EUROPEAN
COMMISSION

Brussels, 11.3.2020
COM(2020) 98 final

COMMUNICATION FROM THE COMMISSION TO THE EUROPEANPARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIALCOMMITTEE AND THE COMMITTEE OF THE REGIONS
A new Circular Economy Action Plan
For a cleaner and more competitive Europe

EN

EN

CONTENTS

1.

INTRODUCTION ....................................................................................................... 22.

A SUSTAINABLE PRODUCT POLICY FRAMEWORK ........................................ 3
2.1. Designing sustainable products ......................................................................... 3
2.2. Empowering consumers and public buyers ....................................................... 5
2.3. Circularity in production processes ................................................................... 63.

KEY PRODUCT VALUE CHAINS ........................................................................... 6
3.1. Electronics and ICT ........................................................................................... 7
3.2. Batteries and vehicles ........................................................................................ 8
3.3. Packaging .......................................................................................................... 8
3.4. Plastics ............................................................................................................... 93.5. Textiles ............................................................................................................ 10
3.6. Construction and buildings .............................................................................. 11
3.7. Food, water and nutrients ................................................................................ 12

4.

LESS WASTE, MORE VALUE ............................................................................... 124.1. Enhanced waste policy in support of waste prevention and circularity .......... 124.2. Enhancing circularity in a toxic-free environment .......................................... 13
4.3. Creating a well-functioning EU market for secondary raw materials ............. 14
4.4. Addressing waste exports from the EU ........................................................... 155.

MAKING CIRCULARITY WORK FOR PEOPLE, REGIONS AND
CITIES ....................................................................................................................... 15

6.

CROSSCUTTING ACTIONS .................................................................................. 16
6.1. Circularity as a prerequisite for climate neutrality .......................................... 16
6.2. Getting the economics right............................................................................. 176.3. Driving the transition through research, innovation and digitalisation ........... 17

7.

LEADING EFFORTS AT GLOBAL LEVEL .......................................................... 188.

MONITORING PROGRESS .................................................................................... 19

9.

CONCLUSION ......................................................................................................... 20

1

1.

INTRODUCTION

There is only one planet Earth, yet by 2050, the world will be consuming as if there
were three1. Global consumption of materials such as biomass, fossil fuels, metals andminerals is expected to double in the next forty years2, while annual waste generation is
projected to increase by 70% by 20503.
As half of total greenhouse gas emissions and more than 90% of biodiversity loss andwater stress come from resource extraction and processing, the European Green Deal4
launched a concerted strategy for a climate-neutral, resource-efficient and competitive
economy. Scaling up the circular economy from front-runners to the mainstream
economic players will make a decisive contribution to achieving climate neutrality by
2050 and decoupling economic growth from resource use, while ensuring the longterm competitiveness of the EU and leaving no one behind.
To fulfil this ambition, the EU needs to accelerate the transition towards aregenerative growth model that gives back to the planet more than it takes, advancetowards keeping its resource consumption within planetary boundaries, and therefore
strive to reduce its consumption footprint and double its circular material use rate in
the coming decade.
For business, working together on creating the framework for sustainable products
will provide new opportunities in the EU and beyond. This progressive, yet irreversible
transition to a sustainable economic system is an indispensable part of the new EU
industrial strategy. A recent study estimates that applying circular economy principles
across the EU economy has the potential to increase EU GDP by an additional 0.5% by2030 creating around 700 000 new jobs5. There is a clear business case for individualcompanies too: since manufacturing firms in the EU spend on average about 40% onmaterials, closed loop models can increase their profitability, while sheltering them fromresource price fluctuations.
Building on the single market and the potential of digital technologies, the circular
economy can strengthen the EU’s industrial base and foster business creation andentrepreneurship among SMEs. Innovative models based on a closer relationship withcustomers, mass customisation, the sharing and collaborative economy, and powered bydigital technologies, such as the internet of things, big data, blockchain and artificial
intelligence, will not only accelerate circularity but also the dematerialisation of oureconomy and make Europe less dependent on primary materials.
For citizens, the circular economy will provide high-quality, functional and safe
products, which are efficient and affordable, last longer and are designed for reuse,
repair, and high-quality recycling. A whole new range of sustainable services, productas-service models and digital solutions will bring about a better quality of life, innovative
jobs and upgraded knowledge and skills.
This Circular Economy Action Plan provides a future-oriented agenda forachieving a cleaner and more competitive Europe in co-creation with economic
actors, consumers, citizens and civil society organisations. It aims at accelerating the
1
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3
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https://www.un.org/sustainabledevelopment/sustainable-consumption-production/
OECD (2018), Global Material Resources Outlook to 2060.
World Bank (2018), What a Waste 2.0: A Global Snapshot of Solid Waste Management to 2050.
COM(2019) 640 final.
Cambridge Econometrics, Trinomics, and ICF (2018), Impacts of circular economy policies on the labour market.
2transformational change required by the European Green Deal, while building on circular
economy actions implemented since 20156. This plan will ensure that the regulatory
framework is streamlined and made fit for a sustainable future, that the new opportunities
from the transition are maximised, while minimising burdens on people and businesses.
The plan presents a set of interrelated initiatives to establish a strong and coherent
product policy framework that will make sustainable products, services andbusiness models the norm and transform consumption patterns so that no waste is
produced in the first place. This product policy framework will be progressively rolled
out, while key product value chains will be addressed as a matter of priority. Further
measures will be put in place to reduce waste and ensure that the EU has a wellfunctioning internal market for high quality secondary raw materials. The capacityof the EU to take responsibility for its waste will be also strengthened.
Europe will not achieve transformative change by acting alone. The EU will continue tolead the way to a circular economy at the global level7 and use its influence, expertiseand financial resources to implement the 2030 Sustainable Development Goals. This
plan aims also at ensuring that the circular economy works for people, regions and cities,
fully contributes to climate neutrality and harnesses the potential of research, innovationand digitalisation. It foresees the further development of a sound monitoring
framework contributing to measuring well-being beyond GDP.
2.
2.1.

