COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Accelerating Europe’s transition to a circular economy: a pilot for boosting the circularity of plastics
Date: 2025-12-23
Institutions: Directorate-General for Environment, European Commission
Subjects: circular economy, competitiveness, environmental impact, environmental protection, innovation, plastics, pollution control measures, storage of waste, waste, waste recycling

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 23.12.2025  COM(2025) 805 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Accelerating Europe’s transition to a circular economy: a pilot for boosting the circularity of plastics  
 
 
Accelerating Europe’s transition to a circular economy: a pilot for boosting the 
circularity of plastics 

1.  Introduction  

The  circular  economy  is  a  key  enabler  for  Europe’s  environment  and  climate 
ambitions and is essential to its economic security, resilience and competitiveness. As 
highlighted  in  the  Draghi  Report,  boosting  circularity  across  key  sectors  could  unlock 
enormous  value  —  enhance  resource  efficiency,  reduce  dependency  on  raw-material 
imports, and strengthen the EU’s industrial base. Every tonne of raw materials we save, 
and  every  product  or  material  we  re-use  or  recycle,  strengthens  Europe’s  economic 
resilience, enhances industrial competitiveness, and reduces emissions and environmental 
impacts. Evidence of this strategic potential is clear: deploying circular solutions across 
Europe’s energy-intensive sectors could, by 2050, increase EU’s trade surplus by 4%, cut 
lifecycle  greenhouse  gas  emissions  associated  with  the  energy  intensive  sectors’ 
production by an equivalent of 200 Mt CO2 by 2050, strongly reducing also emissions in 
the incineration sector, and significantly reducing our demand for metal ores, electricity 
and fossil fuels (1). The circular economy also represents a major business opportunity 
for the EU (2). Circular-economy sectors already generate around EUR 316 billion in gross 
value added annually and invest approximately EUR 131 billion (3) and employ 4.3 million 
people, with strong growth potential towards 2030. 

Yet, despite these opportunities, progress towards a truly circular economy remains too 
slow. The EU is still far from achieving its ambition to double Europe’s circularity rate to 
24% by 2030: from 2010 to 2024, the share of recycled materials in the economy increased 
only slightly from 10.7% to 12.2% (4). Without stronger and more coordinated action, the 
objectives of the Competitiveness Compass, the Clean Industrial Deal and RESourceEU 
cannot be fully realised.  

To accelerate progress, the Commission will propose a Circular Economy Act in 2026 
to address structural barriers, create a Single Market for waste and secondary raw 
materials, and foster demand for circular products, services and solutions. Each material 
stream faces specific barriers that must be addressed through tailored measures. We need 
coordinated action at local, national and EU levels to remove those barriers and unleash 
the full potential of the circular economy.   

However,  pressures  on  certain  sectors  are  already  acute.  This  communication  therefore 
presents a first pilot towards the Circular Economy Act, focusing on short term measures 
to  support  circularity  in  the  plastics  sector.  These  measures  represent  a  concrete  step 
towards a more integrated market for plastics, aim to ensure that European recyclers can 

(1)   JRC (2025). Capturing the Potential of the Circular Economy Transition in Energy-Intensive Industries. 
The four energy intensive industries studied in this report are steel, aluminium, cement and plastics. The 
assessment  is  based  on  life  cycle  emissions  of  products  produced  by  these  sectors,  thus  including 
emissions upstream and downstream from the energy intensive sectors themselves, including avoided 
incineration emissions at end of life.  

(2)  For example, the European remanufacturing market is projected to grow from its current value of EUR 

31 billion to EUR 100 billion by 2030, creating 500 000 new jobs. 

(3)   Source: Eurostat (online data codes: cei_cie012, cei_cie011). 
(4)  Source: Eurostat (online data code cei_srm030). 

 
 
 
 
 
play their role in scaling up recycling under conditions of regulatory certainty and a level 
playing field, and seek to stimulate innovation and investment. 

Our actions are complementary to the Commission’s recent Bioeconomy Strategy and to 
RESourceEU,  which  together  contribute  to  strengthening  circularity,  resilience  and 
competitiveness across key value chains.  

