REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS on the implementation of the Circular Economy Action Plan
Date: 2019-03-04
Institutions: Directorate-General for Environment, European Commission
Subjects: circular economy, consumer information, industrial policy, innovation, investment, plastics, prevention of pollution, waste, waste disposal, waste recycling

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 4.3.2019  COM(2019) 190 final  REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS on the implementation of the Circular Economy Action Plan     {SWD(2019) 90 final}  
 
 
1 

INTRODUCTION  

In December 2015, the Commission adopted a Circular Economy Action Plan1 to give a new 
boost to jobs, growth and investment and to develop a carbon neutral, resource-efficient and 
competitive economy. The 54 actions under the action plan have now been completed or are 
being implemented, even if work on some will continue beyond 2019.  
The  EU  Monitoring  Framework  for  the  Circular  Economy2  shows  that  the  transition  has 
helped  put  the  EU  back  on  a  path  of  job  creation.  In  2016,  sectors  relevant  to  the  circular 
economy  employed  more  than  four  million  workers3,  a  6%  increase  compared  to  2012. 
Additional  jobs  are  bound  to  be  created  in  the  coming  years  in  order  to  meet  the  expected 
demand generated by fully functioning markets for secondary raw materials4. 

Circularity has also opened up new business opportunities, given rise to new business models 
and developed new markets, domestically and outside the EU. In 2016, circular activities such 
as repair, reuse or recycling generated almost €147 billion in value added while standing for 
around €17.5 billion worth of investments5.  

In Europe, recycling of  municipal waste during the period 2008-2016 has increased and the 
contribution  of  recycled  materials  to  the  overall  materials  demand  shows  continuous 
improvement. However, on average, recycled materials only meet less than 12 % of the EU 
demand  for  materials6.  This  is  echoed  by  a  recent  stakeholder  report  suggesting  that  full 
circularity  would  apply  to  only  9%7  of  the  world  economy,  leaving  vast  areas  for 
improvement. 

The  EU  Monitoring  Framework  for  the  Circular  Economy  presented  by  the 
Commission  in  2018  includes  10  key  indicators  covering  each  phase  of  the  lifecycle  of 
products  as  well  as  competitiveness  aspects.  All  indicators  are  regularly  updated  and 
available on a dedicated website8.  

Some Member States have developed additional national circular economy indicators, thus 
complementing  the  overview  provided  by  the  EU  framework.  The  European  Parliament9, 
the  Council10  and  the  European  Economic  Social  Committee11  have  also  highlighted  the 
role played by other indicators in capturing missing aspects of the circular economy, such 
as evaluating material flows in industrial symbiosis and accounting for natural capital.    

The  action  plan  promoted  for  the  first  time  a  systemic  approach  across  entire  value  chains. 
With  it,  the  Commission  has  mainstreamed  circular  principles  into  plastic  production  and 
consumption,  water  management,  food  systems  and  the  management  of  specific  waste 
streams.  This  was  made  possible  by  strong  support  and  engagement  of  Member  States,  the 

1  COM (2015) 614 
2  COM (2018) 29 final  
3  https://ec.europa.eu/eurostat/tgm/refreshTableAction.do?tab=table&plugin=1&pcode=cei_cie010&language=en 
4  European Commission, Impacts of circular economy policies on the labour market, April 2018 
5  https://ec.europa.eu/eurostat/tgm/refreshTableAction.do?tab=table&plugin=1&pcode=cei_cie010&language=en  
6  https://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=cei_srm030&plugin=1  
7  Circle Economy, The Circularity Gap Report, January 2018 
8  https://ec.europa.eu/eurostat/web/circular-economy 
9  Question for oral answer O-000087/2018 
10 10447/18  – Council Conclusions Delivering on the EU Circular Economy Action Plan 
11 NAT/722-EESC-2018-00464  

1 

 
 
                                                           
European Parliament, the business community and citizens. It has also contributed to moving 
towards the achievement of the 2030 Agenda for Sustainable Development12. 

This  report  presents  the  main  results  of  implementing  the  action  plan.  It  also  sketches  out 
future challenges to shaping our economy and continuing to create a competitive advantage, 
paving the way towards a climate-neutral economy where pressure on natural and freshwater 
resources as well as ecosystems is minimised. The report comes in response to a request of the 
Council13 for "an annual written update on the progress made on the implementation of the 
action plan", a request also echoed by the European Parliament14. A full state of play of the 
action  plan  implementation  is  presented  in  an  accompanying  Staff  Working  Document 
(SWD)15. 

2  BUILDING A CIRCULAR ECONOMY  

2.1  Circular Design and Production Processes 

Design  stands  at  the  beginning  of  products’  lifecycle  and  is  essential  for  ensuring 
circularity.  With  the  implementation  of  the  Ecodesign  Working  Plan  2016-201916,  the 
Commission  has  further  promoted  the  circular  design  of  products,  together  with  energy 
efficiency objectives. 

