Finance
OMV CEO says strict rules on plastic recycling could stifle innovation
Published by Global Banking and Finance Review
Posted on January 22, 2026
2 min readLast updated: January 22, 2026
Quick Summary
OMV CEO Alfred Stern warns that strict recycling rules could hinder innovation, advocating for financial incentives and regional considerations.
OMV CEO Warns Strict Plastic Recycling Rules May Hinder Innovation
Challenges in Plastic Recycling Innovation
Jan 22 (Reuters) - OMV Chief Executive Alfred Stern warned on Thursday that overly stringent rules for building a plastics circular economy risk stifling emerging technologies before they become commercially viable.
The Innovator's Dilemma
Speaking at a World Economic Forum panel in the Swiss alpine resort of Davos, Stern said the sector faces an "innovator's dilemma" as new processes must compete with petrochemical supply chains refined over decades.
Investment in Recycling Technologies
It is cheaper to produce, use and then dispose of plastic materials, Stern said, adding that financial incentives were needed to invest in collection and sorting systems.
Global Plastics Treaty Considerations
The Austrian oil and gas group sees recycling as a growth opportunity and is investing heavily, including in what it says will be Europe's largest sorting facility with service provider Interzero.
The group currently has 200,000 tonnes of mechanical and 16,000 tonnes of chemical recycling capacity.
Stern urged negotiators of a planned global plastics treaty to consider regional differences and said Europe should stop exporting waste, calling it a valuable raw material that should remain in the region.
(Reporting by Alexandra Schwarz-Goerlich in Vienna, writing by Friederike Heine, editing by Thomas Seythal)
Key Takeaways
- •OMV CEO warns strict recycling rules may stifle innovation.
- •Financial incentives are needed for recycling technologies.
- •OMV invests in Europe's largest sorting facility.
- •Global plastics treaty should consider regional differences.
- •Europe urged to retain waste as a valuable raw material.
Frequently Asked Questions about OMV CEO says strict rules on plastic recycling could stifle innovation
1What is a circular economy?
A circular economy is an economic system aimed at eliminating waste and the continual use of resources. It emphasizes recycling, reuse, and sustainable practices to create a closed-loop system.
2What is plastic recycling?
Plastic recycling is the process of recovering scrap or waste plastic and reprocessing it into useful products. This helps reduce plastic waste and conserve resources.
3What are emerging technologies?
Emerging technologies are new technologies that are currently developing or will be developed over the next few years. They often have the potential to significantly impact various industries.
4What is investment in recycling technologies?
Investment in recycling technologies refers to funding and resources allocated to develop new methods and systems for recycling materials, particularly plastics, to improve efficiency and sustainability.
5What is a global plastics treaty?
A global plastics treaty is an international agreement aimed at addressing plastic pollution and promoting sustainable practices in the production and disposal of plastic materials.
