Towards a more competitive and circular economy in EU

Lena Lundberg reflects on the European Commission’s new plan for Europe's sustainable prosperity and competitiveness.

RE-THINKING PLASTIC BLOG

Towards a more competitive and circular economy in EU

The new EU Commission took office on 1 December, 2024, and will be continuing the work with the Green Deal but also prioritize European competitiveness. One of the first major initiatives from the Commission is The Competitiveness Compass, presented now in January 2025. It is a roadmap to restore Europe’s vitality and improve economic growth. It explains how the European Union will boost innovation, bring down energy prices and costs, continue decarbonization, and further diversify and strengthen the supply chains to increase resilience and security.

The Clean Industrial Deal

In February the Commission presented The Clean Industrial Deal with concrete actions to “turn decarbonisation into a driver of growth for European industries”. It brings together climate action and competitiveness in one important growth strategy.

The ambition of the Clean Industrial Deal is to make the EU the world leader in circular economy by 2030 and the target is to increase circular material use rate from 11.8% today to 24% by 2030. By placing circularity at the core of the decarbonisation strategy it will make Europe’s industrial production more sustainable and enhance resource security. The Commission will also engage with stakeholders to identify important actions and measures towards circularity.

Measures to support plastic recycling

The Commission has announced that it will adopt a Circular Economy Act in 2026, which will accelerate the circular transition. According to the Commission the Act will enable the free movement of secondary raw materials and waste, foster a higher supply of high quality recyclates and stimulate demand for secondary materials and circular products.

In our coming webinar “How to reach net-zero by 2050 – key drivers and challenges” on April 8, we have invited Maria Vera Duran, Senior Technical Manager at EuRIC to talk about important measures for a competitive and circular economy in the EU. EuRIC’s Plastics Recycling Branch (EPRB) has recently published a roadmap on the future of the European plastics recycling industry where they present urgent measures to support one of Europe’s key industries for transitioning to a circular and carbon-neutral economy.

Collaboration and dialogue are essential

The Commission’s ambitions align well with the goals of producers like Trioworld who has set the target of reaching net-zero GHG emissions by 2050. For Trioworld to minimise our scope 3 emissions, we need to use less materials and use more raw materials with lower carbon footprint (i.e., materials that contain PCR), optimise our products so they are designed for recycling, and support recycling schemes with material recycling.

It is essential that the policymakers in EU continue to stimulate demand for secondary materials and support the development of recycling infrastructure, particularly for plastic packaging. Collaboration between policymakers, industry, and other stakeholders will be key in achieving the ambitious sustainability goals outlined in the Green Deal, while also ensuring that European businesses remain competitive on the global stage. Together, we can push towards a future circular and climate-neutral Europe, while building economic resilience and prosperity.