The initiatives aim to improve the framework conditions for plastics recycling, strengthen the Single Market for secondary raw materials and support resource-efficient industrial processes.
The measures are part of a two-step approach. In a first phase, the Commission intends to address short-term challenges in sectors with particular regulatory or market pressure, including plastics recycling. In a second phase, the Commission plans to submit a Circular Economy Act in 2026. This legislative proposal is expected to introduce horizontal rules to improve the functioning of the Single Market for secondary raw materials.
According to analyses by the Joint Research Centre (JRC), increased circularity in the plastics sector has the potential to reduce greenhouse gas emissions, lower energy demand and improve the trade balance of the sector in the long term.
Market pressures in plastics recycling
The recycling of plastics in the EU is currently affected by several structural and market-related factors, including fragmented markets for recyclates, high energy costs and fluctuating prices for virgin plastics. Competitive pressure from imports from third countries has also contributed to reduced capacity utilisation and economic difficulties among recycling companies. These developments may affect progress toward EU circularity objectives.
EU-wide end-of-waste criteria for plastics
A key element of the package is a draft implementing act establishing EU-wide end-of-waste criteria for plastics under the Waste Framework Directive. The criteria are intended to define the conditions under which recycled plastics cease to be waste and can be placed on the market as secondary raw materials.
The Commission states that harmonised criteria are expected to reduce administrative complexity for recyclers, particularly small and medium-sized enterprises, and to support the availability of standardised recyclates in the EU Single Market. The draft measure is open for public feedback until 26 January 2026.
PET beverage bottles and chemical recycling
A further implementing act submitted to Member States for vote concerns the calculation and verification of recycled content in PET single-use beverage bottles under the Single-Use Plastics Directive. The draft rules foresee the inclusion of chemically recycled material under defined conditions, in addition to mechanically recycled plastics.
The Commission expects that the measure will provide a clearer regulatory framework for investments in chemical recycling technologies.
Circular Plastics Alliance to be strengthened
The Commission also intends to relaunch and further develop the Circular Plastics Alliance as a cooperation platform along the plastics value chain. The platform is to support the exchange between industry, Member States and EU institutions on market barriers, supply chains and circularity objectives in the plastics sector.
Differentiated customs codes for plastics
To improve transparency in trade statistics and enforcement, the Commission plans to introduce separate customs codes for virgin plastics and recycled plastics. Customs and market surveillance authorities will be able to use these codes for the monitoring of imports.
In addition, the Commission will expand its monitoring of EU and international markets for virgin and recycled plastics. The findings may inform possible trade-related measures. A review of the monitoring activities is planned for 2026.
Support for investment and regional cooperation
To promote circular business projects, the Commission intends to intensify cooperation with national promotional banks and the European Investment Bank. A pilot Competitiveness Coordination Tool (CCT) will support the establishment of Trans-Regional Circularity Hubs. These hubs aim to facilitate cross-border cooperation, knowledge transfer and regional scaling of recycling and circular economy activities.
Evaluation of the Single-Use Plastics Directive
The Commission has launched a public consultation and call for evidence on the implementation of the Single-Use Plastics Directive (SUPD). The evaluation will assess the Directive’s effects on marine litter, human health and the development of circular solutions in the plastics sector. The consultation is open until 17 March 2026.
