The European Commission has approved a € 500 million initiative proposed by France for a chemical recycling scheme that supports certain types of plastic waste. This initiative aligns with EU circular economy goals outlined in the European Commission’s Political Guidelines for 2024-2029.
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Materials and Funding of the Chemical Recycling Scheme
The project targets various plastic waste types, including trays, films, non-beverage bottles, and polyester-containing textiles. The scheme aims to support chemical recycling technologies that convert mixed and/or contaminated plastic waste back into ‘virgin-like’ raw materials.
The financial aid is available to businesses of all sizes and industries, with funding provided as direct grants. The maximum aid level is capped at 40 % of the necessary investment, ensuring that only the essential financial support is provided to facilitate project implementation.
Justification and Economic Impact
The European Commission considers the scheme both necessary and appropriate to encourage investment in chemical recycling. Without public financial assistance, companies would be unlikely to undertake these projects. The measure has been assessed under Article 107(3)(c) of the Treaty on the Functioning of the European Union (TFEU) and follows the Guidelines on State aid for climate, environmental protection and energy 2022 (‘CEEAG’). France has also implemented safeguards to limit any distortion of competition and trade within the EU.
Advancing EU Environmental Goals
The Commission sees this initiative as a key step toward a more circular and resilient economy. The project complements ongoing efforts, such as the European Commission’s involvement in global negotiations on a plastics treaty aimed at eliminating problematic substances and enforcing the Polluter Pays Principle. It is also worth mentioning that this is the first State aid scheme assessed under Section 4.4 of the CEEAG, which allows aid for resource efficiency and for supporting the transition towards a circular economy.
Conclusion
The approval of France’s chemical recycling scheme reflects the EU’s broader strategy to support innovative recycling solutions while ensuring fair competition. By fostering investments in advanced recycling technologies, the initiative aims to reduce plastic waste, promote sustainable product design, and drive forward the EU’s long-term environmental objectives.
