Plastics play a critical role in modern industry and daily life, with global production reaching approximately 370 million tons in 2019 [
1]. However, the accumulation of plastic waste has become a significant environmental challenge, necessitating sustainable waste management strategies to mitigate fossil resource depletion. In the last fifty years, the production of plastics has steadily increased, and based on the Organization for Economic Co-operation and Development (OECD), the production could triple in the next 40 years [
2]. In order to realize the Sustainable Development Goals (SDGs), it is essential that all sectors align their strategies with the objectives outlined by the SDGs. Consequently, sustainable management strategies are necessary across all domains, including research, industry, and government. This alignment is important for mitigating the effects of plastic pollution on ecosystem services and human health. The circular economy, which promotes reusing, recycling, and transforming waste into raw materials, has become necessary for achieving a sustainable world. Recycling is increasingly recognized as the most effective approach to reintegrating plastic waste into material life cycles while minimizing its ecological impact [
3]. Polyethylene terephthalate (PET), which constitutes approximately 7% of the global plastic demand [
4], is predominantly used in beverage containers, accounting for 62% of the total plastic bottle production worldwide [
5]. PET plastic bottles are made of solid materials that do not absorb water, making them suitable for food and beverage packaging. In Taiwan, PET plastic containers constitute the largest share of collected plastic waste, with an annual recycling volume of approximately 100,000 tons [
6]. Implementing mandatory waste-sorting policies since 2005 has significantly enhanced recycling efficiency, resulting in a national recycling rate of 55.14% and a PET container recycling rate exceeding 95% [
7]. Taiwan’s PET recycling industry primarily utilizes physical processing techniques, including washing, label removal, and shredding [
8]. PET production relies on fossil fuel extraction and significant energy inputs, while disposal through incineration or landfilling limits its reusable potential. Transitioning from a linear to a circular economy is essential to enhance material reuse, recycling, and refurbishment. This shift reduces raw material consumption, lowers environmental emissions, and mitigates ecological burdens [
9]. The 2018 “New Plastic Economy Global Commitment” by the Ellen MacArthur Foundation promotes plastic circularity through redesign, reuse, and recyclability. It seeks to eliminate problematic plastics, reduce single-use packaging, and ensure all packaging is recyclable or compostable. The initiative also aims to decouple plastic production from resource consumption while eliminating hazardous substances. Over 500 entities have pledged to meet these goals, with businesses required to ensure 100% recyclable, reusable, or compostable packaging by 2025 [
10]. In 2019, the European Union (EU) consumed 50 million tons of plastic, contributing to the 80–85% share of plastic waste in marine debris [
11]. To address this growing issue, the European Plastics Strategy (EPS) aims to ensure that all plastic packaging is reusable or recyclable by 2030 [
12]. Directive (EU) 2019/904 targets single-use plastics and PET bottles under 3 liters, requiring at least 25% recycled content by 2025 and 30% by 2030 [
13]. EU Member States must achieve a 77% collection rate for these bottles by 2025, reaching 90% by 2029. Since October 2020, the United Kingdom (UK) has banned certain single-use plastics and aims to eliminate all single-use plastic waste by 2042. However, limited recycling capacity results in the export of 60% of plastic waste [
14]. The recycling rate of plastic beverage bottles is 77%, whereas the overall plastic waste recycling rate remains at 59% [
15]. The UK aims to address this issue by implementing a Deposit Return Scheme (DRS), with Scotland initiating the program in 2022, and a nationwide rollout planned for 2023. In the United States (U.S.), the PET recycling rate declined slightly from 29.2% in 2017 to 28.9% in 2018, remaining relatively stable over the past decade [
16]. To compensate for the decline in exports due to China’s waste import ban, recyclers increased PET bottle procurement by 16%. In response, the American Chemistry Council (ACC) introduced a plastic circularity strategy, Operation Clean Sweep (OCS), that seeks to mitigate plastic pollution. Taiwan’s high recycling rate is driven by its 1997 “Four-in-One Recycling Program” and the 2005 “Mandatory Waste Classification and Zero Waste Policy”, which ensure proper waste separation, leading to a recycling rate of 51% [
17]. PET bottle recycling methods include physical and chemical recycling, but Taiwan primarily relies on mechanical recycling due to high costs and regulatory restrictions. Mechanical recycling involves collecting, sorting, cleaning, and shredding PET bottles into flakes, which are then converted into fibers or processed into granulates for manufacturing new plastic products. Mechanical PET recycling offers several advantages, including a straightforward processing method with low capital investment [
18], and accommodating a diverse range of raw materials, such as transparent, colored, and oil-contaminated PET bottles [
19]. Furthermore, compared to chemical recycling, the mechanical process generates lower environmental emissions, thereby reducing PET waste’s ecological impact [
20]. However, notable limitations exist; the quality of recycled PET deteriorates with each processing cycle, leading to a decline in color and mechanical properties [
21]. Additionally, cross-linking and oxidation reactions contribute to the yellowing of the material [
22]. Furthermore, thermal and hydrolytic degradation alter PET’s molecular weight and viscosity characteristics, presenting a critical challenge in mechanical recycling [
23]. Chemical recycling of PET depolymerizes polymers into monomers or oligomers, enabling virgin-quality PET production but requiring large-scale operations for economic viability. Key methods for this include methanolysis, glycolysis, hydrolysis, and aminolysis. Glycolysis, the most commercially viable, uses Ethylene Glycol (EG) to break ester bonds, producing bis-hydroxyethyl terephthalate (BHET) for PET manufacturing [
24]. Methanolysis and hydrolysis yield high-quality products but are costly and time-consuming [
21,
22,
23,
24], while aminolysis remains limited to specific fiber applications [
25]. Despite its potential, PET chemical recycling faces challenges in efficiency and scalability, with glycolysis being the most widely adopted industrial method.
