The Circular Economy Act is a forthcoming legislative initiative from the European Commission, expected to be adopted in 2026 as part of the broader Clean Industrial Deal. Its goal is to strengthen Europe’s industrial competitiveness and environmental sustainability by accelerating the shift to a circular economy.
Key objectives
- Increase circularity in the single market
- Create a single market for secondary raw materials and certain waste flows
- Promote the recycling of secondary and critical raw materials
- Reduce feedstock costs for manufacturers
- Incentivise the recovery and reuse of critical raw material waste
Policy alignment
The Act will complement existing EU strategies, including the Circular Economy Action Plan (adopted in March 2020), which focuses on:
- Making sustainable and circular products the norm across the EU
- Empowering consumers and public buyers
- Targeting high-impact sectors such as:
- Electronics
- Packaging
- Plastics
- Construction
- …
Strategic impact
By streamlining recycling, reducing resource dependency, and supporting innovation, the Circular Economy Act will help Europe:
- Lower industrial emissions
- Strengthen supply chain resilience
Advance toward climate neutrality and resource efficiency.