Norway’s Tomra Systems expects Europe’s plastics recycling industry to remain cautious for at least another year, despite looming EU recycling deadlines that will require a sharp increase in processing capacity by 2030.

EU Recycling Requirements

Europe will need to at least double plastics recycling capacity to meet the requirements under the EU’s Packaging and Packaging Waste Regulation, which requires all packaging to be recyclable by 2030.

High financing costs, economic uncertainty and a lack of confidence that recently higher plastic prices will last are causing customers to take longer to commit to recycling projects, according to Tomra Systems CEO Tove Andersen.

Recent increases in oil prices have pushed up virgin and recycled plastic prices, improving customers’ cash generation. However, Tomra has yet to see that translate into stronger orders because recyclers want evidence that higher prices will last before committing to new plants.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.