EU recycling sector faces urgent challenges, commission urges action

Ahead of the June 17 Environment Council, the European Commission issued a stark warning about the pressing issues facing the EU's recycling sector.

High energy costs, cheaper primary raw materials, unfair import competition, and a significant gap between recycling capacity and demand are hindering progress. Despite increasing waste volumes, plastic recycling is declining, and the textiles sector grapples with oversupply and low demand. To bolster the circular economy, the Commission is advocating for measures such as a Circular Economy Act, revised VAT rules, trade defense tools, and updated State Aid frameworks. Member States are being urged to strengthen Extended Producer Responsibility (EPR) schemes, tighten import controls, promote fair competition, and accelerate waste legislation implementation to ensure the long-term viability of the industry.