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EU backs French aid for chemical recycling

The European Commission has approved French plans for a EUR 500 million scheme to support the chemical recycling of plastic trays, films, non-beverage bottles and textile materials with a certain amount of polyester content.

The scheme aims to support chemical recycling technologies that convert mixed and/or contaminated plastic waste back into ‘virgin-like’ raw materials. It is seen as contributing to the EU’s objective of circularity of production and consumption processes as part of a broader transformation of the industry towards climate neutrality.

Direct grants

Aid will take the form of direct grants from the French Government and is open to companies of all sizes and operating in all sectors.

The maximum amount of aid is 40% of the eligible costs, which are the extra investment costs calculated by comparing the total investment costs of a project of chemical recycling of plastic waste with those of less environmentally friendly projects.

Incentive

The Commission assessed the French proposal under specific EU rules which allow aid for resource efficiency and for supporting the transition towards a circular economy. It found that:

  • The scheme is necessary and appropriate to allow for the deployment of chemical recycling of plastics.
  • The scheme has an ‘incentive effect’ as the beneficiaries would not carry out the relevant investments without the public support.
  • France has put in place sufficient safeguards to ensure that the scheme has a limited impact on competition and trade within the EU. In particular, the scheme is open to all companies operating in all sectors and the aid is limited to the minimum necessary to undertake the projects.

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