France Advances Circular Economy with New Recycling Facility Amid Sector Challenges
France inaugurates a major recycling facility as Federrec voices concerns over regulatory challenges threatening the circular economy sector.
- • The STM in Illaz inaugurated to recycle 23 million tons of tunnel excavated rock, reducing CO₂ emissions by 75%.
- • The French recycling sector generated €11.5 billion revenue in 2024 with 35,000 employees and €725 million invested.
- • Federrec highlights challenges from market volatility, raw material pressure, and evolving EU regulations.
- • Efforts underway to reform Extended Producer Responsibility rules affecting the construction sector by 2026.
Key details
On October 9, 2025, the Tunnel Européen Lyon Turin (TELT) inaugurated the Station de Traitement des Matériaux (STM) in Illaz, marking a significant step forward for France's circular economy efforts. This automated facility is integral to the Lyon-Turin tunnel construction project and is designed to recycle nearly 23 million tons of excavated rock, converting it into reusable aggregates for concrete and tunnel backfill. The STM features over five kilometers of conveyor belts that reduce CO₂ emissions by 75% and prevent more than 700,000 truck trips, showcasing innovative environmental and logistical efficiency (Research ID 94043).
Despite such advancements, the circular economy sector in France faces notable challenges. According to Federrec, the national recycling federation, the industry generated €11.5 billion in revenue in 2024, returning to pre-crisis heights. However, rising market fluctuations, raw material cost pressures, and complex regulations continue to strain the sector. The recycling industry supports 35,000 jobs and has attracted €725 million in investments, representing 6.3% of its revenue, reflecting its economic and social importance (Research ID 94045).
Federrec President François Excoffier highlighted the critical role of recycling in reducing France's dependence on imported raw materials and contributing to ecological transition. He emphasized the need for a stable regulatory environment to foster innovation, investment, and job creation. The sector is grappling with new European Union regulations, including those on batteries, eco-design, traceability of recycled materials, and packaging waste, implemented between 2024 and 2025.
Additionally, the construction industry's recession and regulatory burdens, particularly the Extended Producer Responsibility for construction and demolition waste, have intensified sector pressures. Federrec and allied federations are working towards reforming these measures by 2026 to ensure effective funding, simplified procedures, and coherent territorial coverage.
While the STM in Illaz represents a major positive development in circular economy infrastructure, the overall recycling sector must navigate economic and regulatory complexities to sustain growth and environmental objectives in 2025 and beyond.