In autumn 2026, the European Commission is set to adopt the EU Circular Economy Act.
This regulatory proposal aims to establish common rules for circular solutions across the European single market, increase the supply of and stimulate the demand for high-quality recycled materials, refurbished products and other circular solutions across the bloc.
For European policymakers, this is a critical opportunity to strengthen competitiveness, drive industrial decarbonisation, and build economic resilience.
Why this Act matters now
Previous EU action plans and legislation have made significant strides. However, national rules still differ across member states so what is considered a 'valuable resource' in one country is often treated as 'waste' in another, creating red tape that hinders the growth of circular business models.
The Circular Economy Act aims to replace this confusion with a more coherent rulebook, making it easier and cheaper to scale circular solutions across the entire EU.
Accelerating the shift to circular solutions provides clear de-risking benefits by:
Decoupling prosperity from the extraction of virgin resources.
Safeguarding natural capital and hedging against volatile environmental costs.
Strengthening supply chains through long-term value creation.
By shifting the policy focus toward structural barriers, the EU can establish the harmonised rules required to allow circular solutions to scale across borders.
The Ellen MacArthur Foundation proposes three core policy levers:
Build a true EU single market where circular products and secondary materials can move freely.
Leverage price and demand signals to make upstream circular solutions the most accessible and affordable choice for buyers.
Treat the circular economy as a core industrial strategy to strengthen circular supply and value chains through industrial collaboration.
A vision for global leadership
To secure its position as a circular economy leader by 2030, the EU must set the global pace by turning its internal objectives into shared international ambitions. To maximise impact, the EU must use the Act to drive cross-border compatibility of circular rules, data, and markets.
Investors and multinational companies require interoperable rules to lower transaction costs. A shared focus on harmonised metrics ensures circular business models are deployable globally, not just within Europe. By embedding circular trade provisions in external partnerships, the EU can reduce protectionism risks and lead the way in large-scale investment.
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The EU circular economy act: Key policy levers for Europe's industrial strategy
