EU Circular Economy Act

Increase recycling rates, reduce waste generation, and strengthen the EU’s economic autonomy: the Circular Economy Act aims to achieve all of this.

What is the Circular Economy Act?

The European Commission is currently working on the Circular Economy Act, a legal framework for a functioning circular economy within the EU. The aim is to create a single market for secondary raw materials – meaning both increasing the supply of high-quality recycled materials and boosting demand for them. Resources should be kept in circulation for as long as possible, thereby reducing environmental impacts and strengthening economic resilience.

At present, different national regulations on the circular economy exist; these are to be consolidated under the Circular Economy Act into a single, coherent legal framework. This is intended to promote environmental sustainability, economic competitiveness, and Europe’s strategic autonomy. Implementation of the legislation is planned by the end of 2026.

The recycling targets in figures

The EU currently has to import raw materials from other countries; nearly 100% of heavy metals and rare earth elements are imported. This is set to change with the Circular Economy Act and the creation of a functioning market for secondary raw materials. The EU also has room for improvement in circular material use, which stood at just 12.2% in 2023.

These are the EU’s concrete recycling targets:

  • 25% of raw materials from recycling (currently below 1%)
  • 24% circular material use rate by 2030 (12.2% in 2023)
  • 70% recycling rate for packaging by 2030 (67.5% in 2023)

Reduction in the use of materials

In addition to increasing recycling rates, the EU is also addressing resource use, as both material consumption and waste generation per capita are significantly above the global average. In 2024, the material footprint was around 14 tonnes per person, while waste generation reached approximately 5 tonnes per person in 2022.

This clearly shows that a sustainable path can only be achieved through a combination of recycling and reduction. At the same time, recycled materials must be able to compete economically with virgin raw materials. Currently, materials such as PET are often significantly cheaper to produce new than to use recycled alternatives.

Part of the EU Green Deal

The Circular Economy Act does not stand alone; it is part of the EU Green Deal and embedded in the EU’s Clean Industrial Deal. It aims to bring together existing initiatives into a coherent framework. Overall, the Act pursues a comprehensive strategy focused on stronger climate protection, greater competitiveness, and enhanced strategic autonomy.

Through our daily work at everwave cleanup sites, we witness the current impacts of the global waste economy: polluted rivers and waterways, and waste in the environment. As long as recycled materials remain more expensive and virgin materials can be produced cheaply, large amounts of waste will continue to end up in nature. The Circular Economy Act has the potential to address both environmental sustainability and economic stability – by increasing recycling rates and reducing waste in our rivers and waterways.

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