COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Towards a circular economy: A zero waste programme for Europe
Date: 2014-07-02
Institutions: European Commission
Subjects: competitiveness, conservation of resources, economic growth, economic reform, environmental tax, innovation, management of resources, natural resources, sustainable development, waste management













EUR-Lex - 52014DC0398R(01) - EN











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52014DC0398R(01)

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Towards a circular economy: A zero waste programme for Europe /* COM/2014/0398 final/2 */









Towards
a circular economy: A zero waste programme for Europe
1.      Introduction:
a circular economy in support of sustainable growth
Valuable
materials are leaking from our economies. In a world where demand and
competition for finite and sometimes scarce resources will continue to increase,
and pressure on resources is causing greater environmental degradation and
fragility, Europe can benefit economically and environmentally from making better
use of those resources. Since the industrial revolution, our economies have
developed a ‘take-make-consume
and dispose’ pattern
of growth — a
linear model based on the assumption that resources are abundant, available,
easy to source and cheap to dispose of. It is increasingly being understood
that this threatens the competitiveness of Europe.
Moving
towards a more circular economy is essential to deliver the resource efficiency
agenda established under the Europe 2020 Strategy for smart, sustainable and
inclusive growth[1]. Higher and
sustained improvements of resource efficiency performance are within reach and can
bring major economic benefits.
Circular
economy systems keep the added value in products for as long as possible and eliminate
waste. They keep resources within the economy when a product has reached the
end of its life, so that they can be productively used again and again and hence
create further value. Transition to a more circular economy requires changes throughout
value chains, from product design to new business and market models, from new
ways of turning waste into a resource to new modes of consumer behaviour. This implies
full systemic change, and innovation not only in technologies, but
also in organisation, society, finance methods and policies. Even in a highly
circular economy there will remain some element of linearity as virgin
resources are required and residual waste is disposed of.
Industry
already recognises the strong business case for improving resource
productivity. It is estimated that resource efficiency improvements all along
the value chains could reduce material inputs needs by 17%-24% by 2030[2]
and a better use of resources could represent an overall savings potential of €630 billion per year for European
industry[3]. Business driven studies based on
product-level modelling demonstrate significant material cost saving opportunities
for EU industry from circular economy approaches and a potential to boost EU
GDP by up to 3.9%[4] by creating new markets and new
products and creating value for business. It is not surprising therefore that companies
are continually working to improve resource management, but they are held back
by a range of market barriers.
The
high-level European Resource Efficiency Platform[5], bringing
together selected governments, businesses and civil society organisations, called
for action to move to a more circular economy, which relies more on reuse and
high‑quality recycling and much less on primary raw materials.
With
the Roadmap to a Resource Efficient Europe in 2011[6],
the Commission proposed a framework for action and underlined the need for an
integrated approach across many policy areas and levels. The main ideas of the
Roadmap are now developed in the Seventh Environment Action Programme (7th EAP)[7].
Moving
to more circular economic models promises a much brighter future for the
European economy. It would allow Europe to rise to the current and future challenges of
global pressure on resources and rising insecurity of supply. Pumping resources
back into productive use again and again, cutting waste and reducing dependence
on uncertain supplies is a direct route to improving resilience and competitiveness.
By helping to decouple economic growth from resource use and its impacts, it
offers the prospect of sustainable growth that will last.
Resource productivity in the EU grew by 20 % in 2000-2011, but this may be in part due to the effects of the recession. Maintaining
this rate would lead to a further 30 % increase by 2030 and could boost
GDP by nearly 1 %, while creating over two million jobs more than under a
business‑as‑usual scenario[8].
Stepping up efforts to increase resource productivity will go hand in hand with
existing objectives of EU policy such as reducing greenhouse gas emissions,
increasing energy efficiency, sustainable reindustrialisation of the EU economy, and securing
access to raw materials, whilst reducing environmental impacts. 
There is a wide range of proven measures to promote resource
efficiency that have shown pay-offs and the potential to be applied on a more
systematic basis. The steps needed to ensure that these changes are job-rich
are also being undertaken, in particular in the Communication on Green Employment[9] and the Green Action Plan
for SMEs[10].
2.      Setting
up an enabling policy framework
Markets
are an important driver of resource efficiency and circular economy, as
materials and energy have become the principal input costs for many companies. However,
whilst markets are already driving change, there are a number of market
barriers to effective and efficient management of resources. Waste prevention, ecodesign,
reuse and similar measures could bring net savings of € 600 billion, or
8 % of annual turnover, for businesses in the EU, while reducing total
annual greenhouse gas emissions by 2-4 %[11].
However, for this to happen the market barriers that prevent these
opportunities from being developed need to be overcome.
