On 23 December 2025, the European Commission adopted a Communication on accelerating Europe’s transition to a circular economy, launching a first pilot ahead of the planned Circular Economy Act in 2026, with a specific focus on the plastics sector. (attached)

The initiative responds to slow progress towards EU circularity targets and growing pressure on EU plastics recyclers, including high energy costs, volatile virgin plastic prices, and unfair competition from imports falsely declared as recycled. The Commission positions this plastics pilot as a blueprint for broader action under future EU circular economy legislation.

The Communication sets out several short-term measures:

• EU-wide end-of-waste criteria for mechanically recycled plastics, enabling recycled plastics to circulate more freely across Member States and supporting a genuine Single Market for recyclates.
• New mass-balance rules for chemical recycling, clarifying how chemically recycled plastics can count towards recycled-content targets (notably under the Single-Use Plastics Directive).
• Stronger trade defence and import controls, including closer monitoring of plastics imports and action against virgin plastics falsely marketed as recycled.
• Creation of dedicated customs codes for recycled plastics, improving traceability and enforcement at EU borders.
• Reinforced investment and innovation support, including targeted pilots and EU financing tools to stabilise and scale recycling capacity.

The Commission will relaunch the Circular Plastics Alliance in 2026, with a strengthened mandate and a new work programme to address market challenges and stimulate demand for recycled plastics. Several measures (end-of-waste criteria, mass-balance rules, customs codes) will be developed or finalised during 2025–2026, ahead of the broader Circular Economy Act.

FESI will continue monitoring these developments.

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