The European Commission has announced a package of actions intended to accelerate the transition to a circular economy — with a strong emphasis on the plastics sector.
The newly introduced measures are designed to address fragmentation in the European market for recycled plastics, which has hindered efficient recycling and industry growth, the European Commission said in a statement on Tuesday.
The Commission presented a draft act that aims to set EU-wide standards for when recycled plastics are considered ready for reuse, creating a single market for these materials and simplifying procedures for recycling businesses.
Plastics recycling companies have reported challenges including fluctuating prices for new (“virgin”) plastics and costly energy, leading to a drop in production capacity and financial losses in recent years.
Progress and challenges for plastics recycling
The plastics sector could benefit significantly from circular practices, with research showing that recycling and reuse could cut its climate-related emissions by 45 percent and improve the sector’s trade balance by €18 billion per year by 2050, data published by the EU's Joint Research Centre indicated.
Circular economy approaches focus on reducing waste by recycling and reusing materials, instead of relying solely on new resources.
To support fair competition, the Commission plans to introduce separate customs codes for virgin and recycled plastics.
These new codes would help customs officials and national authorities enforce EU rules relating to imported plastics.
The Commission is also seeking public feedback on rules for single-use plastic beverage bottles and aims to expand opportunities for chemical recycling — a process using chemical methods to break down plastics, which can complement traditional mechanical recycling. Clear rules are expected to help attract investment into new recycling technologies.
Collaboration and next steps
The European Commission will relaunch the Circular Plastics Alliance as a platform for industry and governments to work on shared priorities and address key challenges in the plastics value chain.
European member states will also vote on new rules regarding the recycled content of plastic bottles in 2025.
Financial support for circular projects is set to increase, with the Commission working closely with national and European banks to fund regional recycling initiatives.
To evaluate progress so far, the Commission has opened a public consultation to assess the impact of the Single-Use Plastics Directive, which was created to reduce the environmental and health effects of disposable plastics. The consultation will run until March 2026.
EU figures show that just over 12 percent of materials used in the EU came from recycled sources in 2024 — up by about one percentage point since 2015.
The European Commission intends to propose a Circular Economy Act by 2026 to further improve the market for recycled materials and support the EU’s goal to become the global leader in circular economy practices by 2030, according to its latest statement.