  Ecodesign and Energy Labelling measures for several products now include rules on 
material  efficiency  requirements  such  as  availability  of  spare  parts,  ease  of  repair, 
and facilitating end-of-life treatment  

  The Commission has tasked the European Standardisation Organisations17 with 
developing  horizontal  criteria  to  measure  durability,  reusability,  reparability, 
recyclability and the presence of critical raw materials. These criteria should be 
applied in existing and new standards. 

Products  and  services  designed  in  a  circular  way  can  minimise  resource  use  and  foster 
materials’  reuse,  recovery  and  recyclability  down  the  road.  Various  EU  policies  already 
address resource efficiency: beyond the Ecodesign directive and Energy-labelling regulation, 
these  policies  also  include  voluntary  tools,  such  as  the  EU  Ecolabel  or  Green  Public 
Procurement  criteria.  The  SWD  on  product-related  policies18,  published  together  with  this 
report,  examines  options  to  better  articulate  the  various  existing  product  policy  tools  at  EU 
level and their contribution to the circular economy. This includes consideration of expanding 
the Ecodesign policy, which has been successful for energy-related products, to non-energy-
related product groups, and to further support the repair sector in the EU. The document also 
analyses  possible  opportunities  in  additional  sectors,  for  instance  packaging,  textiles  and 
furniture. Work is ongoing to review the essential requirements for packaging, which will aim 
at improving design for re-use and high-quality recycling of packaging. 

12E.g. SDGs 2 (promoting water reuse and organic fertilisers, facilitating food donation), 3 (addressing microplastics), 8 and 
9 (boosting innovation, jobs and added value), 12 (supporting waste prevention and responsible management of waste and 
chemicals, addressing food waste and supporting Green Public Procurement), 13 (potential of material efficiency to reduce 
CO2 emissions)  14 (decisive actions to fight marine litter) 

13  10518/16  Closing  the  loop  -  An  EU  action  plan  for  the  Circular  Economy;    15159/17  Eco-innovation:  enabling  the 

transition towards a circular economy; 10447/18 - Delivering on the EU Circular Economy Action Plan 

14 http://www.europarl.europa.eu/cmsdata/103519/06%2007%20-%20Coordinators%20Results.pdf 
15 SWD(2019) 90 
16 COM(2016) 773 final 
17 Twelve generic standards are expected by March 2020 
18 SWD(2019) 91 

2 

 
 
                                                           
Circularity  also  means  adapting  industrial  processes.  The  Commission  has  introduced 
circularity  aspects  (energy  consumption  and  material  use,  waste  prevention,  recycling  and 
reduction  of  hazardous  chemicals)  in  specific  Best  Available  Techniques  Reference 
Documents (BREFs)19 under the Industrial Emissions directive20, turning them into reference 
standards  for  Member  States  when  granting  permits  for  industrial  plants.  In  addition,  the 
result  of  the  fitness  check  of  the  Environmental  Management  and  Audit  Scheme  (EMAS) 
confirmed its potential to improve organisations’ environmental performance. 

Small and Medium-Sized Enterprises (SMEs) are at the core of the transition. They can access 
the  advice  of  the  Enterprise  Europe  Network21  and  the  European  Resource-Efficiency 
Knowledge  Centre22  to  improve  their  resource  efficiency  and  production  processes.  In 
addition,  the  Commission  has  established  a  dedicated  pan-European  network  for  innovative 
advanced manufacturing technologies and is developing a knowledge base for the substitution 
of hazardous substances of concern. SMEs also benefit from the Environmental Technology 
Verification pilot programme, a programme for technology developers to prove performance 
claims on innovative technologies and gain credibility on new markets. 

2.2  Empowering Consumers 

The transition towards a more circular economy requires an active engagement of citizens in 
changing consumption patterns. To this end, the accompanying document on product-related 
policies elaborates on a strategic approach to increase the effectiveness of the EU Ecolabel to 
offer consumers accurate environmental information, in line with the recommendations of the 
fitness  check23.  It  also  presents  a  detailed  evaluation  of  the  Environmental  Footprint  pilot 
phase.  

The  Product  Environmental  Footprint  (PEF)  and  Organisation  Environmental  Footprint 
(OEF) methods developed by the Commission can enable companies to make environmental 
claims  that  are  reliable,  reproducible  and  comparable.  The  methods  allow  the 
identification of environmental hotspots and support companies in greening their supply chain 
and  in,  becoming  more  sustainable  and  circular.  Consumers  will  also  be  able  to  make 
informed choices based on reliable information. 
About 300 companies  from  27 different  sectors24  and more than 2,000 stakeholders  worked 
for 5 years to test these methods that they consider a best practice in Life Cycle Assessment. 

