The French government’s new €500 million ($516 million) chemical recycling initiative for textiles and plastics has received approval from the European Commission (EC), aligning with the EU’s circular economy and climate neutrality goals.
The scheme supports the recycling of select plastic waste, including containers, wrapping films, non-drink-related bottles, and polyester-based textiles. It adheres to EU State aid regulations and contributes to the European Commission’s 2024-2029 strategic objectives.
Financial aid will be provided as direct grants to businesses of all sizes, with a maximum support cap of 40% of eligible costs. The EC reviewed the plan under Article 107(3)(c) of the Treaty on the Functioning of the EU (TFEU) and the 2022 Guidelines on State aid for climate and environmental protection.
EC Vice President Teresa Ribera stated that the initiative will drive resource efficiency while minimizing competition distortions, supporting the EU’s 2050 climate neutrality target.
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