🌍 ESG International Weekly News 12/25-12/31 — Policy × Infrastructure × Circular Economy 

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1. EU to Tighten Controls on Recycled Plastic Imports

The European Commission announced plans to introduce stricter rules in 2026 to strengthen documentation, customs tracking, and audits for recycled plastic imports. The move follows a record loss of recycling capacity in Europe in 2025, driven by high energy costs and competition from low-priced imports. Policymakers are particularly concerned about virgin plastics being mislabelled as recycled, distorting prices and undermining trust in the market. As a result, the EU is shifting from reliance on voluntary claims to a verification-based regulatory model.

Key takeaway: Recycled plastics are becoming regulated inputs where credibility matters more than price.

2. Prysmian & Versalis Launch Chemical Recycling Loop for Cable Plastics

Prysmian and Versalis have launched a chemical recycling supply chain in Italy targeting complex plastic waste from energy cables, including hard-to-recycle XLPE insulation. Using Versalis’s Hoop® technology, up to 60% of XLPE can be recovered at industrial scale and converted into feedstock for new cable polymers. The initiative addresses a long-standing gap where mechanical recycling is not viable and aligns with Europe’s circular economy goals. Pilot operations are scheduled to begin in 2026.
 

Key Takeaway: Chemical recycling is moving into core energy infrastructure applications.

3. Dominion Energy Sues Trump Administration Over Offshore Wind Halt

Dominion Energy filed a lawsuit challenging a federal order by the Trump administration halting construction of its 2.6 GW offshore wind project in Virginia. The company has already invested nearly $9 billion and expected the project to begin generating power in early 2026. Dominion argues that the national security justification is pretextual and that the order is arbitrary and capricious. The case highlights growing political and regulatory risks facing renewable energy investment in the U.S.

Key takeaway: Policy volatility is becoming one of the biggest risks for capital-intensive clean energy projects.

4. Equitix Expands Stake in Viridor Energy-from-Waste Platform

Infrastructure investor Equitix acquired an additional minority stake in Viridor Group from KKR, strengthening its position in the UK’s largest energy-from-waste platform. Viridor operates 12 EfW facilities, processing over 3.5 million tonnes of waste annually and generating more than 2,100 GWh of electricity. The transaction includes a pathway for Equitix to increase its ownership to up to 50%. The deal underscores investor confidence in waste-to-energy as resilient, long-term infrastructure.

Key Takeaway: Waste-to-energy is increasingly viewed as resilient infrastructure, not alternative tech.

5. EU to Expand CBAM to Downstream Products

The European Commission proposed expanding the Carbon Border Adjustment Mechanism (CBAM) beyond basic materials to include selected downstream products. The goal is to prevent carbon leakage by discouraging manufacturers from shifting production to countries with weaker climate policies. The expanded scope would cover 180 steel- and aluminum-intensive products, alongside stronger reporting and anti-circumvention measures. The proposal marks CBAM’s evolution into a supply-chain-wide carbon governance tool.

Key Takeaway: CBAM is evolving from a border tax into a supply-chain governance tool.

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Overall Insight

ESG is no longer about isolated sustainability initiatives — it is about regulation, infrastructure resilience, and geopolitical alignment shaping global capital flows.