Management practices for compostable plastic packaging waste: Impacts, challenges and recommendations

•Three scenarios for compostable plastic packaging (CPP) management are assessed.•Collection with plastic for mechanical recycling (MR) is preferred (closed-loop).•Collection with bio-waste for biological treatment is second best option.•Small quantities of CPP in municipal waste do not economically justify MR.•Correct waste separation behaviour increases revenues and environmental benefits. The EU Green Deal aims at solving the challenges related to plastic production, (mis-)use, and pollution. While the bioplastic industry is identified as one of the possible avenues to tackle the problem, bioplastic waste collection and management practices are still far from full-development and harmonisation. To inform policy makers on the best practices and their feasibility, this study quantifies environmental and economic impacts of compostable plastic packaging (CPP) waste management schemes by means of Life Cycle Assessment and Costing. Results show that, with respect to climate change and financial costs, the scheme leading to the highest benefits is collecting CPP with conventional plastic waste followed by mechanical sorting and recycling (saving ca. 306 kg CO2eq. t−1 at a net income of 3.7 EUR t−1). The second best option is collecting CPP with bio-waste followed by biological treatment (saving ca. 69 kg CO2eq. t−1 at a cost of 197 EUR t−1). Collecting CPP with conventional plastics followed by sorting and biological treatment is to be avoided. The trend on the other impact categories generally follows climate change. Ideally, closed loop is therefore preferred, but conditioned by (i) having high share of CPP in municipal waste (else sorting is economically unfeasible), (ii) good citizen’s behaviour at source-segregation, and (iii) an established market for secondary material. Currently, overall benefits are limited by the low amounts, suggesting that the management choice could ultimately be based on rather simple technical and economic feasibility criteria while regulatory and management efforts should be focused on other waste streams with greater implications on environment.