Skeletons & Closets
Industry boycott against Blogger
European Bioplastics (EUBP) is the main European federation representing companies that produce or market biodegradable, compostable and bio-based plastics. The organisation brings together major actors from the plastics, chemical and energy industries operating within the European Union, as well as several national-level industry federations.
The federation was originally established as a working group initiated by the chemical company BASF together with the German government, before later evolving into the current European industry association.
European Bioplastics acts as the central lobbying and coordination body for the bioplastics sector in Europe, with the mission of promoting and defending the commercial and regulatory interests of companies active in the field.
Novamont, which is a 100% subsidiary of ENI, is a founding, leading and active member of European Bioplastics. The company participates extensively in the organisation’s governance and activities, including the Board of Directors, General Assembly and various working groups.
According to industry estimates, Novamont is the largest bioplastics company in Europe, with an estimated market share of around 60%.
Evidence indicates that Novamont representatives participated in a European Bioplastics meeting during which the possibility of boycotting Axel Barrett and the publication Bioplastics News was discussed.
ABUSIVE COMMERCIAL PRACTICES
COMPETITION
Novamont has made significant efforts to challenge competing technologies in the bioplastics sector.
One example is the Novamont vs. Kromabatch lawsuit in Italy concerning oxo-biodegradable plastics, a competing technology to certain compostable bioplastics.
The judge who presided over the Novamont vs. Kromabatch case was later killed in his courthouse in an unrelated incident.
More on Category: Legal, Anti-Trust and Cartel
EU Single-Use Plastics Directive
The Single-Use Plastics Directive (EU SUPD) introduced a ban on oxo-degradable plastics, a type of plastic designed to degrade under the influence of UV light and oxidation. The ban was justified on the basis that such materials could fragment and potentially contribute to microplastic pollution.
The amendment banning oxo-degradable plastics was considered unusual by some observers because it addressed a very specific and highly technical aspect of plastic additives, notably targeting plastics containing metal-based pro-oxidant additives.
Oxo-degradable plastics represent a competing technological approach within the broader field of biodegradable or degradable plastics, which differs from the compostable bioplastics promoted by companies such as Novamont.
Under normal EU regulatory practice, technical evaluations and potential restrictions on chemical substances are typically handled through the REACH Regulation, which empowers the European Chemicals Agency to assess scientific evidence and recommend restrictions where appropriate.
In fact, ECHA had begun examining the issue of oxo-degradable plastics under the REACH framework. However, the European Commission later asked the agency to halt this process as the matter was being addressed through the legislative process of the Single-Use Plastics Directive.
The rapporteur responsible for the directive in the European Parliament was Vittorio Prodi, the brother of former Italian Prime Minister Romano Prodi.
Industry groups, including European Bioplastics, of which Novamont is a member, actively lobbied during the legislative process leading to the inclusion of the oxo-degradable plastics ban.
EU Court of Justice
Symphony Environmental Technologies argued that the ban on oxo-degradable plastics introduced in the Single-Use Plastics Directive unfairly targeted its technology and was therefore unlawful.
The company brought legal proceedings before the Court of Justice of the European Union against the European Commission, the European Parliament, and the Council of the European Union, arguing that the oxo-degradable plastics ban was illegal.
The EU institutions ultimately won the case, and the challenge brought by Symphony Environmental was dismissed.
Sources
BIO-ON
A U.S.-based investment firm managed by Italian financiers carried out a short-selling operation against Bio‑On, at the time a leading Italian producer of PHA bioplastics.
Short selling is a financial strategy in which investors bet against a company’s share price, profiting if the value of the stock declines.
The investment firm published a report alleging that Bio-On was engaged in fraudulent activities. Following the publication of the report, the firm short sold Bio-On’s shares and reportedly earned millions from the decline in the company’s market value.
Italian investigative journalist Sigfrido Ranucci, known for his work with the TV programme Report, later reported that he had identified possible links between Novamont and the U.S. investment firm involved in the short-selling operation.
Ranucci was later the target of a car bomb attack. According to current investigations, the incident has not been linked to the ENI-related matters.
- The Bio-on / Novamont Polemic in the Italian Press
- Journalist who exposed Bio-on conspiracy on TV targeted in Rome mafia bombing
- Rai Tre documentary on the anti Bio-on Conspiracy
- Bio-on Trial and Skeletons in the Novamont Closet
- Is a US Company Bullying The market?
