Finance
OMV CEO says strict rules on plastic recycling could stifle innovation
Published by Global Banking & Finance Review®
Posted on January 22, 2026
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 22, 2026
2 min readLast updated: January 22, 2026
OMV CEO Alfred Stern warns that strict recycling rules could hinder innovation, advocating for financial incentives and regional considerations.
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.
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.
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.
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)
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.
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.
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.
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.
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.
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