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Exxonmobil halts $118 million plastic recycling investment in europe, eu policy dispute becomes key obstacle

Plastmatch Global Digest 2025-09-18 13:58:01

According to Reuters, ExxonMobil (XOM.N), the American energy giant, has suspended its 100 million euros (approximately 118 million USD) investment plan in the European plastic recycling sector due to controversy over the recognition standards for "recycled material content in final products" in the proposed EU regulations.

The company originally planned to deploy two chemical recycling projects at existing petrochemical plants in Rotterdam and Antwerp, with an annual processing capacity of 80,000 tons of plastic waste. However, Senior Vice President Jack Williams revealed in an interview that these two projects have currently been put on hold. He pointed out that the EU draft links the calculation of recycled material content directly to the "mass of waste input" and the "mass of finished product output," a rule that essentially "discriminatively" favors independent recycling facilities rather than integrated petrochemical plants with fossil feedstock supply. Williams emphasized: "Apart from policy factors, all other conditions are ready—we have local support and are eager to advance the investment, but EU policies have become the only obstacle."

The core of the controversy lies in the draft's establishment of standards for the recognition of recycled materials. ExxonMobil believes that the rule significantly favors independent technological systems with a clearer path "from plastic waste to output," yet systematically penalizes complex integrated facilities that require compatibility with fossil material inputs. According to calculations by Williams, if the draft is implemented, the amount of recycled material certification that its facilities can obtain will be less than half of the expected level.

Previously, the public consultation on this draft by the European Union concluded a month ago, with multiple industry organizations and companies, including Finnish energy company Neste, expressing positions similar to ExxonMobil. Currently, the EU is committed to increasing plastic recycling rates, such as setting a target of "30% recycled material content in plastic bottles by 2030." The industry generally believes that mechanical recycling (maintaining the chemical structure of waste unchanged) should be combined with chemical recycling (processing complex plastics by breaking them down into basic chemicals) to achieve large-scale circular utilization.

Williams specifically called for the EU to abolish the Corporate Sustainability Due Diligence Directive (CSDDD). This directive requires large companies to check their supply chains for forced labor or environmental damage. Williams criticized the directive as "too complex, costly, with some requirements even being unattainable, and its scope extending beyond the EU region." It is worth noting that the EU had previously made concessions on this directive by postponing its implementation time.

Despite the fact that the U.S. tariff issue has not significantly impacted the company, Williams openly stated that the regulatory environment in the EU has become the main challenge for its operations. The ongoing debate over the standards for recognizing recycled materials and regulatory compliance is continuously testing the balance between multinational energy giants and European policymakers.

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Exxonmobil halts $118 million plastic recycling investment in europe, eu policy dispute becomes key obstacle

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