Most European Union countries are failing to meet ambitious recycling goals set for municipal and packaging waste, according to a recent report from the European Court of Auditors (ECA). Published on Wednesday, the audit found that only a small number of member states – Austria, Belgium, Czechia, Denmark, Germany, Italy, Luxembourg, the Netherlands, and Slovenia – are currently on track to achieve the required 55% recycling rate for overall municipal waste and 65% for packaging by 2025.
The report highlights systemic issues hindering progress across the EU, even after five decades of waste policy regulations. A significant 27% of waste generated within the bloc still comes from households, offices, and shops, and many nations continue to rely heavily on landfills and incineration instead of prioritizing circularity.
Challenges in EU Waste Management
The ECA audit revealed a pattern of delays and cost overruns in EU-funded waste management projects, specifically in Greece, Poland, Portugal, and Romania. Insufficient public investment, difficulties implementing deposit-return schemes, and inadequate landfill taxes were identified as key obstacles to improving waste management infrastructure and practices.
Analysis of municipal waste composition in 2022 showed that biowaste (garden and park waste) and paper/cardboard accounted for over half (55%) of the total. Plastics made up 10% and wood 8%, underscoring the potential for increased recycling rates within these material streams.
Recycling Industry Viability Concerns
A major concern raised by EU auditors is the lack of demand for recycled products, particularly plastics, which is jeopardizing the viability of recycling industries within the EU. Stef Blok, ECA Member responsible for the audit, emphasized the need to establish conditions conducive to a thriving recycling sector, stating that “without an effective recycling industry and market, recycling targets are at risk.”
European plastic recyclers have previously cautioned about a looming crisis driven by escalating operational costs related to high energy prices. They also point to unfair competition from low-cost imports of both virgin and recycled plastics, coupled with insufficient demand for domestically produced recycled materials. The European Environment Agency has echoed these concerns, calling for a fundamental shift toward a sustainable and circular plastics system.
In Romania and Poland, waste treatment operators reported difficulty finding facilities to purchase the recovered materials. This scarcity drives down prices and forces the transport of recyclables over substantial distances, leading to increased emissions. For example, one facility sold glass 590km away, while another shipped paper over 570km and aluminum more than 910km.
Delayed Enforcement and Future Legislation
The ECA also criticized the European Commission’s lack of proactive monitoring, noting that no on-site compliance visits to member states have been conducted in over ten years despite ongoing support efforts. Furthermore, the Commission was “very late” in initiating infringement procedures against countries that failed to meet their 2008 recycling targets, only acting in July 2024 – two years after the required data reporting date.
However, positive steps are being taken through new legislation. Mandatory deposit return schemes for certain packaging formats are scheduled to begin in January 2029, and extended producer responsibility schemes have been in effect for all packaging since January 2025.
Looking ahead, the European Commission is expected to unveil a Circular Economy Act in 2026. This act presents an opportunity to incentivize the development of a robust business case for recyclers and further support the realization of EU sustainability goals. Stakeholders will be closely watching for details on how the Commission plans to address the demand-side challenges currently hindering the recycling industry and ensure effective enforcement of existing and future waste regulations.