Securing a competitive circular plastics sector in the EU 

Plastics are crucial for many sectors: packaging, construction, automotive, electronics, 
healthcare and more. The use of plastics in a broad range of products has brought economic 
benefits but has also led to significant waste generation: of the approximately 58 million 
tonnes  produced  in  the  EU,  only  half  is  collected  and  sorted,  and  only  around  13%  is 
recycled into new plastics (5). Losses and littering occurring along the plastics value chain, 
together  with  shortcomings  in  waste  management,  continue  to  constrain  the  untapped 
potential  of  plastics  by  diverting  material  flows  that  could  otherwise  be  effectively 
collected, managed and recycled.4 

thereby  contributing  significantly 

The circular economy represents a major opportunity for the plastics sector. Circular 
solutions could reduce emissions across the plastics value chain by around 80 Mt of CO₂ 
the  EU’s 
equivalent  sector’s  energy  use, 
environmental objectives. Circular solutions could also improve the sector’s trade balance 
by  EUR  18  billion  per  year  by  2050 (6).  Recent  legislative  measures,  such  as  the 
Packaging  and  Packaging  Waste  Regulation  and  the  Single  Use  Plastics  Directive, 
will  contribute  to  significantly  strengthen  demand  and  support  the  business  case  for 
circularity  in  the  plastics  sector  going  forward.  In  addition,  following  the  provisional 
agreement, the Commission calls on the co-legislators to finalise as soon as possible the 
legislative  process  for  the  adoption  of  the  proposal  for  a  Regulation  on  circularity 
requirement for vehicle design and on management of end-of-life vehicles which, notably 
through  the new targets on the inclusion of recycled plastic in new vehicles, will further 
accelerate demand for European recycled plastics.  

to 

However,  at  this  very  moment  the  plastic  recycling  industry  is  facing  significant 
challenges  which  risk  undermining  its  ability  to  leverage  the  expected  increase  in 
demand for recycling and circular plastics. The recycling sector is facing high energy 
costs, low and unpredictable prices for virgin plastic (linked to oil prices) and competition 
from imports of cheap plastics (often virgin plastics wrongly claimed to be recycled) driven 
by  overcapacity  in  other  regions  and  by  lack  of  demand  for  recycled  plastics.  These 
pressures have resulted in reduced capacity utilisation, significant financial losses and, in 
some cases, bankruptcies among EU plastics recyclers. While the EU’s installed plastics 
recycling capacity reached 13.2 million tonnes in 2023, following growth rates of 17% in 
2021 and 10% 2022, growth slowed to 6% in 2023 and is expected to turn into a net 
decrease of around one million tonnes capacity by the end of 2025.  This is an amount 
equivalent to the recycling capacity of France. This capacity reduction poses challenges 
not  only  from  an  environmental  compliance  perspective,  but  also  for  industrial 
competitiveness, economic growth and job retention.  It is particularly concerning at a time 
when the EU will need to process its own rapidly growing volume of plastic waste due to 
the entry into force of the ban on EU plastic waste export to non-OECD countries under 
the EU waste shipment rules.  

(5) JRC Publications Repository - Plastics materials flows in the EU-27 and their environmental impacts 
(6) JRC (2025). Capturing the Potential of the Circular Economy Transition in Energy-Intensive Industries. 

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To reverse this trend, urgent action is needed at EU and Member State level to facilitate 
recycling  and  the  uptake  of  recycled  materials  and  promote  innovation,  including  in 
recyclable  bio-based plastics (7). Against this background,  the EU  is advancing a set  of 
concrete short-term measures to address key barriers, notably market fragmentation, unfair 
competition and the broader need to ensure a level playing field across the sector within 
the single market.   

Overcoming market fragmentation 

The absence of Union-wide harmonised and predictable rules for the free movement of 
recycled plastics has led to a fragmented market. This fragmentation is further aggravated 
by  weak  demand  for  recycled  materials,  driven  by  concerns  over  quality  and  safety 
including the precedence of legacy substances and by the lack of a genuinely integrated 
Single Market for recycled plastics.  

The measures presented today will contribute to a more integrated market for plastics.  

First, the Commission presents an implementing act under the Waste Framework Directive 
to  create  a  single  market  for  recycled  plastics  through  Union-wide  end-of-waste 
criteria  for  mechanically  recycled  plastics,  thereby  creating  the  conditions  for  a 
Single Market for plastic waste. Once adopted, the new rules will allow recycled plastics 
to no longer be classified as waste and to circulate more easily across all 27 Member States 
subject  to  harmonised  criteria  applicable  throughout  the  Union.  These  measures  aim  to 
facilitate the use of recycled plastics in manufacturing, reduce administrative burden for 
recyclers, notably for SMEs, and support a more stable supply of high-quality recyclates 
across  the  Union.  According  to  industry  estimates,  the  absence  of  Union-wide  end-of-
waste criteria for plastics results in additional costs of around EUR 120 million per year 
for  the  EU  plastics  recycling  sector  or  approximately  EUR 260 000  per  recycler  on 
average.  

