On Monday 3 February, the European Commission authorised a French State aid scheme worth €500 million to support investment in the chemical recycling of certain types of plastic waste, under the guidelines on State aid for climate, environmental protection and energy, applicable since January 2022 (see EUROPE 12258/2).
The French authorities will support companies of all sizes and in all sectors to integrate into their production processes chemical recycling technologies that convert mixed and/or contaminated plastic waste (film, bottles other than those for beverages, textile materials containing a certain amount of polyester) into ‘virgin-like’ raw materials.
The aid, which will be granted in the form of direct subsidies, will reach a maximum threshold of 40% of the eligible costs, which correspond to the additional investment costs determined by comparing the total investment costs of a project for the chemical recycling of plastic waste with those of less environmentally-friendly projects.
This is the first time that the Commission has granted such aid under section 4.4 of the guidelines, which authorises aid for resource efficiency and support for the transition to a circular economy. According to the EU institution, the scheme has an incentive effect and a limited impact on competition. (Original version in French by Mathieu Bion)