Information  on  products’  durability  and  reparability25  can  also  shift  purchasing  decisions 
towards  more  sustainable  choices.  Building  on  the  positive  experience  acquired  under  the 
Energy-Labelling  regulation,  the  Commission  is  developing  a  scoring  system  on  product 
reparability.  In  addition,  to  protect  consumers  against  defective  products,  the  proposal26  on 
certain aspects concerning contracts for sales of goods, currently undergoing final steps in the 

19  Common  Waste  Water  and  Waste  Gas  Treatment  /  Management  systems   in  the  chemical  sector  (6/2016),  Intensive 
Rearing  of  Poultry  or  Pigs  (7/2017),  Large  Combustion  Plants  (7/2017),  Production  of  Large  Volume  Organic  Chemicals 
(12/2017) and  Waste Treatment (8/2018)  
20 Directive 2010/75/EU 
21 https://een.ec.europa.eu/ 
22 www.resource-efficient.eu 
23 COM (2017) 355 final 
24 Representing about 2/3 of the European market on a consumption basis 
25 European Commission, Behavioural Study on Consumers’ Engagement in the Circular Economy, October 2018 
26 COM (2017) 637 final - 2015/0288 (COD) Political agreement reached on 29 January 2019 http://europa.eu/rapid/press-
release_STATEMENT-19-742_en.htm 

3 

 
 
                                                           
legislative  process,  extends  the  reversal  of  the  burden  of  proof  period,  which  will  help 
consumers to apply their legal guarantee of rights27.  

Furthermore, the Commission has proposed to reinforce the protection of consumers against 
false  environmental  claims  and  premature  obsolescence  practices28 
through  better 
opportunities for individual and collective redress against unfair commercial practices29. This 
complements  the  information  provided  in  the  revised  guidance  to  apply  and  implement  the 
Unfair Commercial Practices Directive30.  

To  reap  public  authorities'  potential  to  boost  markets  for  circular  products  and  services,  the 
Commission  has  adopted  new  and  revised  EU  Green  Public  Procurement  criteria  including 
circular  economy  aspects  and  has  promoted  their  uptake  through  guidance  documents31  and 
training  sessions.  The  Commission  is  leading  by  example  in  its  own  procurement.  The 
Commission  services  in  Brussels  used  green  public  procurement  criteria  in  93%  of  all  their 
contracts greater than 60.000 EUR.32   

2.3  Turning Waste into Resources 

Sound and efficient waste management systems  are an essential building block of a circular 
economy.  To  modernise  waste  management  systems  in  the  Union  and  to  consolidate  the 
European  model  as  one  of  the  most  effective  in  the  world,  a  revised  waste  legislative 
framework33 entered into force in July 2018. This includes: 

  new ambitious yet realistic recycling rates34  

  simplification and harmonisation of definitions and calculation methods and clarified 

legal status for recycled materials and by-products;  

 

reinforced  rules  and  new  obligations  on  separate  collection  (bio-waste,  textiles  and 
hazardous waste produced by households, construction and demolition waste); 

  minimum requirements for Extended Producer Responsibility; 

  strengthened waste prevention and waste management measures, including for marine 

litter, food waste, and products containing critical raw materials; 

The  Commission  is  supporting  and  engaging  with  Member  States  in  the  implementation  of 
the  waste  legislation35  to  increase  visibility  and  understanding  of  circular  economy 
opportunities  in  those  Member  States  that  have  the  biggest  challenges  in  meeting  their 
recycling  targets.  Through  targeted  country  visits  led  by  Commissioners,  experts  from 

27The initial proposal presented in December 2015 and amended in 2017 to extend its scope to offline sales.  
28Further knowledge on the nature of premature obsolescence practices as well as on how to address them will be gathered 

through a four-year Horizon 2020 independent testing programme running until 2023.   

29Revision  of  the  Consumer  Protection  Cooperation  Regulation  and  the  legislative  proposals  under  the  New  Deal  for 

Consumers   

30Directive 2005/29/EC  
31 http://ec.europa.eu/environment/gpp/pubs_en.htm  
32 http://ec.europa.eu/environment/emas/pdf/other/2018%2012%2007_ES%202018_Consolidated%20Volume.pdf  
33OJ, 14.6.2018, L 150, p 93, 100, 109,141 Directive 2008/98/EC on waste, Directive 1999/31/EC on the landfill of waste, 
Directive  94/62/EC  on  packaging  and  packaging  waste,  Directive  2000/53/EC  on  end-of  life  vehicles,  Directive 
2006/66/EC on batteries and accumulators and waste batteries and accumulators, Directive 2012/19/EU on waste electrical 
and electronic equipment (WEEE) 

34The  revised  waste  legislation  requires  that  by  2030,  70%  of  all  packaging  waste  and,  by  2035,  65%  of  municipal  waste 
should be recycled, while reducing landfilling of municipal waste  to 10%. A 5-year time extension is granted to Greece, 
Croatia, Cyprus, Latvia, Lithuania, Hungary, Malta, Romania, Slovakia and Bulgaria. 