Whilst
resource productivity can benefit a wide range of sectors, it will also allow
European firms to benefit from the fast growth in markets for eco-industries,
which are forecast to double between 2010 and 2020. Internationally,
resource-efficiency improvements are in demand across a wide range of
industrial sectors.
Existing
infrastructure, business models and technology, together with established behaviour
keep economies ‘locked-in’ to the
linear model. Companies may lack the information, confidence and capacity to
move to circular economy solutions. The financial system often fails to provide
for investment in efficiency improvements or innovative business models,
which are perceived as more risky and complex, deterring many traditional
investors.
Conventional consumer
habits can also hinder new products and services development. Such barriers tend
to persist in a context where prices do not reflect the real costs of resource
use to society, and where policy fails to provide strong and consistent signals
for the transition to a circular economy. 
Building
on evidence of key products, materials and value chains, the
Commission will work with stakeholders to develop an enabling framework for the
circular economy using measures which combine smart regulation, market-based
instruments, research and innovation, incentives, information exchange and support
for voluntary approaches. Such a framework will contribute to the objective of
a sustainable industrial renaissance in the EU and rely on proactive consumers
and business, with a special focus on SMEs. Internationally, the EU should work closely with other partners,
both at the multilateral and bilateral level, so as to ensure the maximum
impact of the circular economy concept.
The Commission will:
- further analyse the major market and
governance failures which hamper the avoidance and reuse of material waste,
taking account of the heterogeneity of material types and their uses, to
contribute to an enabling policy framework for resource efficiency at EU level.
2.1. Designing and innovating for a circular
economy
Circular
economy approaches ‘design out’ waste and typically involve innovation throughout
the value chain, rather than relying solely on solutions at the end of life of
a product. For example, they may include:
·        
reducing the quantity
of materials required to deliver a particular service (lightweighting);
·        
lengthening products’ useful
life (durability);
·        
reducing the use of
energy and materials in production and use phases (efficiency);
·        
reducing the use of
materials that are hazardous or difficult to recycle in products
and production processes (substitution);
·        
creating markets for secondary
raw materials (recyclates) (based on standards, public procurement, etc.);
·        
designing products that
are easier to maintain, repair, upgrade, remanufacture or recycle (ecodesign);
·        
developing the necessary services for consumers in this regard
(maintenance/repair services, etc.);
·        
incentivising and
supporting waste reduction and
high-quality separation by consumers;
·        
incentivising
separation, collection systems that minimise the costs of recycling, and reuse;
·        
facilitating the
clustering of activities to
prevent by-products from becoming wastes (industrial symbiosis); and
·        
encouraging wider and
better consumer choice through
renting, lending
or sharing services as an alternative to owning products, while
safeguarding consumer interests (in terms of costs, protection, information,
contract terms, insurance aspects, etc).
An
important starting-point is the design of production processes, products and
services. Products can be redesigned to be used longer, repaired, upgraded,
remanufactured or eventually recycled, instead of being thrown away. Production
processes can be based more on the reusability of products and raw materials,
and the restorative capacity of natural resources, while innovative business
models can create a new relationship between companies and consumers.
The
following conceptual diagram illustrates in a simplified way the main phases of
a circular economy model, with each of them presenting opportunities in terms
of reducing costs and dependence on natural resources, boosting growth and jobs,
as well as limiting waste and harmful emissions to the environment. The phases
are interlinked, as materials can be used in a cascading way, for instance,
industry exchanges by-products, products are refurbished or remanufactured, or
consumers choose product-service systems. The aim is to minimise the resources
escaping from the circle so that the system functions in an optimal way.
Some
EU policies and instruments already provide tools and incentives in line with
the circular economy model. The waste hierarchy that underlies our waste
legislation is leading progressively to adoption of the preferred options of waste
prevention, preparation for reuse and recycling, and discourages
landfilling. Chemicals policy aims at phasing out toxic substances of very high
concern. Some ecodesign measures for energy-related products include
requirements on durability and to facilitate recycling. The Bioeconomy Strategy[12] promotes the sustainable and integrated use of biological resources and waste streams for the production of food,
energy and bio-based products. Climate policy creates incentives to
save energy and reduce greenhouse gas emissions.
A
common and coherent EU framework for promoting the circular economy will help
bring such elements together with Horizon 2020 to address the research and
innovation challenge[13]. 
In order to support design and
innovation for a more circular economy, the Commission will:
- under the EU Research
and Innovation Programme (Horizon 2020), demonstrate the opportunities
for moving towards a circular economy at European level with large-scale
innovation projects targeted at cooperation within and between value chains,
fostering skills development and supporting the market application of innovative
solutions; 
- establish a reinforced partnership to support research and
innovative policies for the circular economy;

- facilitate the development of more circular
models for products and services, including through a more coherent product
policy, and further develop the application of the Ecodesign Directive by paying
further attention to resource efficiency criteria, including for the future
priority product groups in the 2015-2017 Work Plan; and
- encourage the cascading principle in
the sustainable use of biomass, taking into account all biomass using sectors
so that biomass can be utilised in a most resource
efficient way.
