Circularity, autonomy and security: Europe can no longer wait

Not an option, but a requirement: the circular economy is an essential infrastructure for the European Union’s economic security and strategic autonomy. Such was the message strongly conveyed at the annual conference of the European Circular Economy Stakeholder Platform (ECESP), which took place on 22 and 23 April in Brussels. This view was echoed by numerous speakers, from European Commissioner for the Environment Jessika Roswall to Enrico Letta, author of the Report on the Future of the Single Market and President of the Jacques Delors Institute.

The event, hosted by the European Commission in conjunction with the European Economic and Social Committee (EESC), was attended by policymakers, businesses, financial operators, civil society and regional representatives. At the centre of the debate, along with international current affairs, was the Circular Economy Act, expected in the third quarter of the year.


Jessika Roswall, European Commissioner for Environment, Water Resilience and a Competitive Circular Economy; photo credit: Lukasz Kobus 
 

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Circularity as a security policy
The EU’s transition to a circular economy is progressing too slowly. According to the European Environment Agency, the EU’s circularity rate stood at 11.8% in 2023: higher than in other regions of the world, but nearly stagnant in recent years. The aim, under the Clean Industrial Deal, is to double this to 24% by 2030, turning circularity into a driver of competitiveness, resilience and reduced resource dependency.

In order to achieve this, the EU will have to overcome historical fragmentation and take action across three complementary areas: regulatory, financial and social. Among the decisive levers: shifting taxation from labour to the use of virgin and polluting materials, the strategic use of public procurement, and the introduction of standards capable of making the linear model progressively less cost-effective.

A single market for circular materials
One of the main objectives of the Circular Economy Act is to create a single European market for secondary raw materials, enabling recycling to be scaled up to an industrial level. But clear rules are necessary. The fundamental distinction – between waste, by-products and secondary raw materials – is still ambiguous today and risks blocking entire streams of reusable materials at source.

As emerged from the debate, an effective solution would be to develop ad hoc legislation recognising by-products as a separate category, thereby creating a dedicated European market for them, similar to that for secondary raw materials, and thus facilitating a more efficient use of resources.

Why investment continues to be the weak spot
While the regulatory landscape is buzzing with activity, the financial landscape is marked by a paradox: more funds are available at the European level, yet still few are flowing towards circular business models, particularly in the “upstream” stages of the product life cycle. Investment in the circular economy has increased – the EIB Group has boosted its annual funding for circularity by 167% between 2020 and 2024 – yet it still accounts for around 1% of the European budget. There are still significant gaps in sectors such as construction, textiles, batteries and vehicles, and particularly in the areas of circular design and end-of-life management.

To attract private capital, circular models must offer predictable returns: an outcome that depends primarily on public policy. Tools such as extended producer responsibility (EPR) schemes help create markets, but they focus on the end-of-life stage. The real challenge lies further upstream: ensuring that products not designed for circularity become economically unsustainable.
In terms of solutions, a practical example in this direction is the Circular Economy Finance Group (CEFG), a partnership between the UK and the Netherlands which aims to mobilise up to £10 billion over the next decade in order to strengthen recycling infrastructure and create jobs.

The social dimension of circularity
In addition to the regulatory and financial frameworks, there is a third, often underestimated pillar: the social and participatory dimension of the transition. The circular economy needs to be rooted in everyday reality – developed in partnership with businesses, trade unions, farmers, consumers and civil society – and not be confined to the language of technocratic elites.

There was a particularly strong call to engage the younger generations: not just to “involve” young people, but to recognise their active contribution to the quality of policies. During the session devoted to young people’s perspectives on the Circular Economy Act, a clear demand emerged for a circularity that also tackles social inequalities, working conditions within supply chains and fair access to circular services.

ECESP: from advisory body to political infrastructure
In this context, the conference emphasised that the European Circular Economy Stakeholder Platform is not simply a forum for consultation, but an evolving policy framework.

As Ladeja Godina Košir, founder of Circular Change and co-Chair of the ECESP, summarised: <<This conference is strongly focused on the Circular Economy Act, and from the platform’s perspective, it is crucial to contribute to a document that is currently taking shape. One key message is that the platform enables stakeholders to actively participate in this process. A second important point is that the platform is no longer seen as merely optional. Over the past ten years, it has become significantly stronger and more relevant for the European Commission and other stakeholders, with its members increasingly recognised as valuable partners. Finally, while much of the discussion centres on technology, industry, and AI, the human dimension remains essential. The platform is built by people, for people, offering a space to share both aspirations and concerns. In a time of uncertainty, it provides a sense of community where individuals can feel safe, heard, and supported.>>
Article written by Emanuele Bompan  


This blog is a joint project by Ecomondo and Renewable Matter

Credits

Photo by Lukasz Kobus