Yet, this temporary improvement cannot be mistaken for recovery. The structural problems facing Europe’s plastics recycling industry remain fully unresolved. The competitiveness of recycled plastics market continues to be structurally tied to fossil fuel prices, making the sector extremely vulnerable to future market shocks. The recycling industry cannot rely on geopolitical crises and oil price spikes to remain viable. To address this, structural action is needed both at EU and national level.
Recent figures1 reveal a dramatic slowdown in Europe’s transition towards a circular plastics system. This is especially important as exports of plastic waste to non-OECD countries will be banned from 21 November 20262. Without strong commitment for Made in Europe recycled plastics and sufficient investment across the entire European circular plastics value chain, including collection, sorting and recycling infrastructure, the EU risks a sharp increase in landfilling and incineration once export outlets close. The costs of plastic waste management will also dramatically increase for local authorities, waste owners and EPR. Strengthening demand for European recycled plastics must become an immediate political priority. EU and national policymakers must urgently establish the structural conditions needed to ensure a strong and resilient European plastics recycling industry.
While the European Commission (EC) correctly acknowledged in its 2025 Winter Package that “urgent action is needed at EU and Member State level to facilitate recycling and the uptake of recycled materials”, the measures proposed so far remain insufficient. Without immediate intervention, Europe risks further losing strategic recycling capacity (after having already lost 1 million tonnes of plastic recycling capacity between 2023 and 2025) before recycled content obligations under EU legislation fully enter into force.
