EU approves French State aid scheme for chemical recycling
The European Commission has approved a EUR500 million (USD519.3 million) French State aid scheme to support the chemical recycling of plastic waste. This initiative is part of the EU’s commitment to fostering a circular economy and achieving climate neutrality by 2050.
The scheme will fund companies developing technologies that convert contaminated and mixed plastic waste into high-quality raw materials. The aid, granted as direct financial support, will cover up to 40% of eligible investment costs and is open to businesses of all sizes across various sectors.
The scheme aims to support chemical recycling technologies that convert mixed and/or contaminated plastic waste back into ‘virgin-like’ raw materials. The scheme will contribute to the EU’s objective of circularity of production and consumption processes as part of a broader transformation of the industry towards climate neutrality.
The Commission evaluated the measure under EU State aid regulations, particularly Article 107(3)(c) of the Treaty on the Functioning of the European Union (TFEU). Officials concluded that the initiative is necessary, proportionate, and designed to prevent market distortion.
This marks the first approval under Section 4.4 of the 2022 Guidelines on State Aid for Climate, Environmental Protection, and Energy (CEEAG), setting a precedent for future sustainability-focused funding.
France has put in place sufficient safeguards to ensure that the scheme has a limited impact on competition and trade within the EU. In particular, the scheme is open to all companies operating in all sectors and the aid is limited to the minimum necessary to undertake the projects.
