In a joint letter to European Commission President Ursula von der Leyen and senior Commissioners, 28 leading organisations – spanning recyclers, converters, raw material producers and waste management companies – describe the sector as being “at a breaking point.”
The intervention comes after recent warnings of an “imminent collapse” in EU plastics recycling.
According to the signatories, the impact goes beyond recycling: “This is not only a threat to the competitiveness of Europe’s industry, but also to its ability to meet circular economy and climate goals.”
Six recommendations
To reverse the decline, the plastics value chain has put forward six recommendations:
- Restore fair competition: Promote the uptake of high-quality EU-made circular plastics by introducing mirror measures on imports and incentives for collection and sorting, reforming public procurement and curbing incineration and landfilling
- Cut energy costs: Extend affordable energy schemes, tax relief and state aid to plastics recycling and processing, with revenues from ETS and plastics levies reinvested into circularity
- End loopholes in verification and enforcement: Equip customs authorities, strengthen market surveillance and create harmonised EU rules to tackle non-compliant imports and misleading recycled-content claims
- Tackle fragmentation: Ensure consistent implementation of EU law across Member States, streamline permitting and establish EU-wide End-of-Waste criteria
- Break the deadlock on investment: Provide targeted support for innovative collection, sorting and recycling technologies
- Enhance Extended Producer Responsibility (EPR): Harmonise EPR rules and eco-modulated fees across Europe to reward recyclability and recycled content
The signatories warned that without urgent intervention, deindustrialisation could accelerate, taking with it not just jobs and investment, but also Europe’s capacity to deliver on the Green Deal, the Circular Economy Action Plan and future climate targets.
“The EU stands at a crossroads,” the letter concluded. “Either we urgently double down on enforcement, targeted investment and fair competition, or the vision of a circular plastics economy in Europe will not materialise.”
UK plastics plants closures continue
The warning comes as the UK plastics recycling market continues to experience turbulence, including several high-profile plant closures in recent months.
Viridor confirmed earlier this summer that it would close its Rochester plastics recycling facility, following on from the shutdown of its Avonmouth site in December 2024.
Biffa also closed its Sunderland plastics recycling plant in July 2025, which had an annual processing capacity of 39,000 tonnes.
Most recently, Vanden Recycling announced that it will be closing its plastics processing site in Whittlesey, Peterborough, in October 2025.
Market conditions have added further strain. Trading activity was subdued throughout August, with seasonal softening in demand for PET exacerbated by an oversupply of material.
Prices for some grades have dipped, while across Europe recyclers are grappling with low virgin polymer prices, which continue to squeeze margins.
View our full market analysis for Plastic Prices in August here.
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