Never before has Europe had such an ambitious legal framework for packaging recycling as with the new Packaging and Packaging Waste Regulation (PPWR). And yet, many recyclers are currently operating at the limit. Some are even shutting down.
The contradiction is here: How can there be so much regulatory demand for recycled plastic—and so little real support for the people who produce it?
PPWR and Spain’s plastic tax: heavy obligations but little oxygen
The new EU regulation sets ambitious targets for non-reusable plastic packaging:
Mandatory recycled content targets for 2030 and 2040:
In addition, by 2030, at least 50% of plastic packaging must be effectively recycled, not just collected, and the EU commits to reducing overall packaging waste by 5% by 2030, 10% by 2035, and 15% by 2040, compared to 2018 levels.
For example in my country, Spain, since January 1, 2023, a tax of €0.45/kg applies to virgin plastic used in non-reusable packaging. Products with over 30% recycled content are partially exempt, but there is still no unified EU-wide certification system to prove it, creating legal uncertainty for producers and importers.
It’s worth noting that this €0.45/kg tax does not fully cover Spain’s own contribution to the EU, which amounts to €0.80/kg for each kilogram of non-recycled plastic packaging waste. This leaves a deficit that the Spanish government must absorb through public funds.
Meanwhile, Germany has not yet implemented its own national plastic tax. Although it was initially scheduled for January 1, 2025, the German government has now postponed its introduction, currently aiming for 2026. We will see this time what happens. Technical complexity, industry pushback, and administrative costs have delayed its rollout, as reported by FachPack News.
In the meantime, Germany launched a Single-Use Plastics Fund (EWKFondsG) in 2024, which applies a fee to products like cups, cutlery, and bags, but does not function as a general tax on virgin plastic like Spain’s.
Meanwhile, what are recyclers facing?
- Recycled plastic prices are falling.
- Brands want to “comply with the law”—but pay as if it didn’t exist, but nice to print the % content on their labels.
- Virgin plastic remains cheaper and more attractive in appearance.
- Operating costs keep rising: energy, labor, certifications, audits, etc.
- Input material is often dirty or poorly sorted, degrading output quality.
In short: more legal pressure, less operational margin.
Deposit Return Schemes (DRS) the solution?
Europe is making efforts increasing the Deposit Return Schemes (DRS). These systems are already in place in 17 countries and must be operational in all EU Member States by 2029, under the PPWR.
These schemes, based on consumers paying a deposit they recover when returning a container, have proven highly effective:
- Germany: return rate over 98% (TOMRA)
- Norway: globally recognized system with a 92% return rate (TOMRA – DRS FAQs)
- Lithuania: increased from 34% to 92% recovery in just two years (TOMRA)
- Ireland: launched in February 2024, has already collected over 630 million containers, cut litter on beaches and streets by 50%, and raised funds for NGOs (The Guardian)
- Austria: implemented its scheme in January 2025, with deposits between €0.15 and €0.25 per container (TOMRA)
These models ensure very high collection rates, cleaner material, and a more predictable feedstock for quality recycling.
But we have a great contradiction
- Policymakers demand recycled content.
- Brands want compliance—but at the lowest possible cost.
- Consumers want clean, recyclable, good-looking packaging.
- And recyclers—the ones turning waste into raw material, making the miracle —are the ones who can’t keep up.
Without minimum price guarantees, clear demand incentives, or protection against cheap virgin imports, the PPWR targets could easily remain just wishful thinking.
My final thoughts
Europe will not become circular with regulations alone. Real recycling needs more: economic conditions that allow recyclers to survive and grow, and these means benefits.
We cannot demand more from the weakest link in the chain without giving them the tools to endure. Just see the dimensions and turn-over numbers of the other players in the chain: Municipalities?, Waste Managements companys?, bottle producers? and brand owners? Recyclers are small ants playing with elephants, because if recyclers disappear, the rest becomes just talk and will have to be created.
And here’s the paradox: there have always been recycling companies that closed in the past, but back when we were less visible and kept a lower profile, most recyclers lived with more peace of mind—and better margins.
Note: Some figures may vary slightly depending on the source and date of publication. Every effort has been made to verify and cite all data as rigorously as possible.