2.2.
Unlocking investment in circular economy solutions
The
EU and the Member States should encourage investment in circular economy
innovation and its take-up, and, against the background of the reform of the
financial system, address barriers to mobilise more private financing for resource
efficiency. Recent Commission proposals on non-financial reporting[14],
long-term financing[15] and occupational pension funds[16]
have integrated requirements to disclose relevant environmental information to
investors or consider investment risks related to the scarcity of resources and
climate change.
In
order to reduce the risk for investors, innovative financial instruments are
being developed, such as the Natural Capital Financing Facility of the
Commission and the European Investment Bank. Public private partnerships
(PPP) are also effective instruments for leveraging private action and
investment in resource efficiency. The Sustainable Process Industry through
Resource and Energy Efficiency (SPIRE) PPP and the Bio-Based Industries Joint Technology
Initiative are actively contributing to circular economy goals.
Policy
has a further role in providing the right signals for investment in
resource efficiency by eliminating environmentally harmful subsidies and
switching taxation
away from labour towards pollution and resources. Progress on
environmental tax reform in EU Member States is addressed within
the European Semester of economic policy coordination.
In order to unlock investment in
the circular economy, the Commission will:
- take up promising areas identified by
the Resource Efficiency Finance Roundtable[17] including innovative
financial instruments, reflecting resource issues in accounting rules for
companies, clarifying the sustainability responsibilities of financial
institutions (fiduciary duties), developing methodologies for ‘resource
stress tests’ for
companies, and exploring the potential of the bonds market to channel
additional finance for resource efficiency projects;
- prepare guidance on the possibilities
offered by the new public procurement directives in the field of Green Public
Procurement (GPP), and a recommendation on monitoring Member States’ performance
in achieving the indicative 50 % GPP target[18],
support
innovative instruments, such as pre-commercial procurement and public procurement
for innovation, and facilitate the establishment of GPP networks among
public authorities; and
- further integrate circular economy
priorities into EU funding and encourage Member States to use available EU funding in programmes and
projects on the circular economy, in particular through the European Structural
and Investment Funds.
2.3. Harnessing
action by business and consumers and supporting SMEs
Business
and consumers remain the key actors in the transition to a more circular
economy. Upstream
and downstream decisions in the value chain need to be better connected, providing
coherent incentives between producers, investors, distributors, consumers and
recyclers, and ensuring a fair distribution of costs and benefits. Market
mechanisms need to be employed to ensure the most efficient allocation and use
of resources, and where there are market failures or innovation bottlenecks,
these must be addressed. Functioning secondary materials markets need to be
developed. Particular attention should be paid to enabling entrepreneurs to tap
into potential new markets linked to circular economy, and to ensuring that the
necessary skills base is available in the labour market. Consumers should be empowered to make informed choices through better information on green credentials of different products.
The
European Resource Efficiency Platform has identified[19]
significant opportunities for business at different stages in the ‘loop’
feeding materials back into the production process or various segments of the
supply chain of origin or in other supply chains. These are based on experience
of successful initiatives that could be scaled up and applied more widely, and include:
·        
in
the production phase, sustainable sourcing standards, voluntary schemes led by
industry and retailers, and industrial symbiosis to provide markets for
by-products;
·        
in
the distribution phase, improving information on the resources contained in
products and how they can be repaired or recycled, referred to in the recommendations
of the Platform as a ‘product passport’; and
·        
in
the consumption phase, collaborative consumption models based on lending, swapping,
bartering and renting products, and product service systems to
get more value out of underutilised assets or resources (e.g. cars, tools,
lodging).
The
Environmental Footprint pilot phase set out in the Commission’s Building
the Single Market for Green Products Communication[20]
is bringing stakeholders together to develop
a common, agreed way for measuring the environmental impact of products and organisations.
After the pilot phase, the Commission will assess whether these methods are
successful so that they can be applied in existing or new instruments to
improve environmental performance of products.
Such
measures should be scaled up to ensure good framework conditions and a level
playing‑field for existing and new businesses to adapt to global resource
megatrends, to reward the best companies, to encourage new entrepreneurs to
develop the business solutions of tomorrow, to test them on the market and to
provide credible information to consumers. The multi-stakeholder process
launched in the context of the European Consumer Agenda[21]
has highlighted the need for effective tools against misleading and
unfounded environmental claims.
