A report from the European Commission’s Joint Research Centre (JRC) published on July 22, 2026, concludes that chemical recycling technologies remain significantly more expensive than both virgin plastic production and mechanical recycling, but could still play a role in helping meet future recycled-content requirements for plastics in the EU.
The conclusions of the JRC report are consistent with findings from a 2023 study commissioned by the Swiss Federal Office for the Environment (FOEN), which reviewed the status, opportunities, and risks of chemical recycling technologies, and concluded that chemical recycling had not yet demonstrated technical and economic maturity at large scale (FPF reported). The Swiss-commissioned study also raised important concerns regarding the environmental impacts and lack of technical feasibility of chemical recycling.
What is chemical recycling?
Although there is no universal definition of chemical recycling, there is a broad consensus that chemical recycling of plastics (sometimes also referred to as “advanced recycling”) consists of the following main technologies:
Solvolysis – the process of converting plastic polymers into monomers or oligomers using solvents at relatively mild reaction temperatures (80–300°C). It is typically suited for polymers like polyurethane (PUR), polyethylene terephthalate (PET), polyamide (PA) and polycarbonate (PC).
Pyrolysis – the thermal conversion of polymers into smaller molecules at higher temperatures (300–700°C) in the absence of oxygen; products are mainly gas, oil, and solid residue. It is typically suited for polyethylene (PE), polypropylene (PP), polystyrene (PS) and polymethylmethacrylate (PMMA).
Gasification – the conversion of polymers into a gas at very high temperatures (700–1200°C) with a limited amount of oxygen; the gas generated is also called syngas and can be used for energy production or as a raw material for further processing into polymers, chemicals, or fuels.
Currently in the EU, 80% of the chemical recycling capacity is based on pyrolysis and 20% on solvolysis, following the relative market shares of the polymers that the respective technologies can address.
Is chemical recycling economically viable?
According to the JRC report, which assessed the viability of pyrolysis and solvolysis, chemical recycling does not currently achieve cost parity with virgin plastics and is expected to remain substantially more expensive in the short to medium term. It is estimated that chemically recycled plastics are likely to remain approximately 1.5 to 3.5 times more expensive than virgin polymers.
For pyrolysis, the report estimates that the resulting recycled polymers cost approximately 1.4 to 3.7 times more than virgin polymers. The recycling yields with this technology are low – typically 30–50% relative to the plastic waste input. According to the authors, these relatively low material yields, feedstock preparation requirements, and high energy demand are key contributors to the higher costs.
With solvolysis, recycling yields of above 90% are possible. However, in the case of PET, those recycled via solvolysis still remain more expensive than food grade virgin PET or mechanically recycled PET.
Despite the higher costs, the authors conclude that chemical recycling in the future may still play a role in supplying recycled-content plastics required under the EU Single-Use Plastics Directive (SUPD, Directive (EU) 2019/904) and Packaging and Packaging Waste Regulation (PPWR, Regulation (EU) 2025/40) (FPF reported and here).
The report states that the JRC “will continue to monitor developments in the field and provide support for the development of chemical recycling technologies and associated policy initiatives.”
References
Gaudillat, P., Marschinski, R. and Saveyn, H. (2026). “Economic viability of chemical recycling – Current and future perspectives.” Publications Office of the European Union, Luxembourg. DOI: 10.2760/6105801
Quicker, P. (2023). “Status, potentials and risks of Chemical recycling of waste plastics, Study on the evaluation of approaches for the feedstock recycling of plastic waste.” Swiss Federal Office for the Environment (FOEN). (pdf)