Second, we aim to provide greater legal certainty for chemical recycling investments 
in the European Union by proposing the first-ever ‘mass balance allocation rules’. These 
rules  will  determine  the  share  of  chemical  recycling  outputs  that  can  count  towards 
recycled content objectives. This first set of rules concern the implementation of recycled 
content targets under the Single Use Plastics Directive, namely 25% recycled content in 
PET bottles by 2025 and 30% in all beverage bottles by 2030. Harmonised rules for the 
calculation, verification and reporting of chemically recycled plastic content under 
the  Single  Use  Plastics  Directive  (PET  bottles)  allow  for  chemical  recyclates  to  be 
counted  towards  the  targets  and  recognises  the  role  of  chemical  recycling  in 
complementing mechanical recycling within the circular plastics value chain. These rules 
will help unlock investment: the European plastics industry is planning investments of up 
to  8  billion  in  chemical  recycling  in  the  coming  years  but  has  called  for  a  conducive 
regulatory framework to ensure they succeed.  

(7) In line with the 2025 EU Bioeconomy Strategy.  

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Measures 

Set the rules for chemically recycled plastic content under the Single 
Use Plastics Directive (PET bottles) - transmission to Member States 
for vote 

Timeline 

Presented  with  this 
Communication 

Finalise  the  work  on  Union-wide end-of-waste  criteria  for  plastics 
with the launch of the public feedback process for the implementing act 
laying down Union-wide end-of-waste criteria for plastics  

Launched  with  this 
Communication 

Relaunching the Circular Plastics Alliance to identify shared priority actions  

The  Circular  Plastics Alliance  (CPA),  launched  in  December  2018  under  the  European 
Strategy  for  Plastics,  brings  together  key  industry  stakeholders  from  across  the  plastics 
value chain – from waste collectors to recyclers and primary producers to converters, brand 
owners  and  retailers.  Pursuant  to  the  pledge  to  achieve  10  million  tonnes  of  recycled 
plastics used in new products by 2025, the CPA has mobilised the plastics value chain and 
delivered  progress  across  several  critical  areas,  including  contributing  to  the  design  for 
recycling standardisation request and improving the monitoring of recycled plastics flows.   

To build on these results and further accelerate the competitive circularity of EU plastics 
while facing new challenges, closer cooperation between the Alliance, Member States and 
the Commission will be essential.  

Therefore, the Commission will re-launch and strengthen the Circular Plastics Alliance 
to  jointly  identify,  discuss  and  address  the  key  challenges  facing  the  European  plastics 
sector with industry stakeholders and Member States. The revamped Alliance will serve as 
a robust platform to address the unprecedented crisis in the sector.  

To  this  end,  the  Commission  will  propose  a  joint  workplan  for  the Alliance  for  2026, 
focusing on a set of urgent deliverables. In particular, the work of the CPA will support the 
structuring and prioritising of the work streams presented in the following section of this 
communication. This will include an industry-led analysis of the current situation of the 
plastics industry in the EU to identify the key challenges to be addressed, supported by the 
Commission and in compliance with competition rules (8). The analysis will among other 
things underpin the identification of priority areas for potential future trade investigations, 
when the necessary conditions are met. Other deliverables to be proposed to the Alliance 
will provide a basis for the prioritisation of market surveillance activities or the stimulation 
of market demand and the development of customs codes for recycled polymers.  

As  a  starting  point,  the  Commission  will  organise  a  high-level  dialogue  on  the 
competitive  circularity  of  plastics  to  prepare  the  ground  for  the  future  work  of  the 
Circular Plastics Alliance.  

Measures 

Re-launch  of  the  Circular  Plastics  Alliance,  agree  on  a  work 
programme  for  2026  and  organise  a  high-level  dialogue  on  the 
circularity of plastics involving Member States 

Timeline 

Q1 2026 

(8)  https://ec.europa.eu/docsroom/documents/44544 

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A fairer market  

Existing legally binding targets for recycled plastic content of products in the EU, from 
single-use  plastic  bottles  to  packaging,  ensure  increased  circularity  and  thereby  are 
creating a strong incentive for investments in the plastic value chain and contributing to 
better environmental protection. They create a business case for recycled plastics produced 
in  the  EU.  However,  experience  has  shown  that  earlier  efforts  to  create  a  market  for 
recycled  plastics  in  the  EU  have  also  encouraged  the  import  of  feedstock  and  finished 
products.  EU-based  plastic  recyclers  report  that  even  virgin  plastics  are  being  sold  as 
‘recycled’ in order to benefit from the pull effect of the EU’s targets, often at lower prices 
than EU-produced equivalents. There is thus an urgent need to ensure a level-playing field 
and avoid that EU recyclers and producers are being undercut by unfair trade competition.  

