The German Packaging Institute (dvi), together with companies such as Constantia Flexibles, Rossmann, Werner & Mertz, Remondis and Grüner Punkt, is calling for immediate political measures to secure plastic recycling. In an open letter to the federal government, the stakeholders warn of a looming structural breakdown in the industry and demand a swift dialogue.
Plastic recycling in Europe is in an existential crisis, according to the signatories. The open letter is addressed to the Federal Chancellor, the Ministry for Economic Affairs and the Ministry for the Environment, and describes an acute market failure that jeopardises central goals of the circular economy.
Branch is rapidly losing capacity
According to the dvi and the companies involved, almost one million tonnes of recycling capacity in Europe have already been lost by the end of 2025 due to plant closures and insolvencies. The dynamic is intensifying further: the number of closures doubled in 2024 compared to the previous year, and a threefold increase is even expected for 2025.
This development threatens not only jobs and industrial infrastructure, but also the achievement of climate goals and the supply of secondary raw materials. The signatories see this as a considerable risk to Europe's economic independence.
Causes: Price decline and competitive pressure
The initiators cite low crude oil prices and global overcapacities, which lead to falling prices for new products, as the main reasons. At the same time, cheap recyclates from third countries, as well as non-standard imported materials, are pushing onto the European market.
In addition, high energy costs and a lack of regulatory clarity – for instance, regarding chemical recycling or the assessment of recyclates – are also impacting the competitiveness of European recyclers. A lack of incentives for the use of recyclates is also described as a structural problem.
Demand for political measures
To halt impending structural loss, the signatories are calling for targeted interventions. These include, among other things, economic incentives for the use of recyclates, a level playing field for competition with imports, and relief on energy costs.
Furthermore, they advocate for the reduction of bureaucratic hurdles and the strengthening of the circular economy through clear regulatory frameworks. The aim is to keep material flows within Europe and secure recycling as a strategic economic sector.
With the open letter, the participants are linking the call to politicians to enter into dialogue with the industry in the short term in order to avert economic and ecological damage.
Source: dvi
