According to a recently published report by the European Court of Auditors (ECA) on the state of the European circular economy, Austria ranks among the EU’s top performers in municipal waste recycling, alongside Slovenia and Germany. More than 60 percent of waste from households, businesses and public institutions is recycled, placing Austria among Europe’s recycling leaders.
Yet this success story masks a growing structural problem. Both Austrian and European plastic recycling plants are increasingly threatened by closure. The reason lies in the systematic disadvantage faced by recycled plastics compared to primary raw materials, which has significantly weakened the competitiveness of the sector. In 2025 alone, Europe’s plastic recycling capacity shrank by around one million tonnes.
High operating and energy costs, weak demand for recycled products and intense price pressure from low-quality plastic imports from non-EU countries are eroding the economic viability of recycling companies. According to the ECA, this development puts the EU’s environmental and climate objectives at serious risk.
Austria’s strength lies in its highly specialised facilities, innovative sorting and processing technologies, and a robust waste management infrastructure, making it a key driver of the European circular economy. However, performance alone is no longer enough.
“We are excellent at recycling. However, demand for recycled raw materials is low, which makes a genuine circular flow of materials nearly impossible,” says Gabriele Jüly, President of the Austrian Association of Waste Management Companies (VOEB).
For years, the industry has been calling for legal equality between virgin and recycled materials, as well as mandatory minimum shares of recycled content in products.
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