Aligning EU policy with innovation: the case for chemical recycling

Right now, many plastic products, especially contaminated and multilayer plastics, cannot be traditionally recycled at scale.
Instead, these plastics are typically incinerated or sent to landfills.
More plastic can be recycled using chemical recycling, helping Europe reduce this waste.

Article

3 min read

• July 3, 2025

At ExxonMobil, we’re prepared to expand our chemical recycling capabilities to Europe, building on successful deployment in the United States. But achieving this requires policy frameworks that support innovation and investment.

ExxonMobil Europe President Philippe Ducom shares his views. Read on to find out why mass balance is a key piece of the puzzle.

Right now, one key decision is in the hands of the European Commission: how to regulate mass balance and the accounting approach that underpins the business case for chemical recycling.

We believe the Commission should support a flexible, outcome-oriented approach. One that enables producers to use existing infrastructure, including refineries, to deliver measurable environmental and economic benefits.

Why is mass balance needed for chemical recycling?

Chemical recycling could help Europe meet its recycling targets and address plastic waste. And mass balance - which attributes the amount of usable raw materials made from the plastic waste we process to the virgin-quality, certified-circular plastics we sell - is key to chemical recycling.

But there's an urgent need for policies that outline a clear mass balance system for calculating what qualifies as recycled content. This would help spur investment in chemical recycling across the European Union.

Molecules matter

Chemical recycling breaks down plastic waste to the molecular level. During the process, the plastic waste is mixed with fossil-based feedstock, and you can't identify which molecules come from plastic and which come from fossil feedstock.

Mass balance attribution

This is where mass balance - a transparent and widely used third-party approach - comes in. It attributes the mass of usable raw materials made from the plastic waste we process through chemical recycling to the mass of certified-circular plastics we sell.

Similar systems

Comparable concepts exist in other sectors. For example, if you buy a specific amount of renewable electricity, the equivalent is added to the energy grid. But what you receive might be a blend of renewable and non-renewable energy.

Third-party verification

Our chemical recycling process and facilities are certified via International Sustainability and Carbon Certification (ISCC) PLUS, an independent, third-party certification system. The ISCC has more than 250 members, including research institutes and NGOs.

Measurable impact

For every ton of plastic waste processed through chemical recycling, society reduces the need to process approximately one ton of fossil-derived feedstocks.* And for every ton of certified-circular plastics sold, more than a ton of plastic waste avoids ending up in other end-of-life dispositions, such as landfill or incineration.

Customer confidence

Our customers can be confident that when they buy our certified-circular plastics, they're helping divert plastic waste from alternative end-of-life such as landfills or incineration and giving it a new life.

At scale, we can help make a difference

Today, the EU recycles just 26.9% of plastic waste. Meanwhile, incineration is growing; up more than 15% since 2018. But chemical recycling could help address this challenge. This technology, deployed alongside mechanical recycling, can help expand the range of plastics that find a second life as new products.

Europe’s refining sector, which has struggled to compete with other parts of the world, could play an important role in this equation. According to a recent statement by several EU Member States, the region could lose over 50,000 petrochemical jobs by 2035. Chemical recycling could help transform these sites, save jobs, and redefine the role of refineries within a circular economy.

Want to learn more about chemical recycling?

Mass balance and chemical recycling – what’s the connection?

Molecules matter

Unlike traditional plastic recycling – which is mechanical – some chemical recycling methods break down plastic waste at the molecular level. These molecules are then blended with fossil-derived feedstocks to produce many valuable products.

Once mixed, you cannot trace back which molecules came from recycled plastic. That’s where mass balance comes in. It’s a method that matches the quantity of plastic waste we process to the amount of usable raw materials we produce. This allows producers to allocate recycled content to specific outputs, even if they can’t physically track them.

^{We believe the EU can expand the set of solutions to address plastic waste. But right now, its complex and uncertain policy landscape risks slowing progress.}

^{For companies like ExxonMobil to invest, we need clear signals and supportive action, starting now.}

The role of mass balance and why policy matters

Europe currently uses a “fuel-exempt” method for mass balance. Under this system, plastic waste used to make fuel does not count toward recycled content goals.

To support investments in chemical recycling, the system must be practical and efficient. A clear and workable approach to mass balance is key for companies to build a viable business case.

Mass balance isn’t new—it’s been proven in other industries

Analogous methods are already widely used in other sectors. A helpful analogy is renewable electricity production.

Because all sources of power connect to the same grid, we cannot tell where exactly our electricity comes from (nuclear, renewable, gas, etc.) at a specific moment. But providers use credits to confirm that a target amount of renewable energy has been added to the system. The same principle applies to chemical recycling.

Third-party verification adds credibility

Our approach is certified and audited by ISCC PLUS, a system that verifies compliance with a robust mass balance methodology. ISCC ensures that companies follow strict rules and that they accurately account for recycled inputs. The ISCC has more than 250 members, including companies, researchers, and NGOs.

We know chemical recycling works

It’s already a reality at our Baytown facility in Texas. And the numbers speak for themselves:

Around 45,000 metric tons	Plastic waste processed since 2022
$200 million	In additional investment announced for various sites in the U.S.
220,000 metric tons per year	Total chemical recycling capacity, either in operation or under development
Nearly 500,000 metric tons per year	Our chemical recycling capacity goal