Reuse instead of discard: The circular economy model has numerous ecological and economic advantages. Accordingly, the economy places high importance on promoting the 'Circular Economy,' particularly at the EU level.
The circular economy has become a central component of European environmental and industrial policies. With the planned "Circular Economy Act," the EU aims to significantly expand resource efficiency, recycling, and the use of secondary raw materials. For companies in Germany and Europe, this presents new opportunities but also considerable adaptation requirements.
The Circular Economy Act
The EU aims to double its circularity rate – the share of materials being recycled or reused instead of discarded – from 12 percent to 24 percent by 2030, becoming the global leader in the field of circular economy.
The "Circular Economy Act", planned for 2026, seeks to establish a single market for secondary raw materials, increase the supply of high-grade recycling materials, and boost the demand for these materials within the EU.
The legislation builds upon the Second Circular Economy Action Plan introduced in 2020. This action plan includes numerous initiatives that are largely already in force – ranging from ecodesign for sustainable products to the right-to-repair, and extending to the directive on packaging waste and the EU strategy for sustainable and circular textiles.
Companies see potential
Many companies are already investing in recyclable products, more efficient processes, and new business models. According to a German Chamber of Commerce and Industry (IHK) survey from 2024, more than half of companies have already concretely addressed measures to transition to circular business models, with another 20 percent planning to do so. Every second company sees the transformation as an opportunity– at the same time, more than a third cannot yet accurately assess the impact on their own business model.
The German Chamber of Commerce and Industry (IHK) consolidates the economy's perspective into ten guiding principles. They show the political and legal framework conditions necessary for circular economy in Europe to be ecologically effective, economically sustainable, and internationally competitive.
Ten Principles at a Glance
Here you can find the document for download:
Ten guiding principles for a competitive circular economy in Europe (PDF, 516 KB)
- Relevant in topic:
- Nachhaltigkeit
- Key areas:
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- Kreislaufwirtschaft
Released 04.02.2026
Modified 05.06.2026
Contact
Kathrin Riedler
Director European Environment and Raw Materials Policy
Petra Blum
Spokesperson