The Dutch plastic recycling sector is facing a crisis, marked by numerous bankruptcies, despite the Netherlands’ ambitious goals for a circular economy. The sector is struggling to compete with cheap, newly produced plastic, and recent policy changes have exacerbated the situation.

Several recycling companies have gone bankrupt due to their inability to compete with the low prices of new, fossil-based plastics, particularly from China and the United States. This has resulted in a significant loss of recycling capacity in the Netherlands, jeopardizing the nation’s goal of becoming fully circular by 2050. The Dutch Waste Management Association estimates that the Netherlands has lost about a third of its recycling capacity.

The Dutch government initially appeared unwilling to provide financial support to the struggling recycling companies, offering only loans, which many considered insufficient. The cabinet has tasked the “Circular Plastic Table,” a group of industry representatives and NGOs, with developing proposals to address the crisis. This group is negotiating an agreement to revitalize plastic recycling.

The situation is complicated by conflicting interests among stakeholders in the plastic chain. While there is a consensus on the need for a sustainable plastic chain, disagreements persist on how to distribute the costs and risks associated with achieving this goal.