From Overproduction to Opportunity

The European plastic industry is facing a structural decline characterized by falling production and facility closures due to overcapacity and weak demand. While the industry blames EU regulations for a loss of competitiveness, the document argues that reducing production is the most sensible economic approach. It urges the EU to use its leadership role in the Global Plastics Treaty negotiations to advocate for primary plastic production limits and a managed phasedown to sustainable levels, while avoiding new petrochemical buildouts.

• The European plastic industry is experiencing a significant downturn, with production of plastics and recycled postconsumer plastics falling by 8.3 percent and 7.8 percent, respectively, between 2022 and 2023.
• Global plastic production is projected to increase by 70 percent by 2040 compared to 2020 levels, with growth primarily occurring in the Global South, despite signs of a sector-wide decline in the petrochemical industry.
• The Institute for Energy Economics and Financial Analysis (IEEFA) identifies three primary drivers for the petrochemical market slowdown: slower GDP growth in sector leaders like China, India, and the US; an aging population in China; and the increased market share of sustainable product alternatives.
• While the EU plastic industry claims a loss of competitiveness due to regulatory burdens, a Cefic study indicates that regulatory costs between the EU and the US are not widely different, and that weak demand amid expanding global capacity is a primary issue.
• The document criticizes the European Commission's European Chemicals Industry Action Plan for attempting to revive the industry and maintain current production levels rather than proposing a managed downscaling or a just transition for workers.

APA

Pastorelli, S. (2025). From Overproduction to Opportunity. Center for International Environmental Law. https://www.ciel.org/wp-content/uploads/2025/07/From-Overproduction-to-Opportunity-.pdf

Chicago

Pastorelli, Silvia. From Overproduction to Opportunity. Center for International Environmental Law, 2025. https://www.ciel.org/wp-content/uploads/2025/07/From-Overproduction-to-Opportunity-.pdf.

Wikipedia

{{cite report |last1=Pastorelli |first1=Silvia |title=From Overproduction to Opportunity |publisher=Center for International Environmental Law |date=July 2025 |url=https://www.ciel.org/wp-content/uploads/2025/07/From-Overproduction-to-Opportunity-.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{pastorelli2025from, author = {Pastorelli, Silvia}, title = {{From Overproduction to Opportunity}}, institution = {Center for International Environmental Law}, year = {2025}, month = jul, url = {https://www.ciel.org/wp-content/uploads/2025/07/From-Overproduction-to-Opportunity-.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }