EU targets virgin plastic imports with new circularity measures

The European Commission (EC) has unveiled new measures to tackle rising imports of cheap virgin plastic in the EU. The plan outlines “urgent action” needed by EU member states to boost the recycling sector, which is said to face high energy costs, low prices for virgin plastic, and a lack of demand for recycled plastics. 

The EC says it aims to create a single market for recycled plastics through union-wide end-of-waste criteria. Under the EC’s measures, the new rules will allow recycled plastics to “no longer be classified as waste and to circulate more easily across all 27 member states subject to harmonized criteria applicable throughout the union.” 

“These measures aim to facilitate the use of recycled plastics in manufacturing, reduce administrative burden for recyclers, notably for SMEs, and support a more stable supply of high-quality recyclates across the union.”

The EC revealed that, according to industry estimates, the lack of EU end-of-waste criteria for plastics results in approximately €120 million (US$140.3 million) in annual costs to the EU plastics recycling sector.

Advancing chemical recycling

The EC’s new plan also outlines that the EU’s plastic recycling industry is facing “significant challenges” that undermine its ability to leverage the increase in demand for recycling and circular plastics. 

To combat this challenge, the EC’s circularity strategy highlights the importance of chemical recycling in waste management systems. The EC states that it will provide “greater legal certainty” for chemical recycling investment in the EU by suggesting the first-ever “mass balance allocation rules.” 

“These rules will determine the share of chemical recycling outputs that can count towards recycled content objectives. This first set of rules concerns the implementation of recycled content targets under the Single Use Plastics Directive, namely 25% recycled content in PET bottles by 2025 and 30% in all beverage bottles by 2030.” 

The new measures suggest that harmonized rules under the Single Use Plastics Directive can permit chemically recycled plastics to contribute toward PET bottle targets. The EC has recognized chemical recycling alongside mechanical recycling as a viable waste management method. 

“These rules will help unlock investment: the European plastics industry is planning investments of up to €8 billion (US$9.36 billion) in chemical recycling in the coming years, but has called for a conducive regulatory framework to ensure they succeed,” adds the EC. 

Private investment 

The proposed plan also emphasizes the importance of private investment, noting that the public sector finances only 7% of the EU’s circular economy. According to the EC, the EU faces an estimated €82 billion (US$95.9 billion) annual investment gap to advance the circular economy.

The EC continues: “All tools to leverage private investment need to be deployed, including, where necessary, incentives or complements to public funds.” 

As a result, it plans to collaborate with the European Investment Bank and national banks to enhance financing for the circular economy. 

“Today’s package is a crucial step in that direction, building on the important legacy of existing EU actions supporting plastics circularity. It represents the first set of mutually reinforcing circular economy initiatives to be rolled out in 2025 and 2026,” concludes the EC.