The European Commission has given the green light to a €500 million initiative by France aimed at advancing chemical recycling technologies. This initiative, in line with EU State Aid regulations, seeks to transform mixed and contaminated plastic waste into raw materials with properties akin to virgin plastics.
Scope and Beneficiaries
The scheme targets a variety of plastic waste, including trays, films, non-beverage bottles, and textiles containing polyester. Open to businesses of all sizes across multiple industries, the support will be provided through direct grants, covering up to 40% of eligible project costs. This financial backing is deemed essential to stimulate investment in chemical recycling, as the Commission asserts that these projects would not proceed without public funding.
Regulatory Compliance and Justification
The Commission has highlighted the scheme's necessity and appropriateness, citing its potential to foster the deployment of innovative recycling solutions. Additionally, safeguards have been implemented to ensure that the measure does not unduly distort competition or trade within the EU. The initiative was evaluated under Article 107(3)(c) of the Treaty on the Functioning of the European Union (TFEU), which permits State aid for economic development under specific conditions, as well as the 2022 Guidelines on State Aid for Climate, Environmental Protection, and Energy (CEEAG). The move aligns with the EU’s strategic priorities for 2024-2029, which emphasize circular economy principles and resilience.
Broader EU Efforts in Plastic Waste Regulation
This decision follows the European Commission’s strong stance on plastic waste management. Last year, during negotiations for a Global Plastics Treaty at INC-5, the Commission advocated for eliminating hazardous substances and enforcing the Polluter Pays Principle, while recognizing national differences in implementation strategies.
More recently, the EU took a significant step in consumer safety by banning Bisphenol A (BPA) in food-contact materials. This prohibition covers reusable plastic bottles, coatings for metal cans, and water distribution coolers due to BPA’s adverse effects on human health. The ban also extends to other bisphenols known to disrupt the endocrine and reproductive systems.
Implications for the Circular Economy
France’s chemical recycling initiative is a significant step towards reducing plastic waste and enhancing sustainability in the EU. By fostering innovative recycling technologies, the initiative supports the broader transition to a circular economy. As the EU continues to refine its regulatory framework, further developments in plastic waste management and recycling policies are expected to shape the future of sustainable production and consumption across Europe.
