ExxonMobil has announced the suspension of a €100 million investment in plastics recycling projects in Europe, citing concerns about draft EU rules on recycled content in products.
The projects, located in Rotterdam and Antwerp, were intended to expand the company’s capacity for chemical recycling, a process that converts used plastics into raw materials for new products.
The company said the proposed legislation, which sets out stricter requirements for the use of recycled content, risks creating an uneven playing field by favouring certain recycling methods over others. In particular, Exxon argues that the draft framework discriminates against petrochemical sites that deploy chemical recycling technologies, while placing greater recognition on mechanical recycling streams.
The decision highlights the tension between EU environmental ambitions and industrial investment planning. Brussels has pledged to reduce plastic waste, increase recycling rates and improve circularity in materials use. The Commission’s draft regulation on packaging and waste sets binding targets for recycled content, with compliance mechanisms that businesses say may disadvantage more capital-intensive projects.
Chemical recycling has been promoted by energy and petrochemical companies as a scalable solution to manage plastic waste streams that are unsuitable for mechanical processes. Supporters argue it enables the recovery of materials from mixed or contaminated plastics, producing feedstocks that can substitute for virgin fossil-based inputs. Critics, however, contend that chemical recycling is energy-intensive, costly, and risks delaying a transition to reduced plastics use and higher reliance on reuse and mechanical recycling.
ExxonMobil’s projects in Rotterdam and Antwerp were designed to process tens of thousands of tonnes of plastic waste annually. Company statements have indicated that the suspension is temporary, pending clarification on how the EU’s rules will define “recycled content” and whether chemical recycling outputs will be fully counted towards mandated targets. The facilities remain in the planning stage, with no construction having begun.
Industry groups have echoed Exxon’s concerns, warning that uncertainty around regulatory treatment could deter investments at a time when Europe is seeking to expand domestic recycling capacity. Business federations have called for technology-neutral legislation that recognises multiple pathways to achieving circularity goals. Environmental NGOs, by contrast, have urged EU policymakers not to dilute standards, arguing that only ambitious targets can drive systemic change in plastics production and consumption.
The timing of the suspension comes as EU institutions debate revisions to waste and packaging directives. A new circular economy package, expected in 2026, is intended to harmonise definitions, establish clearer accounting rules for recycled content, and improve cross-border waste management. Council and Parliament are expected to begin formal negotiations on the draft regulation later this year.
ExxonMobil has stated that it remains committed to advancing recycling technologies but requires regulatory certainty to proceed with large-scale investments. The company continues to operate pilot-scale chemical recycling units in other locations and has emphasised its broader corporate goals of reducing waste and supporting circularity in plastics.
Whether the EU opts for a flexible, technology-neutral framework or maintains a more prescriptive approach will determine how quickly projects such as those in Rotterdam and Antwerp move forward. The outcome will also signal to other investors the extent to which Europe intends to balance industrial competitiveness with environmental ambition in its transition to a circular plastics economy.
