CNN: Toymaker Lego announced yesterday it was on track to replace the fossil fuels used in making its signature bricks with more expensive renewable and recycled plastic by 2032 after signing deals with producers to secure long-term supply.

Lego, which sells billions of plastic bricks annually, has tested over 600 different materials to develop a new material that would completely replace its oil-based brick by 2030 but with limited success.

Now, Lego is aiming to gradually bring down the oil content in its bricks by paying up to 70 percent more for certified renewable resin, the raw plastic used to manufacture the bricks, in an attempt to encourage manufacturers to boost production.

“This means a significant increase in the cost of producing a Lego brick,” CEO Niels Christiansen told Reuters.

He said the company is on track to ensure that more than half of the resin it needs in 2026 is certified according to the mass balance method, an auditable way to trace sustainable materials through the supply chain, up from 30 percent in the first half of 2024.

“With a family-owner committed to sustainability, it’s a privilege that we can pay extra for the raw materials without having to charge customers extra,” Christiansen said. The move comes amid a surplus of cheap virgin plastic, driven by major oil companies’ investments in petrochemicals. Plastics are projected to drive new oil demand in the next few decades.