35 Early warning report COM (2018)656 final 

4 

 
 
                                                           
different Member States will share experiences and advise on how to reach best the objectives 
of the waste policies.  

The  Commission  has  clarified  the  relation  and  relevance  of  different  waste-to-energy 
processes36 with a view to avoiding unnecessary loss of valuable resources through landfilling 
and incineration. Furthermore, Members States have been encouraged to identify energy and 
material  efficient  recovery  technologies,  to  make  better  use  of  economic  instruments  and 
improve planning to avoid incineration overcapacity. 

Environmentally sound management of waste, inside and outside the EU, is key to achieve a 
more  circular  economy.  Waste  operators  and  custom  officials  have  benefitted  from  greater 
clarity brought into the EU Customs Code37 to identify waste streams more easily. Improved 
interchange  of  electronic  data  has  also  contributed  to  better  enforcement  of  the  Waste 
Shipment Regulation38.  Finally, proposed obligations to separately collect waste from ships 
visiting EU ports facilitate better waste management39.  

2.4  Closing Loops of Recovered Materials 

The new Fertilising Products regulation40, undergoing final steps of the legislative process, 
introduces  harmonised  rules  for  organic  fertilisers  manufactured  from  secondary  raw 
materials such as agricultural by-products and recovered bio-waste. The new regulation: 

  will  substantially  reduce  significant  market  entry  barriers  for  more  sustainable  and 

 

 

circular products; 
includes new limits  on hazardous substances for  all fertilisers, including from virgin 
raw  materials,  lowering  the  risk  of  material  cycles  containing  dangerous  levels  of 
certain toxic elements; 
includes  end-of-waste  criteria,  thereby  contributing  to  the  smooth  functioning  of  the 
interface between chemicals, products and waste legislation and giving investors more 
legal certainty. 

Boosting the use of secondary raw materials (SRMs) is one of the objectives of the circular 
economy action plan. It requires understanding the key challenges faced by market operators 
and  should  rely  on  a  strong  and  effective  Single  Market41.  The  Raw  Materials  Information 
System42  launched  in  2017  identifies  knowledge  needs  for  strategic  industrial  sectors,  with 
focus on the monitoring of recycling of relevant materials and the availability of data in key 
sectors43.  
The  Communication  on  the  interface  between  chemicals,  product  and  waste  legislation44 
launched a wide debate on the way to tackle four main obstacles impeding the safe uptake of 
SRMs.  A preliminary analysis of the results of the consultation45 confirms general agreement 

36 COM(2017) 34 final, the role of waste-to-energy in the circular economy 
37 Regulation 952/2013 
38 Regulation 1013/2006 
39COM  (2018)  033    -  2018/012  (COD),  political  agreement  reached  on  12  December  2018,  http://europa.eu/rapid/press-
release_IP-18-6867_en.htm 
40  COM(2016)  157,  2016/0084  (COD)  political  agreement  reached  on  12  December  2018,    http://europa.eu/rapid/press-

release_IP-18-6161_en.htm 

41 COM(2018) 772 
42 http://rmis.jrc.ec.europa.eu/ 
43 http://rmis.jrc.ec.europa.eu/?page=contributions-of-h2020-projects-236032 
44 COM(2018) 32 
45  The  public  consultation  ended  in  October  2018  and  received  460  responses.  A  synopsis  report  on  its  results  will  be 

delivered in 2019 

5 

 
 
                                                           
among  stakeholders  on  the  relevance  of  the  issues  identified.  It  shows  strong  support  for 
improving substance traceability and information flows; better enforcement and use of other 
measures  to  ensure  a  level  playing  field  between  EU  and  non-EU  operators;  improved 
harmonisation  and  mutual  recognition  of  end-of-waste  criteria;  and  support  for  reinforcing 
circular  economy  aspects  in  instruments  such  as  the  Ecodesign  directive.  In  addition,  three 
studies  on  different  aspects  of  the  interface  have  been  launched  and  will  deliver  further 
relevant information in 2019 and early 2020.  

Access  to  information  about  presence  and  composition  of  hazardous  substances  in  waste 
stream is key to improving dismantling and decontamination techniques, which facilitate the 
recovery  of  waste.  The  European  Chemical  Agency  is  setting  up  a  database  to  gather 
information  and  to  improve  knowledge  about  substances  of  concern  in  products  and  in 
products when they become waste. In addition, the EU platform ‘Information for Recyclers’46 
is  collecting  and  sharing  information  about  preparation  for  re-use  and  treatment  of  new 
equipment placed for the first time on the Union’s market.  