A SUSTAINABLE PRODUCT POLICY FRAMEWORKDesigning sustainable products

While up to 80% of products’ environmental impacts are determined at the designphase8, the linear pattern of “take-make-use-dispose” does not provide producers
with sufficient incentives to make their products more circular. Many products break
down too quickly, cannot be easily reused, repaired or recycled, and many are made forsingle use only. At the same time, the single market provides a critical mass enabling the
EU to set global standards in product sustainability and to influence product design andvalue chain management worldwide.
EU initiatives and legislation already address to a certain extent sustainability
aspects of products, either on a mandatory or voluntary basis. Notably, theEcodesign Directive9 successfully regulates energy efficiency and some circularity
features of energy-related products. At the same time, instruments such as the EU
Ecolabel10 or the EU green public procurement (GPP) criteria11 are broader in scope but
have reduced impact due to the limitations of voluntary approaches. In fact, there is nocomprehensive set of requirements to ensure that all products placed on the EU market
become increasingly sustainable and stand the test of circularity.
In order to make products fit for a climate-neutral, resource-efficient and circular
economy, reduce waste and ensure that the performance of front-runners in sustainability
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8
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COM(2015) 614 final.
SWD(2020) 100.
https://op.europa.eu/en/publication-detail/-/publication/4d42d597-4f92-4498-8e1d-857cc157e6db
Directive 2009/125/EC of the European Parliament and of the Council of 21 October 2009 establishing aframework for the setting of ecodesign requirements for energy-related products, OJ L 285, 31.10.2009, p. 10.
Regulation (EC) No 66/2010 of the European Parliament and of the Council of 25 November 2009 on the EU
Ecolabel, OJ L 27, 30.1.2010, p. 1.
https://ec.europa.eu/environment/gpp/eu_gpp_criteria_en.htm
3

progressively becomes the norm, the Commission will propose a sustainable productpolicy legislative initiative.
The core of this legislative initiative will be to widen the Ecodesign Directive beyond
energy-related products so as to make the Ecodesign framework applicable to thebroadest possible range of products and make it deliver on circularity.
As part of this legislative initiative, and, where appropriate, through complementary
legislative proposals, the Commission will consider establishing sustainability
principles and other appropriate ways to regulate the following aspects:
 improving product durability, reusability, upgradability and reparability,
addressing the presence of hazardous chemicals in products, and increasing theirenergy and resource efficiency;
 increasing recycled content in products, while ensuring their performance andsafety; enabling remanufacturing and high-quality recycling; reducing carbon and environmental footprints;
 restricting single-use and countering premature obsolescence; introducing a ban on the destruction of unsold durable goods;
 incentivising product-as-a-service or other models where producers keep theownership of the product or the responsibility for its performance throughout its
lifecycle;
 mobilising the potential of digitalisation of product information, including
solutions such as digital passports, tagging and watermarks;
 rewarding products based on their different sustainability performance,
including by linking high performance levels to incentives.
Priority will be given to addressing product groups identified in the context of thevalue chains featuring in this Action Plan, such as electronics, ICT and textiles but
also furniture and high impact intermediary products such as steel, cement andchemicals. Further product groups will be identified based on their environmental impact
and circularity potential.
This legislative initiative and any other complementary regulatory or voluntary
approaches will be developed in a way to improve the coherence with existing
instruments regulating products along various phases of their life cycle. It is theintention of the Commission that the product sustainability principles will guidebroader policy and legislative developments in the future. The Commission will also
increase the effectiveness of the current Ecodesign framework for energy-related
products, including by swiftly adopting and implementing a new Ecodesign and Energy
Labelling Working Plan 2020-2024 for individual product groups.
The review of the Ecodesign Directive as well as further work on specific productgroups, under the Ecodesign framework or in the context of other instruments, will build,
where appropriate, on criteria and rules established under the EU Ecolabel Regulation,
the Product Environmental Footprint approach12 and the EU GPP criteria. The
Commission will consider the introduction of mandatory requirements to increase the12

https://ec.europa.eu/environment/eussd/smgp/PEFCR_OEFSR_en.htm
4sustainability not only of goods, but also of services. The possibility to introduce
requirements linked to environmental and social aspects along the value chain, fromproduction through use to end of life, will also be carefully assessed, including in thecontext of WTO rules. For instance, ensuring the accessibility of certain products andservices13 next to contributing to social inclusion can have the added benefit of increasing
product durability and reusability.
Furthermore, to support the effective and efficient application of the new sustainableproduct framework, the Commission will: establish a common European Dataspace for Smart Circular Applications14
with data on value chains and product information;
 step up efforts, in cooperation with national authorities, on enforcement ofapplicable sustainability requirements for products placed on the EU market, inparticular through concerted inspections and market surveillance actions.

2.2.

