What are the latest developments?

What are the latest developments? We’ve picked out some highlights for December 2025:

Aluminium: EU plans scrap export measure
Municipal waste: ECA calls for stronger incentives and market reforms
G7 launches three-year action plan for circular economy

Aluminium: EU plans scrap export measure

At the European Aluminium Summit in November, European Commission Vice-President Maroš Šefčovič announced the start of preparatory work on a new EU trade measure addressing aluminium scrap exports.

The initiative, expected by spring 2026, is intended to ensure adequate domestic supply of aluminium scrap within the EU.

The proposed measure responds to growing concerns about “scrap leakage” – the export of high-quality aluminium scrap to markets such as the US and Asia, where prices are often higher.

According to the Commission, over one million tonnes of aluminium scrap leave the EU annually, undermining Europe’s ability to meet its decarbonisation and circularity targets.

Options under consideration include export restrictions or recycled content targets.

While the exact shape of the measure remains open, Šefčovič emphasised the need for a balanced approach that ensures downstream industries retain access to competitively priced recycled material.

The announcement has triggered mixed reactions within the value chain.

European Aluminium welcomed the move as a step towards securing critical raw materials for the green transition, noting that around 15% of EU recycling capacity currently sits idle due to limited scrap availability.

At the same time, recycling associations such as Recycling Europe have urged the Commission to base any future action on sound data, cautioning against measures that could disadvantage Europe’s export-oriented recycling sector.

A public consultation and call for evidence are expected to be launched before the end of the year.

Municipal waste: ECA calls for stronger incentives and market reforms

Recycling and reuse of municipal waste in the EU remain below expectations, according to a new report by the European Court of Auditors (ECA).

Despite ambitious EU targets and funding support, many Member States continue to landfill large volumes of household waste, driven by limited infrastructure, financial constraints, and weak market incentives for recycling.

The report notes that in several countries, municipal collection and recycling fees do not fully reflect the real costs of waste treatment.

Recycling businesses face rising operational expenses and weak demand for secondary materials — particularly in the plastics sector — while competing against low-cost virgin imports.

In this context, the ECA recommends that the European Commission strengthen its monitoring and enforcement instruments, address persistent challenges on the recycling market, and assess the feasibility of harmonising landfill and incineration taxes across the EU.

These recommendations are in line with priorities raised in ERP’s recent response to the Commission’s consultation on the planned Circular Economy Act (see article here), highlighting the need for a stronger internal market for secondary raw materials, strong enforcement, and more effective cost allocation within EPR schemes.

The Commission broadly welcomed the report and acknowledged the relevance of fiscal measures to promote higher tiers of the waste hierarchy.

However, it noted that harmonising landfill or incineration charges would require unanimous agreement by Member States.

The upcoming Circular Economy Act may offer a legislative opportunity to revisit some of these structural questions.

G7 launches three-year action plan for circular economy

At their meeting in Toronto at the end of October, the environment and energy ministers of the G7 countries adopted a new Toronto Action Plan to strengthen circular economy and resource efficiency efforts.

Covering the years 2025–2028, the plan aims to accelerate international cooperation and policy alignment in three high-impact sectors:

textiles and fashion
plastics, and
critical raw materials

The Toronto Action Plan builds on previous G7 efforts such as the Berlin and Bologna roadmaps and seeks to enhance cooperation across public and private sectors. Specific priorities include:

promoting reuse and extended producer responsibility in plastic
improving traceability in textile supply chains, and
scaling circular strategies for critical minerals to reduce supply chain vulnerabilities

To ensure progress, G7 members will engage in technical exchanges, share data and indicators, and align with initiatives like the Global Alliance on Circular Economy and Resource Efficiency (GACERE).

The plan also highlights the importance of research, sustainable procurement, and international collaboration.

A final progress report will be published at the end of the three-year period, aiming to solidify the circular economy as a central strategy for economic resilience and environmental sustainability.