European Plastics Converters (EuPC), Petcore Europe and Plastics Europe – the three largest organisations representing the European plastics industry – have issued a joint appeal to the European Commission and the Member States. EuPC brings together more than 50,000 converting companies across Europe, Petcore Europe encompasses the entire PET value chain – from raw material producers to recyclers and retailers – and Plastics Europe represents polymer producers. Together, these organisations span virtually the entire plastics lifecycle: from raw material production, through converting, to recycling.
The appeal concerns the planned increase in the EU plastic levy (the so-called Plastics Own Resource) from the current €0.80/kg to €1/kg for each kilogram of non-recycled plastic packaging waste. The organisations warn that such a step will not accelerate the transition towards a circular economy; rather, it will weaken the competitiveness of European companies and discourage investment in recycling infrastructure.
What are the EU’s own resources?
The European Union budget is financed by so-called own resources, i.e. revenue streams transferred to the common budget by the Member States. In the current 2021–2027 financial framework these consist primarily of customs duties on goods imported from outside the EU, VAT-based contributions and national contributions based on gross national income (GNI). Since 2021 there has also been a new source: contributions calculated on the mass of non-recycled plastic packaging waste. This mechanism, introduced after Brexit and commonly referred to as the “EU plastic levy”, brought €7.2 billion to the EU budget in 2023.
Risk of deindustrialisation instead of growth
According to EuPC, Petcore Europe and Plastics Europe, the plastics sector is already under enormous pressure. High energy, labour and environmental compliance costs make European producers less competitive than companies from third countries. As a result, more polymer plants, recyclers and converters are shutting down. In such a situation, further fiscal burdens risk accelerating deindustrialisation and undermining companies’ ability to invest in circular solutions.
The organisations stress that revenues from the plastic levy should be allocated to a dedicated fund supporting the transition to a circular economy. This refers in particular to financing the development of collection and sorting systems and the effective integration of recyclates into new products. At present, the proceeds feed into the general EU budget and are not directly reinvested in the circular economy.
Regulations set the direction
The transition is already under way and is supported by the PPWR (Packaging and Packaging Waste Regulation), which from 2030 requires between 10% and 35% recycled content in plastic packaging and full recyclability. Other legal acts are consistent with this approach: the ELV Regulation (End-of-Life Vehicles Regulation), the WFD (Waste Framework Directive) and the ESPR (Ecodesign for Sustainable Products Regulation). All of them make it clear that the plastics industry must move to a circular model.
“The EU plastic levy must remain at €0.80/kg, and its revenues should flow into a dedicated fund supporting the circular economy. This is the only way for EU fiscal instruments to genuinely support the sector’s transition rather than undermine its competitiveness.” – EuPC, Petcore Europe and Plastics Europe jointly stress.
