Home / Business and Economy / EU Plastics Recycling Faces Year of Caution
EU Plastics Recycling Faces Year of Caution
17 Jul
Summary
- Europe needs to double plastics recycling capacity by 2030.
- Economic uncertainty and high financing costs slow recycling projects.
- Recyclers await price stability before investing in new plants.
Europe's plastics recycling sector anticipates a cautious market for at least another year, despite crucial EU recycling deadlines approaching. The EU's Packaging and Packaging Waste Regulation mandates that all packaging must be recyclable by 2030, requiring a significant increase in processing capacity.
Tomra Systems CEO Tove Andersen explained that economic uncertainty, elevated financing costs, and doubt about the longevity of recent plastic price hikes are causing customers to delay decisions on recycling projects. This situation is leading to a subdued market for waste sorting equipment.
Investment in recycling capacity will need to accelerate around 2028 to meet the 2030 target. While recent oil price increases have boosted both virgin and recycled plastic prices, this has not yet translated into stronger orders as recyclers await greater price stability. Tomra forecasts no plastics recovery this year and potentially not until 2027.