The
labour force has to be equipped with the relevant skills in order to ensure an
effective, job-rich transition[22]. The Green Employment Communication[23]
creates the framework for unlocking the job creation opportunities of a more
circular and resource-efficient economy. National, regional and
local authorities and social partners also have an important role in developing
targeted and coordinated support in the form of investment, infrastructure,
technology and skills, in particular focusing on the needs of SMEs. They are
also well positioned to facilitate a shift of consumer choice to more sustainable
products and services, and encourage behavioural change.
To support action by business, in
particular SMEs and consumers, the Commission will:
- build on the results of the Environmental
Footprint pilot phase running until 2016 and set out how to apply the use of
environmental impact measurement in product and process design and in providing
consumers with better information on environmentally sustainable choices;
- trigger broad stakeholder cooperation
through coordination and support action under Horizon 2020 and its instruments,
including the European Institute of Innovation
and Technology, the European
Structural and Investment Funds, the Eco-innovation Action Plan, the Green Action
Plan for SMEs, and the European Consumer Agenda;
- build on the Raw Materials European
Innovation Partnership stakeholder commitments that are directly linked to
resource productivity; 
- support job creation and skills development through
enhanced policy coordination, directing European funding to programmes and
schemes that support green growth, improving information and monitoring,
including through the European Semester process, and working with social
partners, education and training institutions and
other stakeholders; and
- support best practices exchanges at the international level.
3.     Modernising
waste policy and targets: waste as a resource
Turning
waste into a resource is part of ‘closing the loop’ in
circular economy systems. The objectives and targets set in European
legislation have been crucial drivers of improved waste management; they stimulate
innovation in recycling and reuse, limit landfilling, reduce losses of
resources and create incentives for behavioural change. But in the EU we still
generate about five tonnes of waste per person per year on average, and little
more than a third of that is effectively recycled.
The
European Union has set out its political commitment[24]
to reduce waste generation, to recycle waste into a major, reliable source of
raw materials for the Union, to recover energy only from non-recyclable
materials and to virtually eliminate landfilling. Taking waste policy further
will bring significant benefits for growth and job creation at relatively low
or no cost, while contributing to a better environment. With respect to global
markets, an ambitious waste policy is expected to drive innovation and help
make EU companies even more competitive in the provision of waste management
services and offer new market opportunities to EU exporters.
3.1.
Defining waste targets for a move to a recycling society
Europe has
made substantial progress in turning waste into a resource and promoting sustainable
ways of waste management such as recycling. However, performance varies considerably
between Member States. Six have already effectively eliminated the landfilling
of municipal waste, reducing it from 90 % to less than 5 % in the past 20 years and reaching recycling
rates of 85 % in certain
regions. In others over 90 % of
waste is still landfilled and less than 5 % is recycled.
Strong
policy signals are needed to create longer-term predictability for investment
and change so that materials, such as plastics,
glass, metals, paper, wood, rubber and other recyclables, re-enter the economy
as secondary raw materials at competitive prices. Setting clear recycling
targets for the period to 2030 will provide such predictability. Separate
collection at source along with sound methodologies to calculate recycling
rates will ensure high quality recycling and contribute to the development of
markets for the supply of high quality secondary raw materials. To that effect, the existing measurement method to assess
what is actually recycled should be clarified as some Member States currently report
waste collected as waste recycled despite significant material loss between
these phases. Landfilling
of all recyclable waste shall be prevented by
2025.
Member States should endeavour to virtually eliminate landfill by 2030. Energy
recovery, including waste-to-energy recovery and
use of bio-fuels, will have a role to play with respect to non‑reusable and
non-recyclable waste. This will require more efficient use of the unevenly spread
energy recovery capacity currently available in the EU, together with measures
to avoid overcapacity.
Successful
implementation can create more than 180 000 direct jobs in the EU by 2030, in
addition to the estimated 400 000 jobs that will be created by the
implementation of the waste legislation in force[25].
It will lead to satisfying between 10 and 40% of the raw material demand in the
EU, while contributing to achieving the 2030 EU target to reduce greenhouse gas
emissions by 40% – 62 Mt
of CO2eq per year would be avoided in 2030. 
In order to boost the economic,
social and environmental benefits gained from the better management of
municipal waste, the Commission proposes to:
- boost reuse and recycling of
municipal waste to a minimum of 70% by 2030;
- increase the recycling rate for
packaging waste to 80% by 2030, with interim targets of 60% by 2020 and 70% by
2025, including targets for specific materials;
- ban the landfilling of
recyclable plastics, metals, glass, paper and cardboard, and biodegradable
waste by 2025, while Member States should endeavour to virtually eliminate
landfill by 2030[26];
- further promote the development
of markets for high quality secondary raw materials, including through
evaluating the added value of end-of-waste criteria for specific materials; and
- clarify the calculation method
for recycled materials in order to ensure a high recycling quality level.
