Crisis in recycling industry: recyclate production falters

The Dutch plastic sorting and recycling industry is facing immense pressure. Represented by the Vereniging Afvalbedrijven, the sector is warning of an impending crisis. This situation not only endangers climate goals but also has immediate repercussions for the production of recycled plastic, or recyclate.

According to Vereniging Afvalbedrijven, the demand for European plastic recyclate is insufficient. Competition from cheap, newly produced plastic from Asia and America poses a significant challenge. The stagnation in revenue and accumulation of stock are forcing recycling companies to reduce their output. These developments threaten not just the circular economy but also jobs within the sector. In response, the industry has sent an urgent letter to the Acting Secretary of State Heijnen of Infrastructure and Water Management, containing proposals to support the market.

European regulations and national objectives

In light of recent amendments to the European Waste Shipment Regulation (EWSR), which restricts the export of plastic waste outside the EU and OECD countries, more European plastic waste will need to be processed locally. This underscores the urgency for effective recycling strategies. Dutch producers of plastic products face the challenge of meeting European recyclate obligations by 2027, requiring them to incorporate a certain percentage of recycled material in their products. Marc den Hartog from Renewi Nederland highlights the need for a level playing field in Europe to ensure fair competition among collectors and producers.

Proposals for a sustainable future

Vereniging Afvalbedrijven has put forward three concrete proposals in their letter. Firstly, supporting the market price of recyclate with a fixed subsidy per ton, aiming to bridge the gap between the costs of recycled and newly produced plastic. Secondly, aligning the government's circular procurement objectives with plastic recycling goals. Given that the Dutch government accounts for approximately 15% of all national purchases, this step could significantly boost the demand for recycled plastic. Lastly, the introduction of a CO2 credit system for using recycled plastic, akin to green gas certificates, is proposed. This would acknowledge and reward the climate benefits of recycling more effectively. With these measures, the industry hopes to avert the crisis and establish a solid foundation for a circular plastic economy.

Verenigingafvalbedrijven.nl