EU Plastics Tax: 8 Yuan/kg! Three Associations Strongly Oppose!
On September 15th, the European Plastics Processors Association (EuPC), the European PET Recycling Association (Petcore Europe), and Plastics Europe (Plastics Europe), three of the largest organizations representing the European plastics industry, jointly issued an appeal to the European Commission and member states: Oppose the EU's plastics tax increase!
EuPC brings together over 50,000 plastics processors across Europe; Petcore Europe covers the entire PET supply chain, from raw material producers to recyclers and retailers; and Plastics Europe represents polymer producers. These three organizations cover virtually the entire life cycle of plastic products: from raw material production to plastics processing to recycling.
The appeal is in response to the EU's plan to increase the plastics tax (the so-called "Plastics Own Fund") from the current €0.80 per kilogram to €1, a 25% increase. The tax will be levied on unrecycled plastic packaging waste. The organizations warn that the tax increase will not only fail to promote the transition to a circular economy, but will instead undermine the competitiveness of European companies and discourage investment in recycling infrastructure. (Note: 1 EUR ≈ 8.4276 RMB)
What are the EU's own resources?
The EU budget is financed by so-called "own resources," which are contributions from member states to the common EU budget. Under the current fiscal framework for 2021-2027, own resources primarily consist of tariffs on imports from outside the EU, VAT-based contributions, and national contributions calculated based on gross national income (GNI). Starting in 2021, a new source of revenue was added: a levy based on the weight of unrecycled plastic packaging waste. This mechanism, introduced after Brexit and often referred to as the "EU plastics tax," generated 7.2 billion euros for the EU budget in 2023.
Facing the risk of deindustrialization, not economic growth
According to EuPC, Petcore Europe, and Plastics Europe, the plastics industry is already under significant pressure. High energy and labor costs, as well as environmental compliance requirements, make European producers less competitive than those in third countries. As a result, a growing number of polymer production plants, recycling facilities, and converters are closing. Click to see if plastic recycling is a good business. See which plastic recycling plants have already closed. In this scenario, further financial burdens could accelerate the industry's decline and undermine companies' ability to invest in circular economy solutions.
These organizations emphasize that revenue from plastic taxes should be allocated to a dedicated fund to support the transition to a circular economy. This involves, in particular, funding the development of recycling and sorting systems and facilitating the effective integration of recycled materials into new products. Currently, revenue from plastic taxes flows into the EU general budget and is not directly reinvested in the circular economy.
PPWR Regulation Provides Guidance
This transition has already begun, supported by the Packaging and Packaging Waste Regulation (PPWR). This regulation mandates that from 2030, plastic packaging must contain 10% to 35% recycled content and be fully recyclable. Other relevant laws align with this goal, including the End-of-Life Vehicles Regulation (ELV Regulation), the Waste Framework Directive (WFD), and the Sustainable Product Ecodesign Regulation (ESPR). These regulations clearly state that the plastics industry must shift to a circular economy model.
EuPC, Petcore Europe and Plastics Europe jointly stressed: "The EU plastic tax must remain at €0.80 per kilogram and its revenue should be included in a fund dedicated to supporting the circular economy. Only in this way can EU fiscal policy truly promote the transformation of the industry rather than undermine its competitiveness."
