In recent years, the EU has taken significant steps to promote a more sustainable and circular economy. But despite these policy steps, we are not moving fast enough and progress remains limited.
This is what they write in their analysis in Euractiv Aline Magret, Francois Bonnet and Axel Darou on behalf of the "EU Collective for the Promotion of the Circular Economy"
The EU's circular material use rate, a key indicator that measures the share of recovered materials in total material use, has barely increased, moving from just 10,7% in 2010 to 11,5% in 2022 .
As the EU prepares to appoint a special commissioner for the circular economy, a critical question arises – will this role facilitate truly systemic change?
The EU's next step should be a comprehensive framework for sustainable materials management and resource management, with achievable targets for reducing material footprints and consumption.
A more binding, targeted mandate could accelerate progress in the circular economy by ensuring that Europe not only reduces waste but also rethinks consumption itself, as recently highlighted in an open letter from EU organisations, businesses and NGOs to members of the European Parliament on the circular economy.
Why is this question so critical?
The pressure on global resources is unsustainable and the EU's dependence on resources is increasingly expensive and risky. Every year we use resources far beyond what the planet can regenerate naturally, putting us in a dangerous position ecologically, economically and politically.
Therefore, the proposal for a special European Commissioner for the circular economy is an essential and much needed step forward. This role would provide leadership and vision for a comprehensive approach to sustainable materials and resource management across Europe, helping to consolidate efforts and bring more coherence to policies that often seem fragmented.
However, this is not just a matter of leadership. The right fiscal and economic tools are needed to bring about real transformation.
Shifting the tax burden from labor to resource extraction, for example, would make sustainable practices more economically viable and encourage businesses to minimize waste and increase reuse.
Circular taxation policies would align economic incentives with the environmental goals we want to achieve, creating a more favorable environment for businesses to adopt circular practices.
In addition, the EU should integrate circular economy principles more directly into its trade policies. As one of the largest economic blocs in the world, the EU has the power to shape global standards and promote sustainability on a global scale.
Reforms
Instruments such as the Carbon Cap Adjustment Mechanism could be extended to include the resource intensity of imported products, sending a clear signal that the circular economy does not stop at Europe's borders.
At the same time, any policy affecting trade must consider the socio-economic impact on partner countries, especially those where informal labor markets play a significant role. In-depth impact assessments and broad stakeholder consultation can help ensure that our policies promote equity and sustainability both within the EU and beyond.
Another important area for reform is the Extended Producer Responsibility (EPR) framework. Although the EPR has great potential to drive improvements in waste management and recycling, the tool remains underutilized in Europe. A more ambitious and coherent EPR system can help prevent material consumption at source, encourage reuse, support high-quality recycling and increase recycled content.
Public procurement is another powerful but underutilized lever. Because public institutions control significant purchasing power, their choices can set the tone for market standards.
If the Public Procurement Directive is revised to prioritize circularity, the EU could make sustainable practices more mainstream by encouraging suppliers to adopt circular practices to win contracts. This could also include economic incentives or penalties for tenders that do not take sustainability criteria into account, ensuring that public spending is in line with the EU's environmental objectives.
It is also crucial to recognize the role of local and regional authorities in making the circular economy a reality. As the European Court of Auditors pointed out, the implementation of circular economy policies is often most effective at the local level, where municipalities manage waste, recycling and public services.
Empowering local leaders with additional funding and clear guidance would help ensure that circular principles are implemented on the ground, closer to citizens and communities. Supporting regional authorities with coordinated funding initiatives such as the Cohesion Fund can help unlock public-private investment that will drive sustainable grassroots practices.
In addition, sufficient EU funding should be allocated to support circular economy objectives. The right investment should focus on the most important priorities of the waste hierarchy: prevention, reuse and recycling.
Finally, safety and human health must be a central part of the EU's circular economy. It should therefore support ambitious measures outlined in the Chemicals Sustainability Strategy, such as phasing out the most harmful substances in consumer products.
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