European Giants Push for Mandate on Local Recycled Materials

In recent years, Europe's plastic recycling industry has faced a severe structural crisis. On November 17, 2025, multiple companies including Veolia, LyondellBasell, and Eastman jointly issued a warning, pointing out that the industry is continuously shrinking due to the impact of "cheap new plastics from China." The 2024 Plastic Recycling Industry Data Report released by the European Plastics Recyclers Association further confirms this trend: industry turnover declined by 5.5% year-on-year in 2024, with the total volume of plastics processed by recycling facilities decreasing for the first time—equivalent to approximately 300,000 tons of capacity "vanishing." Capacity utilization rates continue to fall, and companies are closing down due to high energy costs and low profits.

Facing this crisis, multiple leading companies and industry associations across Europe's plastics value chain took joint action. On November 17, 2025, they submitted a "Call to Action" to the EU's Danish Presidency and the European Commission. Signatories include: Chemical Recycling Europe, Eastman, Faerch, Green point, interzero, LyondellBasell, Mol Group, Remondis, Styrenics Circular Solutions, Suez, Tomra, Veolia, and Versalis. The document explicitly states that Europe's recycled plastics industry is on the brink of collapse due to "unfair competition and an incomplete regulatory framework," urging the EU to implement urgent policies to ensure the sector's long-term competitiveness.

2. Core Demands: Three Policy Pillars

The companies propose three key policy recommendations in the Call to Action, aimed at restoring market balance and advancing the circular economy transition. For Chinese enterprises, this signifies potential direct risks and trade barriers. 1. Mandatory Use of European Recycled Plastics: Requires the EU to establish binding targets for the use of recycled plastics sourced within Europe; avoids current regulations that drive reliance on imported recycled plastics, inadvertently funding infrastructure development in non-EU countries; France has already introduced incentives to promote domestic recycled plastic usage. 2. Preventing unfair competition: Strengthen anti-fraud mechanisms for recycled plastic declarations; recommend distinguishing circular products via customs codes to enhance verification and transparency; ensure imported products meet EU environmental and health standards to prevent low-price dumping from disrupting domestic markets. 3. Establish dedicated funding mechanisms: Call for targeted financial instruments to accelerate sustainable solutions; explicitly recommend reinvesting EU "plastic tax" revenues to support Europe's plastic value chain. The industry joint statement warns: "Without immediate action, the EU's goal of doubling recycling capacity by 2030 will remain unattainable, investments will dry up, jobs will be lost, and announced projects will face implementation challenges."

3. Implications and Pathways for China's Industry: Shifting from "Reliance on External Demand" to "Strengthening Internal Capabilities"

Europe's crisis clearly demonstrates that global competition in the plastic circular economy has entered a new phase. The model of relying solely on price advantages to participate in external recycling is unsustainable. China's plastic recycling and regeneration industry must prepare for the future. 1. Short-term response: Mitigate trade risks Compliance first: Closely monitor new EU regulations (such as PPWR details and corresponding "Mirror Clauses"), prepare certification materials in advance, and address potentially stricter traceability and standard requirements. Market Diversification: Reduce dependence on the single European market by expanding into other international markets like Southeast Asia, Japan, and South Korea, as well as domestic high-end demand markets. 2. Long-Term Strategy: Building a Resilient System Centered on Domestic Circulation Technological Upgrades to Reduce Costs: The collapse of European recyclers due to high costs underscores that Chinese enterprises must further lower recycled material costs through technological innovation, enhanced automation, and economies of scale to solidify core competitiveness. Activate domestic demand and cultivate local markets: This is the most critical step. China possesses the world's largest plastic consumption market, urgently requiring: - Legislation to enforce mandatory recycled content targets domestically, creating a stable domestic market akin to the EU. - Guiding brand enterprises, especially those targeting local consumers, to increase recycled plastic usage in products. Enhancing product quality to enable recycled materials to serve not only low-end applications but also meet the demands of high-value-added industries like electronics, automotive, and premium packaging. Establishing a Chinese traceability standard: Creating an internationally recognized, transparent, and credible traceability and certification system for recycled plastics is the passport to overcoming future global "green barriers."