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Home > News > Recycling

Viewpoint: How to win in green transition? Case studies on China and Europe recycling industry

Source：Adsale Plastics Network Date ：2025-12-08 Editor ：RC

Copyright： This article was originally written/edited by Adsale Plastics Network (AdsaleCPRJ.com), republishing and excerpting are not allowed without permission. For any copyright infringement, we will pursue legal liability in accordance with the law.

Viewing the current global situation, development of recycling industries in Europe and China appear to be in huge difference. The reason behind such difference is the variations in regulations and market change under green transition. The market difference also reveals the basis of recycling industry development.

Triple pressure on European recycling industry

Recycling industry in Europe is currently mired in deepening crisis, facing the pressure to adjust the industry which have already accumulated in the past years. A report released by the Plastics Recyclers Europe (PRE) last month indicated that from preliminary 2025 data, there is a 50% rise in recycling facility closures, resulting in the loss of nearly one million tons of European recycling capacity over just three years.

As the pioneer of global circular economy, Europe initiates green transition through green regulations and advanced technologies. However, recycling industry in Europe is now facing triple pressure of increasing energy cost, competition from imported recycled plastics, and the drop in demand from end market. These pushes the used-to-be-motivated small and medium enterprises to exit the market due to profit pressure.

The European organization has expressed its concern over the industry’s development and has urged the European Union to act decisively and implement supportive measures to preserve the recycling industry and Europe’s circular economy.

Mol Group announced that it will shut down its recycling subsidiary Remat Zrt. by the end of 2025, including the two recycling plants in Hungary. (Source: Mol Group)

Dual motivation in Chinese recycling industry

With its technological advancement and scale expansion, Chinese recycling industry is rising under the globally depressing atmosphere, winning international approvals. Recently, Hunan Vary Tech Co., Ltd. has handed over a customized end-of-life refrigerator recycling and dismantling line to Indian e-waste recycling giant Greenscape Eco Management Pvt. Ltd. (GMP), marking the basis of Chinese recycling technology going overseas.

Investment also flows to Chinese recycling market. Ingka Investments, the investment arm of Ingka Group, the largest IKEA retailer, announced a growth capital injection in Shanghai Re-mall Environmental Protection New Material, stating the potential of Chinese recycling industry and global investors’ confidence towards it.

Vary Tech_refrigerator recycling line 01.jpg

Vary Tech handed over a customized end-of-life refrigerator recycling and dismantling line to GMP.

Difference in regulations and market ecosystem

The core reasons for difference between recycling industry’s development in China and Europe are regulations and market ecosystem.

On the surface of its slow development, European recycling industry is facing high energy cost. While in its core, European green regulations lack continuity and decisive actions; additional law progress is slow and complicated, eventually leading to unsmooth operation along the industry chain.

Another key challenge of the European recycling industry is the imbalance market ecosystem. As the cost for Locally-manufactured recycled plastics is higher than that of virgin plastics as well as imported recycled plastics, downstream producers and customers have lower incentive to purchase locally made recycled plastics. This worsen the recycling industry in Europe.

On the other side of the world, China has actively reach for the “dual-carbon” target through legislation and offered financial subsidies to lower operational cost for recycling industries, building a regulation protection for the whole industry chain.

International collaboration for win-win situation

Recycling is a global topic – international collaboration is far more effective than competition. With this as a basis, no country can achieve full circular economy on its own. A cross-country responsibility system should be established to achieve sustainability.

One typical example is Association of Plastic Recyclers’ (APR) collaboration with China National Resource Recycling Association (CRRA) and other Chinese institutes in developing a design guide for plastics recyclability. Through technology export and constructing standards with partners, Chinese recycling industry not only share its technology but also learn the design and precision sorting from Europe.

To achieve circular economy, strong implementation of regulations, market cultivation and international collaboration are important. We should learn from the crisis in European recycling industry – weak regulation and imbalanced market ecosystem will make early-stage results go waste. Only by establishing comprehensive recycling system which considers technological innovations and market acceptance, recycling industry can achieve a stable development in long run.

Shanghai in April 2026: Plastics Recycling & Circular Economy Conference and Showcase

The 7th edition of CHINAPLAS x CPRJ Plastics Recycling and Circular Economy Conference and Showcase will take place on April 20, 2026 (a day before CHINAPLAS 2026) in Shanghai, China.

The event will gather international governmental organizations, industrial associations, R&D institutions, and companies from whole production chain (covering brand owners, recycling companies, equipment suppliers, etc.). Through presentations, business connection and technology showcase, the event will build a knowledge-sharing platform for the global recycling industry.

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