Sustainability and circularity sector in Spain

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by a searcher from IESE Business School
in Barcelona, Spain

1yr ago

Sustainability and circularity sector in Spain

I am looking into this sector as a potential opportunity in Spain in the coming 5-10 years.
does anyone who have looked into it have an opinion or good advice?
thanks!

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reply by a searcher 1yr ago
from IESE Business School in Madrid, España

I did some work back when I was in consulting about the circularity in the Auto industry. European regulations are pushing for more recycled plastics in new cars and OEMs as well as Tier 1/2s are working on developing the supply chain required to comply with the new norm. I've come across a few opportunities of circular companies that were performing really good. There are a lot of other sectors in which circularity is playing a central role such as energy, construction (neutral buildings), logistics (with synthetic fuels o EV) or packaging, just to name a few This is clearly a sector with strong tail winds and if you love sustainability and all that surrounds it, I would recommend you to go for it! Happy to jump into a call if you want to discuss it but, just FYI, I’m no expert!

reply by a searcher 1yr ago
from Université Paris in Barcelone, Espagne

I worked during a couple of weeks on Recycled plastics.

My point on that particular sector is that Spain is much more advanced than many countries in Europe in terms of capacity of treatment.
However, the rationale of me non pursuing on that sector has been those first insights (do not take it as granted as it is based in 5 experts interviews and some online information)
1) the market relies on regulations that is taking a long time to move
2) the market is very sensitive to the Oil pricing and as of today "New plastic" remains cheaper for industrials
3) Integration of recycled plastics within industrial process requires adaptation of the industrial operations and can be costly
4) part of our industry in needs of plastics has been relocated into Eastern Europe / China adding a lot of complexity to the logistic scheme of recycled plastics

For the remaining part of Circular economy and Sustainability topics I agree on the trend for upcoming years, you need to find an economic model that starts to be validated.