Report for Spain

The EU’s plastics recycling sector is currently vulnerable. It is heavily dependent on oil prices: any fluctuation directly impacts the industry’s competitiveness and renders the market highly unstable. While the recent rise in crude oil prices has offered temporary relief, it fails to address structural issues limiting the competitiveness of recycled plastic.

Given this market instability, new European regulations are aimed at influencing the sector’s competitiveness - with varying degrees of success. From November 21 this year, exports of plastic waste to non-OECD countries will be banned. While this measure increases Europe’s responsibility for waste management, a lack of buyers could lead to a surge in waste ending up in landfills or incinerators.

Demand for recycled plastics in Europe has shown a worrying slowdown, with sluggish recent growth. Strengthening of Europe’s recycled plastics market is required as a matter of urgency to prevent further loss of industrial capacity within the sector.