Information about the composition of waste can also be used to enable  efficient recovery of 
critical raw materials (CRMs). The Commission´s report on ‘Critical Raw Materials and the 
Circular  Economy’47  identifies  key  actions  necessary  to  tap  into  these  potential  benefits  – 
extraction  at  end-of-life  of  key  components,  improving  data  management  on  mining  waste 
and  mobilising  funding.  However,  the  report  also  showed  that  there  is  significant  room  to 
improve recycling and to ensure that CRMs remain in Europe.  

To  help  build  confidence  in  secondary  raw  materials,  the  Commission  together  with  the 
European Standardisation Organisations has initiated a standardisation process  and as a first 
step launched a  comprehensive analysis of related standardisation activities. Standardisation 
organisations  are  also  working  on  possible  standards  for  material-efficient  high-quality 
recycling of CRMs out of waste batteries, waste electrical and electronic equipment and other 
complex end-of-life products.  

The  action  plan  also  seeks  to  boost  the  market  for  reused  water,  in  order  to  tackle  water 
scarcity  across  the  EU.  The  Commission  proposed  dedicated  legislation  setting  minimum 
requirements  for  reused  water  for  agricultural  irrigation48.  In  addition,  practices  on  water 
reuse  are  integrated  into  water  planning  and  management49  or  in  the  review  of  the  relevant 
BREFs.  

2.5  A Systemic Approach: the EU Strategy for Plastics in a Circular Economy 

The EU Strategy for Plastics in a Circular Economy50 is the first EU-wide policy framework 
adopting  a  material-specific  lifecycle  approach  to  integrate  circular  design,  use,  reuse  and 
recycling activities into plastics value chains. As such, it is a catalyser for action. The strategy 
sets  out  a  clear  vision  with  quantified  objectives  at  EU  level,  so  that  inter  alia  by  2030  all 
plastic packaging placed on the EU market is reusable or recyclable. 

The  strategy  also  identifies  key  actions  enabling  multi-stakeholder  engagement  and 
collaboration  along  the  value  chain.  For  instance,  the  call  from  the  Commission  on 
stakeholders to make voluntary pledges triggered strong momentum in the industry to boost 

46 https://i4r-platform.eu/ 
47 SWD(2018) 36 final 
48 COM(2018) 337 final 2018/0169 (COD) 
49 http://ec.europa.eu/environment/water/pdf/Guidelines_on_water_reuse.pdf 
50 COM(2018) 28 

6 

 
 
                                                           
the  uptake  of  recycled  plastics  in  products.  However,  as  identified  in  the  accompanying 
document assessing these pledges51, more efforts are necessary to reach the objective set out 
in the strategy, namely to ensure that 10 million tonnes of recycled plastics find their way into 
new  products  by  2025.  While  pledges  received  from  suppliers  of  recycled  plastics,  if 
delivered as expected, meet this target, the demand for recycled plastics based on the industry 
pledges  amounts  to  approximately  6.2  million  tonnes  per  year  by  2025.  The  recently 
established Circular Plastics Alliance52  will facilitate next  steps by businesses to  bridge this 
mismatch  and  help  achieve  the  above-mentioned  target  in  line  with  the  objective  of  the 
strategy to improve the quality and economics of plastics recycling in Europe.  

Key milestones were already delivered to achieve higher quality recycling of plastics. These 
include  the  new  recycling  target  for  plastic  packaging,  set  at  55%  in  2030,  obligations  for 
separate  collection  and  improvements  in  Extended  Producer  Responsibility  (EPR)  schemes. 
The  latter  are  expected  to  facilitate  design  for  recyclability  through  ‘eco-modulation’  of 
producers’ fees. Future improvements will stem from the review of the essential requirements 
for packaging planned for the end of 2020. 

The  strategy  creates  synergies  between  economic  and  environmental  goals.  Evidence  of 
potential health and environmental risks of microplastic pollution justifies restricting the use 
of intentionally added microplastics and to  gather knowledge on measuring and labelling in 
the  case  of  microplastics  resulting  from  unintentional  release.  The  Commission  also 
committed  to  develop  a  framework  on  biodegradability  of  plastics,  to  ensure  that  the 
development and use of such plastic products is only encouraged, when it is beneficial to the 
environment  and  does  not  interfere  with  waste  management  systems  nor  compromise  food 
safety. Actions in this regard include providing information on how to handle them at the end-
of-life  stage  (e.g.  marking  of  home  compostable  plastic  carriers  bags).  Further  policy 
synergies  in  particular  in  combination  with  research  needs  are  also  explored  in  the  recently 
published report on circular economy of plastics53.  

