Circular economy for October 2024

What changes could have the biggest impact? Read our selection for October 2024:

Raw materials: new report highlights role of circularity in guaranteeing independence
Circular economy: new studies on the Netherlands and Austria

Raw materials: new report highlights role of circularity in guaranteeing independence

On 9 September, Mario Draghi, former President of the European Central Bank, presented a comprehensive report on the future of European competitiveness to the President of the European Commission.

This report, which outlines strategies to enhance the EU’s economic resilience and global standing, places significant emphasis on the circular economy, particularly in the realm of raw materials.

Circularity is positioned as a key enabler of Europe’s competitiveness and resilience.

The report highlights the critical role of the circular economy in reducing dependency on imported raw materials and enhancing the EU’s economic security.

By promoting the reuse and recycling of materials, the circular economy can mitigate supply chain vulnerabilities and support the EU’s green transition.

Draghi’s proposals, which had already been mirrored in von der Leyen’s political guidelines, include the development of a single market for secondary raw materials and the introduction of policies to boost demand for recycled materials.

While non-binding, the Commission is expected to integrate many of Draghi’s recommendations into its upcoming Clean Industrial Deal, which will be unveiled within the first 100 days of the new Commission mandate.

This initiative will focus on decarbonising energy-intensive industries, while maintaining their competitiveness on the global stage, including through improving Europe’s circular economy.

Draghi’s recommendations will also influence the forthcoming Circular Economy Act, under the leadership of Commissioner-to-be Jessica Roswall.

Circular economy: new studies on the Netherlands and Austria

The Netherlands

The Dutch Environmental Assessment Agency has released a study on the progress of the circular economy.

The study, which analyses three product groups – housing, packaging and energy technologies – identifies potential bottlenecks and opportunities for more efficient raw material use.

The study indicates that the circular economy is not a sufficiently prioritised area, resulting in unexploited opportunities.

It also finds that circular alternatives are often too expensive, and products are still designed in a way that makes them unsuitable for the circular economy.

The study therefore sets out five key areas for consideration in the development of truly circular policies:

Linking circularity to other tasks/issues
Making products suitable for circularity
Committing to circular solutions
Requiring specific product-oriented policy attention, and
Committing to the availability of data and information

In summary, the study calls for a holistic approach to circular economy policies, creating framework conditions that generate greater benefits for circular approaches.

Austria

Similarly, PwC has published a study on the current status of the Austrian circular economy.

The study identifies the key areas for action that will drive growth in the circular economy, and recommends that Austria aligns its national circular economy strategy closely with the EU’s approach.

Moreover, the study suggests that public funding should be allocated to circular solutions to establish economically viable framework conditions in sectors where traditional production methods remain more cost-effective.

The study also recommends introducing extended producer responsibility (EPR) for textiles and underscores the EU textile strategy as a pivotal driver for transformation.

The two studies demonstrate the significance of the circular economy within the EU Member States.

Furthermore, the studies display a shift in emphasis, whereby circular approaches are no longer solely regarded as a means of achieving sustainability. Instead, they are increasingly viewed as a business model that can be developed to maximise economic benefits.