Empowering consumers and public buyers

Empowering consumers and providing them with cost-saving opportunities is a key
building block of the sustainable product policy framework. To enhance the participationof consumers in the circular economy, the Commission will propose a revision of EU
consumer law to ensure that consumers receive trustworthy and relevant information
on products at the point of sale, including on their lifespan and on the availability ofrepair services, spare parts and repair manuals. The Commission will also consider
further strengthening consumer protection against green washing and prematureobsolescence, setting minimum requirements for sustainability labels/logos and for
information tools.
In addition, the Commission will work towards establishing a new ‘right to repair’ andconsider new horizontal material rights for consumers for instance as regards
availability of spare parts or access to repair and, in the case of ICT and electronics, toupgrading services. Regarding the role that guarantees can play in providing morecircular products, the Commission will explore possible changes also in the context of
the review of Directive 2019/77115.
The Commission will also propose that companies substantiate their environmental
claims using Product and Organisation Environmental Footprint methods. The
Commission will test the integration of these methods in the EU Ecolabel and include
more systematically durability, recyclability and recycled content in the EU Ecolabel
criteria.
Public authorities’ purchasing power represents 14% of EU GDP and can serve as a
powerful driver of the demand for sustainable products. To tap into this potential, theCommission will propose minimum mandatory green public procurement (GPP)criteria and targets in sectoral legislation and phase in compulsory reporting tomonitor the uptake of Green Public Procurement (GPP) without creating unjustified
administrative burden for public buyers. Furthermore, the Commission will continue to
13

14
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Directive (EU) 2019/882 of the European Parliament and of the Council of 17 April 2019 on the accessibility
requirements for products and services, OJ L 151, 7.6.2019, p. 70.
COM (2020) 67 final.
Directive (EU) 2019/771/EC of the European Parliament and of the Council of 20 May 2019 on certain aspects
concerning contracts for the sale of goods, OJ L 136, 22.5.2019, p. 28.
5

support capacity building with guidance, training and dissemination of good practices
and encouraging public buyers to take part in a “Public Buyers for Climate andEnvironment” initiative, which will facilitate exchanges among buyers committed to
GPP implementation.
2.3.

Circularity in production processes

Circularity is an essential part of a wider transformation of industry towards climateneutrality and long-term competitiveness. It can deliver substantial material savings
throughout value chains and production processes, generate extra value and unlock
economic opportunities. In synergy with the objectives laid out in the Industrial
Strategy16, the Commission will enable greater circularity in industry by:assessing options for further promoting circularity in industrial processes in thecontext of the review of the Industrial Emissions Directive17, including the
integration of circular economy practices in upcoming Best Available Techniques
reference documents;

facilitating industrial symbiosis by developing an industry-led reporting andcertification system, and enabling the implementation of industrial symbiosis;

supporting the sustainable and circular bio-based sector through theimplementation of the Bioeconomy Action Plan18;

promoting the use of digital technologies for tracking, tracing and mapping ofresources;

promoting the uptake of green technologies through a system of solid verification
by registering the EU Environmental Technology Verification scheme as an
EU certification mark.

The new SME Strategy19 will foster circular industrial collaboration among SMEs
building on training, advice under the Enterprise Europe Network on cluster
collaboration, and on knowledge transfer via the European Resource Efficiency
Knowledge Centre.
3.

KEY PRODUCT VALUE CHAINS

The sustainability challenge posed by key value chains requires urgent, comprehensive
and coordinated actions, which will form an integral part of the sustainable productpolicy framework outlined in section 2. Those actions will contribute to the response to
the climate emergency and will feed into the EU Industrial Strategy, as well as into theforthcoming biodiversity, Farm to Fork and forest strategies. As part of the governance ofthe sectorial actions, the Commission will cooperate closely with stakeholders in key
value chains to identify barriers to the expansion of markets for circular products andways to address those barriers.

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COM(2020) 102.
Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial
emissions (integrated pollution prevention and control),OJ L 334, 17.12.2010, p. 17.
COM(2018) 763 final.
COM(2020) 103.
6

3.1.

Electronics and ICTElectrical and electronic equipment continues to be one of the fastest growing waste
streams in the EU, with current annual growth rates of 2%. It is estimated that less than
40% of electronic waste is recycled in the EU20. Value is lost when fully or partiallyfunctional products are discarded because they are not reparable, the battery cannot be
replaced, the software is no longer supported, or materials incorporated in devices are notrecovered. About two in three Europeans would like to keep using their current digital
devices for longer, provided performance is not significantly affected21.
To address these challenges, the Commission will present a ‘Circular Electronics
Initiative’ mobilising existing and new instruments. In line with the new sustainableproducts policy framework, this initiative will promote longer product lifetimes andinclude, among others, the following actions:regulatory measures for electronics and ICT including mobile phones, tabletsand laptops under the Ecodesign Directive so that devices are designed forenergy efficiency and durability, reparability, upgradability, maintenance, reuse
and recycling. The upcoming Ecodesign Working Plan will set out further details
on this. Printers and consumables such as cartridges will also be covered
unless the sector reaches an ambitious voluntary agreement within the next six
months;focus on electronics and ICT as a priority sector for implementing the ‘right torepair’, including a right to update obsolete software;

regulatory measures on chargers for mobile phones and similar devices,
including the introduction of a common charger, improving the durability ofcharging cables, and incentives to decouple the purchase of chargers from thepurchase of new devices;

improving the collection and treatment of waste electrical and electronicequipment22 including by exploring options for an EU-wide take back scheme
to return or sell back old mobile phones, tablets and chargers;review of EU rules on restrictions of hazardous substances in electrical andelectronic equipment23 and provide guidance to improve coherence with relevant
legislation, including REACH24 and Ecodesign.

3.2.

