Energy crisis poses existential risk to recycling: PRE

European recycling industry association Plastic Recyclers Europe (PRE) has delivered a stark warning that rising electricity prices will drive plastic recycling out of business unless the European Commission and EU member states intervene.

"Stopping the recycling activities will have an immediate, negative impact on the plastic waste management in Europe," said PRE president Ton Emans. "If we want to drive a circular economy in Europe, plastic recycling must be considered a key industry sector to be targeted by member states' efforts to protect from the impact of high electricity prices."

Plastic recycling facilities operate continuously, and energy costs have risen to 70pc of their total operational expenditure, from 15-20pc prior to the increase in power costs, according to an internal survey carried out by PRE. High energy costs make it "nearly impossible" for recycling companies to break even, and many companies will close without help from the European Commission and member states, the association said.

PRE cited a statement from Italian plastic recycling industry association Assorimap, which said on 31 August that 40pc of Italian recycling activity had been suspended because of high electricity costs. The association said some plants had stopped completely and others were choosing to operate for only a few days a week. Assorimap highlighted what it calls a "bitter paradox" of the circular economy being placed at the top of the political agenda, "but the ongoing increases are suffocating the companies that constitute their beating heart".

Last week a group of German recycling industry associations also expressed concern about power prices, and called for recycling to be included in the list of eligible sectors to receive energy subsidies. The German government said in late August that it had extended the application deadline to the end of September for a €5bn aid package for energy-intensive companies. But last year's removal of the recycling sector from the guidelines for state aid for the climate, environmental protection and energy scheme mean the industry is not eligible for any energy subsidies from the government's current assistance measures, the associations said.

PRE also emphasised the potential impact of fluctuating energy prices on future recycling investment, which it said would have "disastrous implications" for plastic recycling. The plastic recycling industry is not alone in demanding stronger action on energy prices from policymakers. Last week associations from the fertilizer, gas and aluminium industries welcomed measures proposed by the European Commission to address high gas prices, but called for much greater action.

By Will Collins