The  Commission  is  fully  committed  to  protecting  the  plastics  industry  from  unfair  and 
harmful import competition. The Commission conducts trade defence investigations where 
it receives evidence from any affected EU industry of injury suffered from dumped and/or 
subsidised  imports.  To  date,  the  Commission  has  already  imposed  6  trade  defence 
measures on products related to the plastics industry. Specifically on PET, we have anti-
dumping measures in place against China, and anti-subsidy duties on India, covering both 
recycled and virgin PET. Additional investigations are currently ongoing, covering a broad 
range of plastic-related products. 

In  addition,  the  Commission  will  monitor  imports  of  plastic  both  under  its  newly 
created Import Surveillance Task Force and through the dedicated monitoring system 
introduced in March 2025 for certain industrial chemicals. The Commission calls on EU 
producers and associations to review the results and provide further market intelligence 
and  data  on  the  economic  situation  facing  the  industry  that  will  help  the  Commission 
introduce protective measures where appropriate, notably with the backing of the Circular 
Plastics Alliance. The Commission stands ready to initiate trade defence investigations on 
the basis of well substantiated requests where harmful import surges are identified.  

The Commission will also take measures to help the uniform application and support 
enforcement by the customs and national market surveillance authorities to level the 
playing field between EU-made and imported plastics. The current customs codes do not 
differentiate virgin plastics from recycled products and are not detailed enough to properly 
monitor  imports  of  plastic  materials,  goods  and  waste.  This  significantly  hampers  the 
ability of authorities and market operators to distinguish imports of recycled materials from 
virgin plastics.   

For food contact materials, which include key market segments for recycled plastics such 
as  PET  bottles,  the  forthcoming  amendment  of  Commission  Regulation  (EU) 
2022/1616 on recycled plastic materials and articles intended for food contact, intends to   
introduce  stricter  compliance  documentation  requirements  for  recycled  plastics 
imported into the EU, that would, once adopted, provide a basis for the creation of specific 
customs codes for recyclates, to facilitate controls of imports. This amendment will provide 
legal  certainty  to  recyclers  and  producers  of  food  contact  materials  and  create  a  level 
playing field for domestically produced and imported materials.  

The Commission will also work towards creating separate customs codes for recycled 
polymers relevant for other sectors. This will improve the monitoring of such materials 
entering the Union and support customs authorities in verifying compliance with EU rules 
for  their  release  into  free  circulation.  Additional  actions  will  support  the  practical 
enforcement of EU rules for plastics imports, as part of the upcoming import control 

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mechanism.  The  introduction  of  stricter  compliance  documentation  requirements  in 
Commission  Regulation  (EU)  2022/1616  on  recycled  plastic  materials  and  articles 
intended for food contact will further guarantee the same level of compliance of recycled 
plastic for food contact imported to the EU or produced in the EU and create a level playing 
field  as  regards  imported  material.  The  Commission  will  conduct  audits  on  the 
enforcement  of  recycling  installations  operating  outside  the EU  and  support  control 
laboratories in the deployment of new analytical methods to verify whether consignments 
declared as recycled PET are indeed recycled from plastic waste (9). A TAIEX-EIR PEER 
2 PEER tool will be deployed to train the competent custom control laboratories.  

These import measures will complement the new regime which will start to apply in 2026 
for  the  export  of  plastic  waste.  From  November  2026,  exports  of  plastic  waste  to  non-
OECD  countries  will  be  banned  in  order  to  prevent  the  export  of  plastic  pollution  to 
countries  more  likely  to  face  environmental  and  human  health  risks  related  to  waste 
management. In parallel, the Commission will monitor the export of plastic waste to OECD 
countries,  and  will  assess,  in  line  with  the Waste  Shipment  Regulation,  by  Q2  of  2026 
whether such waste is managed sustainably, with particular attention to OECD countries 
importing significant volumes of plastic waste from the Union.  

Measures 

Amendment  of  Regulation  (EU)  2022/1616  on  recycled  plastics  for 
food contact. 

Launching the request to create separate custom codes based on the 
amendment  of  Regulation  2022/1616  and  work  towards  creating 
additional separate customs codes for other recycled polymers.  

