Wuppertal Institute: Position paper on plastics recycling

Portrait photo of Prof. Dr Henning Wilts

The Institute has developed six solutions to support the industry on behalf of the German Federal Environmental Foundation (DBU).


The paper by the Wuppertal Institute for Climate, Environment and Energy, commissioned by the DBU to examine the economic situation of the plastics recycling industry, was presented in May at the IFAT environmental technology trade fair in Munich. According to the Wuppertal Institute, the plastics recycling industry in Germany is under considerable economic pressure. In the study, the authors highlight structural market distortions and outline six strategic options for action to secure the long-term competitiveness of secondary raw materials. According to the industry analysis, there is currently a weakness in demand for recycled materials, which means that small and medium-sized recycling companies lack investment security. Nationwide, the study indicates that the share of recycled materials currently stands at under 20 per cent. The authors note that the new EU Packaging Regulation (PPWR) will come into force on 12 August 2026, but that its mandatory minimum quotas – such as a 30 per cent recycled content requirement for certain PET packaging and single-use beverage bottles – will not take effect until 1 January 2030. According to the study’s lead author, Prof. Dr Henning Wilts (photo), the current reduction in capacity within the German recycling industry and the upcoming EU requirements pose the risk of a future recyclates shortfall, which could necessitate increased imports. To counteract the loss of market structures and technological know-how, the position paper recommends six key measures, including the promotion of circular business models, a reduction in material diversity, the targeted use of public procurement to stimulate demand, and a globally coordinated plastic levy that takes greater account of the environmental costs of fossil raw materials. Furthermore, the authors believe that recycling technologies should be scaled up to industrial levels more quickly. In this context, the DBU emphasises the need to support the transition from linearly organised value chains to a circular economy through framework conditions that promote innovation.
 
Further information: external link to download the position paper (in German) from the DBU website
 
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