The European Commission has unveiled a new set of pilot actions designed to harmonize plastics recycling rules across the EU, marking an early step in a broader effort to revive Europe’s struggling recycling sector. The Commission said the initiative responds to a widening gap between rising demand for recycled and circular plastics and the sector’s ability to scale. Structural issues such as fragmented markets for recycled materials, elevated energy costs, and competitive pressure from lower-cost imports have slowed investment and put financial strain on EU recyclers. According to the Commission, growth in plastics recycling capacity in Europe has weakened sharply, slowing from 17% in 2021 to just 6% by 2023. At the same time, the share of recycled materials used in the EU has increased only marginally over the past decade, reaching 12.2% in 2024 compared with 11.2% in 2015.

The newly announced actions are a precursor to the EU’s planned Circular Economy Act, expected in 2026. The upcoming legislation aims to significantly accelerate Europe’s transition to a circular economy, with a stated objective of doubling the EU’s overall circularity rate. The Commission has signaled that the future act will focus on two main areas. One pillar will target electronic waste, with measures to improve collection, recycling efficiency, and demand for secondary critical raw materials. The second will seek to strengthen the EU single market for waste and secondary raw materials by reforming end-of-waste rules, simplifying and digitizing extended producer responsibility schemes, and introducing mandatory circular criteria in public procurement to stimulate demand.

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As part of the new package, the Commission introduced an implementing act to establish EU-wide end-of-waste criteria for plastics under the Waste Framework Directive. These rules define when plastic waste can legally be classified as a raw material again, rather than waste. The Commission said harmonization will reduce administrative complexity, create a more level playing field across member states, and make it easier for recycled plastics to move freely within the Single Market. Clear standards are also expected to improve confidence in the quality and safety of recycled plastics, while encouraging greater collection and recycling.

The measures also introduce new requirements for how member states calculate, verify, and report recycled content in single-use PET plastic bottles. Notably, the rules allow chemically recycled content to count toward EU recycling targets, providing additional support for emerging recycling technologies. To address competitive imbalances, the Commission announced plans to introduce distinct customs codes separating virgin plastics from recycled plastics. It will also begin closer monitoring of EU and global markets for both categories, with findings expected to inform potential trade measures in 2026.

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Commenting on the initiative, Jessika Roswall, Commissioner for Environment, Water Resilience and a Competitive Circular Economy, said the measures are intended to improve both competitiveness and resource efficiency across Europe. She emphasized that supporting the plastics recycling sector is a necessary step toward building a functioning single market for circular materials and reinforcing the EU’s economic resilience. The Commission added that it will assess whether additional interventions are needed in 2026 to further protect the competitiveness of Europe’s plastics value chain.

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