Batteries and vehicles

Sustainable batteries and vehicles underpin the mobility of the future. To progress swiftlyon enhancing the sustainability of the emerging battery value chain for electro-mobility
and boost the circular potential of all batteries, this year the Commission will propose a
new regulatory framework for batteries. This legislative proposal will build on the

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https://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=t2020_rt130&plugin=1
Special Eurobarometer 503, January 2020.
Directive 2012/19/EU of the European Parliament and of the Council of 4 July 2012 on waste electrical andelectronic equipment (WEEE), OJ L 197, 24.7.2012, p. 38.
Directive 2011/65/EU on the restriction of the use of certain hazardous substances in electrical and electronicequipment, OJ L 305, 21.11.2017, p. 8.
Regulation (EC) No 1907/2006 of the European Parliament and of the Council of 18 December 2006 concerning
the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) and establishing a European
Chemicals Agency, OJ L396, 30.12.2006, p. 1.
7

evaluation of the Batteries Directive25 and the work of the Batteries Alliance with theconsideration of the following elements:rules on recycled content and measures to improve the collection and recycling
rates of all batteries, ensure the recovery of valuable materials and provide
guidance to consumers;

addressing non-rechargeable batteries with a view to progressively phasing out
their use where alternatives exists;

sustainability and transparency requirements for batteries taking account of,for instance, the carbon footprint of battery manufacturing, ethical sourcing of
raw materials and security of supply, and facilitating reuse, repurposing andrecycling.

The Commission will also propose to revise the rules on end-of-life vehicles26 with aview to promoting more circular business models by linking design issues to end-of-life
treatment, considering rules on mandatory recycled content for certain materials ofcomponents, and improving recycling efficiency. Moreover, the Commission willconsider the most effective measures to ensure the collection and the environmentallysound treatment of waste oils.
From a broader perspective, the forthcoming Comprehensive European Strategy on
Sustainable and Smart Mobility will look into enhancing synergies with the circular
economy transition, in particular by applying product-as-service solutions to reducevirgin material consumption, use sustainable alternative transport fuels, optimise
infrastructure and vehicle use, increase occupancy rates and load factors, and eliminate
waste and pollution.
3.3.

Packaging

The amount of materials used for packaging is growing continuously and in 2017
packaging waste in Europe reached a record – 173 kg per inhabitant, the highest level
ever. In order to ensure that all packaging on the EU market is reusable or recyclable inan economically viable way by 2030, the Commission will review Directive 94/62/EC27
to reinforce the mandatory essential requirements for packaging to be allowed on the
EU market and consider other measures, with a focus on:

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27



reducing (over)packaging and packaging waste, including by setting targets
and other waste prevention measures;driving design for re-use and recyclability of packaging, including considering
restrictions on the use of some packaging materials for certain applications, inparticular where alternative reusable products or systems are possible orconsumer goods can be handled safely without packaging;

considering reducing the complexity of packaging materials, including thenumber of materials and polymers used.

Directive 2006/66/EC of the European Parliament and of the Council of 6 September 2006 on batteries andaccumulators and waste batteries and accumulators and repealing Directive 91/157/EEC, OJ L 266, 26.9.2006, p.
1.
Directive 2000/53/EC of the European Parliament and of the Council of 18 September 2000 on end-of life
vehicles, OJ L 269, 21.10.2000, p. 34.
European Parliament and Council Directive 94/62/EC of 20 December 1994 on packaging and packaging waste,
OJ L 365 31.12.1994, p. 10.
8

As part of the initiative to harmonise separate collection systems referred to in section
4.1, the Commission will assess the feasibility of EU-wide labelling that facilitates thecorrect separation of packaging waste at source.
The Commission will also establish rules for the safe recycling into food contact
materials of plastic materials other than PET.
The Commission will also strictly monitor and support the implementation of therequirements of the Drinking Water Directive to make drinkable tap water accessible
in public places, which will reduce dependence on bottled water and prevent packaging
waste.
3.4.

Plastics

The EU Strategy for Plastics in the Circular Economy 28 has set in motion acomprehensive set of initiatives responding to a challenge of serious public concern.
However, as consumption of plastics is expected to double in the coming 20 years, theCommission will take further targeted measures to address the sustainability challenges
posed by this ubiquitous material and will continue to promote a concerted approach to
tackle plastics pollution at global level as set out in section 7.
To increase uptake of recycled plastics and contribute to the more sustainable use ofplastics, the Commission will propose mandatory requirements for recycled content
and waste reduction measures for key products such as packaging, construction
materials and vehicles, also taking into account the activities of the Circular Plastics
Alliance.
In addition to measures to reduce plastic litter, the Commission will address the presenceof microplastics in the environment by:

restricting intentionally added microplastics and tackling pellets taking into
account the opinion of the European Chemicals Agency;developing labelling, standardisation, certification and regulatory measureson unintentional release of microplastics, including measures to increase thecapture of microplastics at all relevant stages of products’ lifecycle;further developing and harmonising methods for measuring unintentionallyreleased microplastics, especially from tyres and textiles, and delivering
harmonised data on microplastics concentrations in seawater;closing the gaps on scientific knowledge related to the risk and occurrence of
microplastics in the environment, drinking water and foods.

Furthermore, the Commission will address emerging sustainability challenges bydeveloping a policy framework on:28sourcing, labelling and use of bio-based plastics, based on assessing where theuse of bio-based feedstock results in genuine environmental benefits, going
beyond reduction in using fossil resources;

use of biodegradable or compostable plastics, based on an assessment of theapplications where such use can be beneficial to the environment, and of thecriteria for such applications. It will aim to ensure that labelling a product asCOM(2018) 28 final.
9‘biodegradable’ or ‘compostable’ does not mislead consumers to dispose of it in a
way that causes plastic littering or pollution due to unsuitable environmental
conditions or insufficient time for degradation.
The Commission will ensure the timely implementation of the new Directive on Single
Use Plastic Products29 and fishing gear to address the problem of marine plastic
pollution while safeguarding the single market, in particular with regard to:harmonised interpretation of the products covered by the Directive;labelling of products such as tobacco, beverage cups and wet wipes and ensuring
the introduction of tethered caps for bottles to prevent littering;

developing for the first time rules on measuring recycled content in products.

