Rethinking Chemical R&D for a Circular Future

The chemical industry has been essential to industrial progress, supporting the healthcare and energy sectors. However, the traditional 'take-make-dispose' model has resulted in unsustainable resource use and significant environmental impacts. Rising waste, tighter regulations, and growing consumer demand for sustainable solutions are now driving the industry toward a circular economy.

Within this transition, chemical research and development (R&D) is crucial. The focus is no longer solely on yield, scale, and cost efficiency. Instead, R&D must pioneer processes and materials that regenerate value, minimise waste, and complete resource cycles. What began as an ecological imperative is now becoming a decisive factor in global competitiveness, risk mitigation, and resilience for chemical companies.

Regulatory and Institutional Momentum

Systemic change in chemical R&D requires a strong regulatory and institutional foundation, which is now developing globally and understanding how R&D priorities shift involves examining the policy, funding, and institutional mechanisms guiding the industry toward circularity.

• According to a 2023 study by Cefic (European Chemical Industry Council), 90% of the chemical companies surveyed acknowledged a significant business impact from the transition to circularity. The same report indicated that 72% identified customer demand as a key motivator, while 82% have integrated circular economy principles into their corporate strategies. Yet, challenges remain, including high costs, inadequate infrastructure, and complex regulations.

• Reuters reported that the EU's Digital Product Passport, which mandates transparency regarding raw materials, production processes, and recycling, expedites the shift towards a circular economy. The report projected that investing between €218 and €238 billion will be necessary over the next three decades to facilitate low-carbon and circular technologies.

• In Germany, the Centre for the Transformation of Chemistry (CTC) is being established in Delitzsch and Merseburg with €1.2 billion in federal and state funding. According to the project's official documentation, the CTC aims to become a hub for circular-economy-driven chemical research.

  
  

Novel Chemical Processes and Materials

Innovative chemistries that replace linear processes with regenerative alternatives are at the core of circular transformation.

From bio-derived polymers to catalyst-assisted recycling, research and development pipelines increasingly focus on extending material lifespans while reducing dependence on virgin feedstocks. Concrete breakthroughs are already emerging across regions:

• In a global challenge campaign documented by Inpart, most submissions focused on bio-based approaches and green chemistry, particularly in the manufacturing and production stages, reflecting the sector's growing emphasis on renewable feedstocks.

• Researchers at IIT-Bhilai, India, developed a patented process that uses a reusable nano-zero-valent-iron (nZVI) catalyst to depolymerise PET plastic into its monomer BHET under mild conditions. The Times of India reported that this approach is energy-efficient, sustainable, and suitable for commercialisation.

• Samsara Eco, based in Canberra, Australia, has created an enzyme that breaks down nylon-6 from mixed waste into its molecular components, enabling indefinite recycling. The company has raised over US$150 million and collaborates with brands such as Lululemon.

• In the United States, Northwestern University scientists published findings in Live Science showing that a molybdenum catalyst and ambient air conditions could break down 94% of PET waste in just four hours, yielding terephthalic acid, a valuable precursor for polymer re-manufacturing.

• Indian chemist Vivek Polshettiwar, at the Tata Institute of Fundamental Research, has advanced nanocatalysis methods such as dendritic fibrous nanosilica for CO₂-to-chemicals conversion and aluminosilicates for low-temperature plastic conversion.

  
  

Carbon-Circular Technologies

Circularity goes beyond waste management to include the active capture and reintegration of CO₂ into chemical value chains. Embedding carbon circularity into R&D agendas enables the industry to transform a liability, greenhouse gas emissions, into a feedstock for valuable products.

• Direct Air Electrowinning, demonstrated in the EU's Air2Chem initiative (in partnership with the Fraunhofer Institute, RWTH Aachen, and other collaborators), combines direct air capture (DAC) with electrochemical conversion to directly convert CO₂ into platform chemicals like ethylene or syngas. Preliminary results from trials conducted in 2025 are showing encouraging outcomes.

• Advancements in Solar reforming technologies further highlight the potential of carbon-circular R&D. Photocatalytic systems can convert waste PET and CO₂ into valuable chemicals and green hydrogen through sunlight-driven PEC reactors. Researchers at UC Berkeley have recently succeeded in producing ethylene and ethane using perovskite artificial-leaf catalyst devices.

  
  

R&D Platforms and Integration

The merging of cross-disciplinary platforms, pilot infrastructure, and process integration enables the scaling of circular innovations.

The chemical industry is channelling investments into collaborative R&D ecosystems and integrated technologies to minimise energy consumption, costs, and complexity, which supports the scaling of laboratory breakthroughs.

• The MACBETH project, funded by the EU, validates membrane-reactor technology that merges catalytic synthesis and separation within a single module. This method improves efficiency for industrial downstream processes. The spin-off Modelta B.V. in the Netherlands now offers modelling and consultancy services based on these advancements.

• Cell Symposia's Circular Chemistry 2024 conference highlighted sustainable catalysis, waste reintegration, eco-design, process integration, and governance, showcasing a comprehensive and interconnected R&D agenda.

  
  

Digital, AI, and Lifecycle Approaches

Digitally enabled tools and lifecycle insights are crucial for designing, monitoring, and optimising circular chemical systems.

Emerging digital solutions, especially those driven by AI and lifecycle analytics, empower researchers and companies to speed up discovery and monitor environmental performance in real time.

• Artificial Intelligence (AI) and Machine Learning (ML) enhance sustainable chemical discovery by forecasting molecular properties, improving safety, and minimising experimentation duration. These methods demonstrate early potential in substituting or redesigning harmful chemistry.

• Bibliometric analyses emphasise the pivotal role of AI and ML across various circular economy fields. Their applications span reverse logistics, waste management, manufacturing, and reuse, showcasing active research areas and identifying future research needs.

  
  

Conclusion

The convergence of chemical R&D and the circular economy defines the industry's strategic direction. Regulatory foresight, advanced materials science, carbon capture, integrated platforms, and digital innovation are key drivers. Policymakers, investors, and R&D leaders should now align around scalable models that make circularity the standard.

Looking ahead to 2030, the sector's trajectory will be defined by three priorities:

• Enhancing industrial processes to make circular chemistry economically viable.

  
  

• Speeding up digital integration to reduce innovation timelines.

  
  

• Establishing global collaboration frameworks that align standards internationally.

  
  

If realised, they could shift the chemical industry from resource-heavy practices to regenerative innovation, where waste is repurposed, carbon is utilised as a fundamental component, and circularity becomes standard. This vision demands coordinated collaboration and long-term R&D commitment.