Not Everyone Can Afford a Circular Economy

Europe was once a major exporter of plastic waste and now ranks among the world’s top importers, contributing to 30% of plastic trade globally. At first glance, we might think that this is perhaps a sign of progress or responsibility. But closer looks reveals that the majority of this imported plastic waste doesn’t come from outside Europe, but traded between EU countries. 

People used to view plastic as waste or pollution but now it is reframed as a resource and feedstock for circular economies. This effect started by China’s National Sword Policy in 2018 and followed by Basel Convention in 2021 where countries (especially high-income) that once relied on exporting their low-grade recyclables suddenly faced the reality of dealing with their own trash. Therefore, intra-EU trade is the chosen way to manage this problem. 

However, not every country is equally equipped to handle the waste it receives. So as this shift emerged, a critical question arose:

Is this a genuine turn toward circularity or are we just creating a “cleaner” version of the same old problem?

Why Intra-EU-Trade Became the Go-To Option

The turning point came in 2018, when China’s National Sword Policy banned the import of most plastic waste. This triggered a domino effect because Southeast Asian countries became the next dumping ground until they also began implementing their own bans and restrictions. 

Basel Convention's stricter controls also made plastic export more difficult and expensive,  particularly from high-income to lower-income countries. With growing waste and fewer destinations willing to accept it, European countries were left with two options: send waste to countries with less restrictive plastic regulations or build the capacity to process plastic domestically. 

The latter path became the most viable option. Instead of shipping plastic waste overseas, countries began circulating it within the European border or commonly known as intra-EU-trade. Moreover, plastic began to be reframed not as waste but as a valuable resource for the circular economy. This approach is also viewed as one of EU countries’ ways to meet their recycling targets, as the European Commission's Packaging and Packaging Waste Directive set at least 65 percent of all packaging waste must be recycled by 2025.

Considering that the EU generates over 30 million tonnes of plastic waste annually, with around 13% consisting of high-value and recyclable plastics such as HDPE, it is understandable why plastic waste has evolved into a tradable commodity across European borders.

The Result? How Does This Compare to Pre Waste-Export Practices?

Since 2017, the EU has significantly reduced its reliance on non-OECD countries. Globally, the export volume of plastic waste has declined 49% in the past six years, from 12.4 million tonnes in 2017 to 6.3 million tonnes in 2022. At the same time, regional trade within Europe has grown..

In 2022, the EU28 accounted for 31% of global exports and 30% of imports of plastic feedstocks, out of a total global trade volume of 71 million tonnes.

Domestically, there are signs of progress. Many European countries also invested in improving their domestic waste management systems. The EU’s installed mechanical recycling capacity has significantly increased since 1996 from 2 million tonnes to 6 million tonnes in 2017 and 13,2 million tonnes in 2023. This growth has been supported by a combination of public and private investment in modern recycling infrastructure and innovation in materials processing.

However, not all member states kept pace. While Western and Northern European countries generally improved their recycling infrastructure, Southern and Eastern European countries still lag behind in treatment capacity and recycling rates. For example, in 2022, Malta had plastic packaging recycling rates below 30%, compared to over 50% in Germany and Belgium.

EU-wide policy mechanisms like the Circular Economy Action Plan and Single-Use Plastics Directive have pushed progress, but implementation varies by country.

Are Trade-Based Circular Systems Just a Privilege of the Rich?

Despite the significant progress, the EU’s intra-regional plastic trade system also reveals key limitations. The success of this circular system relies heavily on adequate infrastructure, policies, and funding, and not all countries have this. Some EU countries struggle to keep pace due to inadequate recycling capacity, leaving them unable to process their own waste or export it under current regulations. This leads to a buildup of unmanaged plastic waste.

In 2023, the European Environment Agency warned that 18 Member States are not on track to meet 2025 municipal waste recycling targets, and 19 risk missing plastic packaging targets because of insufficient collection and treatment capacity. 

The EU generated 42.5 million tonnes of plastic waste in 2022, yet only about 20% was recycled, with large disparities in national capacity leading some countries to rely on neighbors for processing. Recent restrictions on extra-EU plastic waste exports under the Waste Shipment Regulation and Basel Convention have further exposed these bottlenecks, increasing the risk of unmanaged waste where domestic systems fall short.

On a global scale, this model becomes even more difficult to replicate.  For many developing countries, the necessary infrastructure and investment for circular waste systems remain out of reach. For instance, in Southeast Asia, over 75% of recyclable plastic waste is discarded or mismanaged in countries such as Malaysia, Thailand, and the Philippines. 

Brazil lacks structured municipal recycling programs, and the result is only about 4% of plastic waste is actually recycled and over 70% of municipalities lack official recycling programs. Meanwhile, in Mongolia, around 90% of recyclable plastic waste ends up in landfills, and only 7% of total solid waste is reused or exported for recycling.

These data reflect a serious recycling infrastructure gap in developing countries. This is mainly because of lack of access to capital and technology. Without significant funding, many countries are unable to adopt or benefit from the EU’s circular intra-trade system. To close this gap, it’s important to invest in a solid waste management system and ensure equitable access to recycling infrastructure and financing. A truly circular future must be inclusive, not a privilege reserved for the rich.

At Seven Clean Seas, we work every day to close this gap. We create long-term employment through formalised collection work, ensuring plastic waste is recovered from rivers, coastlines, and communities. 

Every project begins with local infrastructure: our Material Recovery Facilities (MRFs) in Bintan and Batam, as well as household collections, the HIPPO river barrier in Thailand, and the OTTER coastal interceptor in Bali. These systems are designed not only to clean but to empower, building lasting, community-rooted solutions to plastic pollution.

Support us in building a truly global, inclusive circular economy at: www.sevencleanseas.com/shop 

Could this signal the end of plastic dumping  or just finding new borders to cross?

Yes and no. On the bright side, the shift signals a growing awareness that plastic isn’t just waste but it can be a resource. As countries adopt circular economy principles, we can expect increased recyclability and better design for recovery especially for packaging. 

But the issue isn’t solved. Countries without the infrastructure to recycle complex materials are stuck with contaminated plastics. If they can’t export either, these plastics accumulate, often unmanaged, posing serious environmental threats.

Stronger policies and improved infrastructure have made it harder to simply ship waste abroad, and the shift toward intra-regional trade in higher-quality plastic is promising. There's still risk of displacement unless global policies ensure plastic waste is only traded with countries that have the right recycling capabilities.

If you interested to learn more about this reality hit us at: hello@sevencleanseas.com

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