Timeline 

Q2 2026 

Q2 2026 

Carry out dedicated audits for food contact materials including PET 

2026 

Support control laboratories and organise a TAIEX seminar to enable 
the national market surveillance authorities fulfil their control function 

Q1 2026 

Assessment to determine the need for additional measures to ensure a 
level playing field for the EU plastics value chain  

Throughout 2026 

2.  Boosting investment and innovation 

Investment is key to accelerate the circular economy. The Commission together with 
the European Investment Bank estimate the  annual investment gap in the EU for the 
circular economy at EUR 82 billion. Currently, around 7% of financing for the circular 
economy  comes  from  the  public  sector.  While  the  proposed  multi-annual  financial 
framework  provides  important  tools  to  boost  investments,  including  under  the  National 
and  Regional  Partnership  Plans,  the  bulk  of  financing  will  need  to  come  from  private 
sources. To this end, all tools to leverage private investment need to be deployed, including, 
where necessary, incentives or complements to public funds. Key value chains requiring 
significant  additional  investment  compared  to  current  levels  are  construction  (EUR  18 

(9)  For instance, the National Technical Center for Plastics and Composites Industries, tasked and financed 
by  the  French  Ministry  of  Economy,  developed  a  protocol  to  distinguish  virgin  from  recycled  PET 
(DISTINGO); a LIFE grant could be sought by stakeholders or a consortium of laboratories to roll out 
such protocols to the EU customs laboratories and to develop such analytics for other polymers. 

6 

 
  
 
 
 
billion/year), vehicles and batteries  (EUR  10 billion/year),  electronics and ICT (EUR  5 
billion/year), and textiles (EUR 5 billion/year).  

To  boost  investment,  innovation,  and  circularity,  the  Commission  will  develop  a  pilot 
under the Competitiveness Coordination Tool focused on Trans-Regional Circularity 
Hubs.  In  line  with  the  Clean  Industrial  Deal,  the  pilot  aims  to  strengthen  EU’s 
competitiveness and resilience while supporting environmental objectives. It will leverage 
synergies  and  economies  of  scale  in  recycling  and  other  circular  technologies  and 
practices, reinforcing the business case for circularity by bringing together manufacturers, 
recyclers and waste operators across strategic value chains. By securing the availability of 
supply  of  secondary  raw  materials  within  the  EU,  the  pilot  will  support  strategic 
downstream industries, reduce dependencies on third countries and contribute to the EU’s 
strategic autonomy. Implementation will combine regulatory measures with investments 
in industrial capacity that individual Member States may find challenging to deliver alone. 
Coordinated  action  is  essential  to  provide  investor  confidence  and  enhance  the  EU’s 
competitiveness in advancing the circular economy, including in sectors that rely on large-
scale infrastructure and stable long-term market signals. The pilot will draw on existing 
industry and inter-regional (10) partnerships, mobilise public and private funding and build 
on existing EU and national legislation. It is also designed to complement the forthcoming 
Circular Economy Act once adopted. 

The Joint Initiative on Circular Economy (JICE) launched by the European Investment 
Bank  and  several  national  promotional  banks (11)  in  2019  has  accelerated  financing  of 
circular economy projects by investing more than EUR 16 billion between 2019 and 2024. 
Building on this success and in light of the forthcoming efforts required to advance the 
Union’s circular transition, the Commission will cooperate with the European Investment 
Bank and other JICE members to promote a Team Europe approach in to further accelerate 
the transition to a circular economy. In addition, as expressed in the EIB Group Climate 
Bank Roadmap Phase 2 (2026-2030), the EIB will in 2026 reinforce its commitment to the 
Circular  Economy  by  introducing  a  dedicated  Circular  Economy  Orientation.  More 
broadly, the EIB Group will step up its support to the circular economy, as a key driver of 
efficiency, security and growth and a core element of Europe’s industrial and agricultural 
policy.  

To bridge the investment gap, increased investment at national and regional level is also 
indispensable. The Commission calls on Member States to make full use of the existing 
possibilities  offered,  including  by  the  Clean  Industrial  Deal  State Aid  Framework,  the 
Guidelines  on  State  aid  for  climate,  environmental  protection  and  energy  and  the  EU 
General  Block  Exemption  Regulation.  The  new  Framework  for  State Aid  measures  to 
support  the  Clean  Industrial  Deal  provides  possibilities  for  Member  States  to  further 
incentivise  private  investments  by  de-risking  portfolios  of  projects  related  to  Clean 
Industrial Deal objectives, including circular economy projects. 

