EU Plastic Levy to Reach €1/kg in 2028: Cost Pressure and Recycling Compliance Path for Aluminium-Plastic Packaging

The EU's non-recycled plastic levy moves from €0.80 to €1 per kilogram in 2028, putting aluminium-plastic composite packaging directly under cost pressure. The PPWR, effective since early 2025, requires all packaging to be recyclable by 2030, and aluminium-plastic flexible laminates are the hardest to recycle mechanically.

2028 rate set at €1 per kilogram, indexed to inflation

The EU's non-recycled plastic levy stands at €1 per kilogram in 2028, an increase from €0.80 per kilogram. The rate is linked to inflation and embedded in the EU's long-term budget. For producers of multi-layer pouches, stand-up bags and liquid packaging, recycling compliance is no longer just an environmental talking point; it is a direct operating cost.

PPWR sets a 2030 recyclability threshold with staged targets

The Packaging and Packaging Waste Regulation (PPWR), in force since early 2025, requires all packaging to be recyclable by 2030. Its phased targets include 50% for plastic and aluminium by 2025, then 70% for aluminium and 55% for plastic by 2030. Aluminium-plastic laminates must meet both the aluminium and plastic recovery tracks.

Aluminium cans recycle well; aluminium-plastic laminates struggle mechanically

Aluminium cans average a 74.5% recycling rate in Europe and reach 99% in Germany's deposit-return system. By contrast, flexible packaging that bonds aluminium foil with polyethylene or polypropylene is almost impossible to recycle mechanically. Aluminium Deutschland warns that food-grade recycled plastic remains scarce, concentrated among a small group of suppliers amid intense global competition.

Chemical recycling and delamination offer an outlet, but Europe's infrastructure lags

Chemical recycling and delamination, such as hydro-pulping to separate layers, can recover value from aluminium-plastic composites. Pilot projects in China have achieved a 50% recycling rate for similar composites. Europe lacks standardised collection systems, one of the PPWR's core requirements, so recovered aluminium often flows into low-grade applications rather than high-barrier packaging.

Fragmented national policies inflate compliance costs for cross-border suppliers

Germany charges producers under the Einwegkunststofffondsgesetz, France relies on extended producer responsibility (EPR) schemes, and Italy has postponed its plastic tax to 2026. European Environment Agency data show that 18 EU countries may miss their 2025 waste targets, with Eastern European recycling rates hovering at 36%-38%, well below Germany's 99%; the gap stems from collection efficiency rather than consumer habits.

Three response routes for aluminium-plastic packaging producers

• Design for recyclability: move to mono-material structures such as ultra-thin metallisation, or separable-layer structures that meet EFSA safety standards.
• Secure recycled-material supply chains: sign long-term contracts with recyclers; Ball Corporation's closed-loop aluminium cups and China's food-grade rPET breakthrough show the model is viable.
• Push for policy harmonisation: call for EU-wide EPR and deposit-return systems; Germany's near-total aluminium recovery rate proves the model works.

Guangdong Kody Packaging (Dongguan Kody Plastic Products Co., Ltd. / Guangdong Kody Packaging Products Co., Ltd.) supplies multi-layer pouches, stand-up bags and liquid packaging to food, pharmaceutical and beverage customers exporting to the EU, and integrates recyclable structure design into new product development.

The €1 per kilogram levy is more than a cost item; it is a signal that the aluminium-plastic packaging industry must evolve or risk being phased out.

Q: What is the EU plastic tax in 2028?

A: The EU's non-recycled plastic levy is €1 per kilogram in 2028, up from €0.80 per kilogram. The rate is index-linked to inflation and written into the EU's long-term budget, making it a long-term cost item for aluminium-plastic composite packaging.

Q: Can aluminium-plastic composite packaging still rely on mechanical recycling?

A: Once aluminium foil is bonded with polyethylene or polypropylene, mechanical recycling is nearly impossible. Chemical recycling and delamination are practical alternatives; pilot projects in China reached a 50% recycling rate for similar composites, but Europe's collection and sorting infrastructure is not yet ready.

Q: How should an aluminium-plastic packaging plant respond to the PPWR 2030 recyclability goal?

A: Focus on three points: switch to mono-material or separable-layer structures that meet EFSA standards; sign long-term contracts with recyclers to secure food-grade recycled material; and push for an EU-wide EPR and deposit-return system, a model Germany's aluminium recovery rate has already proved effective.