Competitiveness is emerging as the defining challenge of the current EU mandate. How can policymakers bolster Europe’s economic and industrial strength while advancing sustainability and circularity? This pressing question is central to numerous sectors, but none more so than plastics and plastic recycling.
Europe’s competitiveness challenge threatens the ability and pace of the plastics industry to transition to circular plastics. This critical material enables the sustainable and digital transformations of many of its downstream industries, supplying sectors such as healthcare, automotive, building and construction, electronics, home appliances, and renewables infrastructure. Without a thriving plastics industry in Europe, the viability of these critical ecosystems could be undermined.
This challenge was the focus of a high-level event at the European Parliament, hosted by MEP Biljana Borzan. The gathering brought together policymakers, industry leaders, and Commission officials to explore ways to safeguard the plastics and recycling industries while fostering innovation to reduce emissions and waste. “European leadership on circularity is not just a matter of environmental stewardship – but one of economic necessity,” MEP Borzan emphasised.
European leadership on circularity is not just a matter of environmental stewardship – but one of economic necessity
“To remain competitive, without relying heavily on conventional plastics, we must embrace innovation, invest in alternatives, and make sustainability the core of our industrial strategy. Europe can and must lead the way to developing biobased and biodegradable materials in our plastics, in our re-use systems and fostering a culture of circularity. This transformation is not about rejecting plastics outright, but about finding smarter, more sustainable solutions.”
Europe’s plastics sector at a crossroads
Industry experts outlined the growing threats to Europe’s plastics and plastics recycling industries. Sophie Sicard-Lemaire, Deputy Director for Sustainable Development at Paprec, painted a sobering picture of the current landscape. While Europe leads globally in recycled content and boasts a pioneering regulatory framework, momentum is waning and the European industry is facing “huge” competition from both virgin and recycled plastics imported from overseas.
The European plastics industry has, she said, been the global “frontrunner” on sustainable practices, and the level of recycled content in European plastic had reached 14% - twice the global average. “This is an achievement, we have to congratulate ourselves,” she said. “But it is still only at 14% - there is a long way to go for full plastic circularity.”
She explained that until recently Europe had witnessed “a very impressive collective momentum on developing circularity for plastics,” driven by legislative measures such as mandatory recycled content targets and supported by initiatives like the Commission’s Circular Plastics Alliance, a voluntary commitment supported by the industry. “There was a massive development of recycling infrastructure in Europe. In five years we doubled the recycling capacity of Europe.”
But in recent years, she added, “we are losing this momentum”. “Demand is decreasing. Investment is decreasing. Imports are increasing. We are facing huge competition both from virgin and recycled plastics imported into Europe. And investment in infrastructure is slowing. So there are a lot of challenges ahead.”
This sentiment was echoed by Tony Nawar, Vice President, Sustainability, Strategy, and Innovation at Berry Global’s European Flexible Films business, who highlighted the economic pressures on recyclers. “It’s an extremely challenging time for recyclers,” he noted, explaining that pressures coming from imports, rising energy costs, and broader macroeconomic conditions have resulted in a number of recyclers in the EU unfortunately “going out of business”. Depressed prices for virgin materials, particularly from producers from the Asia-Pacific and the US, who benefit from lower energy costs, have made it increasingly difficult for European producers to compete. “Time is pressing for us to address the industrial challenge we face,” he said, expressing his hopes that the proposed Circular Economy Act would address some of these concerns and take action to level the playing field.
Nawar also emphasised Europe’s key role in plastics innovation, noting that the region has long been a leader in the development of plastics and continues to drive progress in sustainability. “Europe helped lead the invention of this revolutionary material and remains at the forefront of delivering solutions that align with circular economy goals. To continue our drive towards a circular economy, these challenges must be addressed.”
We stand at the forefront of the global movement towards a circular economy – but our leadership is reflected in our ability to implement it
MEP Borzan said that maintaining Europe’s global leadership on sustainability will require two things – innovation, and genuine partnership between policymakers and industry.
“We stand at the forefront of the global movement towards a circular economy – but our leadership is reflected in our ability to implement it,” she said. “If we are to succeed, the relationship between the plastics industry and policymakers must be one of genuine partnership. We need clear consistent and efficient regulations that give businesses the confidence to invest in sustainable practices, and that that puts public good at the heart. This is not about compromise, this is about alignment with a shared vision of the Europe that thrives without costing the earth.”
What should that framework look like? Pieter Smeets, Sustainability Manager at INEOS Inovyn, agreed it must involve an element of “carrot and stick”, including clear targets, which he said are essential to incentivise investment in infrastructure.
“When you look at plastic recycling, mechanical recycling is great, and it has the lowest impact. But not all applications can be mechanically recycled. We also need additional technologies to recycle waste that cannot be mechanically recycled: advanced recycling technologies like dissolution, chemical recycling, pyrolysis etc. Unfortunately, these technologies are very expensive compared to producing virgin polymers. So strong, good targets will be critical to create the market, and to make sure that there’s uptake.“But at the same time, we need carrots, because the industry will need to make big investments in new technologies. And at moment, the competitive situation in Europe is very difficult, making it increasing difficult to justify them.”
Céline Domecq, the Director of Public Affairs and Head of Office at Volvo Cars EU, echoed the call for clear mandatory targets – but insisted that if Europe is to remain competitive, these targets must be introduced in a “pragmatic” way. “Setting mandatory targets for recycled content in plastics is something that you need because it creates certainty for the plastic industry, for the recyclers. They know there will be a market so they will invest,” she said. “But we need to be pragmatic. What we’re asking for is something which is realistic and feasible,” she added, noting that targets should be “phased in”, while Europe continues to build its recycling infrastructure.
The panel all also agreed that it was essential to protect the European industry from being undercut by cheaper, and potentially less sustainable, plastic imports.
“We cannot decarbonize or in the case of plastics, de-fossilise, by exporting emissions, exporting polluting products, exporting jobs. Because A, we don’t do the planet any favours. And B, we impoverish ourselves. We hit hard our most vulnerable population, our most vulnerable regions,” said Stefano Soro, the Head of Unit for Net Zero Industries, Sustainable and Circular Products at DG GROW.
He added that while it is vital to “have a sound, robust regulatory framework”, it was equally important to ensure it was enforced. “Market surveillance is key. We cannot draw and implement rules for sustainability that we apply only to our businesses, whereas those outside Europe get a pass. It’s uninteresting, it’s not sexy, it’s expensive, time consuming, but it’s crucial.”
Smeets agreed it was vital to find a way to enforce those targets also for imports. “Otherwise, if you can import a car without recycled content, then you don’t only hurt the automotive industry, but also the plastic industry.
”Europe’s plastics sector stands at a decisive crossroads. Transitioning to a circular economy is not only an environmental imperative but a critical step to safeguarding the industry’s global competitiveness. The panel agreed that this transformation hinges on investments in new recycling infrastructure, yet the current trajectory, marked by recycling plant closures and declining investment, is cause for concern. To reverse course, the industry speakers reiterated, economic operators require legal clarity and consistency, with all actors honoring their commitments to advance circularity. They argued that MEPs can serve as vital stewards of this effort by fostering accountability through regular engagement with the Commission and ensuring progress on the legislative frameworks they helped create.
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