Key actions launched to advance the circular economy

This article is brought to you in association with the European Commission.

Today, the Commission launched several initiatives to accelerate the EU’s transition to a circular economy and prepare the ground for the Circular Economy Act, expected in 2026. Circular economy enhances competitiveness and economic growth by promoting the reuse, recycling and remanufacturing of materials. The forthcoming Act will support the EU’s goals under the Competitiveness Compass and the Clean Industrial Deal to double the share of recycled material in EU’s economy and become a global leader in circular economy by 2030.

A strategic dialogue on circularity will take place today, accompanied by a package of new actions. The initiatives adopted today include the rules on waste shipments and an evaluation of electronic waste legislation. In addition, new rules to improve recycling efficiency and material recovery from waste batteries will be published in the next days. The dialogue will also kick off a public consultation with stakeholders and call for evidence to be launched soon. These new actions touch on different dimensions of the circular economy and will help to boost the transition and strengthen implementation of existing legislation.

Digitalisation and classification of waste shipments

The Commission will implement a Digital Waste Shipment System. This will enable companies to move from paper to digital procedures for shipping waste across the EU single market, reducing administrative burden and contributing to competitiveness. This will streamline cross-border shipments of waste within the EU, while protecting human health and the environment. From 21 May 2026, digital systems will fully replace paper procedures, simplifying operations, improving traceability, and curbing illegal shipments. By digitalising these procedures, waste will be recycled at the most efficient facilities across Member States.

In parallel, the Commission launched a public consultation on harmonising the classification of certain waste types (so-called “green-listed” waste) to facilitate their shipments across borders. The consultation is accessible through the ‘Have Your Say’ portal until 31 October 2025.

Evaluation of Waste Electrical and Electronic Equipment Directive

Today, the Commission published an evaluation of the Waste Electrical and Electronic Equipment (WEEE) Directive. The WEEE is critical to address the growing challenges in e-waste management and to better align EU rules with the objectives of a competitive circular economy. Key gaps were identified, such as the fact that nearly 50% of all e-waste remains uncollected, and recycling falls short of collection targets in EU Member States. Electronic waste is one of Europe’s fastest-growing waste streams, increasing by about 2% annually. There is a lot of potential to better make use of e-waste, for example by recovering and recycling critical raw materials and strengthening the circular economy. The evaluation moreover highlights the need for a new approach to improve collection, treatment, and market incentives, and will help prepare the Commission’s proposal to revise the WEEE Directive. This revision will be a central component of the future Circular Economy Act.

Next steps

Feedback from today’s dialogue, the consultations, and the WEEE Directive evaluation will guide the development of the Circular Economy Act and advance the EU’s shift toward a circular economy.

In addition, later this week, the Commission intends to adopt new rules to improve recycling efficiency and the recovery of materials from batteries.

Further consultation with stakeholders will be undertaken through a public consultation process.

Background

EU manufacturing companies typically spend more than twice as much on materials as on labour or energy. Many EU businesses also rely on imports of critical materials from third countries, making them vulnerable to price volatility and supply shortages. Circular practices that promote resource efficiency, design, and recycling can reduce these risks while lowering costs. Moreover, circular solutions are vital to achieving climate neutrality by 2050, as they can deliver 20-25% of the necessary greenhouse gas emissions reductions.