France launches chemical recycling plan with EU approval

The French government has introduced a €500 million ($516 million) program to promote chemical recycling in the textile and plastic industries. This initiative has been approved by the European Commission (EC), strengthening efforts to build a circular economy.

The program will support the recycling of specific types of plastic waste, including textiles. It covers materials like containers, packaging films, non-beverage plastic bottles, and textiles with a certain percentage of polyester.

This program is a key step in achieving the EU’s vision of a circular economy, where resources are reused efficiently, helping industries transition toward climate neutrality.

The European Commission assessed the program based on EU State aid rules, particularly Article 107(3)(c) of the Treaty on the Functioning of the EU (TFEU), which allows governments to support specific economic activities under certain conditions. The assessment also considered the 2022 Guidelines on State aid for climate, environmental protection, and energy (CEEAG).

Teresa Ribera, Executive Vice President for Clean, Just, and Competitive Transition, stated: “This French initiative will boost investments in chemical recycling of plastics. It will support the EU’s goal of achieving climate neutrality by 2050 by making better use of existing resources through efficiency and circular economy practices. At the same time, it ensures that competition in the market remains fair.”