3.2.
Delivering simplification and better implementation of waste legislation
Targets
leave flexibility to Member States to decide how to achieve them. However, there
is significant potential to further simplify and improve the implementation of
waste legislation at national level and to reduce the current disparities.
In
2012, the Commission developed a Waste Management Scoreboard and roadmaps with
specific recommendations for the Member States with the weakest performance. It
will continue to focus particular attention on the Member States with the
largest distance to the targets, seeking to address, in partnership with them, implementation
weaknesses at an early stage. 
Economic
measures have proved instrumental in improving national waste management, in
particular through landfill and incineration taxes, pay-as-you-throw and
extended producer responsibility schemes, or incentives for local authorities
to promote prevention, reuse and recycling. Landfill bans have also proved
effective. Setting minimum requirements for producer responsibility schemes at
EU level will help cut costs and eliminate barriers faced by producers having
to respect several national schemes in the EU. 
European
funds can support Member States’ efforts focusing
on integrated waste management including separate collection, reuse and
recycling infrastructure. Landfilling or stand‑alone incineration should not be
supported in future.
Making
the best use of available waste management capacity in the EU would require
better planning and information-sharing and may involve tolerating more
shipments of waste within the EU towards the most modern and efficient installations,
at least as a transitional measure.
There
is scope for further streamlining and facilitating national‑level data
collection and reporting, and increasing the reliability of data and its
consistency across the EU. Adopting common indicators will facilitate better
monitoring and benchmarking of Member States’ performance[27].
Actions
to further simplify the waste acquis and ensure effectiveness and efficiency
will build on efforts undertaken already to cut the administrative costs of
waste policy, for example, through exemptions from requirements for take-back
for certain SMEs or efforts to put in place mandatory electronic data
interchange for waste shipments.
To ensure that the benefits from
EU legislation are delivered via simplification and better implementation, the
Commission proposes to:
- address overlaps amongst waste targets
and align definitions;
- significantly simplify
reporting obligations for Member States, including clarifying and streamlining calculation
methods for municipal, landfill and packaging waste targets;
- allow Member States to exempt SMEs
or undertakings collecting and/or transporting very small quantities of
non-hazardous waste, from the general permit or registration
requirements under the Waste Framework Directive;
- introduce annual
reporting through a single entry point for all waste data and
make waste statistics consistent with the requirements of EU waste legislation,
while
benchmarking national methodologies against statistical standards;
- require the development of computerised
data monitoring systems and third‑party data verification in
Member States;
- establish an early warning
mechanism to ensure that Member States put in place an appropriate set of
measures to meet targets on time;
- lay down minimum operating
conditions for extended producer responsibility schemes that could be further
developed at national level or in EU guidance documents, and promote the use of
economic instruments in Member States; and
- promote direct investment in
waste management options at the top of the waste hierarchy (prevention, re-use,
recycling).
3.3.
Tackling specific waste challenges
Tailor-made
approaches are needed to address particular waste challenges related to
significant loss of resources or environmental impacts. 
Waste
prevention:
As a first priority affecting all the phases in a circular economy, it should
be ensured that less waste is generated. Waste prevention
programmes have recently been adopted by the Member States, as required by the
Waste Framework Directive, and are currently reviewed by the European
Environment Agency. Following their assessment, the Commission will develop
initiatives promoting good practices in waste prevention in the EU.
Marine
litter: Marine
litter pollutes beaches, causes harm to marine life and creates a long‑term
waste problem which is expensive to clean up. The 7th EAP calls for a
Union-wide quantitative headline reduction target supported by source-based
measures.
Full
implementation of the measures in the revised EU waste legislation package could
deliver marine litter reductions of 13 %
by 2020 and 27 % by
2030. Setting a dedicated reduction target for 2020 would give a clear signal
to Member States currently developing measures to achieve ‘good
environmental status’ for marine waters by the 2020 deadline
under the Marine Strategy Framework Directive, and would provide an impetus for
the development of marine litter action plans within the four Regional Sea
Conventions. Other EU-level measures, incorporating inter alia the results of
the ongoing evaluation of the Port Reception Facilities Directive[28], will also contribute to the
achievement of the target. A second stage of the reduction target will be
developed in due time, based on further analysis of the reduction potential
from other land- and sea-based sources, and taking into account the commitment
made at Rio+20 to achieve significant marine litter reductions by 2025.
Construction
and demolition waste: Markets for recycled materials are
essential to increasing the recycling rate of construction and demolition waste.
Design for better management of construction and demolition waste, and increasing
recyclability and recycled content in construction materials, will be included
in a framework for the assessment of the environmental performance of
buildings, as outlined in the Commission’s Communication on Resource Efficiency
Opportunities in the Building Sector[29].
