As pressures continue to mount on the planet’s ecosystem, the European Union is moving away from the traditional “take, make, dispose” model
The EU is advancing toward a circular economy, where products and materials are reused, recycled, and kept in circulation for as long as possible.
This transition is a significant part of Europe’s environmental strategy, and it is viewed as essential for achieving climate neutrality, improving resource efficiency, and creating long-term competitiveness.
By 2050, global consumption levels are expected to exceed the planet’s sustainable limits, effectively requiring the resources of three Earths. The circular economy approach aims to reverse this trend by significantly reducing waste, pollution, and resource extraction.
Circular Economy Act
One of the EU’s most significant upcoming initiatives is the Circular Economy Act, expected to be adopted in 2026. This Act will build on the second Circular Economy Action Plan, which was adopted in March 2020 as a core component of the European Green Deal.
The Circular Economy Act aims to establish a Single Market for secondary raw materials, increase the supply of high-quality recycled materials, and stimulate demand for these materials across EU industries. These changes are designed to strengthen Europe’s leadership in sustainable innovation and resource efficiency.
In August 2025, the European Commission launched a public consultation on the Act, inviting feedback from citizens, businesses, and stakeholders. The Act is a cornerstone of the EU’s goal to double its circularity rate, the proportion of materials reused or recycled, from 12% to 24% by 2030, as part of the Clean Industrial Deal.
Policy frameworks and new laws
Recent years have seen a series of legislative actions aimed at making products more sustainable. The Ecodesign for Sustainable Products Regulation (ESPR), which came into force in July 2024, sets standards for product durability, reparability, and energy efficiency. It is complemented by a Right to Repair directive and new rules empowering consumers to make greener choices.
Other key regulations include:
- Packaging Waste Regulation (PPWR), replacing outdated rules with harmonised EU-wide standards (entered into force in February 2025)
- A Batteries Regulation to ensure sustainability across the battery lifecycle (adopted in July 2023)
- A strategy for sustainable textiles, addressing waste and pollution in the fashion industry
- Proposed reforms for end-of-life vehicles and a review of the Waste Electrical and Electronic Equipment (WEEE) Directive
These measures aim to ensure that sustainability is integrated at every stage of a product’s life cycle.
Tackling waste and microplastics
Waste management and pollution control are also key priorities. A new waste shipment regulation, implemented since May 2024, hopes to prevent the export of Europe’s waste challenges. The EU has also introduced restrictions on microplastics, both those intentionally added to products and those released unintentionally, through new REACH regulations.
To monitor the impact of these policies, the EU updated its Circular Economy Monitoring Framework in 2023, introducing new indicators. The EU also supports innovation through tools like the EU Ecolabel, Green Public Procurement, and the European Circular Economy Stakeholder Platform.
With a strong legal framework, ambitious targets and a growing public engagement, the EU is setting itself as a global leader in the circular economy.
