Plastics Europe calls for political intervention as Chinese competition advances
21 Oct 2022 --- Plastics Europe calls for higher investments and collaborations throughout the European plastics value chain, highlighting the urgent need for advanced recycling methods and policy framework changes if the EU is to hit its circular economy targets and compete with the global market.
The association says the upcoming year will be critical in making needed improvements for the region’s long-term future.
The calls are part of an extensive evaluation report, Plastics: The Facts, which presents 2021 figures related to plastics production, demand, conversion and end-of-life management in Europe.
Critically, the findings show that while global plastics production is “bouncing back,” European industry is facing serious challenges.
“Our latest data show that China’s share of global plastics production continues to grow – reaching 32% in 2021 – while Europe’s share, which reached 57.2 million tonnes in 2021, continues to decline, hitting 15%,” remarks Plastics Europe managing director Virginia Janssens.
“This confirms a loss of competitiveness that could be exacerbated further by energy and logistics crises resulting from the war in Ukraine and the ongoing COVID-19 pandemic,” she warns.
Findings from the report show that after stagnation due to the COVID-19 pandemic, the European plastics industry is now decoupling plastics production from fossil sources faster.
Global plastics production increased to 390.4 million tons in 2021, with a share of 9.8% of circular plastics. At a European level, circular plastics production represented 12.4%, which is higher than the global average.
However, while the figures show European plastics production is “quite stable,” the association notes it has been more than a decade since such a decrease was seen in Europe’s market share. The drop from 19% in 2017 to 15% in 2021 is mainly due to faster market growth in other regions of the world and higher energy and raw material costs in Europe, it asserts.
This trend is expected to continue. Plastic production, conversion and machinery sectors all show a decline in 2022 due to the Ukraine war that has reinforced the already existing supply chain challenges and high-priced feedstocks. For these reasons, it is expected that production will decrease by 4% in 2022 in the EU – assuming no gas shortage in Europe.
Call for action
While Janssens asserts she is “very proud of the progress that we have made as an industry over the past year,” she says that transitioning to net zero by 2050 will require faster systemic change and more intense and effective collaboration between all parts of the European plastics’ system.
“Policy makers are essential. We also need a new and enabling policy framework that better incentivizes investment and innovation by fostering a climate of creative competition in a circular economy for plastics,” she continues.
The report claims that the European plastics industry – including plastics manufacturers, converters, recyclers and machinery producers – is “essential for the sustainable development of Europe.”
The data shows that in 2021, despite the COVID-19 crisis, the European plastics industry maintained its employment levels with over 1.5 million people and 52,000 companies.
Edited by Louis Gore-Langton
To contact our editorial team please email us at editorial@cnsmedia.com
Subscribe now to receive the latest news directly into your inbox.