Furthermore,
under the proposed early warning mechanism, Member States’
performance will be monitored against the target of 70 % recycling by
2020, with measures including increased landfill charges for construction and
demolition waste, or additional sorting obligations on major demolition sites
to improve the quality of recyclates.
Food
waste:
It has been estimated that up to 30% of all food produced around the world is
lost or wasted. The Commission is considering presenting specific proposals to
reduce food waste.
Hazardous
waste: Proper
management of hazardous waste remains a challenge, with data on the actual
treatment path missing for part of this waste stream. As a first step, record‑keeping
and traceability will be strengthened through the setting‑up of hazardous waste
registries and identifying capacities and bottlenecks in Member States’ hazardous
waste management systems. These registries might be progressively expanded to
other types of waste like it is already the case in several Member States.
Plastic
waste: Plastic
production in the EU is expected to increase at a rate of 5 % annually. While
only 24 % of
plastic waste is recycled, close to 50 %
is landfilled, and the rest is incinerated. The public consultation on plastic
waste carried out by the Commission in 2013[30] pointed to significant
potential for using plastic more sustainably and showed strong support for eliminating
the landfilling of plastics and for the better design of plastics and plastic
products. The Commission’s recent
proposal allowing Member States to restrict the use of plastic bags[31],
and the proposals in this Communication for increased recycling and abandoning
landfilling are important steps to improve plastic waste management.
Recycling
of critical raw materials: While all raw materials are important,
critical raw materials deserve particular attention as their production worldwide
is concentrated in few countries, while many of them have low substitutability
and low recycling rates. The Commission promotes efficient use
and recycling of critical raw materials in the framework of the Raw Materials
Initiative[32] and the European Innovation
Partnership on Raw Materials.
Illegal
waste shipments: The Commission will step up action to ensure
compliance with relevant EU legislation, in particular Regulation (EC) No
1013/2006 on shipments of waste as recently amended in order to reinforce waste
shipment inspections.
Recycling
of phosphorus: Phosphorus is a vital resource for food production, but
it has significant security of supply risks and its current use involves waste
and losses at every stage of its lifecycle. Following the Consultative
Communication on the sustainable use of phosphorus[33],
the Commission is developing a framework for further action.
To address specific waste
challenges the Commission:
- proposes an aspirational target of
reducing marine litter by 30 %
by 2020 for the ten most common types of litter found on beaches, as well as
for fishing gear found at sea, with the list adapted to each of the four marine
regions in the EU;
- envisages measures to
stimulate markets in recycled materials derived from construction and
demolition waste and develop a common EU assessment framework for the
environmental performance of buildings;
- proposes that Member States develop
national food‑waste prevention strategies and endeavour to ensure that food
waste in the manufacturing, retail/distribution, food service/hospitality
sectors and households is reduced by at least 30 % by 2025;
- envisages developing a proper registry
system for at least hazardous waste in all Member States;
- further to its proposal to reduce the
use of lightweight plastic bags, proposes that plastics be banned from
landfill by 2025; 
- proposes that Member States shall
include measures regarding collection and recycling of waste containing
significant amounts of critical raw materials in their national waste
management plans; and
- is considering developing a policy
framework on phosphorus to enhance its recycling, foster innovation,
improve market conditions and mainstream its sustainable use in EU legislation
on fertilisers, food, water and waste.
4.      Setting
a resource
efficiency target
In
the 7th EAP, Member States and the European Parliament agreed that the European
Union should establish indicators and set targets for resource efficiency, and
assess whether it would be appropriate to include a lead indicator and target
in the European Semester. Following wide consultations, resource productivity,
as measured by GDP relative to Raw Material Consumption (RMC), has been
identified as
a
candidate
for
a resource productivity target[34].
A
realistic target to increase resource productivity, endorsed by the EU and its Member States, would focus political attention and tap the currently overlooked potential
of a circular economy to create sustainable growth and jobs and increase the
coherence of EU policy. It would be a proportionate way to ensure this
coherence and encourage action. 
The
EU is already forecast to increase its resource productivity by 15 % between 2014
and 2030 under a business as usual scenario. Using smart policies to promote
the transition to a more circular economy, as called for by the European
Resource Efficiency Platform, it would be possible to double this rate. While
contributing significantly to the sustainability dimension of growth, increasing
resource productivity by 30% would also have a positive impact on job creation and
growth of GDP[35]. 
Industry
would benefit from this improvement in resource productivity through enhanced
competitiveness[36]. Resource costs can make up a
significant part of their cost structure, and they need available and
predictable supplies[37]. There would be both immediate
financial gains, and longer term strategic benefits, as growing global demand
drives up resource prices and volatility. Becoming more resource efficient will
therefore help Europe meet its reindustrialisation objective.
