The current state of plastic recycling in Europe outlines a scenario still far from meeting EU targets. While the amount of packaging waste continues to increase, material recycling capacity barely exceeds 41%. In this context, chemical recycling is emerging as one of the most promising technologies for closing the loop on plastic materials and structurally reducing both landfill disposal and the use of fossil resources. With twelve projects underway, Italy ranks first in Europe in the development of advanced technologies in this field, a pathway that could represent a major opportunity for the national economy. These are some of the key findings from the new AGICI study, carried out in collaboration with Ecomondo and supported by IREN and Recupero Etico Sostenibile, titled “Chemical Recycling: Development Potential and Proposals to Boost the Market,” and presented during the latest edition of Ecomondo 2025.
The report
The report identifies three main chemical recycling solutions: solvolysis, pyrolysis and gasification. Solvolysis makes it possible to obtain high-purity raw materials, ideal for producing PET, nylon or polyurethane. Pyrolysis converts mixed plastics into an oil that can be used to create new materials suitable even for food applications, reducing the need for virgin plastic trays. Gasification transforms unsorted waste into synthesis gas, which can be used to produce methanol and hydrogen for ships and aircraft.
At the European level, AGICI’s study highlights a rapidly evolving landscape, with sixty-four chemical recycling projects announced between 2011 and 2025. Pyrolysis is the most widespread technology, with forty-one projects representing sixty-four percent of the total and a combined capacity expected to reach 517,600 tonnes per year. Solvolysis follows with thirteen projects, accounting for twenty percent of the total and capable of processing 291,500 tonnes annually. With ten active projects, gasification represents the remaining sixteen percent of European initiatives, with an installed capacity projected to reach 920,000 tonnes per year.
According to AGICI’s scenarios, chemical recycling could play a decisive role in meeting European targets, complementing mechanical recycling and bridging the gap between the supply and demand of recycled materials. Solvolysis and, above all, pyrolysis technologies could contribute to achieving the thresholds set by the Packaging and Packaging Waste Regulation, which requires at least ten percent of recycled material in food packaging by 2030 and twenty-five percent by 2040. Gasification, on the other hand, stands out as a sustainable alternative to waste-to-energy processes, capable of reducing CO₂ emissions and promoting the decarbonisation of the waste sector, turning waste from a cost into a resource.
However, despite the sector’s growth and the many ongoing investments, chemical recycling is still in an early stage of development, with technologies not yet fully consolidated and a supply chain that needs strengthening. Of the sixty-four projects announced in Europe, around seventeen percent are currently suspended or cancelled, reflecting a still unstable market in need of clear and consistent regulations.
To address these challenges and ensure steady growth, the AGICI study underlines the importance of establishing a uniform European regulatory framework for the traceability and mass balance of pyrolytic oil, as well as for sustainable methanol. It will also be essential to plan facilities carefully at the national level, simplify authorisation procedures and support companies by redirecting resources currently used to pay the European plastic levy. These measures would help build a solid supply chain and strengthen Italy’s role in Europe’s circular transition.