Clean Industrial Deal: Plastics as the Cornerstone of European Industry

The European plastics industry plays a crucial role in achieving climate goals and transitioning to a sustainable circular economy. Plastics Europe welcomes the European Commission's Clean Industrial Deal but sees an urgent need for action to safeguard the sector's competitiveness.

Plastics are indispensable for numerous key industries, including:

• Automotive industry: Lightweight materials for low-emission vehicles
• Renewable energy: Efficient materials for wind turbines and solar panels
• Healthcare: High-quality plastics for medical technology and pharmaceuticals
• Construction and housing: Durable and sustainable materials

Despite this essential contribution, the Clean Industrial Deal lacks measures to strengthen the competitiveness of the plastics industry, according to Virginia Janssens, Managing Director of Plastics Europe: 'European plastics manufacturing is vital to the future of the EU's industrial base and broader strategic autonomy. Without urgent action, Europe will become increasingly dependent on imports of plastic resins and finished goods from regions with often less stringent environmental standards.'

The industry faces major challenges:

• High energy costs: Competitive disadvantages compared to non-European manufacturers
• Investment climate: Longer innovation cycles require clear political frameworks
• Recycling and circular economy: Market demand for recyclates must be actively promoted

Janssens stresses that time is running out to meet the goals set in the EU Green Deal and the Plastics Transition Roadmap: 'Europe has an opportunity to establish the world's first circular and net zero plastics system. Sadly, there is a real danger that the competitiveness benefits the Clean Industrial Deal delivers will be realised far too late.'

Dr. Christine Bunte, Chief Executive Officer of PlasticsEurope Deutschland e.V., highlights the need for political action at the national level:

To ensure the long-term competitiveness of the plastics industry, Plastics Europe calls for:

• An EU-wide action plan for the plastics sector, connecting industry, policymakers, and research institutions
• Support for investments in circular economy and recycling technologies
• Lower energy costs and reduced bureaucracy to strengthen innovation and maintain production sites

Without these measures, Europe risks losing its leadership in plastics manufacturing

• 1.5 million jobs in 51,700 companies across the EU
• Revenue of 365 billion euros in 2023
• Decline in EU plastics production by 8.3% in 2023
• Europe’s share of the global plastics market: 12% (2006: 28%)

The Plastics Transition Roadmap outlines pathways to achieve 65% non-fossil raw materials in plastics production and net-zero emissions by 2050.