European recyclers demand ‘Made in Europe’ mandate for plastic content targets

EUROPE – A coalition of Europe’s leading recycling and waste management organizations has jointly called for ‘Made in Europe’ requirements to be applied to recycled plastic content targets, warning the continent’s recycling sector faces a ‘severe and deepening’ recession.

Plastics Recyclers Europe, Reloop, Recycling Europe, and FEAD signed a joint letter ahead of the 19-20 March 2026 Heads of State meeting, where industrial competitiveness and strategic resilience top the agenda.

The signatories emphasize that European recyclers, key contributors to emissions reduction, are contending with deindustrialization that threatens climate goals.

By the Numbers: A Sector in Crisis

The numbers paint a stark picture.

Europe’s plastic recycling industry is experiencing its deepest downturn on record, with a net decrease of approximately one million tonnes of recycling capacity by the end of 2025.

Facilities across the Netherlands, Germany, and Southern Europe have shut down as recyclers struggle with high electricity prices and competition from low-cost imports.

Plastics Recyclers Europe recorded the slowest growth in the continent’s plastic recycling capacity “in years” last year, with domestic production declining and company closures mounting due to economic pressures.

The Import Problem

A central challenge is growing volumes of virgin plastic entering the EU market while being declared as recycled material.

Virgin plastic from fossil fuels is often cheaper than recycled material, particularly when oil prices are low.

This gives imports a cost advantage while undermining circularity claims.

Without European sourcing requirements, mandatory recycled content targets risk being met through imports rather than supporting Europe’s recycling industry, weakening domestic capacity and falling short of EU objectives.

What the Joint Letter Demands

The signatories describe ‘Made in Europe’ recycled plastic requirements as “a logical, high-impact step” toward climate and circularity goals while stabilizing demand and safeguarding industrial capacity.

They urge a “consistent horizontal approach” to maximize impact and avoid fragmentation across regulations.

These requirements are expected to be especially relevant for the Industrial Accelerator Act and the Single-Use Plastics Directive implementing decision, which could uplift EU recyclers and secure demand for European recyclate.

Commission Response

The European Commission has signaled action. Environment Commissioner Jessika Roswall acknowledged that “not all recycled plastic that is coming into Europe is really recycled.”

The Commission plans to introduce stricter documentation requirements for imports of recycled plastics in the first half of 2026.

Six EU member states, including France and the Netherlands, have formally urged the Commission to act against imports of low-quality recycled plastics that are destabilizing markets.

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