According to Plastic Recyclers Europe’s latest publication, Europe’s plastics value chain is in crisis. Production is down, recycling plants are shutting, and the EU’s global market share has dropped from 22 % in 2006 to just 12 %. By the end of 2025, nearly one million tonnes of recycling capacity will disappear, putting competitiveness and climate goals at serious risk.
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Industry Leaders Issue Urgent Appeal
In a joint letter sent to EU policymakers, 28 leading organizations across the plastics value chain have outlined six urgent measures needed to stabilize and future-proof the sector (Strategic Recommendations for a Resilient and Circular Plastic Value Chain in Europe). The signatories highlight structural pressures including cheap imports, soaring energy costs, fragmented regulation, and growing legal uncertainty. Without corrective action, the letter warns, Europe risks mass bankruptcies, job losses, and the erosion of decades of investment in circularity and innovation.
Six Strategic Recommendations to Secure Europe’s Plastics Industry
1. Restore Fair Competition
According to the letter, EU recyclates and polymers must be prioritized to drive the transition to circular plastics. Industry groups call for mirror measures on imports, stricter customs checks, incentives for collection and sorting infrastructure, and reforms in public procurement to favor EU-based recyclates. Reducing landfill and incineration of plastics is also seen as essential to keep materials in the loop.
2. Reduce Energy Burdens
Recycling and plastics conversion processes need access to affordable energy. The industry is calling for eligibility under EU funding frameworks such as the NZIA and CEEAG, as well as targeted state aid and tax relief. Revenues from emissions trading and plastics-related levies should be reinvested directly into circular plastics infrastructure.
3. Strengthen Enforcement and Market Surveillance
A level playing field also requires tighter customs control, harmonized EU verification, and oversight of recycled content claims. Industry groups emphasize the need for separate customs codes for fossil-based, bio-based, and recycled feedstocks, as well as stronger enforcement of the REACH and food contact legislation.
4. End Regulatory Fragmentation
Harmonized implementation of EU legislation across Member States is critical. Consistent enforcement of recycled content targets, streamlined permitting, and EU-wide End-of-Waste criteria are needed to scale circular solutions. Authorities must be resourced to fast-track approvals for safe recycled plastics, particularly in food-contact applications.
5. Drive Innovation and Unlock Investment
Delivering circularity at scale, according to the letter, depends on advancing breakthrough recycling technologies, improving collection and sorting systems, and creating a regulatory framework that de-risks investment. Coordinated governance and clear rules at both EU and national levels are seen as key to stimulating private financing and industrial uptake.
6. Improve Extended Producer Responsibility (EPR)
Lastly, harmonized EPR rules and eco-modulated fees are necessary to avoid market fragmentation and incentivize recyclability and recycled content. Industry groups stress that governance should involve the full value chain, while preventing fee-based competition that could lead to minimal compliance.
Conclusion
The plastics sector warns that the EU stands at a crossroads. Unless policymakers act decisively to enforce fair competition, lower energy costs, and stimulate investment, Europe risks losing its industrial base, innovation capacity, and leadership in the transition to a circular plastics economy. The recommendations put forward are not optional but vital to safeguard thousands of jobs, protect green investments, and ensure that Europe remains a global frontrunner in sustainable plastics.
