Out of the ashes: EU prioritizes circular transition in COVID-19 €750 bn recovery plan
29 May 2020 --- The European Commission has unveiled a €750 billion COVID-19 recovery plan to revitalize the EU economy. European Commission President Ursula von der Leyen views the recovery plan as an opportunity to invest in the European Green Deal, which was recently reinforced with a new Circular Economy Action Plan that considers mandatory plastic requirements for recycled content and waste reduction measures for key products such as packaging. Several key packaging industry players, including Tetra Pak and Plastics Recyclers Europe (PRE), previously voiced their support for an EU recovery plan that prioritizes the building of circular economies.
The EU recognizes that “the coronavirus has shaken Europe and the world to its core, testing healthcare and welfare systems, our societies and economies and our way of living and working together.” To protect lives and livelihoods, repair the Single Market, and build a lasting and prosperous recovery, the European Commission is proposing “to harness the full potential of the EU budget.” The Next Generation EU €750 billion budget as well as targeted reinforcements to the long-term EU budget for 2021-2027 will bring the EU’s total financial firepower to €1.85 trillion.
“The recovery plan turns the immense challenge we face into an opportunity, not only by supporting the recovery but also by investing in our future: the European Green Deal and digitalization will boost jobs and growth, the resilience of our societies and the health of our environment. This is Europe's moment. Our willingness to act must live up to the challenges we are all facing. With Next Generation EU we are providing an ambitious answer,” states von der Leyen.
The European Green Deal represents a key building block in the EU's €750 billion COVID-19 recovery plan.
Driving reusable and recyclable design
The European Green Deal has been identified as a key component of the recovery plan. In March, the Commission adopted a new Circular Economy Action Plan in which it prioritizes reducing overpackaging and packaging waste, driving design for reusable and recyclable packaging and reducing the complexity of packaging materials.
The Plan, which the Commission identifies as one of the major building blocks of the European Green Deal, also addresses intentionally added microplastics, develops labeling and regulatory measures on unintentionally released microplastics and establishes a policy framework on the use of bio-based plastics.
The Commission expressed concerns that the amount of materials used for packaging is growing continuously. In 2017, packaging waste in Europe reached a record of 173 kg per inhabitant. To ensure that all packaging on the EU market is reusable or recyclable in an economically viable way by 2030, the Commission will review Directive 94/62/EC27 to reinforce the mandatory essential requirements for packaging to be allowed on the EU market and consider other measures, with a focus on:
- Reducing (over)packaging and packaging waste, including by setting targets and other waste prevention measures;
- Driving design for re-use and recyclability of packaging, including considering restrictions on the use of some packaging materials for certain applications, in particular where alternative reusable products or systems are possible or consumer goods can be handled safely without packaging;
- Considering reducing the complexity of packaging materials, including the number of materials and polymers used.
Tetra Pak gets behind Green Recovery
Tetra Pak recently joined the European Alliance for a Green Recovery, launched by the European Parliament on April 14, to help build a more environmentally sustainable economy post-COVID-19. The alliance gathers stakeholders to support a green recovery plan that puts the fight against climate change, the protection of biodiversity, and resilient food supply chains at the center of Europe’s economic policy for the next seven years (2021-2027).
Combating packaging waste is a priority for the European Green Deal.
Together with 270 other signatories, including political decision-makers, business leaders, financial institutions, trade unions, non-governmental organizations and political think tanks, Tetra Pak aims to gain insights from other relevant stakeholders and contribute to the quick recovery of economies and societies.
As part of the Commission’s recovery plan, a €15 billion reinforcement for the European Agricultural Fund for Rural Development has been announced to support rural areas in making the structural changes necessary in line with the European Green Deal and achieving the ambitious targets in line with the new biodiversity and Farm to Fork strategies.
Plastic recycling seeks long-term support
Before the recovery plan announcement, PRE urged the EU and the Member States to include recycling as one of the sectors supported by their Recovery Plans and to continue implementing the measures under the Circular Economy umbrella. PRE recently warned that much of the industry had closed production due to the current market developments caused by the COVID-19 pandemic. The major problems are the lack of demand due to the closure of converting plants and the record low prices of virgin plastics as well as the decreased activity globally.
PRE warned that many plastic recyclers halted production due to a COVID-19 demand slump.
“If the situation is to persist and no actions are taken to remedy the sector, plastics recycling will cease to be profitable, hampering the attainment of the EU recycling targets and putting in jeopardy the transition towards circular plastics. In such a case, recyclable plastic waste will have no alternatives but to be sent to landfill or incineration,” explains Ton Emans, Plastics Recyclers Europe President.
Safeguarding the positive developments within the plastic recycling market is essential to reduce Europe’s use of virgin plastics and, therefore, the survival of the secondary raw materials market as well as further investments in the sector, according to PRE.
By Joshua Poole
