EU circular economy act: A vision for sustainable growth

In a keynote address at the European Policy Centre, Jessika Roswall, European Commissioner for Environment, Water Resilience, and a Competitive Circular Economy, outlined the EU’s strategy for transitioning to a circular economy. She emphasised the urgency of reducing global resource extraction, which has tripled over the past fifty years, and highlighted the EU’s commitment to shifting away from a linear economic model.

Roswall acknowledged that the EU remains predominantly linear, with nearly 90% of its economy still reliant on traditional resource use. She attributed part of this to delays in implementing recent circularity legislation and stressed the need to establish a Single Market for secondary raw materials.

To address the low adoption of recycled plastics (only 13% in 202), the EU plans to introduce trade measures, extended producer responsibility fees, and waste prevention laws. However, Roswall warned that investor confidence remains a major barrier to expanding recycling capacity.

The Circular Economy Act complements existing waste legislation and supports the European Green Deal. It aims to enhance economic resilience, reduce greenhouse gas emissions, and improve resource efficiency. Roswall noted that circular measures alone could contribute up to 25% of the emissions reductions needed for climate neutrality by 2050.

She highlighted that solutions must be tailored to specific sectors, such as plastics, textiles, and metals, and called for inclusive collaboration across the value chain. The EU is currently conducting a public consultation and impact assessment to refine its approach.

Roswall also announced upcoming short-term initiatives to stimulate investment, simplify regulations, and support trade. She reaffirmed the EU’s commitment to maintaining high environmental standards while making it easier for businesses to operate.

In closing, Roswall urged stakeholders from industry, civil society, academia, and government to actively participate in shaping the circular economy, stressing that collective effort is essential to achieving a competitive and sustainable future.