March/April 2025 issue: free to read for Sustainable Plastics' subscribers!
Plastics recycling. So much has been written, so much discussed, so many pledges and commitments made, regulations and legislation drafted – yet the actions of much of the plastics industry have still to meet the words.
The current downward trends in the EU plastics recycling market seemingly hold out little reason for hope.
Over the past year, businesses have closed down, projects have been downsized or cancelled outright and the ambitious targets set for the production and use of recycled materials look increasingly unlikely to be met.
It’s fair to say that the European plastics recycling sector stands at a critical juncture. It is grappling with a recession that threatens the strides made towards establishing a circular plastics economy over the past decade. Several persistent issues underlie this downturn: the disparity in labour costs between Europe and other regions, increasing imports from outside the EU, dwindling demand, escalating energy costs, the lack of regulatory transparency and consequently, reduced investment.
We have somehow slithered into a situation where the production of recycled polymers within the EU is being increasingly replaced by less sustainable, cheaper imports. However, this dependency on external suppliers, combined with a dwindling recyclate production and a slowdown in capacity growth, is a direct threat to the EU's ability to fulfil its sustainability commitments .
Most experts agree that incentives are crucial to boost investment in recycling, especially in light of the current weak global economy that has driven down the prices of virgin plastics. Mandatory recycling and recycled content targets, EPR schemes, investment incentives, and taxes are all options that are regularly considered. Movements in this direction are already being seen in various countries, in and outside the EU.
Yet the biggest problem may well be time – and especially the time it takes for such measures to be implemented and for their impact to be felt. Europe's plastics recyclers are facing a challenging situation just as the EU's Packaging and Packaging Waste Regulation (PPWR) is being introduced, with its strict rules for packaging design and standards. While these changes will eventually boost demand for recycled plastics, plastics recyclers companies are struggling, and in many cases failing, to stay financially afloat. Time, in fact, is running out.
In that light, the importance of an event like PRS Europe cannot be overstated. As a platform, it offers an opportunity for the plastics recycling industry to meet, become updated on what’s happening in the branch, do business, and explore new technologies and advancements.
But even more importantly, it sends a message, loud and clear. It shows just how well the industry is doing its part - and more - to keep its end up. But to successfully achieve the transition towards a circular plastics economy, tangible support is needed. And the time to provide that is now.
March/April 2025 issue: free to read for Sustainable Plastics' subscribers!