Author: Elizabeth Carroll, Senior Consultant – Recycling and Sustainability

Europe is facing an increasingly complex situation when it comes to plastics recycling, with both significant challenges and promising opportunities emerging in the fight against plastic waste. Despite years of progress in the development of more sustainable waste management practices, the continent is still grappling with critical issues that hinder the full potential of plastics recycling. As the European Union continues to push forward with ambitious environmental goals, it is clear that the path to achieving a circular economy for plastics will require further innovation, investment, and cooperation. But the most important factor, is that the system is financially viable. Without this, it will fall apart, just at the time Europe is trying to ramp up and expand it.

AMI’s Polymer Demand in Europe 2025 data shows that over 53 million tonnes of polymers were utilised in Greater Europe in 2024. Of this volume, 7 million tonnes came from post-consumer and post-industry recyclates, representing 13.2% of overall demand. In order to meet the recyclate inclusion targets within PPWR and other proposed legislation, AMI forecasts that over 11 million tonnes of recyclates will be required. This will therefore require a large increase in domestic capacity, or the availability to import recyclate of the required standard and meeting strict requirements. The latter option in my opinion, should be a last resort, as it will further undermine domestic recyclers viability.

The previous three years have highlighted the vulnerability of Europe’s waste management and recycling industry to external factors such as the rise in energy prices, stringent regulations, and competition from cheaper imports, leading to plant closures and a decline in production. Long-established plastics recyclers such as Cedo Recycling in the Netherlands is planning to gradually stop operations at its Geleen site. The reasons for this decision was attributed to “ongoing market challenges, rising operational costs, and increasing regulatory pressures, which have impacted the site’s long[1]term viability”. A final decision on when the site will stop, is yet to be made.

The chemical recycling industry is also facing its own challenges, including sourcing affordable feedstock, developing efficient textile collection/sorting methods, and addressing the higher costs associated with chemical recycling compared to traditional mechanical methods. An industry that saw enormous amounts of interest over the last 5 years, is now seeing some planned capacities delayed or cancelled all together. Securing investments in these facilities is increasingly challenging due to their size. In its last quarterly update, AMI’s Chemical Recycling Global Status report, downgraded the volume of anticipated European chemical recycling capacity expected on stream in 2030, to just over 3.1 million tonnes.

In recent years, the EU has set bold targets, including the European Plastics Strategy, and PPWR which aims to make all plastic packaging recyclable by 2030 and mandates recycled content in packaging. However, these goals are under threat as Europe continues to struggle with several barriers to effective recycling. While countries such as Germany, the Netherlands, and Belgium have established robust recycling systems, other EU nations are still facing difficulties in meeting recycling targets. In some regions, the recycling rate for plastics remains as low as 30%, with a large amount of plastic waste still being incinerated or sent to landfills instead of being repurposed.

Furthermore, the market for recycled plastic materials remains underdeveloped. Despite the environmental benefits of recycling, the demand for recycled plastics is still relatively low, even in Europe! The widespread availability of cheap virgin plastics, coupled with limited investment in recycling infrastructure and technology, has made it financially challenging to scale up recycling efforts. As a result, many businesses are hesitant to invest in using recycled materials when the economic incentives are not strong enough to offset the costs of sustainable production. Until legislation mandates recycled content, this will continue to be an issue.

As Europe moves toward a more circular economy, it is clear that collaboration will be essential to achieving the region’s recycling goals. Governments, businesses, and consumers must work together to build the necessary infrastructure, support technological innovation, and create a market for recycled materials. Only through collective action can Europe meet its ambitious recycling targets and significantly reduce plastic waste.

While the journey toward a more sustainable plastics recycling system remains challenging, there are signs of hope. Europe has the opportunity to lead the way in transforming the global plastics industry and creating a cleaner, more sustainable future. With continued technological innovation, supportive policies, and cross-sector collaboration, the region can make significant strides toward achieving its recycling ambitions and reducing the environmental impact of plastic waste.