Severe Crisis in European Plastics Recycling: bvse Demands Reliable Framework Conditions

The economic situation of the European plastics recycling industry remains extremely tense. The recent situation assessment and rescue package by the industry organization Recycling Europe highlight the critical state of the sector, which is already exacerbated by a capacity loss of one million tons. The German Federal Association for Secondary Raw Materials and Waste Management (bvse) fully supports the European demands aimed at saving the continent’s climate goals.

Structural Crisis and Dramatic Capacity Decline

The plastics recycling sector in Europe is under significant economic pressure. Although the recent increase in oil prices has temporarily improved the competitiveness of recycled materials (regranulates) against primary, virgin plastics, according to Recycling Europe’s statement, this cannot be considered a sustainable and long-term business model. Their statement titled „War is not a business model” draws attention to the fact that short-term market fluctuations caused by geopolitical crises cannot form the basis for industry investments.

The structural challenges affecting the industry persist. Weak demand for secondary raw materials, high energy and operating costs, and competitive distortions caused by imports have collectively led to the current situation. The statistical data is highly concerning: between 2023 and 2025, approximately 1 million tons of plastics recycling capacity was lost in Europe. In parallel, the growth rate of mechanical plastics recycling production has also slowed down significantly.

Export Ban Approaching – Immediate Action Required

Without further political intervention and concrete measures, Europe faces the risk of losing even more industrial capacity. This risk is particularly severe in light of the total ban on plastic waste exports to non-OECD countries coming into effect from November 2026.

Dr.-Ing. Herbert Snell, Vice President of bvse, emphasized the importance of reliable markets: „The European plastics recycling industry finally needs a reliable political framework that encourages investments and permanently strengthens the use of recycled materials. Short-term market changes cannot provide a basis for competitiveness. Stable sales markets and fair competitive conditions are crucial.”

Recycling Europe’s Immediate Rescue Package

To avert the crisis and sustainably strengthen the European industry, Recycling Europe has developed a comprehensive rescue plan (titled „A rescue plan for Europe’s plastics recycling crisis”). The proposal package, which is fully supported by bvse, includes the following key demands:

• Mandatory usage quotas: To stabilize demand, mandatory recycled content targets must be introduced, with a clear preference for recycled plastics produced in Europe.

• Fair competition and import controls: Effective control and traceability systems must be established for imported recycled materials and plastic products, preventing unfair market disadvantages.

• Extended Producer Responsibility (EPR): The EPR system must be much more strongly aligned with actual recyclability and the use of secondary raw materials.

• Competitive energy prices and equal opportunities: Companies must be ensured competitive energy costs, ideal location conditions, and equal access to financial support instruments.

• Harmonized criteria system (End-of-Waste): To strengthen the European internal market and investment security, uniform EU-wide end-of-waste criteria are needed for plastics.

• Accelerated permitting: Drastically speeding up regulatory permitting procedures is essential for the smooth build-out of urgently missing new capacities.

Shared Goals for Climate Protection

The bvse division made it clear: Europe can only achieve its circular economy and climate protection goals if recycling companies are guaranteed competitive operating conditions in the long term. Together with its European partners, the association continues to fight to ensure that the plastics recycling sector receives the framework essential for its survival and development.

References and Sources:

• Original processed source (bvse): Recycling braucht verlässliche Rahmenbedingungen – bvse unterstützt Forderungen von Recycling Europe

• State/Official legislative background: The legal basis for the export ban to non-OECD countries coming into effect in November 2026, as mentioned in the article, is the European Council’s revised waste shipment regulation.