EU chiefs have approved €500 million (£416m) of grants to boost chemical recycling in France.
The European Commission ruled that the initiative was permissible under state-aid rules.
The French Government will offer companies up to 40 per cent of the additional cost of delivering chemical recycling compared with less environmentally friendly alternatives.
Grants will be valid for specific types of plastic waste such as trays, films, non-beverage bottles and textile materials with a certain amount of polyester content.
The scheme aims to support chemical recycling technologies that convert mixed or contaminated plastic waste to “virgin-like” raw materials.
Teresa Ribera, executive vice-president for clean, just and competitive transition at the European Commission, said the initiative would “support investment”.
She added: “It will contribute to the EU’s objective of reaching climate neutrality by 2050, by promoting the use of existing resources through efficiency and circular economy practices.
“At the same time, the scheme will ensure that any potential competition distortions will be kept to a minimum.”
