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LATEST
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Circular Economy Act Aims to Free Europe From Imports

The Circular Economy Act has moved from ambition to the drafting table, with the European Commission preparing to table its flagship recycling law in the autumn of 2026. Officials confirmed the timetable after a high-level round of talks earlier this year, framing the Circular Economy Act as the centrepiece of Europe’s drive to wean its industry off imported raw materials. For manufacturers, recyclers and waste operators, the coming months will decide how far the single market finally stretches to cover the materials they trade.

At its core, the Circular Economy Act is an attempt to build a genuine single market for secondary raw materials, the recovered metals, plastics and minerals that today cross borders under a patchwork of national rules. The Commission has set a blunt benchmark: lift Europe’s circularity rate, the share of material fed back into the economy, from roughly 12 percent to 24 percent by 2030. Doubling that figure in half a decade means both more supply of high-quality recycled feedstock and far stronger demand for it.

The strategic logic is as much about security as sustainability. Europe leans heavily on imports of critical raw materials such as lithium, cobalt and rare earths, most of them concentrated in a handful of supplier states. By keeping valuable materials circulating inside the bloc, officials argue, the Act could ease that exposure without opening a single new mine, turning waste streams into a domestic source of strategic inputs.

Much of the technical fight will centre on extended producer responsibility, the rules that make companies pay for collecting and recycling what they put on the market. Today those schemes differ sharply from one member state to the next, raising costs and blocking the free movement of recovered materials. The Circular Economy Act is expected to harmonise those obligations and to revise the ageing directive on waste electrical and electronic equipment, one of the fastest-growing waste streams in Europe.

Industry has been closely engaged. A final stakeholder workshop drew more than a thousand participants weighing how to simplify the rulebook for secondary materials and how to guarantee recyclers reliable access to feedstock. Recyclers want firm demand signals, such as recycled-content requirements, while some manufacturers warn against rules that raise input costs while cheaper virgin materials remain abundant on world markets.

With adoption pencilled in for late September or early October, the proposal will then face months of negotiation between the Parliament and member states before anything binds. The test for the Circular Economy Act will be whether it can turn a modest 12 percent circularity rate into a credible industrial strategy, or whether it settles for tidying up the bloc’s tangled waste rules. Either way, it will shape how Europe sources materials for a decade to come.