The EU and circular economy: naughty or nice?

Throughout 2024, the EU tackled a range of circular economy initiatives. Did its efforts land on the nice list or the naughty one? Roberta Arbinolo and Bich Dao made a list and checked it twice… 

1. Trash or treasure?  

This year, food waste was on the menu, and textiles were woven into the discussion. The European Parliament and Member States advanced on the revision of EU waste management laws, with a special focus on the food and textiles sectors. 

Both the Parliament and the Council raised the bar for textiles sustainability, adding provisions to hold brands financially accountable for the impact of their products. It is about time: production of textile fibres has doubled since 2000, and too many products end up as waste shortly after hitting the market, making producer responsibility measures as urgent as ever. 

On the other hand, they fell short of proposing adequate reduction targets to address the scale of Europe’s food waste crisis, and honour international commitments to halve food loss and waste along the entire supply chain – including the food left unharvested on farms. 

2. It’s a wrap 

On a good note, the EU passed a new law to prevent the generation of packaging waste, promote reuse systems and reduce our dependence on single-use packaging. 

After months of intense negotiations, one of the most heavily lobbied files of the last mandate managed to withstand the deceptive tactics of the throwaway packaging industry, though it was ultimately watered down. Europe now has binding packaging waste reduction targets, charting a clear path for the sector. Despite some regrettable setbacks and unjustified derogations, this compromise now gives the EU and its Member States a chance to mitigate the packaging waste crisis.

3. Greener goods under the tree 

No one wants a planet-wrecking gift under their Christmas tree. Following citizens’ concerns for product sustainability, the EU has put forth a new ecodesign law, which works alongside its predecessor to set minimum standards for efficiency, durability and recyclability for nearly all EU market products.  Producers must also trace harmful substances in products, and the European Commission may restrict them if detrimental to human health or recycling.  

The law also bans the wasteful practice of destroying unsold textiles, and requires more transparency on the destruction of other products. However, it neglects the rampant practice of destroying unsold electronics, which poses major environmental concerns.   

Regrettably, loopholes exempt major online retailers like Shein, Temu and Amazon from the rules set out under this law, leaving a way out for corporations on the naughty list to undercut complying producers.  

An additional circular economy win: products are becoming more repairable. A new law is coming to town, bolstering independent repair services and enhancing access to affordable repair from smartphones to fridges. It will ensure reasonable prices for original parts and prohibit software practices that hinder independent repair and the use of compatible and reused spare parts. Producers will also have to provide repair options beyond the standard two-year legal guarantee period.  

4. No greenwashed stockings 

For those dreaming of a truly green Christmas, the new law to empower consumers is a welcome gift, tackling unfair corporate practices that stand in the way of sustainable choices. This is particularly important, considering that 3 out of 4 products on the EU market carry an implicit or explicit green claim – more than half of which are vague, misleading or unfounded. 

Notably, the new law bans deceptive “climate neutral” claims, which are among the most misleading. Moreover, it restricts vague and empty green marketing: producers will only be able to advertise a product as “eco” or “green” when the entire product is truly more sustainable than conventional ones and certified by a trustworthy scheme. 

One of these is the EU Ecolabel, the EU’s official sustainability label that rewards the greenest products on the market – helping us find them. Here again, 2024 was a good year: since last spring, the scheme has grown to cover an increasing number of products, and the number of current licenses is the highest ever registered. 

Meanwhile, a complementary law is under construction to rule how companies back their green claims  – however, its power to take on corporate greenwashing risks being watered down by national ministries: all eyes on the negotiations on the final text next year.

5. Better Ho Ho Homes 

As winter blows across the lands, from all corners of Europe, people’s wish is resoundingly clear: a good home to live in.  

Luckily, 2024 has seen some progress: the revised building law pushes for better-insulated homes and greener construction materials, aiming to slash emissions and earmark funding to help improve the sustainability of buildings. Countries are also starting to transition from fossil-fuel heating to more reliable renewable energy, a shift that will save families money while benefiting the planet.  

Yet, there is room for improvement. Most European homes are still aging and inefficient, and despite the efforts to promote renewable heating and renovation, some countries are dragging their feet. There’s also a lack of action on tackling vacant buildings and resource misdistribution, leaving millions struggling with housing costs. A tip for EU countries who want to make next year’s nice list: keep working on those energy-efficient renovations, prioritise housing justice, and make sure everyone has access to a good home.

Santa’s verdict 

All in all, Santa is pleased: in 2024, Europe has made strides towards better circularity, resource use and consumer protection, with a proactive agenda and many achievements worth celebrating. 

However, the EU and its Member States are not guaranteed a spot on the nice list with alarm bells jingling on several fronts: from halving food waste to strengthening producer responsibility and ensuring credible green claims, we need bolder action to reduce our material use and make our economy truly circular, sustainable and fair. 

The year 2025 will be a critical moment for the EU to prove its commitment, with key milestones including a the much-anticipated Circular Economy Act, the implementation of the laws listed above, and a promising new law on vehicles design and end-of-life on the horizon. 

Alongside Santa, we will keep a close eye!