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Resource efficiency and the circular economy

Past and current patterns of resource use have led to high pollution levels, environmental degradation and the depletion of natural resources. EU waste policy has traditionally focused on environmentally sustainable waste management. The and the Circular Economy Package laid the foundations for transforming the EU’s economy into a sustainable one by2050. Under the European Green Deal, the Circular Economy Action Plan provides a future-oriented agenda for a cleaner, more competitive EU.

Legal basis

Articles191-193of the Treaty on the Functioning of the European Union (TFEU).

Objectives and achievements

All products have a natural basis. The EU’s economy is highly dependent on natural resources. If we continue to consume and produce as we do now, the degradation and depletion of natural resources will continue, as will waste generation. The scale of our current resource use is such that it is jeopardising the chances of future generations – and developing countries – of having access to their fair share of scarce resources. Rational utilisation of natural resources was one of the earliest environmental concerns underpinning the first European Treaties.

A. Resource efficiency

The2011 Roadmap to a Resource Efficient Europe was part of the resource efficiency flagship initiative of the Europe2020 strategy. It supported the shift towards sustainable growth via a resource-efficient, low-carbon economy and outlined the structural and technological changes needed by2050, including milestones to be reached by2020. It proposed ways to increase resource productivity and decouple economic growth from resource use and its environmental impact.

B. Waste management and prevention

ճ2008 (Directive2008/98/EC) contained basic rules for waste management, with a focus on waste prevention. The Waste Shipment Regulation () laid down rules for waste shipments both within the EU and between the EU and non-EU countries, with a specific focus on environmental protection. It covered the shipment of practically all types of waste (with the exception of radioactive material) by road, rail, sea and air. Regulation strengthened the inspection provisions with more stringent requirements for national inspections and planning.

C. Production- and waste-stream-specific laws

aimed to reduce waste from end-of-life vehicles (ELVs) and their components. It also encourages manufacturers and importers to limit the use of hazardous substances and to develop the integration of recycled materials.

The main objective of the Ship Recycling Regulation () was to prevent, reduce and eliminate accidents, injuries and other adverse effects on human health and the environment resulting from the recycling and treatment of EU ships, in particular with a view to ensuring that hazardous waste from such ship recycling is subject to environmentally sound management.

Directive2002/96/EC, as amended by , aimed to improve the collection, treatment and disposal of waste electrical and electronic equipment (WEEE), such as mobile phones, computers, household appliances, lamps, medical devices and solar panels. Directive2002/95/EC, repealed by , on the restriction of the use of certain hazardous substances in electrical and electronic equipment (RoHS) aimed to protect the environment and human health by restricting the use of lead, mercury, cadmium, chromium and brominated flame retardants in such equipment. The implementation of the WEEE and RoHS Directives in the Member States proved difficult, with only one third of all electrical and electronic waste being collected and properly treated.

on batteries, accumulators and waste batteries and accumulators aimed to improve the waste management and environmental performance of such items by establishing rules for their collection, recycling, treatment and disposal. The directive also set limit values for certain hazardous substances (in particular mercury and cadmium) in batteries and accumulators. In accordance with on radioactive waste and substances, each Member State had to make it compulsory to report activities that involve a hazard arising from ionising radiation. Shipments of radioactive waste are covered by and .

The Packaging and Packaging Waste (PPWD) covers all packaging placed on the EU market and all packaging waste. establishes criteria and clarifies the definition of ‘packaging’. Moreover, amends the PPWD as regards reducing the consumption of lightweight plastic carrier bags, which easily escape waste management streams and accumulate in our environment, especially in the form of marine litter.

The Directive on the management of waste from extractive industries (the Mining Waste Directive, seeks to tackle the significant environmental and health risks associated with the volume and pollution potential of current and historical mining waste.

D. Waste treatment and disposal

The Urban Waste-Water Treatment Directive (), revised in2024 () aims to improve the collection and treatment of waste water. The Landfill Directive () intends to prevent or reduce the adverse effects of landfill on the environment, in particular on surface water, groundwater, soil and air, as well as on human health. Implementation has remained unsatisfactory, and a large number of illegal landfills still exist.

on industrial emissions,as amended by, lays down rules on integrated prevention and control of pollution arising from industrial activities, including the generation of waste and special provisions for waste incineration and co-incineration plants. Following the latest review, waste landfill is also included.

E. The2018 Circular Economy Package

In December2015, the Commission presented an action plan on the circular economy, as well as four legislative proposals amending the aforementioned legal acts: (a)the Waste Framework Directive; (b)the Landfill Directive; (c)the Packaging and Packaging Waste Directive; and (d)the directives on ELVs, on batteries and accumulators and waste batteries and accumulators, and on WEEE.

Adopted in May2018, the four directives (, , and ) incorporate, among other things, the following key elements:

  • A common EU target to recycle65% of municipal waste by2035 (55% by2025 and60% by2030);
  • A common EU target to recycle70% of packaging waste by2030;
  • A binding landfill target to reduce landfill to a maximum of10% of municipal waste by2035;
  • A ban on the landfilling of separately collected waste, requiring separate collection for biowaste by2023 and for textiles and hazardous waste from households by2025.

