In recent months, the U.S. has seen significant rollbacks in environmental regulations — from loosened emissions standards to delays in climate disclosure requirements. Despite these shifts, the economic case for biobased materials remains strong.
Even in the absence of strict federal mandates, global markets, state-level laws, and consumer demand continue to create strong incentives for companies to use more sustainable alternatives to conventional materials.
Diversifying Supply Chains with Biobased Feedstocks
Even in the uncertain regulatory climate, reliance on fossil-based feedstocks, such as petroleum-derived plastics, comes with growing financial risk. The supply chains that are built around oil and gas are vulnerable to price volatility, geopolitical disruptions, and the inevitable depletion of non-renewable resources.
Biobased materials offer an alternative. These novel materials use varied renewable inputs such as agricultural byproducts or engineered microbes. These feedstocks enable greater diversification and resilience when exposed to the same market swings. This resilience is an economic advantage. Companies that diversify now are better positioned to withstand disruptions in the future.
How Biobased Materials Help You Meet Regulations and Cut Costs
Despite policy shifts, both state-led and overseas environmental regulations continue to advance forward. Businesses that adopt biobased inputs as a response to these new regulations can reduce compliance costs and gain a competitive advantage in these important markets.
In New York, proposed legislation such as The Fashion Act would require fashion companies operating in New York — one of the biggest fashion capitals in the world — to be transparent about their supply chain emissions and material sourcing. Brands that failed to comply could face fines up to 2% of their global revenue. Biobased alternatives to conventional materials are a tool to help these fashion companies lower their emissions and reach their sourcing goals to reduce the cost of selling in key markets.
Both the U.S. and also Europe have also established sustainable procurement programs such as the USDA BioPreferred® Program and the EU Green Public Procurement program. These programs give preference for companies that prioritize renewable materials to have their products used for federal and public contracts. The USDA BioPreferred Program creates a database to give more visibility to verified sustainable-minded companies. Rheom Materials recently received their USDA BioPreferred Certification for both their Shorai™ and Benree™ materials. Benree was tested using ASTM 6866 and found to be 100% biobased.
How Carbon Taxes and EPR Policies Create Financial Incentives for Sustainable Materials
In other parts of the world such as Canada and the EU, a carbon tax is placed to impose tangible costs on carbon emissions. Under the EU Emissions Trading System (EU ETS), for example, the EU sets a cap of how much CO2 can be emitted every year. Companies must purchase enough carbon allowances to cover their annual emissions or face penalties. If their carbon emissions fall below the set cap, companies can sell their surplus allowances on the carbon market for additional revenue. If companies emit in excess, they must pay €100 per excess ton of CO2 emitted. This encourages companies to have an accurate understanding of their carbon impact and creates a tangible financial incentive to reduce that impact.
Some countries such as France, Germany, and Italy, also have Extended Producer Responsibility (EPR) laws, which makes producers financially accountable for the end-of-life of their products. These countries have fees that charge more for the usage of materials that are difficult to recycle or fossil-based materials. For example, in France, recyclable and compostable packaging can be subject to up to 50% lower compliance fees.
In the U.S., California’s Responsible Textile Recovery Act of 2024 (SB 707) is the first U.S. EPR law for textiles. It requires textile producers that sell within California to take ownership of the recycling and reuse of their own products. Producers must submit a plan for the safe management of textile waste as well as submit annual reporting on their progress. Non-compliance can carry penalties of up to $50,000 per day. These contributions would help fund the costs for developing textile recycling and reuse infrastructure within the U.S.
Creating Long-Term Value for Brands and Consumers
Creating products that meet environmental standards not only supports compliance, but it builds brand trust and helps businesses grow a loyal consumer base.
However, the economic benefits of using more sustainable materials does not stop with businesses and producers. Consumers also benefit from purchasing higher-quality and better-crafted products. When companies commit to using sustainable sourcing, the result is often products made with care, that last longer and perform better. Over time, consumers save money by buying less often and investing in high-quality products that support ethical and sustainable brands.
Shorai™: A Future-Ready Biobased Material
When consumers trust a brand’s quality, brand loyalty grows and creates a positive feedback loop that rewards both brands and their customers. Rheom Materials understands this and continues to strive to create innovative, biobased solutions.
Their biobased leather alternative, ShoraiTM, does not need the continuous conditioning required to upkeep the appearance of conventional leathers. Produced roll-to-roll, Shorai is compatible with traditional cut-and-sew applications and is backing agnostic, meaning its backing can range from stiff to stretchy depending on the desired end use.
Shorai’s production process also enables easy color, texture, and property adjustments, adapting seamlessly across applications from handbags and apparel to upholstery and beyond. Most importantly, with a high biobased content, low carbon impact, and plan for end-of-life, Shorai is a future-ready solution for brands.
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How to Get Ahead of The Sustainability Curve
Regardless of changing regulatory landscapes, the economic advantages of sustainable sourcing are here to stay. With rising carbon prices, expanding EPR schemes, and a growing demand for supply chain transparency, using sustainable materials becomes a financially strategic advantage.
Biobased materials are one tool that can help businesses cut regulatory costs, create resilient supply chains, while growing consumer trust and rapport.
Learn how Rheom Materials help you get ahead of the curve and reduce your carbon footprint today. Change your impact, not your life, with Rheom Materials.
