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EU to introduce levy on non-recycled discarded plastic, VCI opposes the additional charge

July 23/2020

MOSCOW (MRC) -- The European Council decided, after a special meeting held on 21 July, to introduce a levy on non-recycled discarded plastic as part of the EU's COVID-19 recovery plan, reported Chemweek.

However, Germany's chemical industry association VCI (Frankfurt) had, prior to the EU Councils meeting, expressed opposition to the project because it adds a regulatory and cost burden rather than supporting packaging recyclability.

The EU Council says, As a first step, a new own resource will be introduced and apply as of 1 January 2021 composed of a share of revenues from a national contribution calculated on the weight of nonrecycled plastic packaging waste with a call rate of EUR0.80 per kilogram with a mechanism to avoid an excessively regressive impact on national contributions.

The German chemical industry is critical of the project, because the levy comes at an untimely time and sends the wrong signals. Europe's economy now needs more than ever the framework for more innovation, but not new regulations. The proposal also loses sight of the resource-saving effects plastics have and instead creates a false incentive to switch to less efficient materials," says Wolfgang Gro?e Entrup, CEO at VCI.

VCI notes that using plastics in packaging helps with the conservation of resources and the reduction of greenhouse gases. The recyclability of packaging is already at the heart of product developments in companies and it must be pursued consistently, it says. However, recycling at all costs cannot be the answer to the problems we also see in the plastics sector, when resource conservation suffers from an overall view, Gro?e Entrup says.

The proposed fee on non-recycled discarded plastic may also create an additional cost burden for plastics producers in Germany, VCI says. This is because the German government could decide to tax plastics producers in the country to recover the amount it had to pay the EU under the new levy, VCI says. This could hamper these companies' investment plans in resource-conservation technologies, VCI says.   

"If we want to strengthen recycling, it only makes sense to promote and recognize sustainable technologies, but not to impose additional levies that slow down the necessary transformation processes," Gro?e Entrup says.

As MRC informed before, members of the European Parliament (MEPs) are proposing ways to step up green energy storage solutions such as hydrogen or home batteries, in a report that was adopted in one of the Parliaments voting sessions on Friday, 10 July. The proposals outlined in the report are set to play a crucial role in reaching the goals of the Paris Agreement on Climate Change, as more efficient energy-storage options in the EU will help "spur decarbonization," the EU Parliament says. In addition, since solar and wind have a variable electricity output, more storage solutions should become available to secure supply, MEPs say.

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.
Author:Margaret Volkova
Tags:Europe, PP, PE, homopolymer PP, HDPE, petrochemistry, recikling, Russia.
Category:General News
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