The environmentalist group Greenpeace has advocated the global phase-out of PVC because they claim dioxin is produced as a byproduct of vinyl chloride manufacture and from incineration of waste PVC in domestic garbage. The European Industry, however, asserts that it has improved production processes to minimize dioxin emissions.

Dioxins are formed in virtually all combustion where the necessary atoms are available in the fuel. The formation of dioxins (and furans) requires presence of chlorine, heat, organic compounds and a catalyst. PVC can be a ready source for the chlorine in combustion for this process.Because chlorine can be found almost everywhere on earth (e.g., in salt), dioxin will be formed when most things burn, including wood, food, garbage and vinyl.