Keeping the 2030 Target: Chemical Recycling Sector Defies Industry Headwinds

Although rising capital costs and a challenging financing environment create short-term uncertainties for market players, Chemical Recycling Europe (CRE) has confirmed that the technologies are proven and the industry stands ready to invest in order to meet the deadlines of the Packaging and Packaging Waste Regulation (PPWR).

Chemical Recycling Europe (CRE), the professional association representing the chemical recycling sector, has issued an official statement responding to current economic and regulatory challenges affecting the industry. While acknowledging that the market environment has become more difficult, the organization firmly rejected assumptions that the sector is backing away from its long-term commitments. According to the industry association, the current slowdown does not stem from technological limitations, but rather from a natural time lag between policymaking and the mobilization of private capital.

Financing Pressures and Regulatory Stability

CRE’s analysis points out that the chemical recycling industry is currently facing multiple simultaneous market pressures. Chief among these is the elevated cost of capital, combined with a financing environment that demands full legal and regulatory clarity as a prerequisite for supporting long-term projects.

Short-term uncertainty in capital raising and project development arises because the capital market confidence required to initiate investments is temporally disconnected from the finalization of the comprehensive EU regulatory framework. The association emphasized that this situation places significant pressure on both member companies and partners across the value chain.

Based on industry feedback, players in the petrochemical and packaging sectors have unanimously confirmed that investment decisions of the scale required to build chemical recycling capacities cannot be made without an adequate level of regulatory predictability.

Key 2028 and 2030 Milestones

The sector expects that the regulatory certainty necessary for investments will fully crystallize by 2028 as the Packaging and Packaging Waste Regulation (PPWR) framework matures. Until then, the industry must bridge a transitional period characterized by stringent financing conditions.

In CRE’s view, adjusting the target dates is not the solution to overcoming current difficulties. Consequently, the association strongly advocates for strict adherence to the previously agreed timeline and deadlines, as well-designed and stable regulatory frameworks are capable of resolving market uncertainty.

The organization outlined its assessment of the market situation in three main points:

1. Proven Technological Background: Chemical recycling technologies already exist at commercial or near-industrial scale. The sector has demonstrated that the structural foundations necessary to meet PPWR targets are in place.

2. Investment-Ready Players: CRE members and partners stand ready to execute the necessary capacity expansion investments ahead of the 2030 deadline. This commitment is substantial and does not assume that every detailed regulatory question must be resolved in advance.

3. Unchanged Timeline: The association urges European Union institutions, Member States, and industry partners to stick to the deadlines set out in the PPWR. Consistent policy is essential to transform stated investment intentions into actual capital deployment.

A Firm Industry Stance

The association declared that it will not allow short-term economic headwinds to overshadow the fact that chemical recycling is an indispensable element of Europe’s circular economy. CRE’s goal is to engage constructively with European policymakers so that the conditions necessary for investments to proceed can be established without delay. They expect the European Commission and co-legislators to deliver stable, predictable regulation implemented along the already established timeline.

Evaluating the situation, Valentijn De Neve, President of Chemical Recycling Europe, explained: “The challenges facing the chemical recycling sector are real, but they do not call into question the fundamental viability of the technology. Our members are building, investing, and planning for a future where chemical recycling plays a central role in Europe’s plastic waste management. There is genuine commitment from the industry to operate this technology at scale. What the sector needs is a guarantee that the regulatory framework will remain stable. We urge the European Commission and Member States to stay on the path designated for the implementation of the PPWR.”

The professional organization emphasizes that chemical recycling must be viewed as a complementary solution to mechanical recycling, contributing fundamentally to achieving Europe’s circular economy and packaging waste targets.

References and Sources:

• Original industry statement: Chemical Recycling Europe Official Statement, June 2026

• Foundations of the referenced EU regulatory background: Official Journal of the European Union / EUR-Lex Regulatory Documents (PPWR)