VNCI: Give Circular Chemistry Perspective for Investment and Scaling

The chemical sector is the basis of materials and items utilized in virtually all manufacturing chains. By using discarded materials streams, bio-roundfabrics and CO2 as a raw material, materials can retain their value to longer and application on fossil raw materials decreases.

The sector has taken significant steps in recent years. to instance, new bio-based materials have been developed, chemical recycling has been scaled up to manufacturing applications and the sector continues to invest in mechanical recycling. At the same time, many projects run into barriers that companies cannot solve independently.

Priority chain

“It is good news that the government wants to designate the chemical sector, in addition to construction and electronics, as a priority chain within the CE policy,” says Yannic Wevers, policy advisor Materials transition at the VNCI. “This recognition is crucial, however this does require concrete measures that make investment and scaling possible.”

Three conditions

To speed up the circular economy from ambition to implementation, the VNCI cites three conditions. First, a stable European market is needed to circular and low-carbon items. This requires a clear European legislative framework, product mandates and other policies that create structural demand to sustainable materials and raw materials.

In addition, appropriate national instruments are needed to enable investments. Many circular and bio-based projects are in the phase between innovation and commercial consumption. It is precisely during this period that support is crucial. The VNCI therefore argues to sufficient budget and continuity within existing schemes, such as DEI , NIKI and VEKI. The association is also asking to the previously reserved 236 million euros to the second phase of BioBased Circular to be available to scale-up and market introduction of innovative bio-based chemicals and materials.

A third condition is the removal of barriers in regulations, implementation and licensing. According to the VNCI, greater clarity is needed about, among other things, the end-of-discarded materials status of materials, the recognition of various recycling technologies and the consumption of mass stability systems. It is also necessary to prevent regulations based on existing material flows from inadvertently impeding innovative circular and bio-based solutions.

From ambition to implementation

The VNCI calls on the House of Representatives to press to a coherent approach to manufacturing policy, European demand creation, investment support and legal certainty in the second term of the debate. “Only with a predictable investment climate and a well-functioning market can circular innovations progress to extensive consumption,” says Wevers.

Read the VNCI's complete input to Wednesday 8 September's Circular Economy (second term) debate here.