Critics speak out against raised tax on unrecycled plastic packaging in the business sector
The European Commission has proposed changes to the levy on non-recycled plastic packaging, aiming to fund a circular economy for the plastics sector in Europe. The current €0.80/kg levy, first introduced to help offset the impact of Brexit on the EU budget, is under scrutiny due to concerns about its effectiveness.
Industries are grappling with high energy prices, labour and environmental compliance costs, de-industrialization across the EU, and continent-wide plant closures. The fear is that, if nothing is done, there will be no viable recyclers left by the time the Packaging and Packaging Waste Regulation comes into force.
The Commission's proposal maintains the current levy, but suggests a potential increase to €1/kg in 2028, marking a 25% increase in the levy Member States must pay for every kilogram of non-recycled plastic packaging waste in Europe. This adjustment is intended to counteract the decreased real value of the levy due to inflation.
However, the plastics value chain, including EuPC, Plastics Europe, and Petcore, has voiced disagreement with the proposal. They argue that Member States are not adequately prepared to implement the Own Resource mechanism linked to non-recycled plastic packaging waste in Europe.
Participants in a campaign encourage the EU to address high recyclate costs, plant closures, and other aspects of the plastic recycling industry's 'broken economics'. They suggest that the levy should contribute to a dedicated fund helping Europe's plastics industry transition into a circular economy.
The focus is on ensuring effective collection and sorting practices, and fostering the real integration of plastic recyclates in products. The plastics industry calls for the reinvestment of proceeds from the "Plastics Own Resources" into a Dedicated Fund aimed at building a more circular economy for plastics in Europe.
Meanwhile, the EU Commission is investigating Abu Dhabi National Oil Company's acquisition of Covestro amid concerns about foreign subsidies from the UAE distorting the EU's internal market.
Spain is the only country to enforce a plastic tax on non-reusable packaging, with a rate of €0.45/kg. The system generated a revenue of €7.2 billion from the plastic-based own resource in Europe.
Under the Packaging and Packaging Waste Regulation, all packaging must be recyclable from 2030 onwards, with mandatory recycled content quotas of between 10% and 35% for all plastic packaging in Europe.
Despite the ongoing debates, the need for action in the plastic recycling industry is clear. The EU Commission, Member States, and the plastics industry must work together to ensure a sustainable and circular future for plastics in Europe.
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