Page 45 - Plastics News Issue December 2024
P. 45
INTERNATIONAL NEWS
building and construction, electronics, renewa- caused by global overcapacity in plastics pro-
bles infrastructure, consumer goods and pack- duction is undermining the business case for Eu-
aging. This shift threatens the viability of the ropean plastics recycling and the transition to a
European plastics value chain which currently circular plastics system. It also confirms that, like
supports over 1.5 million jobs across 51,700 com- much of the EU’s industrial base, plastics manu-
panies and generated more than €365 billion in facturers are currently facing high production
turnover within the EU in 2023. Without a com- costs driven by factors such as high energy and
petitive framework, Europe risks losing its lead- feedstock prices, persistent inflation and limited
ership in sustainable plastics innovation, along circular feedstock availability. This coincides with
with the economic and environmental benefits poor European growth and recession in some
it brings. key European economies and sectors.
Marco ten Bruggencate, President of Plastics An EU policy and regulatory framework must,
Europe, and President Dow EMEAI said: “The for example, include ambitious mandatory recy-
EU’s transformation to a circular plastics system cled content targets, timely acceptance of mass
is in acute danger from imported plastics which balance and innovative recycling methods like
do not always meet EU standards. The hard chemical recycling, simplified permitting proce-
truth is that we already see EU manufacturing dures for low-carbon circular industrial installa-
plants being shut down, leading to offshoring of tions, and monitoring and certification schemes
the industry, jobs and sustainable investments. to ensure that imports meet EU standards. There
The circularity transition will only be successful if is also a need to further evaluate fiscal and eco-
policymakers urgently implement the framework nomic measures in the EU and Member States
conditions needed to regain our competitive- to urgently make circular plastics production in
ness and provide an attractive long-term per- Europe competitive.
spective for circularity investments. The window
of opportunity is narrow and the time for bold Despite Europe maintaining the highest share of
action is now.” circular plastics relative to its total production of
14.8%, the increase of 0.7% since 2022 signifies a
Virginia Janssens, Managing Director of Plastics decelerating trend and falls short of the growth
Europe states: “To avoid a worrying slowdown in required to meet the ambitions of the Plastics
Europe’s transition we need urgent measures to Transition roadmap. In addition to a decline in
make investments in circular plastic production mechanical recycling production, only 0.12 Mt of
more attractive, reduce red tape for instance chemically recycled plastic was produced in Eu-
due to excessively long permitting procedures rope in 2023, while bio-based and bio-attributed
and create a level playing field with our inter- plastics production slightly increased to reach
national competitors. Despite the challenges, we 0.8 Mt.
remain fully committed to progress towards the
circularity and net zero ambitions of our ‘Plas- Plastics Europe strongly welcomes the Draghi
tics Transition’ roadmap. We now need EU and report on “The Future of European Competitive-
Member State policymakers to send an immedi- ness” which recognises the “untapped potential
ate and unambiguous message to investors and for circularity” and its assessment that “plastics
the market that they also remain committed to recycling has no strong business case at pre-
plastics manufacturing in Europe and our transi- sent.” It also recognises that whilst effective reg-
tion journey”. ulation is essential, it is not a panacea, and that
Europe must pursue a more holistic approach to
Input and analysis from Plastics Europe’s mem- tackling the competitiveness issues facing plas-
bers confirm that a sharp increase in imports of tics and other industries.
plastic resins and finished goods from regions
with less stringent environmental standards, Source – Plastics Europe
December 2024 PLASTICS NEWS 45
