The European plastics value chain is experiencing a deepening industrial crisis that is seriously undermining the European Union’s ability to deliver on its circular economy objectives, climate policy goals and strategic autonomy. A combination of high energy prices, unfair international competition, fragmented regulation and insufficient investment certainty is leading to plant closures, postponed investments and the relocation of production capacities outside the EU.
In response to this situation, European and national associations across the entire plastics value chain have put forward a set of strategic measures aimed at stabilising the sector and creating the conditions for its long-term transformation.
Alongside mechanical recycling, targeted support for chemical recycling technologies represents a key component of this transformation. Without the systematic integration of chemical recycling, the EU will not be able, in the long term, to meet recycled content targets, ensure a sufficient supply of safe recyclates for demanding applications, or reduce its dependence on imports of virgin polymers.
Restoring Fair Competition and Promoting EU-Made Circular Plastics
The first essential measure is the establishment of a level playing field between European producers and importers of plastics and plastic products from third countries. Associations warn that, without effective instruments such as “mirror measures”, it will not be possible to ensure that imported recycled polymers and finished products meet environmental and quality standards comparable to those applicable to production within the EU. At the same time, incentives for investment in collection, sorting and recycling must be strengthened, including economic instruments such as eco-modulated EPR fees or preferential tax regimes.
In this context, chemical recycling plays an important role, particularly for plastic waste streams that cannot be efficiently processed through mechanical recycling. Technologies enabling the depolymerisation of plastics into basic chemical building blocks expand the range of recyclable materials and contribute to increasing the availability of high-quality recyclates produced in the EU, thereby strengthening the domestic industrial base.
Closing Gaps in Verification, Control and Enforcement
The second priority is to strengthen enforcement and eliminate regulatory loopholes, particularly with regard to imports. Associations highlight the need for sufficiently staffed and technically equipped control authorities, harmonised rules and uniform verification methods across the EU. The introduction of separate customs codes for virgin fossil inputs and for recycled, bio-based and carbon-captured materials is considered a key instrument for effective market control.
Chemical recycling can contribute to this objective through clearly defined material flows and robust traceability of inputs and outputs. Transparent technological processes and standardised outputs facilitate the verification of the origin of recycled content, including its use in sensitive applications such as food-contact materials.
Breaking the Investment Deadlock and Supporting Innovation
Associations emphasise that, without targeted support for innovative technologies, it will not be possible to achieve circularity at the scale required. In addition to modernising collection and sorting systems, it is essential to support the development and scaling-up of all recycling technologies, with particular emphasis on their environmental performance and technological maturity. At the same time, regulatory uncertainty must be reduced, rules harmonised across Member States, and permitting procedures streamlined.
In this context, chemical recycling represents a strategic investment opportunity, particularly when integrated with existing recycling capacities. Its inclusion in the European recycling mix can increase overall plastic waste utilisation rates, reduce dependence on primary fossil resources, and support the creation of highly skilled jobs within the EU.
Reducing Energy Costs and Linking Circularity with Climate Policy
High energy prices remain one of the main factors undermining the competitiveness of the European plastics industry. Associations therefore call for recycling and plastics processing activities to be systematically included among the sectors eligible for support under EU energy and climate instruments. State aid should be targeted at emissions reductions, resource efficiency and the development of circular solutions.
Chemical recycling, particularly technologies with lower energy intensity and high levels of material recovery – such as RECIVONE – can make a significant contribution to reducing the carbon footprint of the plastics sector. A coherent framework for energy support and the reinvestment of revenues from climate instruments into circular technologies are essential for their further development.
Harmonising Legal Implementation and Strengthening EPR Systems
The final key measure is the elimination of fragmentation in the implementation of European legislation and the strengthening of extended producer responsibility (EPR) systems. Uniform rules, harmonised compliance audits and EU-wide end-of-waste criteria are necessary for the proper functioning of the Single Market and for scaling up circular solutions. EPR schemes should actively reward design for recycling and the use of recycled content, rather than merely ensuring formal compliance.
Within this framework, chemical recycling technologies can complement mechanical recycling and ensure that even difficult-to-recycle materials remain within the circular economy. Their systematic integration into the EU’s regulatory and investment framework represents an important step towards creating a truly functional and competitive circular plastics market.
By Lenka Linhartova, Co-founder of RECIVONE