EU Commission approves 500 million euros scheme for French chemical recycle

The European Commission has approved a 500 million euros French scheme to support the chemical recycling of certain types of plastic waste. The measure contributes to the achievement of the priorities of the European Commission for 2024-2029, which call for a more circular and resilient economy.

France notified the Commission of its plans to introduce a 500 million euros scheme to support investments for the chemical recycling of certain types of plastic waste, such as trays, films, non-beverage bottles and textile materials with a certain amount of polyester content. The scheme aims to support chemical recycling technologies that convert mixed and/or contaminated plastic waste back into ‘virgin-like' raw materials. The scheme will contribute to the EU's objective of circularity of production and consumption processes as part of a broader transformation of the industry towards climate neutrality.

Under the scheme, the aid will take the form of direct grants. The scheme is open to companies of all sizes and operating in all sectors. The maximum amount of aid is 40% of the eligible costs, which are the extra investment costs calculated by comparing the total investment costs of a project of chemical recycling of plastic waste with those of less environmentally friendly projects.

The Commission found that the scheme is necessary and appropriate to allow for the deployment of chemical recycling of plastics. The scheme has an “incentive effect” as the beneficiaries would not carry out the relevant investments without the public support. France has put in place sufficient safeguards to ensure that the scheme has a limited impact on competition and trade within the EU. In particular, the scheme is open to all companies operating in all sectors and the aid is limited to the minimum necessary to undertake the projects.

“The French scheme approved today will support investments for chemical recycling of plastics. It will contribute to the EU’s objective of reaching climate neutrality by 2050, by promoting the use of existing resources through efficiency and circular economy practices. At the same time, the scheme will ensure that any potential competition distortions will be kept to a minimum”, Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, stated.