The Dutch plastic recycling sector is facing a severe crisis, with numerous companies collapsing due to inability to compete with cheap, newly produced plastics. This situation is occurring despite the Netherlands’ ambition to become fully circular by 2050 and recycle more plastic waste domestically. The government’s decision to scrap the obligation for plastic companies to use minimum quantities of recycled material has further exacerbated the problem.

The crisis has led the Dutch government to task the business community with finding a solution. A ‘Circular Plastic Table,’ composed of plastic manufacturers, packaging producers, food companies, and waste processors, is negotiating an agreement to revitalize plastic recycling. The table is expected to present its initial proposals soon.

Several recycling companies have gone bankrupt or closed branches because they couldn’t compete with the low prices of new plastic, particularly from China and the United States. The Netherlands has lost about a third of its recycling capacity, raising concerns about achieving its sustainability goals. Young, specialized companies have been particularly vulnerable, while larger waste companies are more resilient.

Calls for government financial support for recycling companies have gone largely unanswered, with the cabinet only offering new loans, which recyclers see as insufficient. There is a perception that the government lacks the political urgency to support the circular economy.

Conflicting interests among the parties involved in the plastic chain complicate the situation. The Circular Plastic Table faces the challenge of balancing the needs of various stakeholders, including ensuring that Dutch recycling companies can sell enough material to survive. Discussions include whether food companies and supermarket chains should commit to purchasing more recycled plastic from Dutch recyclers, even at a higher cost.