3.5.

TextilesTextiles are the fourth highest-pressure category for the use of primary raw materials andwater, after food, housing and transport, and fifth for GHG emissions30. It is estimatedthat less than 1% of all textiles worldwide are recycled into new textiles31. The EU textile
sector, predominantly composed of SMEs, has started to recover after a long period of
restructuring, while 60% by value of clothing in the EU is produced elsewhere.
In the light of the complexity of the textile value chain, to respond to these challenges theCommission will propose a comprehensive EU Strategy for Textiles, based on input
from industry and other stakeholders. The strategy will aim at strengthening industrial
competitiveness and innovation in the sector, boosting the EU market for sustainable andcircular textiles, including the market for textile reuse, addressing fast fashion anddriving new business models. This will be achieved by a comprehensive set of measures,
including:

29

30
31



applying the new sustainable product framework as set out in section 2 to
textiles, including developing ecodesign measures to ensure that textile products
are fit for circularity, ensuring the uptake of secondary raw materials, tackling thepresence of hazardous chemicals, and empowering business and private
consumers to choose sustainable textiles and have easy access to re-use andrepair services;

improving the business and regulatory environment for sustainable and circular
textiles in the EU, in particular by providing incentives and support to productas-service models, circular materials and production processes, andincreasing transparency through international cooperation;

providing guidance to achieve high levels of separate collection of textile waste,
which Member States have to ensure by 2025;

boosting the sorting, re-use and recycling of textiles, including throughinnovation, encouraging industrial applications and regulatory measures
such as extended producer responsibility.

Directive (EU) 2019/904 of the European Parliament and of the Council of 5 June 2019 on the reduction of the
impact of certain plastic products on the environment, OJ L 155, 12.6.2019, p. 1.
EEA Briefing report Nov 2019.
Ellen McArthur Foundation (2017), A new Textiles Economy
10

3.6.

Construction and buildings

The built environment has a significant impact on many sectors of the economy, on local
jobs and quality of life. It requires vast amounts of resources and accounts for about 50%
of all extracted material. The construction sector is responsible for over 35% of the EU’s
total waste generation32. Greenhouse gas emissions from material extraction,
manufacturing of construction products, construction and renovation of buildings are
estimated at 5-12% of total national GHG emissions33. Greater material efficiency could
save 80% of those emissions34.
To exploit the potential for increasing material efficiency and reducing climate impacts,
the Commission will launch a new comprehensive Strategy for a Sustainable Built
Environment. This Strategy will ensure coherence across the relevant policy areas suchas climate, energy and resource efficiency, management of construction and demolition
waste, accessibility, digitalisation and skills. It will promote circularity principles
throughout the lifecycle of buildings by:addressing the sustainability performance of construction products in the context
of the revision of the Construction Product Regulation35, including the possible
introduction of recycled content requirements for certain construction products,
taking into account their safety and functionality;

promoting measures to improve the durability and adaptability of built assets inline with the circular economy principles for buildings design 36 and developing
digital logbooks for buildings;

using Level(s)37 to integrate life cycle assessment in public procurement andthe EU sustainable finance framework and exploring the appropriateness ofsetting of carbon reduction targets and the potential of carbon storage;considering a revision of material recovery targets set in EU legislation for
construction and demolition waste and its material-specific fractions;

promoting initiatives to reduce soil sealing, rehabilitate abandoned orcontaminated brownfields and increase the safe, sustainable and circular use of
excavated soils.

Furthermore, the ‘Renovation Wave’ initiative announced in the European Green Deal
to lead to significant improvements in energy efficiency in the EU will be implemented
in line with circular economy principles, notably optimised lifecycle performance, andlonger life expectancy of build assets. As part of the revision of the recovery targets forconstruction and demolition waste, the Commission will pay special attention to
insulation materials, which generate a growing waste stream.

32
33

34

35

36
37

Eurostat data for 2016.
https://www.boverket.se/sv/byggande/hallbart-byggande-och-forvaltning/miljoindikatorer---aktuellstatus/vaxthusgaser/
Hertwich, E., Lifset, R., Pauliuk, S., Heeren, N., IRP, (2020), Resource Efficiency and Climate Change: Material
Efficiency Strategies for a Low-Carbon Future.
Regulation (EU) No 305/2011 of the European Parliament and of the Council of 9 March 2011 laying down
harmonised conditions for the marketing of construction products and repealing Council Directive 89/106/EEC,OJ L 88, 4.4.2011, p. 5.
https://ec.europa.eu/docsroom/documents/39984
https://ec.europa.eu/environment/eussd/buildings.htm
11

3.7.

Food, water and nutrients

The circular economy can significantly reduce the negative impacts of resource
extraction and use on the environment and contribute to restoring biodiversity andnatural capital in Europe. Biological resources are a key input to the economy of the EU
and will play an even more important role in the future. The Commission will aim at
ensuring the sustainability of renewable bio-based materials, including through actions
following the Bioeconomy Strategy and Action Plan.
While the food value chain is responsible for significant resource and environmentalpressures, an estimated 20% of the total food produced is lost or wasted in the EU.
Therefore, in line with the Sustainable Development Goals and as part of the review of
Directive 2008/98/EC38 referred to in section 4.1, the Commission will propose a target
on food waste reduction, as a key action under the forthcoming EU Farm-to-Fork
Strategy, which will address comprehensively the food value chain.
The Commission will also consider specific measures to increase the sustainability offood distribution and consumption. Under the sustainable products initiative, theCommission will launch the analytical work to determine the scope of a legislative
initiative on reuse to substitute single-use packaging, tableware and cutlery byreusable products in food services.
The new Water Reuse Regulation will encourage circular approaches to water reuse inagriculture. The Commission will facilitate water reuse and efficiency, including inindustrial processes.
Furthermore, the Commission will develop an Integrated Nutrient Management Plan,
with a view to ensuring more sustainable application of nutrients and stimulating themarkets for recovered nutrients. The Commission will also consider reviewing
directives on wastewater treatment and sewage sludge and will assess natural meansof nutrient removal such as algae.
4.

