The economic situation of the European plastics and plastics recycling industry is strained. In view of declining production capacities and growing competition from imports, 28 organisations from across the value chain are calling on the European Union for an emergency programme to strengthen domestic production and recycling. The appeal aims to safeguard the competitiveness of the European plastics sector and reduce dependence on imports.
The European plastics industry is warning against a further loss of production and recycling capacities. According to the associations involved, plastics production in Europe fell by 8.3 per cent in 2023. In addition, Europe has lost significance on the global market in recent years: Europe's share of global plastics production has dropped from 22 per cent in 2006 to around twelve per cent. Particularly worrying is the situation in plastics recycling, where a reduction in capacity of almost one million tonnes is threatened by the end of 2025.
Demands of the industry
The industry is demanding that comparable requirements apply to both imported materials and those manufactured in Europe. This is to be achieved through so-called mirror measures, which ensure that imported materials meet the same environmental and quality standards as European products. In addition, customs controls and market surveillance are to be improved in order to better verify the origin and actual recyclate content of imported materials.
Investment and energy costs
Alongside trade policy measures, the associations emphasise the need to create a reliable sales market for European recycled plastics. Extended producer responsibility systems should be utilised more to financially reward easily recyclable products and the use of recyclates. High energy costs in Europe are also weighing on the industry's competitiveness. The organisations are therefore calling for better access to competitive energy and criticising regulatory uncertainties and bureaucratic hurdles.
Six areas of action for the EU
The industry's demands can be summarised into six key areas of action: fair competitive conditions regarding imports, competitive energy costs, better control and enforcement of existing rules, less regulatory fragmentation within Europe, better conditions for investment and innovation, and further development of extended producer responsibility. The appeal shows that plastics recycling is increasingly viewed not just as an environmental policy issue, but also as an industrial policy one.
The signatories warn that without short-term counter-measures, further company closures and job losses could loom. At the same time, investments already made in recycling technologies would be put at risk. The EU faces the challenge of better integrating its circular economy policy with industrial and competition policy in order to create economically viable sales markets for recyclates produced in Europe.
industry letter to the European Commission
Source: bvse - Federal Association for Secondary Raw Materials and Waste Management
