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OPINION: ‘Recession hits the EU’s plastics recycling industry’

Ton Emans, president of Plastics Recyclers Europe, warns that the EU plastics recycling industry is at “a crossroads” and calls for an EU-led incentive scheme to boost investment into the industry.


OPINION: In the face of a tough recession hitting the plastics recycling industry – driven by increased imports of non-EU recyclates, reduced investments in domestic recycling infrastructure, and low demand for EU-recycled plastics – the European plastics industry is at a crossroads.

Immediate measures to address market uncertainties and expand the EU’s plastic recycling infrastructure will be crucial to strengthen the market and steer it towards a more innovative, resilient and sustainable future. This requires, first and foremost, restricting market entry for imports that fail to meet the EU’s environmental requirements. This is not the first time that the alarm has been sounded. The plastic recycling value chain already warned about an imminent market recession earlier this year. Since then, the most critical challenge continues to be the increased uncontrolled imports from outside the EU. A clear example of this can be seen in the PET market, which witnessed a staggering 60% increase in imports between 2021 and 2023. While global trade is a pillar of economic prosperity, EU regulations must be enforced on all products placed on the EU market to maintain the competitive edge of the EU’s plastic sector and ensure the safety of consumers.

Together with this, creating a level playing field for EU and non-EU players needs to be a priority in policymakers’ agendas. The measures and targets laid out in key pieces of EU legislation, such as the PPWR, must be backed up by robust verification methods and effectively applied, given the stalling growth of the industry – which now prevents Member States from achieving these targets as capacities would need to at least double by 2030.

Developing an EU-level incentive scheme to boost further investment and clear legislative measures will encourage circular solutions and provide legal certainty for resource allocation. Not to be overlooked, the high energy costs emanating from the ongoing energy crisis must be addressed to ensure the industry’s long-term resilience.

Embracing a truly circular economy by overcoming the challenges faced by the European plastic industry is vital in preserving the EU’s competitive edge and achieving the environmental goals set forth in recent years, including those of the EU Green Deal.

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One response to “OPINION: ‘Recession hits the EU’s plastics recycling industry’

  1. This can only be supported: equal competitive conditions for imported material as for recycled material produced on the continent, Peter

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