Recycling as Europe's Feedstock: Defossilising the Chemical Industry
A new 65-page position paper jointly developed by BZL and the nova-Institute argues that Europe’s transition toward a defossilised and resilient chemical industry depends on treating waste management as a strategic source of renewable carbon. Titled “Recycling Becomes Feedstock for Europe – Let’s Dare More Autonomy”, the paper outlines ten policy building blocks designed to realign legal frameworks, strengthen circular economy practices, and reduce dependence on fossil-based feedstocks.
Amid geopolitical uncertainty and mounting economic pressure on Europe’s chemical sector, the authors contend that incremental measures—such as lowering industrial electricity prices—are insufficient to address the industry’s structural challenges. According to the paper, the current downturn reflects a deeper vulnerability rooted in Europe’s long-standing reliance on fossil-based feedstock supply chains.
Historically, the European Union and its Member States were able to secure coal, oil, and natural gas at relatively low cost. This model has weakened in recent years as producing countries increasingly developed their own downstream chemical industries, limiting export availability. Russia had long played a stabilising role in this system, but recent geopolitical tensions have exposed the risks of such dependencies.
The paper notes that global competition for remaining fossil resources is intensifying, raising questions about whether the EU should continue to participate in what has been described by Germany’s Federal President as a “den of thieves.” Instead, BZL and the nova-Institute propose an alternative pathway that preserves Europe’s chemical industry while reducing exposure to volatile fossil markets.
Central to this alternative is the transformation of waste management into a viable, large-scale feedstock source for the chemical sector. While the concept of using waste-derived carbon is not new, the authors argue that progress has stalled because existing legal frameworks treat waste management and chemical production as largely separate domains. This separation, they suggest, has kept recycling-based feedstock strategies largely theoretical.
The position paper emphasises that without coordinated legal reform at the EU level, efforts to secure industrial locations, stimulate innovation, and maintain economic prosperity will remain limited. The authors criticise current policy discussions for focusing on marginal adjustments that slow industrial decline rather than addressing the underlying structural issues.
Beyond electrification and energy efficiency, the paper identifies carbon availability as a critical requirement for the chemical industry’s transformation. The ten proposed policy measures aim to integrate waste and chemicals legislation more effectively, enabling defossilisation as a practical and scalable transition rather than a conceptual objective.
The paper also advocates for recognising the role of all recycling pathways—including mechanical, physical, and chemical recycling, as well as waste incineration combined with CO₂ capture and utilisation. According to the authors, different waste streams and target products require different technological solutions, all of which must be supported during the transition phase.
In addition to supporting existing EU instruments such as substitution quotas for selected plastics applications, the paper evaluates proposals already under discussion at Member State level. It also calls for the gradual phase-out of regulations that hinder the development of circular carbon supply chains. Importantly, the authors stress that the ten measures must be implemented as a coordinated, phased policy package rather than as isolated initiatives.
While strategic autonomy and resilience are increasingly prominent in EU policy discourse—and form part of the priorities of the current EU Council Presidency—the paper cautions that these goals will remain aspirational unless translated into enforceable and coherent legislation. The proposed framework, the authors conclude, represents a practical but challenging route toward making European chemical autonomy a functional reality.
Full position paper available here:
https://renewable-carbon.eu/publications/product/recycling-becomes-feedstock-for-europe-lets-dare-more-autonomy-pdf/