Debate: New Circular Economy Action Plan
Date: MONDAY, 8 FEBRUARY 2021
Speaker: Virginijus Sinkevičius
Language: EN

The report is very clear. There is an urgent need to move away from a linear model towards a circular economy. There is no more time for hesitation. The circular economy is a cornerstone of our transition to a sustainable economy and society. It is also a tool to create much—needed jobs and strengthen social inclusion. It is a positive agenda that brings benefits to our citizens and provides a range of business opportunities. It’s a triple win: for people, for the planet and for prosperity. We need a circular economy to achieve climate neutrality. Recent studies show that half of greenhouse gas emissions and more than 90% of biodiversity loss and water stress at global level come from resource extraction and processing. This is worrying, in particular in the light of projections that material consumption may double in the next 40 years. Today, recycling accounts only for 12% of EU raw material imports and, if we don’t act now, waste generation will rise by 70% by 2050.  The Action Plan underlines the need to reduce our consumption footprint to bring it back within the planetary boundaries and to switch to an economic model that gives back to the planet more than it takes.  Your report strengthens the case for change. We already started the implementation of our plan last year with the Commission proposal for a new Batteries Regulation. This proposal is truly ground-breaking. It covers, for the first time, the full lifecycle of a product and proposes a new toolbox for sustainability.  This year, we will be rolling out the Sustainable Product Policy Framework, including the sustainable product policy legislative initiative, which will be presented at the end of the year. It will set requirements for products and lay out sustainability principles so that, among other things, products on the EU market last longer, are easier to repair and recycle and include recycled content.  This Sustainable Product Policy Framework aims at reducing waste generation and creating lead markets for sustainable materials and products. It will reward businesses aiming to be frontrunners or who are already leading with climate neutral technologies. As fossil energy represents a fifth of all the material we use, it should also be noted that energy efficiency is vital to contribute to the goals to reduce both the material and carbon footprint of products. The Commission will address, as a priority, certain key product value chains, such as textiles, electronics and packaging, to mention just some. Next to ensuring that products produced or sold on the EU market become circular and sustainable, we also plan to empower consumers to that end. In close interconnection and coordination with product policy, we will present a legislative proposal to strengthen consumer rights and information and to tackle green claims.  As regards end of life, a lot has already been done to improve recycling, but not all problems have been solved. We will work to prevent waste and to ensure that it is well managed. Our citizens are worried about harmful landfills, litter and microplastics, and about dumping waste in countries that cannot deal with it. The Commission will take action to ensure that the EU does not export its waste challenges to third countries. The review of the Waste Shipment Regulation will have a key role to play in improving the internal circulation of waste and restricting exports of waste that have harmful environmental and health impacts in third countries or can be treated domestically within the EU.  This brings me to the international dimension and global value chains. We are working together with the United Nations Environment Programme and the United Nations Industrial Development Organization to set up an alliance on the circular economy and resource efficiency. This alliance will provide global impetus for the circular economy transition and enable us to advance this agenda together with key economies. As your report clearly states, going circular is now more important than ever. If we want to leave this economic crisis behind, we need more circular economy, not less. We need the circular economy to deliver a future that is digital, inclusive and green. To do this, we have to bring economic and environmental policies together and mobilise unprecedented investments. Next Generation EU will help us to do so. This instrument responds to the economic slowdown and addresses the environmental crisis, while increasing the resilience of our businesses, our citizens, our value chains and our global partners. This is particularly true for the circular economy. The circular economy and the European Green Deal agenda will remain central in shaping the economic reconstruction and the future of a climate neutral and competitive Europe.  The recent adoption of the EU’s long-term budget confirms this commitment. The Commission is working to ensure that InvestEU also includes the circular economy as one of its areas of intervention along its investment windows.  For the Recovery and Resilience Facility, we stand ready to work closely with Member States and to enhance opportunities for the Green and Digital Agenda. Innovation will play an important role in the new Circular Economy Action Plan.  Horizon Europe will support novel, clean materials and products, new circular business models and technologies. It will also support large—scale demonstration of circular economy solutions in EU cities and regions. In conclusion, let me thank you again for your unwavering support in driving the transition towards a circular economy. It’s an agenda for today, for times of crisis and for the future, a shared agenda for the whole of Europe and beyond.