UNFAIR COMMERCIAL PRACTICES
The Italian Competition Authority has accused Novamont and its parent company Eni of engaging in unfair commercial practices in the Italian bioplastics sector.
In a separate matter, the same authority has also accused Eni of participating in a cartel in the biofuels market.
Read more
- Antitrust Imposes Over €32 Million Fine on Novamont and Eni for Dominant Position in Biodegradable Bag Market
- L’Antitrust ha multato per 937 milioni Eni, Esso, Ip, Q8, Saras e Tamoil, per essersi accordate sul prezzo del carburante
EU
A complaint alleging the existence of an EU-wide cartel in the bioplastics sector was filed with the European Commission, specifically with Directorate‑General for Competition (DG Competition). The complaint concerned Novamont and the industry federation European Bioplastics.
The European Commission later informed the complainant that the submission would be considered inadmissible (unreceivable) and that the case would not proceed further.
Following this decision, correspondence from the European Commission relating to the matter was published, including the names of Commission officials involved in the exchange.
Subsequently, DG Competition warned that publishing the names of individual officials could raise data-protection concerns under the EU’s General Data Protection Regulation (GDPR) and indicated that legal action could be pursued if the names were not removed.
The names of the officials were ultimately removed from the published correspondence, although the removal was made under protest and with the view that the request could amount to restrictions on transparency and public scrutiny.
One of the officials later threatened to initiate legal proceedings in Belgium, citing GDPR concerns over the publication of his name.
NOVAMONT OWNERSHIP
Versalis, a petrochemical company fully owned by Eni, holds a 25% stake in Novamont.
Novamont has also received financing from Versalis, including loans that the company has reportedly struggled to fully repay.
As a result of subsequent corporate restructuring, full ownership of Novamont was consolidated under Eni, bringing the company to 100% control within the Eni group.
Novamont has also benefited from significant public funding, including EU grants supporting the development of bio-based and circular economy technologies.
Some observers have raised questions about whether the overall structure of these transactions fully reflects standard market conditions, given the combination of intra-group financing and public subsidies in the sector.
GAZA
There are reportedly significant offshore gas reserves in the Gaza maritime area, and discussions have taken place over potential pipeline infrastructure to support their development and export.
Will Eni play any role in the future commercialisation of gas resources in the Gaza offshore area?
What is Eni’s current strategy in the Middle East, particularly regarding its evolving positions in Israel and its strong expansion in Egypt?
Could Eni potentially operate indirectly in relation to Gaza-related gas projects through its subsidiaries or infrastructure in Egypt, for example by participating in processing, liquefaction, or export activities linked to Egyptian energy facilities?
NIGERIA
Allegations have been raised regarding corruption in the allocation of oil field concessions in Nigeria, including claims of irregularities in the decision-making process.
It has also been reported that a lump-sum payment was made to the bank account of a former Nigerian Minister of Energy, prompting further scrutiny of the circumstances surrounding the transaction.
Separately, there have been bribery allegations involving Eni in connection with dealings with Nigerian energy officials, including the Minister of Energy.
Read more
CORPORATE ESPIONNAGE
Eni reportedly contracted the Italian firm Equalize for services valued at approximately €377,000.
Equalize has been subject to allegations that it obtained and sold confidential data, including tax and law-enforcement information, concerning Italian politicians and business figures to its clients.
According to statements made to authorities, an Equalize employee, Gallo, claimed that Eni had engaged the company to investigate whether a Nigerian witness had been involved in bribery. Another individual, Calamucci, also stated that Eni had requested assistance in assessing whether certain witnesses were corrupt.
EUROPEAN INVESTMENT BANK
Eni has received approximately €1.3 billion in funding over a period of less than three years from the European Commission and the European Investment Bank.
The funding has been directed toward projects linked to bio-refineries and the development of low-carbon and renewable fuel technologies.
Public Money for Big Oil? Questions Sent to the EIB About Its Financing of ENI
Biofuels project in Kenya (Africa)
Eni has been developing a biofuel project in Kenya focused on agricultural feedstocks and renewable energy production.
The project involves partnerships with local farming communities and supply chains intended to support biofuel production.
However, some local stakeholders and critics have raised concerns about the project’s impact on Kenyan farmers, including allegations that benefits are not being distributed fairly and that farmers may be receiving insufficient compensation within the supply arrangements.
The dark side of ENI’s biofuel promise
https://www.politico.eu/article/seeds-of-doubt-the-dark-side-of-enis-green-jet-fuel-promise/
ENI - SLAPP 