LESS WASTE, MORE VALUE

4.1.

Enhanced waste policy in support of waste prevention and circularity

Despite efforts at EU and national level, the amount of waste generated is not going
down. Annual waste generation from all economic activities in the EU amounts to 2.5
billion tonnes, or 5 tonnes per capita a year, and each citizen produces on average nearly
half a tonne of municipal waste. The decoupling of waste generation from economic
growth will require considerable effort across the whole value chain and in every home.
Rolling out the sustainable product policy and translating it into specific legislation (seesections 2 and 3) will be key to making progress on waste prevention. In addition, we
need to build on, further strengthen and better implement EU waste laws.
EU waste laws have driven major improvements in waste management since the 1970s,
supported by EU funds. However, they need to be modernised on an ongoing basis tomake them fit for the circular economy and the digital age. As explained in section 3,
revision of EU legislation on batteries, packaging, end-of-life vehicles, andhazardous substances in electronic equipment will be proposed with a view to38

Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste andrepealing certain Directives, OJ L 312, 22.11.2008, p. 3.
12

preventing waste, increasing recycled content, promoting safer and cleaner waste
streams, and ensuring high-quality recycling.
In addition, the Commission will put forward waste reduction targets for specificstreams as part of a broader set of measures on waste prevention in the context of areview of Directive 2008/98/EC. The Commission will also enhance the implementationof the recently adopted requirements for extended producer responsibility schemes,
provide incentives and encourage sharing of information and good practices in waste
recycling. All this shall serve the objective to significantly reduce total waste generationand halve the amount of residual (non-recycled) municipal waste by 2030.
High quality recycling relies on effective separate collection of waste. To help citizens,businesses and public authorities better separate waste, the Commission will propose toharmonise separate waste collection systems. In particular, this proposal will address
the most effective combinations of separate collection models, the density andaccessibility of separate collection points, including in public spaces, taking account ofregional and local conditions ranging from urban to outermost regions. Other aspects thatfacilitate consumer involvement will also be considered, such as common bin colours,
harmonised symbols for key waste types, product labels, information campaigns andeconomic instruments. It would also seek standardisation and the use of quality
management systems to assure the quality of the collected waste destined for use inproducts, and in particular as food contact material.
Additional efforts are necessary to support the Member States in waste management.
Half of them are at risk of non-compliance with the 2020 target to recycle 50% of
municipal waste. To drive policy reforms, the Commission will organise high-levelexchanges on the circular economy and waste and step up cooperation with Member
States, regions and cities in making the best use of EU funds. Where necessary, theCommission will also use its enforcement powers.
4.2.

Enhancing circularity in a toxic-free environment

EU chemicals policy and legislation, in particular REACH, encourage a shift to ‘safe-bydesign chemicals’ through the progressive substitution of hazardous substances to better
protect citizens and the environment. However, the safety of secondary raw materials canstill be compromised, for instance, where banned substances persist in recycled
feedstock. To increase the confidence in using secondary raw materials, the Commission
will:

39



support the development of solutions for high-quality sorting and removing
contaminants from waste, including those resulting from incidental
contamination;

develop methodologies to minimise the presence of substances that pose
problems to heatlh or the environment in recycled materials and articles
made thereof;

co-operate with industry to progressively develop harmonised systems to trackand manage information on substances identified as being of very highconcern and other relevant substances, in particular those with chronic effects39,

As identified under Regulation (EC) 1907/2006 and Regulation (EC) 1272/2008 of the European Parliament andof the Council of 16 December 2008 on classification, labelling and packaging of substances and mixtures,
13

and substances posing technical problems for recovery operations present alongsupply chains, and identify those substances in waste, in synergy with measures
under the sustainable products policy framework and with the ECHA Databaseon articles containing substances of very high concern;

propose amending the annexes to the Regulation on Persistent Organic
Pollutants, in line with scientific and technical progress and the international
obligations under the Stockholm Convention;

improve the classification and management of hazardous waste so as tomaintain clean recycling streams, including through further alignment with theclassification of chemical substances and mixtures where necessary.

The forthcoming Chemicals Strategy for Sustainability will further address theinterface between chemicals, products and waste legislation and strengthen synergies
with the circular economy.
4.3.

Creating a well-functioning EU market for secondary raw materials

Secondary raw materials face a number of challenges in competing with primary raw
materials for reasons not only related to their safety, but also to their performance,
availability and cost. A number of actions foreseen in this Plan, notably introducing
requirements for recycled content in products, will contribute to preventing a mismatch
between supply and demand of secondary raw materials and ensure the smooth
expansion of the recycling sector in the EU. Furthermore, to establish a well-functioning
internal market for secondary raw materials the Commission will:assess the scope to develop further EU-wide end-of-waste criteria for certain
waste streams based on monitoring Member States’ application of the revised
rules on end-of-waste status and by-products, and support cross-border initiatives
for cooperation to harmonise national end-of-waste and by-product criteria;enhance the role of standardisation based on the on-going assessment ofexisting
standardisation work at national, European and international levels;make timely use of the restrictions on the use of substances of very highconcern in articles for cases where the use of the substance is subject to an
authorisation requirement, while continuing to improve enforcement at borders;

assess the feasibility of establishing a market observatory for key secondary
materials.