The  strategy  spurs  change  beyond  Europe’s  border.  Building  on  exemplary  actions,  in 
particular  on  Single-Use  Plastics,  EU  leadership  in  bilateral  and  multilateral  fora  has  been 
instrumental to keep up the international momentum around the plastic agenda, as shown by 
initiatives  such  as  the  Global  Plastics  Platform  with  UN  Environment  and  the  upcoming 
International Partnership on Plastic Waste in the context of the Basel Convention. In parallel, 
the EU is supporting developing countries in their efforts to tackle plastic pollution.  

The  rules  on  Single-Use  Plastics  items  and  fishing  gear54,  addressing  the  ten  most  found 
items in EU beaches, port reception facilities and the Commission’s proposals on fisheries 
control55,    place  the  EU  at  the  forefront  of  the  global  fight  against  marine  litter,  one  of  the 
major concerns of EU citizens regarding plastic pollution. These rules offer opportunities for 
EU  companies  to  innovate  in  products,  materials,  technologies  and  business  models  taking 
into account consumers’ behaviour and available alternatives.  

51 SWD (2019) 92 
52 http://europa.eu/rapid/press-release_IP-18-6728_en.htm  
53https://ec.europa.eu/info/publications/circular-economy-plastics-insights-research-and-innovation-inform-policy-and-
funding-decisions_en 
54  COM(2018)  340  final  2018/0172  (COD),  A  preliminary  political  agreement  was  reached  on  19  December  2018: 
http://europa.eu/rapid/press-release_IP-18-6867_en.htm  
55 COM(2018) 368 final 2018/0193 (COD)  

7 

 
 
                                                           
These sets of tailored measures, undergoing final steps of the legislative procedure, include:  

  A ban of single use products made of plastic56 and of oxo-degradable plastic. 
  Measures to reduce consumption of food containers and beverage cups made of plastic 

and specific marking and labelling of certain products57. 

  A target to incorporate 30% of recycled plastic in beverage bottles as from 2030 and 
25%  for  PET  bottles  as  from  2025  as  well  as  a  90%  separate  collection  target  of 
plastic bottles by 2029 and the introduction of design requirements to connect caps to 
bottles. 

  EPR schemes covering the cost to clean-up litter, applied to products such as tobacco 

filters and fishing gear.  

  Measures aimed at reducing plastic litter from ships such as the establishment of a flat 

 

fee for waste from ships.  
Improved reporting obligations for lost fishing  gear  and obligations for  marking  and 
control of fishing gear for recreational fisheries.  

3  ACCELERATING THE TRANSITION  

3.1 

Innovation and Investments 

To accelerate the transition to a circular economy, it is necessary to invest58 in innovation and 
to  provide  support  for  adapting  the  industrial  base.  Over  the  2016-2020  period,  the 
Commission  has  stepped  up  efforts  in  both  directions  totalling  more  than  €10  billion  in 
public funding to the transition. This includes: 

  €1.4  billion  from  Horizon  2020  until  2018  (on  areas  such  as  sustainable  process 
industries, waste and resource management, closed loop manufacturing systems or the 
circular  bio-economy),  among  which  €  350  million  are  allocated  to  making  plastics 
circular. The Commission has published an inventory59 of the projects relevant to the 
circular economy funded under H2020 between 2016 and 2018. 

  At least €7.1 billion from Cohesion Policy (€1.8 billion for uptake of eco-innovative 
technologies among SMEs and €5.3 billion to support the implementation of the EU 
waste  legislation);  in  addition,  significant  support  is  available  through  smart 
specialisation for market-led innovation and deployment. 

  €2.1  billion  through  financing  facilities  such  as  the  European  Fund  for  Strategic 

Investments and Innovfin. 

  At least €100 million invested through LIFE in more than 80 projects contributing to a 

circular economy. 

To  stimulate  further  investments,  the  Circular  Economy  Finance  Support  Platform  has 
produced  recommendations60  to  improve  the  bankability  of  circular  economy  projects, 
coordinate  funding  activities  and  share  good  practices61.  The  platform  will  work  with  the 

56 Plastic cutlery, plates, beverage stirrers, balloon sticks, straws, food and beverage containers and cups for beverages made 
of expanded polystyrene, cotton bud sticks made of plastic.  
57 Sanitary items, wet wipes, cups for beverages and tobacco products with filters 
58 According to the report, Achieving Growth Within, (SYSTEMIQ in collaboration with the Ellen MacArthur Foundation), 
the investment gap is estimated at €320 billion by 2025.  
59 https://ec.europa.eu/research/environment/index.cfm?pg=output&pubs=thematic 
60 https://ec.europa.eu/info/publications/accelerating-transition-circular-economy_en 
61 http://ec.europa.eu/transparency/regexpert/index.cfm?do=groupDetail.groupDetail&groupID=3517  

8 

 
 
                                                           
European Investment Bank on providing financial assistance and exploiting synergies with the 
action plan on financing sustainable growth62.  

