The plastics recycling industry is hoping that the German government will also open up the planned industrial electricity price to them, as high energy costs and weak demand are putting companies under pressure.
The German plastics recycling industry is under massive economic pressure. In addition to declining demand and falling revenues for recyclates, companies are being burdened above all by the high energy prices. At the same time, production costs are rising in almost all areas.
Industry representatives are therefore calling for recycling companies to be included in the German government's planned industrial electricity price - and are warning against a distortion of competition, this should not happen.
„Our companies are exposed to enormous competition. The high energy prices make us less competitive compared to both new products and imports. Politicians must ensure that our plastics recyclers are also relieved by the industrial electricity price. Lower energy costs are an important building block for the competitiveness of plastics recycling“
Herbert Snell, bvse Vice President
Hope for relief through industrial electricity price
So far, it is unclear whether the sector actually falls into the group of beneficiaries. The categorisation of the companies in the classification of economic sectors (WZ), which is the basis for many funding and relief decisions, is decisive for this. Only if the recycling of plastics is considered an eligible, energy-intensive activity, companies in the sector can benefit from a reduced electricity price.
The bvse is therefore calling for a clear recommendation from the German government. The question of whether and to what extent plastics recycling companies should be allowed to benefit from the industrial electricity price at all, depends largely on the European Union's state aid regulations. According to Article 107 of the Treaty on the Functioning of the European Union (TFEU), state aid may not, in principle, distort competition in the internal market. However, exceptions are possible if they serve to promote environmental protection or energy efficiency, for example.
The European Commission has set 2022 New guidelines for state aid for climate, environmental protection and energy (KUEBLL) were adopted. These allow energy price concessions for particularly energy-intensive industries - but only if the measures are in line with the EU's climate targets. Companies must prove that they are contributing to a reduction in CO₂ emissions or play a significant role in the circular economy.
Recycling companies could therefore in principle fall under this regulation if they can prove their contributions to resource conservation and the reduction of primary raw materials. However, the prerequisite is thatthat Germany is structuring the industrial electricity price in line with state aid and registers the scheme with the European Commission.
„It would send the wrong signal if the sector at the centre of the European circular economy strategy were to be excluded from the relief on the industrial electricity price,“ warns Snell.
Lack of demand exacerbates the situation
In addition to energy costs, the industry is also burdened by another structural problem: Demand for recycled plastics remains weak. Despite political appeals, many processors and brand manufacturers continue to rely on cheap new goods, the prices of which have recently fallen significantly due to a lack of demand and cheap imports.
For recyclers, this means a double competitive disadvantageThey are struggling with high production and energy costs on the one hand and stagnating or declining sales markets on the other. The introduction of an industrial electricity price could provide relief here, at least in the short term - provided that the political and legal course is set correctly.
Source: bvse
