the company with Mr. Iwamoto while I was still a graduate student. At the time, I had very little money, so my contribution to the initial capital was only JPY 200,000, while Mr. Iwamoto provided JPY one million. We established the company because, although the recycling mindset was primarily focused on waste reduction, we were convinced that recycling would become a critical societal value in the future. We believe that achieving a circular economy is essential for society’s growth, and our mission is to promote this vision by leveraging our proprietaryrecycling technology.

If you return in five years, I hope to share that we have made significant strides toward realizing a circular economy. However, I recognize that achieving this goal requires ongoing effort, and we are committed to continuously tackling new challenges to bring that our mission “We circulate our world” to life.

What message would you like to convey to our readers and how would you like your company to be seen through the eyes of the global market?

We are constantly striving to realize a circular economy. One of the biggest challenges we face is the widespread notion that economic viability should always take precedence. My message to global CEOs and decision-makers is to reconsider and prioritize important social values. If the focus remains solely on economic viability, achieving a circular economy will not be possible.

For example, virgin PET resin is significantly cheaper than recycled PET resin, but the core value at this stage should not be limited to cost-effectiveness. Once a circular economy is established, economic viability will naturally follow, but we must first prioritize the realization of a circular economy. While this may temporarily impact profitability, it is crucial for governments and business leaders to rethink what truly creates the most social value. Achieving a circular economy is vital for the sustainable growth of the world, and both I and the company are dedicated to doing our utmost to make this vision a reality.

For more information, please visit their website at: https://www.jeplan.co.jp/en/