Again, plastics recyclers cry for help: ‘Immediate action needed’

Europe’s plastics recycling sector has sounded fresh alarms over a worsening recession.

In a letter to European Commission president Ursula von der Leyen, plastics industry representatives warn that soaring energy costs, fragmented regulations, legal uncertainty and intensifying global competition are undermining the sector’s resilience and capacity to invest.

The letter is signed by recycling industry umbrella EuRIC and Plastics Recyclers Europe among many others.

EU plastics production shrank by 13.3% between 2018 and 2022, with a further decline of 8.3% in 2023, to a total of 54 million tonnes. At current rates, output could return to levels last recorded in 2000, while demand for polymers continues to grow.

Industry collapse

Growth continues to slow down with more recycling businesses and operations across the continent are going bust. Capacity lost between January and July 2025 almost equalled the total capacity lost in 2024.

The letter outlines six recommendations aimed at restoring competitiveness and supporting the EU’s circular economy goals.

1. Promote fair competition by applying mirror measures to imports of virgin and recycled materials.
2. Reduce energy costs through access to affordable energy schemes, tax relief, and reinvestment of revenues from the EU Emissions Trading System into plastics circularity projects.
3. Strengthen enforcement by enhancing customs checks, harmonising verification systems and improving oversight of recycled content claims.
4. Address regulatory fragmentation through consistent EU-wide implementation of recycled content targets, streamlined permitting processes and harmonised End-of-Waste criteria.
5. Improving collection systems, scale sorting and separation technologies. Supporting recycling technologies – while prioritising the most sustainable – is essential.
6. Reform Extended Producer Responsibility (EPR) schemes to ensure fair and harmonised rules across member states.