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France invests 20 billion euros in circular economy and recycling!
France is investing 20 billion euros in circular economy and green technologies to increase resource efficiency by 2030.
France invests 20 billion euros in circular economy and recycling!
President Emmanuel Macron announced new investments worth 20 billion euros at the “Choose France” summit on May 19, 2025 in Versailles. This commitment is part of a comprehensive overall package of 37 billion euros, which includes new and already committed projects. Over half of these projects focus on circular economy, resource efficiency and decarbonization. France remains a leading destination for industrial investment in Europe, as shown by the latest EY figures for 2024/25.
A key project within this investment offensive is the construction of a molecular recycling plant in Normandy, which will be funded with up to $1 billion. This facility is expected to process over 110,000 tons of difficult-to-recycle polyester waste annually. A possible expansion is planned that could increase capacity to over 200,000 tons. Using innovative processes, old plastic will be reused from 2027 with a CO2 saving of around 80 percent compared to new materials.
Regulatory framework conditions
These initiatives come in the context of the Anti-Waste Act (AGEC) of 2020, which aims to reduce waste and promote recycling through strict requirements. From 2025, new material flows such as textiles, furniture, toys, building materials, cigarette butts and complex packaging will be required to be sorted separately. Unsold non-food products may no longer be destroyed but must be reused or recycled.
In addition, the law includes extended traceability obligations, particularly for textiles. Manufacturers are now obliged to provide detailed information about origin, hazardous substances and recycled content. These measures are supported by digital platforms such as TrackDéchets, which aim to combat illegal dumping and guarantee traceability.
Innovative approaches to resource use
Several companies in France are also pushing the development of sustainable technologies. A recycling company is planning to build a 250 million euro factory in Grand Est to chemically convert old clothing into high-quality fibers used in the fashion and automotive industries. To this end, Prologis is building four energy-efficient data centers in the greater Paris area, which will feed their waste heat into local district heating networks.
Another notable project is Less Common Metals' rare earth recovery plant, which will be extracted from discarded electric vehicle magnets. At the same time, the Tekever company in southwest France wants to produce drones made from recycled carbon fiber material. This innovative force is part of the Choose Paris initiative, which includes over 300 start-ups working on sharing platforms, second-life batteries or industrial symbiosis.
With these measures, France not only wants to advance its environmental policy goals, but also double the proportion of locally reused and reused resources by 2030. By combining technological investments and strict regulatory requirements, the country is sending an important signal for the future of the circular economy.