Belgium must urgently prepare for ban on exporting to non-OECD countries
Valipac, the EPR-organisation for commercial and industrial (C&I) packaging, has issued a warning about the significant consequences of new EU environmental legislation. The recently approved European Waste Shipment Regulation will ban the export of plastic waste to non-OECD countries. There is a genuine risk that the market for sorting, collection and recycling of plastic packaging may collapse. In Belgium alone, 100,000 tonnes of C&I plastic packaging is consumed each year, of which around 24,000 tonnes are recycled outside the OECD in Valipac-controlled plants. However, exports from EU countries outside the OECD, which are greater than exports from Belgium, are currently not tracked, registered and checked, so recycling cannot be guaranteed.
Europe has agreed stricter rules that severely limit the export of plastic waste. From January 2028, shipping plastic waste to non-OECD countries will no longer be permitted.
The new regulations allow for a transitional period of several years. After this time, exports to non-OECD countries will no longer be allowed and industry will have to take care of the full processing and recycling of plastic waste itself. This is an important step towards a circular economy. Recycling capacity in Europe is currently insufficient, however, resulting in uncertainty and concern on the European recycling market. The move towards recycling this C&I plastic packaging waste within the EU will therefore require huge efforts from the industry.
Monitoring effective recycling
Moreover, the transition period should not mean that current exports to countries outside the OECD go unchecked.Valipac already operates a traceability system for C&I plastic packaging waste that, in collaboration with independent audit bureaus overseas, controls the actual recycling of plastic waste and compliance with environmental, health and security regulations. Valipac is calling for this traceability and strict controls of recycling conditions outside the OECD to be applied in all EU countries. It currently only applies in Belgium, where, via the port of Antwerp alone, 400,000 tons of plastic waste from other EU countries is shipped to non-OECD countries without traceability or checks.
“The challenge for our industry is twofold. We must significantly increase recycling capacity in our internal market and strengthen sales potential within the EU. This is a necessary condition for developing a local circular economy. At the same time, we must strictly control current exports of plastic waste outside the OECD in the interests of the environment, safety and human rights in the destination countries,” says Francis Huysman, Managing Director Valipac.
Collaboration and accelerated investment
The cost of virgin plastic packaging in Europe is currently not competitive with that of packaging using recyclate. As a result, plastic waste from Europe is primarily exported to be recycled into secondary products, such as rubbish bags, while there is low demand in the EU for recycled plastic waste, resulting in little recycling capacity. There is therefore an urgent need for change. If action is not accelerated to accommodate the application of the new rules, the plastic packaging waste market risks collapse, due to the lack of demand and sales outlets in Europe and the ban on exports to countries outside the OECD. This will increase the cost of collecting and processing C&I plastic packaging waste, reducing interest in the selective collection of this material.
It will also be challenging to find a destination for the recyclate. The new regulations thus threaten to hinder rather than promote growth towards a circular economy in the short term.
“The challenges posed to our industry by the new rules must be addressed at EU level. Valipac has already taken steps in the right direction. To encourage the use of recyclate in C&I packaging, we have developed a digital catalogue (www.myRecycledContent.be), which makes it easier for providers and users to find each other. Valipac encourages businesses with a financial bonus if they use plastic packaging that contains a minimum of 30% recyclate. To achieve a circular value chain and encourage recycling in Europe, we as an industry must heavily invest in the use of recyclate. This calls for far-reaching cooperation between extended producer responsibility (EPR) organisations in different countries and major investments in developing recycling processes and facilities within the EU. Valipac is happy to share its experience,” says Francis Huysman.