F. Plastics in the circular economy

On 16January2018, the Commission published a communication laying out a . It identifies key challenges, including the low reuse and recycling rates of plastic waste, the greenhouse gas emissions associated with plastics production and incineration, and the presence of plastic waste in the oceans. The Commission proposes that all plastic packaging should be designed to be recyclable or reusable by2030. With a view to moving towards this target, the strategy presents a wide range of measures focusing on four areas: (1)improving the economics and quality of plastics recycling; (2)curbing plastic waste littering; (3)driving investment and innovation in the plastics value chain; and (4)harnessing global action.

As part of the strategy and following a Commission proposal of 28May2018, the Council and Ϸվ agreed to reduce plastic pollution by setting tough new restrictions on certain single-use plastic products (). Products banned in the EU include plastic cutlery, plastic plates and straws, food and beverage containers made of expanded polystyrene and cotton bud sticks made of plastic. From2025 onwards, the Member States will have the binding target for all PET beverage bottles to contain at least25% recycled plastic. By2030, all plastic bottles will have to be manufactured from at least30% recycled material.

G. The new Circular Economy Action Plan under the European Green Deal

The for a cleaner and more competitive Europe was published on 11March2020 and is one of the cornerstones of the European Green Deal, the EU’s new agenda for sustainable growth. It announced initiatives along the entire life cycle of products, targeting, for example, their design, promoting circular economy processes, fostering sustainable consumption, and aiming to ensure that the resources used are kept in the EU economy for as long as possible. In particular, the following rules have emerged:

In November2022, the Commission published a .

Ϸվ and the Council adopted the new on 12July2023. This will minimise the environmental impact of the battery sector as it undergoes exponential growth in a context of new socio-economic conditions, technological developments, markets and battery usages.

In light of the increasing amount of waste shipped from EU to non-EU countries and in response to the call under the Circular Economy Action Plan to further tackle illegal waste shipments, a entered into force on 20May2024. Member States are called upon to ensure that the EU does not export its waste management challenges to third countries and to facilitate shipments of waste for reuse and recycling in the EU. Waste shipments to OECD countries will be monitored and can be suspended if they generate serious environmental problems in the country of destination. Waste exports to non-OECD countries will be prohibited and only allowed if the countries concerned are able to manage the waste sustainably.

On 11February2025, a new regulation on packaging and packaging waste (PPWR) entered into force. The PPWR aims to reduce packaging waste by:

  • Setting binding re-use and recycled content targets;
  • Restricting certain types of single-used packaging;
  • Requiring the minimisation of packaging used.

European consumption of textiles has the fourth highest impact on the environment and climate change – after food, housing and mobility. On 30March2023, the Commission published the , setting out concrete actions to ensure that by2030, textile products placed on the EU market are sustainable and recyclable, free of hazardous substances and produced under certain social and environmental standards. On 15February2025, Ϸվ and the Council agreed on amendments to the Waste Framework Directive targeting food waste and waste textiles. The new rules include binding food waste reduction targets and a new producer responsibility scheme requiring textile producers to cover the costs of collecting, sorting and recycling waste textiles.

In July2023, the Commission put forward a to increase reusability, recyclability and recoverability.

On 6October2023, the Commission published .

On 16October2023, the Commission proposed a . It aims to help meet the EU’s target of reducing microplastics releases into the environment by30% by2030. Plastic pellets are the industrial raw materials used to make plastic products. They are one of the largest sources of unintentional microplastic pollution.

In2025, the Commission announced a Circular Economy Act for2026. Its aim will be to ensure that24% of materials are circular by2030.

Role of the European Ϸվ

Ϸվ has repeatedly called for a new agenda for future European growth with resource efficiency at its core, which would require some radical changes in our production and consumption patterns. Following the Commission’s strategy for plastics in a circular economy of January2018, Ϸվ adopted , which urged the Commission to, among other things, consider introducing requirements for minimum recycled content for specific plastic products placed on the EU market. It advocated creating a genuine single market for recycled plastics, proposed measures to tackle marine litter, and requested a ban on micro-plastics in cosmetics and cleaning products by2020.

ʲԳ’s called for an ambitious new circular economy action plan, with the aim of reducing the total environmental and resource footprint of EU production and consumption while providing strong incentives for innovation, sustainable business and markets for climate-neutral and non-toxic circular products. It highlighted the strong synergies between climate action and the circular economy, and called for the establishment of an EU-level target for resource efficiency.

ʲԳ’s made over 130 policy recommendations. Among other things, it called for:

  • Science-based binding EU targets for the reduction of primary raw-material use and environmental impacts;
  • Binding material and environmental footprint targets for each product category placed on the EU market;
  • Binding product-specific and/or sector-specific targets for recycled content.

On 23April2024, Ϸվ adopted its negotiating position on the proposed law to reduce microplastic pollution from the losses of plastic pellets. Following the EU elections in June2024 and the in December2024, negotiations between Ϸվ and the Member States began in January2025. ʲԳ’s position adds new elements to the draft law, i.e. an extended definition of plastic pellets, the inclusion of all transport modes and requirements regarding risk assessments and labelling.

For more information on this topic, please visit ENVI’s website.

Anne Ploeger