In addition to funding the transition, the Commission has also addressed regulatory obstacles 
that  may  hinder  circular  innovation  with  two  pilot  Innovation  Deals  launched  in  201663. 
Based  on  the  experience  of  these  two  pilots,  the  Commission  is  now  looking  at  testing  the 
approach in other sectors. 

Circularity  should  remain  a  pillar  of  the  Cohesion  Policy  over  the  2021-2027  programming 
period.  The  Commission’s  proposal  for  a  new  European  Regional  Development  Fund  and 
Cohesion Fund64 places the circular economy as a priority in EU’s efforts to achieve a greener 
and  smarter  Europe  and  excludes  investments  in  landfills  and  facilities  for  the  treatment  of 
residual waste, in line with the waste hierarchy. 

3.2 

 Strong Stakeholder Engagement  

Stakeholder engagement is vital for the transition. The systemic approach of the action plan 
has  given  public  authorities,  economic  actors  and  civil  society  a  framework  to  replicate  in 
order to foster partnerships across sectors and along value chains.  

EU  actions  have  inspired  national  debates  on  circular  economy  and  a  majority  of  Member 
States have adopted or are in the process of adopting national strategies for the transition to a 
circular economy. These frameworks are often replicated at regional and local level, bringing 
the  circular  economy  closer  to  citizens  and  businesses.  The  role  of  the  Commission  in 
promoting  this  systemic  approach  and  in  placing  the  circular  economy  in  European  and 
international  agendas  was  also  recognized  at  the  World  Economic  Forum  2019  where  the 
Commission received the Circulars award65 in the Public Sector Category.  

The  European  Circular  Economy  Stakeholder  Platform  brings  together  numerous  networks 
and  initiatives  on  the  circular  economy.  It  acts  as  a  multiplier  for  best  practices  from  the 
public  and  the  private  sectors.  In  its  first  year  of  activity66,  the  Platform  gathered  and 
disseminated more than 300 examples of best practices, strategies and reports. 

Stakeholders are driving the transition in different sectors. For example, industry engagement 
has  led  to  the  adoption  of  the  EU  Construction  and  Demolition  Waste  Protocol  and 
Guidelines67  with  the  final  objective  of  increasing  confidence  in  the  waste  management 
process  and  in  the  quality  of  recycled  materials  in  the  sector.  In  addition,  businesses  have 
committed to improving the resource performance of buildings and are testing Level(s)68, the 
first  framework  of  indicators  for  measuring  sustainability  in  the  sector,  in  more  than  130 
projects through Europe.   

Similarly,  key  players  from  the  public  and  private  sector  along  the  food  value  chain  are 
working  together  in  the  EU  Platform  on  Food  Losses  and  Food  Waste  to  accelerate  EU’s 
progress  towards the Sustainable Development  Goal  target  of halving per capita  food waste 

62 COM(2018) 97  
63 The  two  deals  cover  anaerobic  membrane  technology  for  reuse  of  wastewater  in  agriculture  and  the  reuse  of  end-of-life 
https://ec.europa.eu/info/research-and-innovation/law-and-

batteries 

storage. 

energy 

propulsion 
regulations/innovation-friendly-legislation/identifying-barriers_en 

stationary 

as 

64 COM(2018)372 final - 2018/0197 (COD) 
65 https://thecirculars.org/our-finalists  
66 https://circulareconomy.europa.eu/platform/sites/default/files/ecesp_annual_report_2018.pdf  
67 https://ec.europa.eu/growth/content/eu-construction-and-demolition-waste-protocol-0_en  
68 http://ec.europa.eu/environment/eussd/buildings.htm  

9 

 
 
                                                           
by  2030.  The  Platform  has  enabled  the  Commission  to  make  important  progress  in 
implementing food waste prevention actions, including guidelines to facilitate food donation, 
the  development  of  food  waste  measurement  methodology  and  the  improvement  of  date 
marking practices.  

Stakeholders are also exporting the transition outside Europe. European companies regularly 
engage  in  joint  circular  economy  missions69,  reinforcing  the  ties  between  European 
institutions, NGOs, companies and relevant stakeholders in third countries.  

4 

 OPEN CHALLENGES 

The circular economy is now an irreversible, global mega trend. Yet, much is still needed to 
scale  up  action  at  EU  level  and  globally,  fully  close  the  loop  and  reap  the  competitive 
advantage  it  brings  to  EU  businesses.  Interaction  with  stakeholders  suggests  that  areas  not 
covered by the action plan could be investigated to complete the circular agenda. 

