Joint Appeal for Recycling Europe's plastics industry calls for an emergency program from Brussels

Source: Press Release Melanie Ehrhardt 4 min Reading Time

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The economic situation in the European plastics and plastics recycling industry remains tense. As a result, 28 organizations representing the entire value chain are calling on the European Union to implement an emergency program to strengthen domestic production and recycling.

European Plastics Industry Calls for Immediate Action to Address the Industry Crisis(Bild:  dimitrisvetsikas1969 /  Pixabay)
European Plastics Industry Calls for Immediate Action to Address the Industry Crisis
(Bild: dimitrisvetsikas1969 / Pixabay)

The European plastics industry is warning of further losses in production and recycling capacity. In a joint appeal, organizations from the plastics manufacturing, processing, waste management, and recycling sectors have called on European policymakers to take immediate action to stabilize the value chain.

The trigger is the industry’s ongoing economic weakness. Plastic production in Europe fell by 8.3 percent in 2023. At the same time, Europe has lost significant ground on the global market in recent years. Europe’s share of global plastics production has declined from 22 percent in 2006 to about 12 percent.

bvse Supports Joint Call for Recycling

The situation is particularly dire in the plastics recycling sector. According to the data and estimates presented at the time of the industry’s appeal, Europe was at risk of losing a total of nearly one million metric tons of recycling capacity from the beginning of 2023 through the end of 2025 due to plant closures. The relevant industry associations see this as a threat not only to the industrial base but also to Europe’s goals for the circular economy and climate protection.

In light of these developments, 28 organizations in the European plastics and recycling industry are calling for more effective support from the EU. bvse Recycling Germany is among the supporters. The focus is on better protection against imports of inferior quality, lower energy costs, investment incentives, and stronger demand for European recycled materials.

Industry Calls for Fair Competition for Recycled Materials

One of the key focuses of the recycling appeal is international competition. According to the associations, European manufacturers and recyclers are coming under increasing pressure from low-cost imports of virgin materials and recycled materials from third countries.

The industry is therefore calling for comparable requirements for imported materials and those manufactured in Europe. For imports of recycled plastics, virgin plastic, and plastic products, the signatories propose that so-called “mirror measures” or equivalent mechanisms be applied. This is intended to prevent materials from entering the European market that do not meet the environmental, quality, or other regulatory requirements that European producers must satisfy.

At the same time, customs inspections and market surveillance are to be improved. The industry sees a key problem in the fact that, to date, it has not always been possible to adequately verify the origin and actual recycled content of imported materials.

Boosting Demand for European Recycled Plastics

However, according to the industry associations, trade policy measures alone are not enough. They say it is crucial to create a reliable market for recycled plastics manufactured in Europe.

To this end, greater use should be made of extended producer responsibility systems, among other measures. Eco-modulated fees could be structured in such a way that products that are easily recyclable and the use of recycled materials are rewarded more generously from an economic perspective.

The Recycling Appeal thus addresses a key problem in the recycling industry: Investments in sorting and recycling facilities are only profitable in the long term if there is sufficient and, as far as possible, stable demand for the secondary raw materials produced.

The signatories are also calling for targeted investment incentives for the collection, sorting, and recycling of plastic waste. Tax measures and other financial incentives should also be explored.

High energy costs are hurting competitiveness

Another key issue is energy costs. European plastics and recycling companies sometimes face significantly higher production costs compared to competitors from other regions of the world.

The industry is therefore calling for better access to competitively priced energy. Recycling, compounding, and plastics processing should be given greater consideration in industrial policy support measures.

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At the same time, the organizations criticize regulatory uncertainties, bureaucratic burdens, and the fact that existing regulations are sometimes implemented differently across the EU. Approval procedures and administrative requirements should be simplified, and EU regulations should be implemented and enforced more uniformly across member states.

Six Areas of Action for Brussels

Essentially, the demands can be summarized into six areas of action: 

  • A level playing field with imports
  • Competitive Energy Costs
  • Better monitoring and enforcement of existing rules
  • Less regulatory fragmentation within Europe
  • Better Conditions for Investment and Innovation 
  • Further Development of Extended Producer Responsibility

According to their own statements, the associations involved are not only concerned with protecting existing companies. They warn that if European recycling capacity continues to decline, it could also make it more difficult to implement European circular economy policy.

This is because increasing requirements for the use of recycled materials and higher recycling rates necessitate corresponding sorting and processing capacities. If these capacities disappear from Europe for economic reasons, dependence on imports could continue to grow.

Recycling Is Becoming an Industrial Policy Issue

The joint call for recycling thus makes it clear that plastic recycling is increasingly viewed not only as an environmental policy issue but also as an industrial policy issue. The industry links the circular economy to issues of European competitiveness, raw material supply, and strategic independence.

The signatories warn that without immediate countermeasures, further business closures and job losses could result. At the same time, investments already made in recycling technologies and the circular economy would be jeopardized.

For the EU, this creates a conflict of objectives: On the one hand, with Packaging Ordinance (+) and other regulations, the requirements for recycling and the use of recycled materials are increasing. On the other hand, the companies tasked with producing the necessary secondary raw materials are under considerable economic pressure.

From the perspective of the associations involved, European circular economy policy must therefore be more closely integrated with industrial and competition policy. A functioning plastics cycle therefore requires not only ambitious recycling targets, but also economically viable markets for the recycled materials produced in Europe.