Several studies have assessed the environmental impact of recycled plastics using Life Cycle Assessment (LCA) methodologies worldwide. Among these studies, Zhang et al. (2020) [
26] analyzed the production of one metric ton of recycled PET blankets in China, identifying organic chemical agents and the fiber-drawing process as major contributors to environmental impact and costs. Their study suggested that adjusting the energy mix to reduce coal-fired electricity could mitigate pollution emissions. Similarly, Wang et al. (2019) [
27] examined factory-scale recycled plastic production in China, revealing that indirect production processes had more significant environmental impacts than direct ones, with electricity use, air pollution, and chemical agents as key environmental hotspots. For detailed analysis, Chen et al. (2020) [
28] highlighted that electricity consumption in transportation and extrusion processes machinery significantly contributed to various environmental impact categories in mixed plastic waste recycling. In Jordan, Bataineh (2020) [
29] assessed the global warming potential (GWP) of one metric ton of recycled PET and high-density polyethylene (HDPE), highlighting that emissions primarily stemmed from the energy consumed during the processing and transportation segment. Their study demonstrated that recycled PET consumed 14% less energy than virgin PET. In Malaysia, Rahim et al. (2017) [
30] found that carbon footprints in recycled Polypropylene (PP) and Oriented Polypropylene (OPP) production were mainly associated with electricity consumption and waste management, reporting that producing one kilogram of plastic pellets results in 0.84 kg of CO
2 emissions. Among these, electricity consumption accounts for 73.8%, solid waste generation for 23.3%, and fuel consumption for 2.3%. Martin et al. (2021) [
31] investigated recycled PET production in Brazil, identifying chemical additives used in bottle washing as significant contributors to ozone depletion, terrestrial acidification, and freshwater eutrophication. Lastly, Khoo (2019) [
32] analyzed Singapore’s 2016 plastic waste recycling, reporting that extruder electricity consumption contributed to 62% of total plant energy use. This aligns with the present study’s findings, where pelletizing accounted for approximately 50% of the total electricity consumption. Shen et al. (2010) [
33] identified wastewater treatment processes as significant contributors to environmental degradation, particularly in terms of eutrophication, human toxicity, and freshwater ecotoxicity. These impacts are largely attributed to the release of residual nutrients and chemicals during treatment, and the energy-intensive nature of the processes involved. Huang (2013) [
34] analyzed the carbon and water footprints of three PET recycling plants in the northern, central, and southern regions by incorporating emissions from waste collection, transportation, and processing, revealing that carbon emissions were highest in the northern plant (304.89 kgCO
2eq/ton), followed by the central (251.47 kgCO
2eq/ton) and southern (243.83 kgCO
2eq/ton) plants. The recycling process accounted for the majority of emissions (85%), primarily due to electricity consumption, heavy oil usage, and surfactants, while transportation from sanitation teams to recyclers contributed over 50% of emissions. Similarly, Zhang (2015) [
35] investigated the carbon footprint of recycled polypropylene (PP) pellets and found that producing one kilogram of recycled PP pellets emitted 0.407 kgCO
2eq per FU, mainly from electricity and water consumption. Compared to virgin PP production (1.7 kgCO
2eq/kg), recycled PP significantly reduced emissions. Carbon reduction strategies were proposed, potentially lowering emissions by 2.8% per functional unit. Prior studies, including [
29,
30,
31,
32,
33] Bataineh, 2020, and Shen et al., 2010, have consistently demonstrated that using recycled plastics in PET bottle manufacturing significantly reduces reliance on virgin plastics and lowers CO
2 emissions by approximately 75%. Keul et al. (2024) [
36] realized that recycling PET can lead to an 88% reduction in climate change impacts compared to landfill or incineration options. If one can achieve 100% recyclability in PET bottle management, the greenhouse gas emissions from disposal processes can reach up to 90% [
37]. These studies highlight the critical role of energy use, chemical additives, and transportation in determining the environmental impact of recycled plastics. Existing studies on PET recycling in Taiwan primarily focus on carbon footprint assessments while lacking comprehensive and simple evaluations of broader environmental impacts to allow non-professionals to understand the real impact on human health and the environment. To address this research gap, this study conducts a life cycle assessment (LCA) of PET recycling at three certified facilities in Taiwan, converting the endpoint results into a single unit that allows decision-makers to understand the impact of this waste category. Utilizing inventory data specific to each facility, it pinpoints significant environmental hotspots by translating impact measurements into milli-points (mPt). This approach yields results in mPt, enabling stakeholders to make informed decisions with a simplified, single-score impact assessment. The mPt is a normalized and weighted unit in life cycle impact assessment (LCIA) that is used to express the aggregated environmental burden of a product or system as a single, comparable score. This is derived from the point (Pt) system, where 1 Pt represents the average annual per capita environmental load in a reference region, usually Europe, and where 1 mPt equals one-thousandth of this benchmark, allowing for easy comparison. The calculation follows a structured methodology involving characterizing life cycle inventory data into impact categories, normalization against regional or global reference values to contextualize significance, and applying weighting factors to reflect the relative importance of each impact. This study proposes optimization strategies to enhance the sustainability of Taiwan’s recycled PET plastics market and foster a more robust circular economy, aiming to achieve a sustainable world. Utilizing the LCA methodology, this study adopts a cradle-to-grave approach to assess post-consumer PET containers, encompassing their collection, transportation, and manufacturing at recycling facilities. Environmental impacts are evaluated using SimaPro software 9.0.0.33, particularly the effects of different compositions of transparent, colored, and oil-contaminated PET bottles.