Plastics Europe calls for EU plastics action plan

Plastics Europe welcomes the launch of the EU’s Competitiveness Compass, including its recognition of the untapped competitive potential of circularity and need to catalyse investment in recycling. The sector remains very concerned by the absence of a tailored approach for plastics, the third most used material in Europe. 

In response, European plastics manufacturers renew their call for the Commission to bring together EU institutions, member States and all relevant partners to address the particular challenges faced by the plastics ecosystem as well as its future in Europe through an action plan. The critical importance, size and complex nature of the European plastics system requires a tailored policy response. 

Virginia Janssens, Managing Director of Plastics Europe, said: “It is an important first step. Also encouraging is that the compass addresses key industry competitiveness concerns. These include the need to lower energy costs, reduce red tape, and create a more favourable investment climate and level the playing field with our international competitors. by for instance financial incentives to support investments in innovation and the Green Deal transition”.

“The hard truth is that plastics manufacturing plants are already shutting down across Europe, leading to offshoring of the industry, jobs and sustainable investments, and increased import dependency. Urgent steps are needed to restore the competitiveness of the European plastics sector and to get Europe’s ambition to establish the world’s first net zero and circular plastics system back-on-track”, Janssens continued.

Recent data published by Plastics Europe highlighted a sharp decline in EU plastics production of 8.3% in 2023, compared to 2022. Europe’s share of the global market has declined from 22% in 2006 to 12% in 2023, and the EU has become increasingly dependent on imports of plastic resins and finished goods from regions with often less stringent environmental standards. For the first time there was also an alarming drop in recycled plastics production in Europe, due to an oversupply of low-cost imports. 

Janssens added: “Plastics, alongside steel, metals, chemicals and concrete, are the backbone of European manufacturing. Plastics are the third most used materials in Europe’s economy and play an essential role in many of Europe’s most strategic value chains, including digital, renewable energy, automotive, building and construction, packaging, medical devices and agriculture. It will therefore be important to ensure plastics are considered in various sectoral initiatives and measures to ensure EU supplies of key materials”.

“We urgently need support to deliver on the ambitions of our Plastic Transition roadmap. We do not control all the up- and down-stream levers to achieve this alone. Therefore, we are encouraged that the Compass recognises the untapped competitive potential of circularity and the importance of catalysing investment in recycling. To do so, policymakers need to create a single market for waste and reusable materials and drive demand for recycled, bio-based and low carbon plastics. Consistent with the Compass’s technology neutral approach, which we fully support, we also need the timely acceptance of innovative recycling methods like chemical recycling to unlock and derisk investments in Europe. Any competitiveness check needs to include de facto enforcement of EU  (sustainability) regulations on all products and materials placed on the EU market, including imports (via market surveillance mechanism and penalties) and requires enhanced traceability of imported and exported circular plastics and products, via new custom codes”, Virginia Jenssens concluded.