The British Plastics Federation recently warned it was ‘deeply concerned’ about new EU rules which may effectively block the UK from selling recycled plastic to other countries in Europe.
With the UK currently exporting around 433,000 tonnes of recycled plastic a year to the EU, recycling experts at Bins.co.uk have explored whether the UK should introduce stronger recycled-content mandates to boost the circular economy at home.
The new EU rules causing concerns among the plastic industry
Earlier this year, the EU put new rules in place that mean only material sorted and recycled inside the bloc counts under the Single-Use Plastics Directive. Essentially, the UK is at risk of being cut off from selling recycled plastics to manufacturers across Europe.
In 2025, the UK exported 433,000 tonnes of recycled plastic to the EU. If this market were to become inaccessible, the plastics industry would be left with an oversupply. This could then result in falling prices and profit margins, making recycling less economically attractive. A knock-on effect could then be less investment in the industry.
One way to counteract this is to drive domestic demand here in the UK.
What mandates does the UK currently have in place for the use of recycled plastic in products?
Currently, any plastic which is manufactured or imported into the UK that contains less than 30% recycled content will be taxed.1 This was introduced in 2022 to incentivise the use of recycled polymers over virgin plastic.
However, this currently only applies to packaging and is set at a low threshold. Most companies, therefore, have no incentive to increase the use of recycled content beyond this.
What new rules could help support the recycled plastics industry?
To stimulate demand in the UK, the industry could look at increasing mandates for recycled content. Doing so would create more consistent demand in the plastics recycling industry
However, there are several challenges to consider with this approach. Often, recycled material doesn’t hold the same quality as virgin plastic, so some products are unable to adapt due to technical requirements; exceptions may have to be made for food-grade packaging, for example.
This may also make products more expensive to manufacture, resulting in UK products becoming less competitive in international markets.
Any increases would need to be phased incrementally to allow supply chains to adjust and invest in the industry. Any such system would require monitoring and enforcement, but again, this would be easier to implement if rules were phased in gradually.
Another consideration could be to apply minimum mandates to products beyond packaging. Many everyday items we use are made from virgin plastics, such as household goods and construction materials.
How could this help the recycled plastics industry and the environment?
This system would create more consistent demand in the plastics recycling industry, allowing for a bigger domestic market. This would support the industry, help to reduce our reliance on virgin plastic, and support the circular economy.
How could this impact consumers?
In the short term, it could mean prices increase as manufacturers look to pass on higher costs to consumers. However, once infrastructure and investment improve over time, this could be rectified, with consumers also benefiting from the environmental benefits of reducing our reliance on virgin plastic.
Mark Hall, dry mixed recycling expert at Bins.co.uk comments:
“With a great deal of our recycled plastics heading to the EU, the new rules put in place earlier this year could put even more strain on UK plastic recyclers. However, it has highlighted the need to strengthen our own circular economy and ensure that the industry has enough consistent demand.
“Increasing mandates over time would be a win for both our recycling industry and the planet.”
https://www.gov.uk/guidance/check-if-you-need-to-register-for-plastic-packaging-tax