France has launched a new state aid scheme to accelerate the chemical recycling of plastic waste, supporting the country’s transition toward a circular economy while contributing to the European Union’s climate neutrality goals.
Approved under the EU State aid framework, the initiative targets the recycling of selected plastic waste streams, including packaging containers, plastic films, non-beverage PET bottles, and textile products containing a specified proportion of polyester.
The programme is aligned with the European Commission’s 2024–2029 strategic priorities and is expected to encourage greater investment in sustainable recycling technologies across Europe.
Direct Grants to Support Plastic Chemical Recycling Projects
The French government will provide financial assistance through direct grants available to companies of all sizes operating in eligible industrial sectors.
Under the scheme, businesses can receive funding covering up to 40% of eligible investment costs. The support is calculated by comparing the investment required for chemical recycling projects with less environmentally sustainable alternatives.
The European Commission assessed the measure under Article 107(3)(c) of the Treaty on the Functioning of the European Union (TFEU), together with the 2022 Guidelines on State Aid for Climate, Environmental Protection and Energy (CEEAG).
First EU State Aid Programme Approved Under Circular Economy Rules
According to the Commission, this is the first State aid scheme approved under Section 4.4 of the CEEAG, which specifically promotes resource efficiency and the transition to a circular economy.
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The initiative is expected to increase the recycling of difficult-to-process plastic waste while reducing dependence on virgin raw materials and supporting more sustainable manufacturing practices.
Supporting the EU’s Climate Neutrality Target
The programme also supports the European Union’s ambition to achieve climate neutrality by 2050, encouraging industries to adopt circular production models and improve the efficient use of resources.
Teresa Ribera, Executive Vice-President for a Clean, Just and Competitive Transition, welcomed the decision.
“The French scheme approved today will support investments for chemical recycling of plastics. It will contribute to the EU’s objective of reaching climate neutrality by 2050 by promoting the efficient use of existing resources and circular economy practices. At the same time, the scheme will ensure that any potential distortions of competition remain to a minimum.”
The initiative is expected to strengthen Europe’s recycling infrastructure while accelerating innovation in advanced plastic recycling technologies and sustainable textile production.
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