Chemical Recycling Policies Shaping the Future
by Verity Anipa at 08:37 in Circular Economy, Emerging, Environmental, Packaging

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The world is at a tipping point in tackling plastic waste, and countries are increasingly turning to sustainable solutions. While mechanical recycling has been the dominant method, it struggles with complex or contaminated plastics that often end up in landfills or incinerators. Chemical recycling, a technology that breaks plastics into their core components, offers a new life for materials once deemed unrecyclable. With 2025 nearing, nations are ramping up policies, funding, and collaborations to accelerate chemical recycling adoption. We will explore how these efforts are shaping waste management and advancing a circular economy across the globe.

Europe

• EU: The EU is boosting chemical recycling with investments set to grow from €2.6 billion in 2025 to €8 billion by 2030. It has also set ambitious targets for recycled content in plastic bottles, requiring 25% by 2025 and 30% by 2030, driving demand for recycled materials and supporting a circular economy.

• UK: HM Revenue and Customs (HMRC) is consulting on the impact of chemical recycling for plastics and exploring the use of a mass balance approach to account for chemically recycled content in Plastic Packaging Tax (PPT) reporting. This consultation could pave the way for new guidelines and regulations to support compliance and traceability in the use of chemically recycled materials. Further developments are expected as the industry adapts to these evolving reporting and tax requirements.
  

• Germany: Germany's National Circular Economy Strategy (NKWS) aims to cut primary raw material consumption by 2045, positioning chemical recycling as a complementary solution for waste streams unsuitable for mechanical recycling or requiring high-quality outputs, like food packaging. By 2025, scaling chemical recycling capacity and progress on Carbon Capture and Utilization (CCU) pilot projects could help diversify sustainable raw material sources. These efforts may lay the groundwork for Germany's leadership in circular economy innovation and advanced recycling technologies.
  

North America

• USA: Wyoming became the 25th U.S. state to adopt legislation (SF 80) regulating advanced recycling facilities as manufacturing operations. This decision follows a trend where 24 states have already classified chemical recycling as manufacturing to avoid stricter waste management regulations. As states aim to meet higher recycling goals, more are expected to support advanced recycling as a manufacturing activity, driving investment and innovation in the sector.
  

APAC

• Singapore: Singapore's NEA is advancing chemical recycling to close the plastic waste loop, targeting plastics that mechanical recycling can't handle, like contaminated single-use items. A joint NEA-Shell study confirmed the feasibility of a chemical recycling value chain, offering carbon savings by diverting waste from incineration. To support this, NEA conducted a feasibility study for a Plastic Recovery Facility (PRF) in late 2021 to recover plastics from domestic waste, outlining design, technology, and scalability insights, with further evaluations planned before the next phase.
  

• Australia: The Australian Government's voluntary framework for recycled content traceability, endorsed in November 2023, supports chemical recycling integration by guiding businesses to collect and share information about recycled materials. It applies to all recycled products in Australia, offering flexibility for businesses of all sizes to trace content in a way that ensures transparency and compliance across the supply chain.
  

As countries embrace chemical recycling to advance a circular economy, this technology offers solutions for hard-to-recycle plastics while driving innovation and sustainability. Continued investments and policies will be key to scaling these efforts and minimizing environmental impact. To stay updated on the latest developments, contact us today!

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