A
resource productivity target, while not binding and set at the level of the EU,
would provide an impetus for those Member States that do not already have a
target at national level to develop measures that take account of resource use.
It would lead to more balanced measures, that consider the wider economic,
social and environmental consequences and fill this gap. 
Member
States would be free to undertake the balance of policies and actions that are
most economically and environmentally advantageous in line with wider policy
objectives. In doing so, they would benefit from a range of already proven -
but not widely deployed - good practice that they could adopt and tailor to
their own needs and circumstances. The review
of the Europe 2020 strategy is currently underway[38]
supported by public consultation to gather all views on its development. The
Commission therefore considers that any decision on setting a resource
productivity headline target should be taken in the review, after taking into
account the results of public consultation together with recommendations of the
European Resource Efficiency Platform.
To
ensure that policy makers are aware of the overall picture of resource
pressures on the environment, other indicators, in particular for water use and
finite land resources, need to be taken into account. Eurostat has published a
Resource Efficiency Scoreboard since 2013 as part of the Europe 2020 indicators[39].
This is designed to monitor implementation of the Roadmap to a Resource Efficient
Europe, communicate the link between resources and engage stakeholders
further in the process of measuring societal progress beyond GDP.
In order to tap the potential of
resource efficiency in the context of sustainable growth:
- the Commission will take the
recommendations of the European Resource Efficiency Platform on a
headline target for resource efficiency into account
together
with outcomes
of the
public
consultation in the ongoing review of the Europe 2020 Strategy;
- in parallel, the Resource
Efficiency Scoreboard used to monitor indicators of the use of resources other
than carbon and materials (in particular land and water) will be developed
further; and
- national statistical offices
should work to establish a commonly accepted methodology within the European
Statistical System in order to calculate raw material consumption at national
level.
[1]     COM(2010) 2020,
COM(2011) 21.
[2]     Macroeconomic
modelling
of sustainable development and the links between the economy and the
environment.(2011), Meyer, B. et al.
[3]     Guide
to resource efficiency in manufacturing: Experiences from improving resource
efficiency in manufacturing companies (2012), Europe INNOVA.
[4]      Towards
the Circular Economy: Economic and business rationale for an accelerated
transition (2012), Ellen MacArthur Foundation.
[5]     http://ec.europa.eu/environment/resource_efficiency/re_platform/index_en.htm.
[6]     COM(2011) 571.
[7]     OJ L 354, 28.12.2013, p.
171–200.
[8]     Modelling the Economic
and Environmental Impacts of Change in Raw Material Consumption (2014), Cambridge Econometrics et al.
[9]     COM(2014)
446.
[10]    COM(2014)
440. 
[11]    The opportunities to
business of improving resource efficiency (2013), AMEC et al.
[12]    COM(2012) 60.
[13]    See the annex to this
Communication.
[14]    COM(2013) 207.
[15]    COM(2014) 168.
[16]    COM(2014) 167.
[17]    MEMO/13/110.
[18]    COM/2008/400.
[19]    http://ec.europa.eu/environment/resource_efficiency/documents/erep_manifesto_and_policy_recommendations_31-03-2014.pdf. 
[20]    COM(2013) 196 and
Commission Recommendation 2013/179/EU.
[21]    COM (2012) 225. 
[22]    COM (2012) 173.
[23]    COM (2014) 446.
[24]    7th EAP.
[25]    SWD(2014)
207.
[26]    A certain proportion of
‘residual’ waste is non-recoverable and may therefore be landfilled, since no
alternative treatment option is currently available. This would be limited to a
maximum of 5 %.
[27]    For instance, four
calculation methods are allowed for the recycling target on municipal waste.
Depending on the method chosen, the results might be quite different (around 20 %).
[28]    Directive 2000/59/EC.
[29]    COM(2014)
445.
[30]    COM(2013) 123.
[31]    COM(2013) 761.
[32]    COM(2011) 25.
[33]    COM(2013) 517.
[34]    RMC is an aggregate indicator
measuring (in tonnes) all the material resources used in the economy, while
taking into account the resource use embedded in imports. Currently it is
available for the EU and some Member States. Countries for which RMC is not yet
available can use Domestic Material Consumption in the meantime.
[35]    SWD (2014) 211.
[36]    Stakeholders
preferred RMC as a measure of resource use because it captures the resource use
embedded in both imported and domestically produced products, and so allows for
a fair comparison of their respective resource efficiency. 
[37]    Recent
studies on the steel and aluminium sectors show that raw materials make up
around 30 to 40 per cent of their cost structures, larger than for example
labour costs. 
[38]    COM(2014)
130 of 19.3.2014; Taking stock of the Europe 2020 Strategy for smart,
sustainable  and inclusive growth.
[39]    http://epp.eurostat.ec.europa.eu/portal/page/portal/europe_2020_indicators/ree_scoreboard.
