Circular Economy

Circular Economy Act

Due for adoption in 2026, the Circular Economy Act aims to establish a Single Market for secondary raw materials, increase the supply of high-quality recycled materials and stimulate demand for these materials within the EU. It will contribute to the ambition laid out in the Competitiveness Compass to make the EU the world leader in the circular economy by 2030.  

The circularity rate is one way to measure how circular our economy is. This number shows how much of the materials we use are recycled or reused instead of being thrown away. Right now, Europe’s circularity rate is about 12%, but the goal is to double it to 24% by 2030. This target is part of the EU’s Clean Industrial Deal. 

In August 2025, the Commission launched a public consultation on the upcoming Circular Economy Act.

The Circular Economy Act will build on the second Circular Economy Action Plan, reinforcing and broadening its measures to accelerate Europe’s shift to a resource-efficient, low-waste and climate-neutral economy.

Circular Economy Action Plan (2020)

Adopted in March 2020, the second Circular Economy Action Plan is one of the main building blocks of the European Green Deal, Europe’s agenda for sustainable growth.  

The action plan includes initiatives addressing the entire life cycle of products, including how products are designed, as well as ensuring that waste is prevented and that used resources are kept in the EU economy for as long as possible.

It introduces legislative and non-legislative measures targeting areas where action at the EU level brings real added value.

Actions

Most of the legal acts foreseen under the second Circular Economy Action Plan have been adopted and entered into force.

A sustainable product policy framework

• The Ecodesign for Sustainable Products Regulation (ESPR) entered into force in July 2024. It is the cornerstone of the Commission’s approach to more environmentally sustainable and circular products.
• The Directive empowering consumers for the green transition from March 2024 ensures that consumers are provided with better information at the point of sale on the durability and reparability of goods and the consumer’s legal guarantee rights.
• The Directive on repair of goods establishing the 'right to repair' entered into force in July 2024.
• The review of the Industrial Emissions Directive resulted in the adoption of the Industrial and Livestock Rearing Emissions Directive (IED 2.0). Integrating circular economy practices and resource efficiency in the Best Available Techniques, it began to apply from August 2024.
• In March 2023, the Commission submitted a proposal for a Directive on substantiating green claims.  

Key product value chains

• The new Regulation on Packaging Waste (PPWR) entered into force in February 2025. Replacing the previous Directive, it harmonises national measures further - strengthening the internal market - notably for secondary raw materials, manufacturing, recycling and reuse.
• A new Batteries Regulation was adopted in July 2023, ensuring that batteries placed on the EU market are sustainable and circular throughout their whole life cycle.
• In March 2022, the EU strategy for sustainable and circular textiles was adopted.
• A new Regulation on end-of-life vehicles was proposed in 2023. 

Less waste, more value

• A new Regulation on waste shipments entered into force in May 2024, aiming to ensure that the EU does not export its waste challenges.
• The Commission has evaluated the Directive on Waste Electrical and Electronic Equipment (WEEE). The Commission will use the evaluation findings to inform a proposal to revise the WEEE Directive, as part of the upcoming Circular Economy Act.  
• Restrictions on intentionally added microplastics and measures on unintentional release of microplastics: A REACH restriction was adopted in 2023.
• The Commission also proposed a Regulation on Microplastics in 2023. 

See our circular economy at the global level, plastics, sustainable development and waste and recycling pages for related policies.

Implementation

It is essential to monitor the implementation and progress towards a circular economy and its direct and indirect benefits. This allows the EU and national authorities to assess whether policies are effective and to identify best practices.

In 2023, the Commission revised the Circular Economy Monitoring Framework, previously adopted in 2018, adding new indicators.

Timeline

Previous and upcoming actions and initiatives

Tips

Below you can find some tips and advice from circular economy experts on how to increase your sustainable consumption.

Related links