Brazil Plastics Regulatory Framework
The Brazilian Government recently issued a decree implementing a new regulatory framework that had been expected by plastics industry stakeholders for over a decade. This policy outlines the fourth sector-specific reverse logistics system established since the adoption of Brazil’s National Solid Waste Policy in 2010 and should generate significant impact across the plastics value chain.
Starting in 2026, manufacturers, importers, distributors, and retailers will bear increased responsibility for reverse logistics and will be required to comply with minimum recycled plastics content requirements. The new policy sets goals for ambitious progress in plastic recycling nationwide, with targets ranging from a 32% recovery rate in 2026 and reaching 50% by 2040. To support this development, the framework also introduces minimum levels of recycled content for plastic packaging and recyclable plastics products, starting at 22% for 2026 and increasing gradually to 40% by 2040. The new regulation does not apply for plastics packaging subject to other specific regulatory requirements – for instance, food and beverage, electronics, lubricant oils, and some agricultural products.
According to the Brazilian Plastics Industry Association (ABIPLAST), the plastics sector is expected to generate roughly USD 30 billion in revenue and achieve 2% production growth in 2026. The investment outlook remains somewhat positive, with approximately USD 2 billion projected annually between 2025 and 2027. The new framework may require further investments that will create commercial opportunities for U.S. exporters of recycling equipment and technology including - update existing processing lines and intensify traceability and quality control. Brazilian converters and recyclers will need new equipment and technologies for sorting, washing, grinding, decontamination, extrusion, and pelletizing, and advanced recycling solutions for plastics which are more difficult to recycle, such as flexible plastics.
For more details on these opportunities, please contact Moacir Rodovalho, moacir.rodovalho@trade.gov, Plastics Commercial Specialist, U.S. Commercial Service, Recife.
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