The initiative from the government in France designed to bolster the chemical recycling of select plastic waste types, including containers, wrapping materials like films, non-drink related bottles, and textile goods containing a specified proportion of polyester.  

The scheme is said to align with the European Union (EU's) State aid regulations.  

It is also poised to advance the European Commission's strategic objectives for 2024-2029. 

This initiative will play a pivotal role in realising the EU's ambition for circular production and consumption patterns, integral to the overarching industrial shift toward climate neutrality. 

The aid will be disseminated as direct grants within the framework of the scheme, which welcomes entities of all magnitudes across diverse sectors.  

In its appraisal, the commission scrutinised the French measure against EU State aid provisions, notably Article 107(3)(c) of the Treaty on the Functioning of the EU (TFEU), which permits Member States to champion certain economic activities under specific conditions, and consulted the Guidelines on State aid for climate, environmental protection and energy 2022 (CEEAG). 

This French scheme represents the first State aid programme evaluated under Section 4.4 of the CEEAG, endorsing resource efficiency and circular economy transition. 

The maximum support is capped at 40% of the eligible costs, which are calculated by comparing the total investment costs of a plastic waste chemical recycling project with those of less environmentally friendly alternatives. 

Clean, Just and Competitive Transition executive vice-president Teresa Ribera said: “The French scheme approved today will support investments for chemical recycling of plastics. It will contribute to the EU’s objective of reaching climate neutrality by 2050, by promoting the use of existing resources through efficiency and circular economy practices. At the same time, the scheme will ensure that any potential competition distortions will be kept to a minimum.”