February 13, 2025 – EU Greenlights €500 Million French Plan to Boost Chemical Recycling of Plastics
The European Commission has recently given the green light to a French proposal, allocating up to €500 million (approximately RMB 3.8 billion), to support chemical recycling of plastic waste. This initiative aims to promote the chemical recycling of specific types of plastic waste, including pallets, films, non-beverage bottles, and textile materials with a certain polyester content, fostering resource circularity and environmental preservation.
Under this plan, aid will be provided in the form of direct subsidies to businesses of all sizes and across all sectors, with the maximum aid amount reaching 40% of the eligible costs. “Eligible costs” refer to the additional investment expenses incurred by chemical recycling projects for plastic waste compared to less environmentally friendly alternatives. This innovative approach to assistance is designed to encourage companies to increase their investments in the field of plastic chemical recycling.
According to the Color Masterbatch Industry Network, this is the first national aid plan approved by the European Commission under the relevant provisions of the “2022 Guidelines on State Aid for Climate, Environmental Protection, and Energy.” Executive Vice-President of the European Commission, Teresa Ribera, stated that the plan will not only support investments in plastic chemical recycling but also contribute to the EU’s ambitious goal of achieving climate neutrality by 2050 by enhancing resource efficiency and promoting circular economy practices. Moreover, the plan prioritizes ensuring fair competition, minimizing any potential distortions.
Several French companies are actively pursuing large-scale chemical recycling projects and are poised to benefit from this aid package. Notably, Carbios, a French company, plans to establish a “bio-recycling” facility for PET and polyester waste, employing an advanced enzymatic depolymerization process. However, the company recently announced restructuring measures and layoff plans, citing the pending EU decision on the French national aid plan as one of the reasons for its strategic adjustment. Additionally, the highly anticipated chemical PET recycling project in Saint-Avold, Lorraine, France, which was a collaboration between Suez Environment, technology provider Loop Industries, and SK Geo Centric of South Korea, was completely abandoned last November. The parties involved did not disclose the specific reasons for the project’s cancellation.