4.4.



Addressing waste exports from the EU

The global market for waste is undergoing considerable changes. In the past decade,millions of tonnes of European waste has been exported to non-EU countries, often
without sufficient consideration of proper waste treatment. In many cases, waste exports
result both in negative environmental and health impacts in the countries of destination,and in loss of resources and economic opportunities for the recycling industry in the EU.
Recent import restrictions introduced by some third countries have exposed theamending and repealing Directives 67/548/EEC and 1999/45/EC, and amending Regulation (EC) No 1907/2006,
OJ L 353, 31.12.2008, p. 1.
14

overdependence of the EU on foreign waste treatment, but they have also mobilised therecycling industry to increase its capacity and add value to waste in the EU.
In the light of these developments, and considering that illegal shipments of waste remaina source of concern, the Commission will take action with the aim to ensure that the EU
does not export its waste challenges to third countries. Actions on product design,quality and safety of secondary materials and enhancing their markets will contribute to
making “recycled in the EU” a benchmark for qualititative secondary materials.
Facilitating preparing for re-use and recycling of waste in the EU will be enhanced by athorough review of EU rules on waste shipments40. The review will also aim at
restricting exports of waste that have harmful environmental and health impacts inthird countries or can be treated domestically within the EU by focusing on countriesof destination, problematic waste streams, types of waste operations that are source ofconcern, and enforcement to counteract illegal shipments. The Commission will also
support measures at multilateral, regional and bilateral levels to combat environmental
crime notably in the areas of illegal exports and illicit trafficking, strengthen controlsof shipments of waste, and improve the sustainable management of waste in thesecountries.
5.

MAKING CIRCULARITY WORK FOR PEOPLE, REGIONS AND CITIES

Between 2012 and 2018 the number of jobs linked to the circular economy in the EU
grew by 5% to reach around 4 million41. Circularity can be expected to have a positive
net effect on job creation provided that workers acquire the skills required by the green
transition. The potential of the social economy, which is a pioneer in job creation linked
to the circular economy, will be further leveraged by the mutual benefits of supporting
the green transition and strengthening social inclusion, notably under the Action Plan toimplement the European Pillar of Social Rights42.
The Commission will ensure that its instruments in support of skills and job creation
contribute also to accelerating the transition to a circular economy, including in thecontext of updating its Skills Agenda, launching a Pact for Skills with large-scale multistakeholder partnerships, and the Action Plan for Social Economy. Further investment ineducation and training systems, lifelong learning, and social innovation will be promoted
under the European Social Fund Plus.
The Commission will also harness the potential of EU financing instruments and funds tosupport the necessary investments at regional level and ensure that all regions benefit
from the transition. In addition to awareness-raising, cooperation and capacity-building,Cohesion Policy funds will help regions to implement circular economy strategies andreinforce their industrial fabric and value chains. Circular economy solutions will betailored to the outermost regions and islands, due to their dependence on resource
imports, high waste generation fuelled by tourism, and waste exports. The Just
Transition Mechanism43 proposed as part of the European Green Deal Investment Planand InvestEU will be able to support projects focusing on the circular economy.

40

41
42
43

Regulation (EC) No 1013/2006 of the European Parliament and of the Council of 14 June 2006 on shipments ofwaste, OJ L 190, 12.7.2006, p. 1.
https://ec.europa.eu/eurostat/tgm/refreshTableAction.do?tab=table&plugin=1&pcode=cei_cie010&language=en
COM(2020) 14 final
https://ec.europa.eu/commission/presscorner/detail/en/fs_20_39
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The proposed European Urban Initiative, the Intelligent Cities Challenge Initiative,
and the Circular Cities and Regions Initiative will provide key assistance to cities.
Circular economy will be among the priority areas of the Green City Accord.
The European Circular Economy Stakeholder Platform will continue to be the place
for stakeholders to exchange information.
6.

CROSSCUTTING ACTIONS

6.1.

Circularity as a prerequisite for climate neutrality

In order to achieve climate neutrality, the synergies between circularity and reduction ofgreenhouse gas emissions need to be stepped up. The Commission will:

analyse how the impact of circularity on climate change mitigation andadaptation can be measured in a systematic way;

improve modelling tools to capture the benefits of the circular economy ongreenhouse gas emission reduction at EU and national levels;



promote strengthening the role of circularity in future revisions of the
National Energy and Climate Plans and, where appropriate, in other climate
policies.

Next to reducing greenhouse gas emissions, achieving climate neutrality will also requirethat carbon is removed from the atmosphere, used in our economy without being
released, and stored for longer periods of time. Carbon removals can be nature based,
including through restoration of ecosystems, forest protection, afforestation, sustainable
forest management and carbon farming sequestration, or based on increased circularity,
for instance through long term storage in wood construction, re-use and storage of carbon
in products such as mineralisation in building material.
To incentivise the uptake of carbon removal and increased circularity of carbon, infull respect of the biodiversity objectives, the Commission will explore the developmentof a regulatory framework for certification of carbon removals based on robust andtransparent carbon accounting to monitor and verify the authenticity of carbon removals.
6.2.