Should the EU want to  maintain its leadership in designing and producing circular products 
and  services  and  in  better  empowering  consumers  to  adopt  more  sustainable  lifestyles,  new 
actions would be needed. As suggested in the Reflection Paper Towards a sustainable Europe 
by  203070,  the  circular  economy  should  be  made  a  backbone  of  the  EU  industrial  strategy, 
enabling  circularity  in  new  areas  and  sectors,  life-cycle  assessments  of  products  should 
become a norm and the eco-design framework should be broadened as much as possible. The 
work  started  on  chemicals,  the  non-toxic  environment,  eco-labelling  and  eco-innovation, 
critical  raw  materials  and  fertilisers  needs  to  be  accelerated  if  the  EU  want  to  reap  the  full 
benefit  of  a  transition  to  a  circular  economy.  Similarly  consumers  should  be  empowered  to 
make  informed  choices  and  efforts  should  be  enhanced  by  the  public  sector  through 
sustainable public procurement.  

With the support of the Commission, Member States – in particular in regions identified as at 
risk of missing the 2020 recycling targets or facing specific challenges71 ‒ and businesses will 
need to step up their efforts to implement the revised waste legislation and develop markets 
for  secondary  raw  materials.  The  objective  is  to  ensure  that  materials  going  back  into  the 
economy are cost-efficient and safe for citizens and the environment. 

The EU should  also  continue supporting research, innovation  and investment in  the priority 
sectors identified72 in the action plan. Building on the example of the European Strategy for 
Plastics  in  a  Circular  Economy,  many  other  sectors  with  high  environmental  impact  and 
potential  for  circularity  such  as  IT,  electronics,  mobility,  the  built  environment,  mining, 
furniture, food and drinks or textiles could benefit from a similar holistic approach to become 
circular.  In  none  of  them,  the  full  potential  of  the  EU’s  Single  Market  has  yet  been  tapped 
into73.   

69 Circular Economy Missions in Chile and China (2016), South Africa and Colombia (2017), Japan and Indonesia and India 

(2018) 

70 COM(2019)22  
71 To speed up the development of the circular economy, specific attention should also be devoted to regions with specific 
characteristics leading to considerable environmental and resource challenges, for example in the area of waste management, 
such as islands or EU outermost regions.  
72 Plastics, food waste, critical raw materials, construction and demolition and biomass and bio-based products 
73 COM(2018)772 

10 

 
 
                                                           
Implementing the recently updated Bioeconomy Strategy74 and the revised renewable energy 
framework75  will  be  further  steps  towards  using  biological  resources  in  a  circular  way, 
respecting the ecological boundaries and contributing to halting biodiversity loss.  

As stated in the strategic long-term vision for a prosperous, modern, competitive and climate-
neutral  economy by 205076,  the transition  towards a circular economy  and a climate-neutral 
economy should be pursued together, based on a strong industrial  ambition and  reaping the 
EU  businesses’  first-mover  advantage  in  these  areas77.  New  circular  business  models, 
recycling,  energy  and  material  efficiency  and  new  consumption  patterns  have  a  significant 
potential to cut global greenhouse gas emissions. Promoting this joint approach in companies 
–  including  SMEs  –  and  communities  can  at  the  same  time  reduce  production  costs  and 
support new forms of business interaction such as industrial symbiosis. In addition, circularity 
and  sustainability  in  the  sourcing,  use  and  treatment  of  raw  materials  (in  particular  critical 
ones)  will  be  key  to  ensure  the  necessary  security  of  supplies,  a  level  playing  field  with 
industrial competitors and the EU’s global leadership in the production of key enabling and 
low-carbon technologies.  
Artificial intelligence and digitalisation78 have the potential to optimise energy and resource 
use  and  make  information  available  in  support  of  circular  business  models  and  responsible 
consumption choices. However, a circular digital economy must have a positive net resource 
impact  and  address  substantial  challenges,  including  the  risk  of  fuelling  unsustainable 
consumption patterns, shortening durability of smart products and compromising security of 
sensitive business data.  

Above  all,  the  circular  economy  transition  reinforces  social  and  territorial  cohesion  and 
favours  a  balanced  distribution  of  jobs  meeting  health  and  safety  standards,  enabling 
generation of fair and sustainable growth.  

5  CONCLUSIONS 

Implementing  the  Circular  Economy  Action  Plan  has  accelerated  the  transition  towards  a 
circular  economy  in  Europe.  At  the  same  time,  a  stronger,  shared  vision  of  the  circular 
economy  can  only  boost  ongoing  efforts  to  modernise  the  EU  industrial  base  to  ensure  its 
global competitive edge and preserve and restore the EU’s natural capital.  

These elements and successful actions from the Action Plan as referred to in this report can 
help  and  guide  future  work  by  the  European  institutions,  Member  States,  businesses  and 
social partners. 

74 COM (2018) 673 final 
75 OJ,L328, 21.12.2018, p 82  Directive 2018/2001 on the promotion of the use of energy from renewable sources 
76 COM(2018) 773 final 
77 COM(2017) 479 final, investing in a smart, innovative and sustainable Industry A renewed EU Industrial Policy Strategy 
78 COM(2015) 192 final, A Digital Single Market Strategy for Europe 

11