Annex: How can Horizon 2020
contribute to the circular economy?
Circular
economy represents a development strategy that entails economic growth without
increasing consumption of resources, deeply transform production chains and
consumption habits and redesign industrial systems at the system level. It
relies on innovation being it technological, social and organisational. It
requires a new portfolio skills and knowledge as well as new financial
instruments, multistakeholders’ involvement. In terms of actions, it may be
supported by demonstration, market uptake, awareness, dissemination and
internationalisation. 
In
terms of content, it requires a strong integration across the Industrial
Leadership (part II) and Societal Challenges (Part III) parts of Horizon 2020.
Since circular economy considers the whole value chain potential, it requires
support from all stages of the research and innovation chain. Therefore
contribution from the other parts of Horizon 2020 dealing with Excellent
Science (part I), Spreading Excellence and Widening Participation (part IV),
Science with and for the Society (part V), Non-nuclear direct action of the
Joint Research Centre (part VI) and the European Institute of Innovation and
Technology (part VII) will be also needed to a certain extent. The contribution
of various Horizon 2020 parts to the circular economy are summarised below. To
note that the SPIRE PPP and JTI BBI are supported by Horizon 2020 and that they
contribute strongly to the goals of circular economy.
   ||   ||   || HORIZON 2020 
   ||   ||   || Excellent Science || Industrial Leadership || Societal Challenges || Spreading excellence and widening participation || Science with and for Society || European Institute of  Innovation & Technology || Joint Research Centre 
   ||   ||   || European Research Council || Future and Emerging Technologies || Marie Sklodowska-Curie actions || Research infrastructures || Leadership in enabling and industrial technologies || Access to risk finance || Innovation in SMEs || Health, demographic change and wellbeing || Food security, sustainable agriculture and forestry, marine and maritime and inland water research || Secure, clean and efficient energy || Smart, green and integrated transport || Climate action, environment, resource efficiency and raw materials || Europe in a changing world – inclusive, innovative and reflective societies || Secure societies - Protecting freedom and security of Europe and its citizens 
 CIRCULAR ECONOMY - COMPONENTS || Technological innovation || Design of materials and processes || ++ || ++ ||   || ++ || ++ ||   || + ||   || + || + ||   || + ||   ||   ||   ||   ||   ||   
 Design of products || ++ ||   ||   ||   || + ||   || + ||   || + ||   ||   || + ||   ||   ||   || + ||   || + 
 Resource management (waste, water, energy and raw materials) ||   || + ||   || ++ || + ||   || + ||   || ++ || + ||   || ++ ||   ||   ||   || ++ ||   || ++ 
 Social innovation || New production and consumption models ||   ||   ||   ||   ||   ||   ||   || + || ++ || + ||   || ++ || + ||   ||   || ++ ||   || + 
 Citizens' involvement ||   ||   ||   ||   ||   ||   ||   ||   || + ||   ||   || + ||   ||   ||   || ++ ||   ||   
 Product service models ||   ||   ||   ||   ||   ||   || + ||   || + ||   ||   || ++ ||   ||   ||   || + ||   ||   
 Design services ||   ||   ||   ||   ||   ||   || + ||   || + ||   ||   || + ||   ||   ||   ||   ||   ||   
 Organisational innovation || Integrated solutions and systems ||   || + ||   ||   || + ||   || + ||   || ++ || ++ || ++ || ++ ||   ||   ||   || + ||   ||   
 Logistics ||   ||   ||   ||   ||   ||   ||   ||   || ++ ||   || ++ || + ||   ||   ||   ||   ||   ||   
 Business models || ++ ||   ||   ||   ||   ||   || + ||   || ++ ||   ||   || ++ ||   ||   ||   || + ||   || + 
 Policy supporting tools ||   ||   ||   ||   ||   ||   ||   ||   || ++ ||   ||   || ++ || + ||   ||   || ++ ||   || ++ 
 Skills and knowledge || Entrepreneurship ||   ||   || + ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   || + ||   
 Capacity-building and multi-disciplinarity ||   ||   || + ||   ||   ||   ||   ||   || + ||   ||   ||   ||   ||   || + || + || + ||   
 Financial instruments ||   ||   ||   ||   ||   || ++ || + ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Awareness, dissemination and internationalisation ||   ||   ||   ||   ||   ||   ||   ||   || + ||   ||   || + ||   ||   ||   || ++ ||   ||   
 Multi stakeholder involvement ||   ||   ||   ||   || + ||   ||   ||   || + ||   || + || ++ ||   ||   ||   || ++ ||   ||   
 Demonstration and market uptake actions ||   ||   ||   ||   || ++ ||   ||   ||   || + ||   || + || ++ ||   ||   ||   || + ||   ||   
+
Important contribution
++ Very strong contribution