In recent years, the EU has taken significant strides to promote a more sustainable and circular economy. But despite these policy steps, we are not moving fast enough, and progress remains limited.
This article, written by Aline Maigret, Françoise Bonnet and Axel Darut on behalf of the ‘EU collective to foster circular economy’, was originally published by Euractiv.
For instance, the EU’s Circular Material Use Rate, a key indicator that measures the share of recovered materials in total material use, has barely increased, moving from just 10.7% in 2010 to 11.5% in 2022.
As the EU prepares to appoint a dedicated Commissioner for Circular Economy, a critical question arises: will this role facilitate a truly systemic shift?
The next step in the EU’s journey should be a comprehensive framework to govern sustainable materials and resource management, with enforceable targets to reduce material footprints and consumption.
A more binding, target-focused mandate could accelerate progress on the circular economy, ensuring Europe is not only reducing waste but rethinking consumption itself as underlined by an open letter from EU organisations, businesses and NGOs on circular economy for members of the European Parliament.
Why is this issue so critical?
Quite simply, the pressure on global resources is unsustainable, and the EU’s resource dependence is increasingly costly and risky. Every year, we use resources far beyond what the planet can naturally regenerate, placing us in a dangerous position environmentally, economically, and politically.
The proposal of a dedicated EU Commissioner for Circular Economy is therefore an essential and much-needed step forward. This role would provide leadership and vision for a comprehensive approach to sustainable materials and resource management across Europe, helping to consolidate efforts and bring more coherence to policies that often seem fragmented.
However, it is not only a question of leadership. The right fiscal and economic tools are needed to drive a real transformation.
Shifting tax burdens from labour to resource extraction, for example, would make sustainable practices more economically viable and encourage businesses to minimise waste and maximise reuse.
Circular taxation policies would align economic incentives with the environmental goals we wish to achieve, creating a more supportive landscape for businesses to adopt circular practices.
In addition, the EU should integrate circular economy principles more directly into its trade policies. As one of the world’s largest economic blocs, the EU has the power to shape global standards and promote sustainability on a global scale.
Instruments like the Carbon Border Adjustment Mechanism could be expanded to include the resource intensity of imported products, sending a clear signal that the circular economy doesn’t stop at Europe’s borders.
At the same time, any policies affecting trade should consider the socio-economic impact on partner countries, particularly those where informal labour markets play a significant role. Thorough impact assessments and broad stakeholder consultations can help ensure that our policies promote fairness and resilience, both within and beyond the EU.
Another essential area for reform is the Extended Producer Responsibility (EPR) framework. While EPR has great potential to drive improvements in waste management and recycling, it remains underutilised in Europe. A more ambitious and coherent EPR system could help prevent material consumption at the source, promote reuse, support high-quality recycling, and increase recycled content.
Public procurement represents another powerful yet underused lever. With public institutions controlling substantial purchasing power, their choices can set the tone for market standards.
If the Public Procurement Directive is revised to prioritise circularity, the EU could make sustainable practices more mainstream, encouraging suppliers to adopt circular practices to win contracts. This could also include economic incentives or penalties for tenders that fail to consider sustainability criteria, ensuring that public spending aligns with the EU’s environmental objectives.
It’s also critical to recognise the role of local and regional authorities in making the circular economy a reality. As the European Court of Auditors has pointed out, implementation of circular economy policies is often most effective at the local level, where municipalities manage waste, recycling, and public services.
Empowering local leaders with additional funding and clear guidance would help ensure that circular principles are applied on the ground, closer to citizens and communities. Supporting regional authorities with aligned funding initiatives, like the Cohesion Fund, can help to unlock public-private investments that will drive sustainable practices from the grassroots up.
In addition, sufficient EU funding must be allocated to support circular economy goals. Proper investment should focus on the top priorities of the waste hierarchy: prevention, reuse, and recycling.
Finally, safety and human health must be a central part of the EU’s circular economy. Therefore, it must support ambitious measures outlined in the Chemicals Strategy for Sustainability, such as to phase out the most harmful substances in consumer products.
In this context, the EU collective on circular economy urges all leading organisations working on these challenges to join this initiative, support the open letter and accelerate the implementation of the circular economy across the European Union.
