European PET recyclers and policymakers outlined their goals to support the European recycling industry's global competitiveness and reaffirmed their commitment to a strong internal market in the EU at the recent Petcore annual conference.
Participants discussed how to address significantly higher costs that European recyclers face, compared with other global regions. The European PET recycling industry is at a structural fundamental disadvantage to markets further afield, delegates heard, with reports that waste collection costs can be up to five-10 times higher than in some other regions.
Market participants are in agreement that EU production of plastic waste needs a reliable and local output, which recycled content requirements in the EU Single Use Plastics Directive (SUPD) and Packaging and Packaging Waste Regulation (PPWR) have gone some way to provide. But recyclers highlighted the need to create a level playing field with other regions to prevent rPET imports from affecting Europe's competitiveness.
They warned that, without protection, the European plastics industry could face further closures. This could be a particular concern with restrictions on waste exports set to become more stringent as revised EU Waste Shipment Regulations take effect, with more incineration or landfill of plastic waste — in lieu of recycling capacity — at odds with the EU's climate and environmental objectives.
Policymakers expressed an awareness of the need to balance sustainability and competitiveness in the region. Relocating plastic recycling outside of the EU is not only bad for the environment, it will impact society and the economy negatively too, stated a representative from DG Grow, European Commission.
Providing EU affordable available low carbon energy is a priority, they said. But energy costs are not the only obstacle to securing the European plastic recycling market. In order to develop investments and to ensure growth in the market the sentiment is there needs to be readily-available access to finance to build high capital expenditure projects such as scaling up capacities in chemical recycling.
The DG Trade representative discussed strategies to restrict low-cost imports, and reaffirmed commitment to supporting the domestic markets and trying to be more nimble through trade defence. They highlighted the success of the anti-dumping duties imposed on Chinese PET and rPET. But some market participants debated the impact of the duties, suggesting that while volumes from China many have reduced, imports from southeast Asia have increased, shifting trade patterns but not supporting European market share.
But the most effective way to create a level playing field could be through well-thought-out regulations, with the smallest-possible administrative burden, to allow easier and more consistent enforcement across different regions, delegates heard. Policy makers also suggested that removing some of the internal barriers within the single market — such as by harmonising Extended Producer Responsibility (EPR) regulations across national borders — could be another step to supporting the European industry.
They suggested the Circular Economy Act (CEA), which is currently being worked on, can help as this has an objective to reduce waste the burden of administration on the European market. Along with secondary legalisation to the PPWR, the CEA is intended to prevent loss of resources and boost the market for recycled materials. But details were relatively scarce, and market participants were concerned that implanting impactful legislation may take too long in the context of immediate and ongoing challenges faced by European recyclers.
