EPS & Sustainability

 Innovative Reduction of EPS Production Impact

One of EUMEPS's core initiatives focuses on minimising the energy consumption and resources required in the production and recycling of EPS. An example of such an initiative is the PSloop plant, where EPS containing HBCD is recycled by reverting used EPS into new raw material, thereby reducing the need for virgin resources.

The PSLoop technology enables the safe removal and destruction of legacy flame retardants such as HBCD in line with the EU POP Regulation, while recovering clean polystyrene suitable for new high-performance applications. This demonstrates that circularity and regulatory compliance can be achieved simultaneously in the construction sector.

This commitment is further exemplified by the recent inauguration of the Versalis recycling plant in Porto Marghera, Italy. The site transforms post-consumer EPS waste into high-quality raw materials suitable for new construction and packaging products, demonstrating that recycled content and high performance can go hand in hand. 

Such investments strengthen European recycling capacity and support the objective of keeping valuable secondary raw materials within Europe, contributing to both sustainability and industrial resilience.

EUMEPS members are also at the forefront of circular innovation. To name only a few initiatives:

• Knauf, through its Knauf Circular programme in France, has developed a large-scale system for collecting, sorting, and recycling used EPS directly from construction sites. This initiative supports the creation of a local, circular value chain, enabling EPS waste to be reprocessed into new, high-performance materials.

• HIRSCH anchors its sustainability strategy on three pillars: REspect, REduce, and REcycle. The company focuses on reducing fossil fuel consumption, promoting resource efficiency, and increasing the share of recycled content in both construction and packaging applications — demonstrating that climate-conscious manufacturing can go hand in hand with industrial performance.

• EPSolutely, a nationwide research programme launched in Austria, also contributes to the circular transformation of the sector. It brings together key industry stakeholders to collect, recycle, and reintegrate EPS waste into new products, while raising awareness among end-users and local authorities. The initiative has become a model of cross-sector collaboration, combining operational efficiency with public engagement.
  
  

• In 2026, BEWI further strengthened European EPS recycling capacity by opening Norway’s first dedicated recycling facility for EPS waste. The plant enables the processing of post-consumer EPS into high-quality recycled raw material suitable for new applications in packaging and construction. This investment represents a concrete step towards scaling up mechanical recycling infrastructure in Northern Europe and demonstrates that industrial circularity is being implemented in practice.

The expansion of such regional recycling hubs supports shorter transport distances, improved collection efficiency, and the development of stable secondary raw material markets across Europe.

Independent scientific research further confirms the environmental performance of EPS recycling. A study conducted by the University of Bayreuth demonstrated that mechanical recycling of EPS significantly reduces CO₂ emissions compared to the production of virgin material, while maintaining technical performance suitable for construction applications. This confirms the technical and environmental feasibility of closed-loop EPS systems at scale.

Collectively, these initiatives help reduce the carbon footprint of EPS, foster a functional recycling market, and position EPS as a sustainable solution for the built environment — fully aligned with the EU Green Deal and Circular Economy Action Plan.

Embracing Circularity: Our Contribution to a Sustainable Economy

We recognise the need to redefine Europe’s approach to the use of materials and resources, a vision aligned with the objectives of the European Green Deal and the Circular Economy Action Plan. By embodying the three R’s of reuse, recycling and recovery, EPS contributes to circular practices across its value chain.

EPS is 98% air and requires limited raw material input per functional unit. Its lightweight nature reduces transport-related emissions, while its mono-material structure facilitates mechanical recycling when appropriate collection systems are in place.

Life Cycle Assessments (LCAs) conducted across Europe demonstrate that in insulation applications, the greenhouse gas emissions associated with EPS production are rapidly offset by the energy savings achieved during the building’s use phase. In many cases, the carbon payback period is measured in only a few years, while EPS insulation can remain functional as long as the building stands.

Additionally, the EPS industry is actively engaged in certification schemes to reduce environmental impact. Among them, Operation Clean Sweep® (OCS®) stands out as a voluntary European certification programme launched in 2023 by Plastics Europe and European Plastics Converters (EuPC), with third-party verification of compliance. OCS® requires certified companies to identify and mitigate pellet loss sources, implement containment measures, train employees, and monitor performance. Several EUMEPS members are already certified, reflecting a sector-wide commitment to preventing microplastic loss and ensuring responsible production practices.

In February 2026, EUMEPS became a signatory to a joint set of Strategic Recommendations for a Resilient and Circular Plastic Value Chain in Europe, developed by more than 30 organisations across the plastics value chain. The document highlights the need for a competitive industrial base alongside robust circularity measures, noting challenges such as declining production volumes, slowed expansion of recycling capacity and facility closures in recent years. EUMEPS’ endorsement reflects the view that effective circular economy objectives must be paired with predictable regulatory frameworks, improved collection and recycling systems, and conditions that support investment and innovation in European plastics manufacturing and recycling. These recommendations aim to reconnect climate and circularity goals with industrial competitiveness, contributing to a policy agenda that supports sustainable materials and long-term value chain resilience.

The journey towards circularity relies on collaboration across the entire value chain, from raw material suppliers to recyclers. EUMEPS also contributes to improved recycling data collection and supports evidence-based policy discussions under the Packaging and Packaging Waste Regulation (PPWR) and the revised Energy Performance of Buildings Directive (EPBD).

EPS in Construction and Packaging: Climate Performance and Resource Efficiency

In buildings, EPS insulation plays a critical role in reducing operational carbon emissions. By improving the thermal performance of façades, roofs and floors, EPS can significantly reduce heating and cooling demand. Studies such as those conducted by CE Delft confirm that the avoided emissions during the use phase substantially outweigh the emissions associated with production.

Given that buildings account for around 40% of energy consumption in the EU, high-performance insulation remains one of the most effective and immediately available measures to achieve climate targets. EPS contributes to this objective by combining thermal efficiency, durability and affordability, ensuring long-term performance over the building’s lifespan.

In packaging applications, EPS ensures high product protection, particularly for home appliances and temperature-sensitive goods. By preventing product damage, EPS reduces resource waste associated with replacements, returns and premature product disposal.

Its lightweight properties contribute to lower transport emissions, while dedicated collection schemes in several Member States enable post-consumer EPS packaging to be recycled into new products. Together, these characteristics demonstrate that EPS delivers measurable environmental benefits across both construction and packaging value chains.

Leading the Way in EPS Sustainability

By embracing the 100% recyclability of EPS and advocating for responsible practices, we are not only addressing the environmental challenges of today but also paving the way for a more sustainable tomorrow. As we continue to advance our sustainability agenda, we remain focused on delivering solutions that benefit not only our industry but also the wider community and the planet.

EUMEPS remains committed to an evidence-based approach, promoting transparency, responsible production, and measurable climate benefits across the entire EPS value chain. Through alignment with EU climate, circular economy and industrial competitiveness objectives, EPS contributes to a pragmatic and science-based sustainability pathway for Europe.