Commission approves EUR 500 million French State aid to support chemical recycling of plastic waste
Today, the European Commission (Commission) has approved a EUR 500 million French State aid scheme to support companies recycling certain types of plastic waste such as films, non beverage bottles and trays. The scheme supports the EU’s goal of circularity of production and consumption, aiding the industry’s transition to climate neutrality.
The aid consists of direct grants, with a maximum aid intensity of 40%. The Commission, for the first time ever, assessed the measure under Section 4.4 of the Guidelines on State aid for climate, environmental protection and energy 2022 (‘CEEAG’), which allows granting aid for resource efficiency and for supporting the transition towards a circular economy.
The Commission decided that this measure was “appropriate” and “necessary” to ensure the deployment of chemical recycling of plastics, that it had an “incentive effect” and, lastly, that France ensured that the scheme “has a limited impact on competition and trade”.
For more information, see the Commission’s PR.