Getting the economics right

Accelerating the green transition requires careful yet decisive measures to steer financing
towards more sustainable production and consumption patterns. The Commission has
already taken a series of initiatives in this respect, including integrating the circular
economy objective under the EU Taxonomy Regulation44, and carrying out
preparatory work on EU Ecolabel criteria for financial products. The Circular
Economy Finance Support Platform will continue to offer guidance to project
promoters on circular incentives, capacity building and financial risk management. EU
financial instruments, such as SME guarantees under the current framework andInvestEU as of 2021, mobilise private financing in support of the circular economy. The
Commission has also proposed a new own resource for the EU budget based on theamount of non-recycled plastic packaging waste. In addition, the Commission will:

44

The EU classification system for environmentally sustainable activities:
https://eur-lex.europa.eu/legal-content/en/HIS/?uri=CELEX%3A52018PC0353
16



enhance disclosure of environmental data by companies in the upcoming reviewof the non-financial reporting directive;support a business led initiative to develop environmental accounting
principles that complement financial data with circular economy performance
data;



encourage the integration of sustainability criteria into business strategies byimproving the corporate governance framework;

reflect objectives linked to the circular economy as part of the refocusing of theEuropean Semester and in the context of the forthcoming revision of the State
Aid Guidelines in the field of the environment and energy;continue to encourage the broader application of well-designed economic
instruments, such as environmental taxation, including landfill andincineration taxes, and enable Member States to use value added tax (VAT)
rates to promote circular economy activities that target final consumers, notably
repair services45.

6.3.

Driving the transition through research, innovation and digitalisation

European businesses are frontrunners in circular innovations. The European Regional
Development Fund, through smart specialisation, LIFE and Horizon Europe willcomplement private innovation funding and support the whole innovation cycle with theaim to bring solutions to the market. Horizon Europe will support the development of
indicators and data, novel materials and products, substitution and elimination of
hazardous substances based on “safe by design” approach, circular business models, andnew production and recycling technologies, including exploring the potential of chemical
recycling, keeping in mind the role of digital tools to achieve circular objectives. Marie
Sklodowska Curie Actions can in addition support development of skills, training andmobility of researchers in this area.
Digital technologies can track the journeys of products, components and materials andmake the resulting data securely accessible. The European data space for smart
circular applications referred to in section 2 will provide the architecture andgovernance system to drive applications and services such as product passports, resource
mapping and consumer information.
The European Institute of Innovation and Technology will coordinate innovation
initiatives on circular economy in collaboration with universities, research organisations,industry and SME’s within the Knowledge and Innovation Communities.
The regime for intellectual property needs to be fit for the digital age and the green
transition and support EU businesses’ competitiveness. The Commission will propose anIntellectual Property Strategy to ensure that intellectual property remains a key
enabling factor for the circular economy and the emergence of new business models.

45

Subject to the outcome of the on-going legislative procedure.
17

7.

LEADING EFFORTS AT GLOBAL LEVELThe EU can only succeed if its efforts drive also the global transition to a just, climateneutral, resource-efficient and circular economy. There is a growing need to advancediscussions on defining a “Safe Operating Space’ whereby the use of various natural
resources does not exceed certain local, regional or global thresholds and environmental
impacts remain within planetary boundaries.
For countries with an EU accession perspective, our closest neighbours in the South andthe East, emerging economies and key partners across the world, the new sustainablemodels will open up business and employment opportunities, while strengthening the ties
with European economic actors46.
To support a global shift to a circular economy, the Commission will:8.

building on the European Plastics Strategy, lead efforts at international level toreach a global agreement on plastics, and promote the uptake of the EU’s
circular economy approach on plastics;



propose a Global Circular Economy Alliance to identify knowledge andgovernance gaps in advancing a global circular economy and take forward
partnership initiatives, including with major economies;

explore the feasibility of defining a ‘Safe Operating Space’ for natural resource
use and consider initiating discussions on an international agreement on the
management of natural resources;build a stronger partnership with Africa to maximise the benefits of the green
transition and the circular economy;



ensure that Free Trade Agreements reflect the enhanced objectives of thecircular economy;continue promoting the circular economy in the accession process with theWestern Balkans, and in the context of bilateral, regional and multilateralpolicy dialogues, fora and environmental agreements, as well as of preaccession assistance and neighbourhood, development and international
cooperation programmes, including the International Platform on Sustainable
Finance;

step up outreach activities, including through the European Green Deal
diplomacy and the Circular Economy missions, and work with EU Member States
to enhance coordination and joint efforts for a global circular economy.
MONITORING PROGRESS

In line with the European Green Deal and the 2020 Annual Sustainable Growth
Strategy47, the Commission will reinforce the monitoring of national plans andmeasures to accelerate the transition to a circular economy as part of refocusing theEuropean Semester process to integrate a stronger sustainability dimension.

46
47

SWD(2020) 100.
COM (2019) 650 final.
18

The Commission will also update the Monitoring Framework for the Circular
Economy48. Relying on European statistics as much as possible, new indicators will takeaccount of the focus areas in this action plan and of the interlinkages between circularity,
climate neutrality and the zero pollution ambition. At the same time, projects under
Horizon Europe and Copernicus data will improve circularity metrics at various levels
not yet reflected in official statistics.
Indicators on resource use, including consumption and material footprints toaccount for material consumption and environmental impacts associated to our
production and consumption patterns will also be further developed and will be linked tomonitoring and assessing the progress towards decoupling economic growth fromresource use and its impacts in the EU and beyond.
9.

CONCLUSION

The transition to the circular economy will be systemic, deep and transformative, in the
EU and beyond. It will be disruptive at times, so it has to be fair. It will require analignment and cooperation of all stakeholders at all levels - EU, national, regional andlocal, and international.
Therefore, the Commission invites EU institutions and bodies to endorse this Action Plan
and actively contribute to its implementation, and encourages Member States to adopt or
update their national circular economy strategies, plans and measures in the light of its
ambition. Furthermore, the Commission will recommend including the circular economy
among the topics for discussion on the future of Europe and a regular theme of citizens’
dialogues.

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https://ec.europa.eu/eurostat/web/circular-economy/indicators/monitoring-framework19