Up to €10bn (£8.85bn) of investment will be needed for innovation and expansion in separate collection, sorting and recycling capacity for plastics at EU level, according to Fead.
The federation, which represents the private waste and resource management industry across Europe, has highlighted “crucial points” to be addressed ahead of a European Parliament committee vote on the Plastics Strategy next week.
It said that transformation to a new ’plastics economy’ requires joint effort along the value chain, including designing plastic products for recycling.
According to Fead, the sector is prepared to make the investments needed if there are legislative measures to ensure significant uptake of plastic recyclate. It warned this was becoming “more necessary by the minute” in light of Chinese import bans on certain waste streams.
Federation members have welcomed amendments calling for mandatory rules on recycled content, which would stimulate the demand for secondary materials and help drive the investment needed for collection, sorting and recycling.
It supports the idea of reduced VAT for products with recycled content, to allow recycled plastics to compete with virgin polymers. It believes that quality standards should only be introduced together with binding measures on recycled content.
A draft report from the Committee on the Environment, Public Health and Food Safety on a European strategy for plastics in the circular economy was published in March.