Rising challenges in the German plastics and recycling industry necessitate a rapid rethink. A cross-sector alliance involving the chemical, plastics, and recycling industries has turned to the federal government with an open letter, calling for a decisive „transformation booster“ for the circular economy. This initiative aims to stabilise the economic situation and secure Germany as a location.
The economic situation of the German plastics and recycling industry has deteriorated dramatically since 2021. Sales and incoming orders have collapsed by more than 20 percent, forcing numerous companies to scale back production or close their facilities. Investments are being postponed or relocated abroad. Despite these challenges, the alliance does not see the solution in withdrawal, but in an accelerated transformation towards a climate-neutral, circular industry. The circular economy is viewed as the key to securing value creation, resilience, and innovation.
Political Framework as Key
The Allianz stresses the need for clear political decisions and reliable regulatory frameworks. Parts of the special fund worth 100 billion euros for infrastructure and climate neutrality should be specifically channelled into circular economy and research infrastructure. This would enable the scaling of technologies and the circular business case. Furthermore, an extension of the industrial electricity price to recyclers is called for, in order to strengthen the industry.
Concrete measures for the „Transformation Booster“
The industry alliance's open letter proposes concrete measures to advance the circular economy. These include:
- Mandatory recycled content quotas and financial incentives for circular packaging.
- Investment in modern, AI-based collection, sorting, and recycling technologies.
- Introduction of extended depreciation models for investments.
- Continuation of CO2 difference contracts to promote future technologies.
- A platform for networking all stakeholders within the framework of the National Circular Economy Strategy.
An Appeal to Politics
The organisations stress that Germany urgently needs a circular economy. Without decisive political signals, there is a risk of erosion in industrial value creation and jobs. The sectors are making a significant contribution to solving the enormous challenges facing the German economy. Now is the time to set powerful impulses to trigger investments in the climate-neutral circular economy and accelerate the transformation process. The appeal comes ahead of the planned publication of an action programme for the implementation of the National Circular Economy Strategy on 6 May 2026.
The industry alliance's demands underscore the urgency with which the circular economy transformation must be tackled. The proposed measures could be crucial in securing the competitiveness of German industry, while simultaneously making an important contribution to climate protection.
Source: BDE Federal Association of the German Waste Management, Water and Recycling Industry
