Today, at an official EU Green Week Partner Event — “Innovating for Competitiveness: Driving a Circular and Sustainable European Plastics System” — industry leaders and policymakers came together to discuss the critical importance of Europe’s circular plastics system, and the widening gap between Europe’s circular economy ambitions and the reality faced by plastics manufacturers on the ground.
Plastics Europe used the event to issue a clear message: while plastics remain an essential material for sectors such as renewable energy, electric mobility, and healthcare, Europe’s ability to transition to a circular plastics system is under serious threat due to its declining competitiveness.
Virginia Janssens, Managing Director of Plastics Europe, warned: “We have reached a critical point in the development of Europe’s circular plastics economy. We cannot build the world’s first truly circular plastics system while fighting for our economic survival. Competitiveness and sustainability are not in conflict — with the right policy choices, they can be mutually reinforcing. The window of opportunity to restore our competitiveness and stimulate the necessary investment in circular infrastructure and innovation is narrow, and the time for bold policy action is now.”
According to Plastics Europe’s ‘The Plastics Transition’ roadmap, the European plastics system has the potential to reduce greenhouse gas emissions by 28% by 2030 and reach net-zero by 2050, with circular plastics meeting up to 65% of European demand by mid-century. However, realising this vision requires significant and sustained investments in circular infrastructure and innovation.
Yet, data presented at the event painted a worrying picture. EU plastics production fell sharply by 8.3% in 2023 to 54 million tonnes, with post-consumer mechanical recycling also down 7.8%. Meanwhile, Europe’s share of the global market is down to just 12%, and it has also become a net importer of both plastics resins and finished goods.
Rob Ingram, CEO of INEOS Olefins & Polymers Europe underscored the urgency for policy support, stating: "Survival is the urgent issue facing many production assets in Europe; and if our industry does not survive, there will be no investment in Europe, and as a consequence there will be no green transition for Europe. Production will move overseas. Employment will move overseas. New technologies will be developed and deployed overseas. That is why we need a viable and globally competitive European industry in order to be able to invest in the transition. We also need to mobilise the full value chain and urgent government action on energy and CO2 costs to enable this.”
Speakers at the event called on EU and national policymakers to urgently deliver smart, evidence-based policy measures to address the competitiveness challenges faced by the industry and create a more favourable circularity investment climate. In particular, Plastics Europe highlighted the need for:
- Ambitious and achievable mandatory recycled content targets in key sectors legislation, including for bio-based and CCU-derived plastics;
- Streamlined permitting procedures for circular infrastructure and low-carbon industrial projects;
- Robust certification and monitoring mechanisms to ensure imports meet EU sustainability standards;
Fiscal and economic incentives to stimulate investment and bridge the competitiveness gap with third-country producers.