To better identify investment gaps and opportunities, the Commission will launch a 
study  aimed  to  develop  targeted  macro-economic  and  macro-financial  indicators 
demonstrating how the circular transition contributes to EU growth and competitiveness. 

(10)  See  for  instance,  the  Thematic  Smart  Specialisation  Platforms  for  Industrial  Modernisation  on 

Chemicals or Efficient and Sustainable Manufacturing. 

(11)  Currently including: Bank Gospodarstwa Krajowego (BGK — Poland), Caisse des Dépôts Group (CDC 
— France), including Bpifrance, the French national investment bank, Cassa Depositi e Prestiti (CDP 
— Italy), Instituto de Crédito Oficial (ICO — Spain), KfW (Germany) and InvestNL (Netherlands). 

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This  work  will  be  aligned  with  ongoing  developments  in  environmental-economic 
accounting, particularly the integration of circular economy metrics within the System of 
Environmental-Economic Accounting (SEEA). The results of this work  will  inform the 
Commission’s monitoring efforts and bring together all relevant EU and international data 
providers  and  partners,  including  the  European  Environment  Agency,  the  European 
Investment Bank, and the OECD, alongside industry, academics and civil society. 

Through Horizon Europe, the Commission supports research and innovation to advance 
plastics circularity. Between 2021 and 2024, EUR 115 million were dedicated to improving 
plastics  circularity,  delivering  innovative  solutions  such  as  novel  circular  food  plastic 
packaging, removal of hazardous substances from post-consumer plastic waste, and new 
bio-based plastics for different applications. Innovation is stimulated in most major value 
chains of the plastics sectors, i.e. packaging, construction products and transportation. The 
most  promising  solutions  will  accelerate  the  EU’s  transition  to  a  circular  economy  and 
benefit  from  stronger  synergies  with  both  public  and  private  financing  to  support  their 
scale-up.    In  addition  to  these  R&I  initiatives,  the  Innovation  Fund  will  continue 
supporting the market deployment of highly innovative solutions. Plastic projects have so 
far been awarded around EUR 300 million under relevant calls for proposals, significantly 
improving the circularity of plastic products.  

Finally, the proposal for a Regulation on Accelerating and Streamlining Environmental 
Assessments (12), adopted this month, will harmonise, simplify and accelerate permitting 
procedures for a range of strategic sectors, including projects related to waste prevention, 
separate collection, re-use, preparing for re-use, and recycling. This reform will enhance 
regulatory  predictability  and  thereby  facilitate  investment  in  high-quality  recycling  and 
circularity infrastructure. 

These measures complement additional investment and innovation support stemming from 
the  clean 
the  future  European 
Competitiveness Fund, including circular economy, and additional investment initiatives 
such as the new European Research Area Platform action (13). 

transition  and  decarbonisation  window  under 

Measures 

Timeline 

Develop a pilot under the Competitiveness Coordination Tool 
focused on Trans-Regional Circularity Hubs.  

Q1 2026 

Launching a study to better address targeted macro-economic and 
macro-financial  indicators  to  showcase  the  contribution  of  the 
circular economy to EU growth and competitiveness 

Q1 2026 

3.  Europe’s circular moment 

Today’s  package  is  a  crucial  step  in  that  direction  building  on  the  important  legacy  of 
existing EU actions supporting plastics circularity. It represents the first set of mutually 
reinforcing circular economy initiatives to be rolled out in 2025 and 2026.  

The Circular  Economy Act will  create the single market  for  waste  and  secondary  raw 
materials, tackle existing barriers, increase the supply of high quality European recyclates, 

(12)  See 6f650a70-c4f5-4c79-a8dc-6efaff290494_en 

(13)  https://european-research-area.ec.europa.eu/era-actions-2025-2027  

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and  stimulate  demand  for  secondary  materials  and  circular  products.  Crucially,  these 
efforts will be reinforced by existing policies, including the ongoing implementation of the 
EU Ecolabel Regulation and of the Ecodesign for Sustainable Product Regulation and 
its  first  working  plan.  Supported  by  Digital  Product  Passports,  these  measures  will 
boost  transparency,  reduce  dependencies  on  imported  raw  materials  and  help  European 
companies to scale circular business models across a harmonised Single Market.  

The  transition  to  a  circular  economy  is  indispensable  for  the  EU’s  economic  security, 
competitiveness, resilience and decarbonisation. Europe now has a unique opportunity 
to lead the global circular transition. 

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