EuRIC - Decisive actions needed to support plastics recycling in Europe
The European plastics recycling industry has been severely impacted by the COVID-19 pandemic. Plummeting oil prices have resulted in a sharp decline of virgin plastics prices.
The cost structure and the carbon footprint of virgin and recycled polymers are completely different, yet they compete on prices stresses, Paul Mayhew, President of EuRIC Plastics’ Recycling Branch (EPRB).
Sharp drop in prices and demand for recycled plastics, which can’t compete with virgin polymer prices resulting from the crash in crude oil values, jeopardize the economic viability of many plastics recyclers across Europe, be them active in packaging, engineering or construction and demolition waste plastics recycling, as recently echoed1. Should the current situation continue, the impacts will be far-reaching putting at risks both the attainment of the objectives set in the EU Green Deal and the New Circular Economy Action Plan which require to scale up – not to diminish – the European recycling capacity and resulting in the loss of green jobs in various Member States.
The only positive development relates to food-grade r-PET which thanks to recycled content targets set by the Single-Use Plastics Directive has weathered the storm with stable demand and price, completely de-correlated from plummeting oil and virgin prices, since brand-owners are gearing up for the 2025 and 2030 targets in beverage bottles.
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