Plastic circularity: A blueprint for resilience and competitiveness in Europe

By Barbara Frei
26 Aug 2025
2 min read

The growing interest in circularity is no mere accident. Considering increased production costs, low raw materials availability in Europe, global geopolitical instability, and the crucial need to keep our planetary boundaries in check, circularity is a key lever that has the advantage of delivering several benefits at once—financial and environmental.

Within this new context, reusing and recycling plastics is essential, and the technology to leverage the economic benefits of plastics circularity already exists. Manufacturers are adopting circular economy principles—use better, use longer, and use again—to reduce costs, innovate, and open new market opportunities.

Plastics, a key manufacturing material, are a critical target for circularity. So, let’s take a deep dive into the case of plastics: how regulations are driving circular loops, and how innovations are making them a reality.

Advancing circularity frameworks

The circularity approach is becoming a central pillar of Europe’s industrial strategy.

As energy costs surge, manufacturers face the challenge of doing more with less. Minimizing waste, efficiently consuming resources like water, electricity, and raw materials, and maximizing asset longevity are now essential strategies for competitiveness and resilience.

Consumer demand for sustainable products is rising, and European legislation, including the EU’s Clean Industrial Deal, is incentivizing cleaner production and circular manufacturing to stimulate investment in Europe.

In 2024, the circular economy received a boost with the introduction of the EU Packaging and Packaging Waste Regulation (PPWR), a new set of rules governing packaging with the goal to reduce packaging waste. The new regulation encourages the use of reusable and refillable packaging solutions, and mandates that packaging be designed for recyclability.

The upcoming Circular Economy Act, expected at the end of 2026, is a pivotal opportunity to establish circular models and bring competitiveness on the international scene.

Innovation in plastic recycling

With global plastic production expected to triple by 2060 and only 9% of plastic waste currently recycled, innovation is crucial.

One of the major challenges in industrial plastic recycling lies in the processing of hard-to-recycle plastics, such as multi-layer packaging and thermoset polymers. These materials often resist conventional recycling methods due to their complex compositions and contamination issues, leading to increased waste and limited circularity.

Besides the more well-developed mechanical recycling, pioneering technologies are emerging – such as physical recycling with dissolution, and chemical recycling (which encompasses various technologies, including liquefaction through pyrolysis and hydrothermal processes as well as depolymerization).

These technologies have the potential to significantly boost the share of materials that are kept in the loop. Whether mechanical, physical, or chemical, all recycling routes combined with advanced sorting systems are essential to pave the way for the circular economy of plastics.

Time is of the essence and taking advantage of additional advanced technologies like digital twins, AI, and software-defined automation is key to scale up more quickly and efficiently. These digital innovations combined with data management will ensure material traceability and drive trust in this new reverse value chain that is essential to success.

The GR3N experience

A recent success story in the chemicals recycling industry highlights the power of early partnership and the potential of using innovative technologies for hard-to-recycle plastics.

The case

Schneider Electric is proud to support GR3N, a pioneering startup that has developed an advanced chemical recycling technology for used plastics—specifically polyethylene terephthalate (PET), commonly found in bottles and synthetic textiles. GR3N’s breakthrough process, known as Microwave-Assisted DEpolymerization (MADE), efficiently breaks down PET into its original chemical components. These building blocks can then be reassembled into new PET pellets with virgin-like quality, suitable for use in packaging and textiles. This innovation offers a scalable solution to close the loop on hard-to-recycle plastics, helping drive circularity in industries where sustainable alternatives are urgently needed.
The result

By integrating EcoStruxure Automation Expert (EAE)—the world’s first open, software-defined automation solution—GR3N significantly enhanced its testing of the MADE process through centralised control and real-time data analytics. Thanks to EAE’s modular, “plug and play” architecture, it seamlessly connected with GR3N’s existing industrial setup, and this adaptability enabled GR3N to scale the MADE process quickly, efficiently, and cost-effectively. The first industrial-scale facility, now under construction in Spain, is set to process over 40,000 tonnes of PET waste annually—a major milestone in advancing sustainable plastic recycling and circularity.

Going forward, this partnership sets a new standard for circularity in the chemicals sector and demonstrates the potential of scaling up industrial recycling efforts faster.

Taking a leading role in plastics circularity

Schneider Electric’s commitment to circularity was recognised by the World Economic Forum, which named us one of only three global Circularity Lighthouses in 2024. This prestigious accolade highlights our end-to-end circular approach across a broad portfolio of energy and building automation solutions.

Through eco-design, waste-to-resource sites, and a global network of refurbishment centres, we empower businesses to reduce plastic usage—not only within their own operations but also across their value chains.

Further reinforcing our leadership, the ARC Advisory Group’s January 2025 report, Champions Radar – Plastic Circularity, identified Schneider Electric as a frontrunner in integrating sustainable plastics, particularly recycled content, into our product offerings. The report also recognised our solutions for helping customers reduce energy consumption and enhance operational efficiency, driving meaningful progress toward a more circular economy.

Toward a resilient and sustainable tomorrow

Integrating circular principles into business operations is no small feat—it demands bold innovation, deep transformation, and unwavering leadership commitment. Success also hinges on meaningful collaboration across the reverse value chain, engaging stakeholders at every level to drive systemic change.

Plastics circularity is a critical pillar of the broader circular economy, and the same principles apply. As the World Economic Forum advocates, embracing plastics circularity not only helps mitigate environmental impact but also unlocks new economic opportunities, strengthens competitiveness, and builds long-term resilience.

By taking decisive action today, companies can position themselves at the forefront of sustainable innovation—shaping a future that is not only resilient and resource-efficient, but also regenerative and inclusive.

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