Circular
Economy
Natalia Matting
Michał Kubicki
European Commission
DG Internal Market, Industry,
Entrepreneurship and SMEs
Unit Clean Technologies and
Products
From a Linear Economy…
… to a Circular Economy
      What is the Circular Economy?
• Maintaining the value of products, materials and
  resources in the economy for as long as possible
  while minimising waste generation
• To boost our economy and competitiveness with
  new business opportunities and innovative
  products and services.
• For economic, social and environmental gains
       Links with Juncker Priorities
Protec'ng the environment and maintaining our
compe''veness have to go hand-in-hand: both are
about a sustainable future
                    Jobs, Growth       Democratic
    Energy Union        and           Change Better
     and Climate
                     Investment        Regulation
                   Circular Economy
      The Circular Economy Package
• Adopted by the Commission on 2nd December 2015
    Action Plan    List of Follow-up       Legislative
  Communication   Initiatives (Annex)   proposal on waste
        Objectives of the new Package
• Synergies between environment and business
  agendas
   – Preserve resources while creating business opportunities
   – Closer links to other key EU priorities: climate and energy,
     jobs and growth, investment, innovation, social, industrial
     competitiveness
• Propose concrete and ambitious action where EU
  intervention has high added value
   – e.g. long-term vision and targets on waste management;
     internal market rules for products; environment and
     consumers protection; regulatory obstacles or enforcement
     issues; innovation and investments
Action Plan
Areas
of Action
                         Production
Objectives               Key Actions
•   Incentives to the    •   Foster reparability, durability, and
    circular design of       recyclability in Ecodesign (e.g. TV screens)
    products
•   Innovative and       •   Promotion of best practices for waste
    resource efficient       management and resource efficiency in
    production               industrial sectors.
    processes.
                         •   Facilitate industrial symbiosis
                          Consumption
Objectives                Key Actions
•   Reuse and repair of   •   Develop rules to encourage reuse activities (e.g.
    products to avoid         waste proposal)
    waste.                •   Work to ensure availability of spare parts
                              (Ecodesign?)
•   Empower consumers     •   Better enforce guarantees and action on false
    with reliable             green claims
    information on        •   Emphasize CE criteria in Green Public
    environmental             Procurement.
    impact of products.
                          •   Independent testing programme to assess
                              possible planned obsolescence.
                          •   Better labelling: EU Eco-label, Environmental
                              Footprint.
                       Waste management
Objectives                Key Actions
•   Waste management      •   Revised legislative package on waste Work
    systems,                  with Member States to improve waste
    addressing the            management, incl. to avoid overcapacities in
    existing                  residual waste treatment (e.g. incineration
    implementation            and Mechanical-biological treatment)
    gap.
                          •   Ensure that Cohesion Policy contributions are
•   Long-term vision          guided by the EU waste hierarchy.
    and drive
    investments.
      Market for secondary raw materials
Objectives                          Key Actions
•   Increase the use of secondary   •   Develop quality standards for
    raw materials.                      secondary raw materials.
•   Increase the use of recycled    •   Revised EU regulation on
    nutrients and the reuse of          fertilizers.
    treated wastewater.
                                    •   Legislative proposal on minimum
•   Safely manage the risks of          requirements for reused water
    chemicals of concern.
                                    •   Analysis on the interface between
•   Improve knowledge of material       chemicals, product, and waste
    stocks and flows.                   legislation.
                                    •   EU-wide electronic system for
                                        cross-border transfers of waste.
                Innovation & Investment
Objectives               Key Actions
•   Right environment    •   €650 million Horizon 2020 initiative on
    for innovation and       ‘Industry 2020 in the CE.
    investments.
                         •   Pilot "innovation deals" to address potential
                             regulatory obstacles for innovators.
                         •   Targeted outreach of EU funding
                         •   New platform for financing CE with EIB and
                             national promotional banks.
Priority
Sectors
                              Plastics
Objectives                Key Actions
•   Provide a strategy    •   Adopt a specific strategy on plastics including
    to improve                marine litter.
    sustainability of
    plastics throughout   •   A more ambitious target for the recycling of
    its lifecycle             plastic packaging in the legislative proposal
•   Increase efficiency       on waste.
    in recycling - less
    than 25% of plastic
    waste collected is
    recycled, and about
    50% goes to
    landfill.
                          Food waste
Objectives                Key Actions
•   Reach Sustainable     •   Develop an EU methodology to measure food
    Development Goal          waste.
    to halve food waste
    by 2030 – today       •   Create a platform for the SDG on food waste
    around 100 million        and to share best practice and results
    tonnes of food are        achieved.
    wasted annually in
    the EU.               •   Clarify EU legislation relating to waste, food
                              and feed, and facilitate food donation.
                          •   Improve the use and understanding of date
                              marking along the food chain (e.g."best
                              before" label).
                    Critical Raw Materials
Objectives                 Key Actions
•   Increasing efficient   •   Encourage recovery of CRMs, and prepare a
    use and recovery of        report on best practices and options for
    CRMs.                      further action at the EU level.
                           •   Encourage action by Member States.
               Construction & Demolition
Objectives                 Key Actions
•   Identify and           •   Ensure recovery of valuable resources and
    increase recovery of       adequate waste management in the
    valuable materials         construction and demolition sector, as well as
                               facilitate assessing the environmental
                               performance of buildings
                           •   Develop pre-demolition guidelines to boost
                               high-value recycling as well as voluntary
                               recycling protocols aimed to improve quality
                               of and build confidence.
           Biomass & bio-based products
Objectives                 Key Actions
•   Support an efficient   •   Promote an efficient use of bio-based
    use of wood and            resources through a series of measures, such
    bio-based products         as the promotion of the cascading use of
                               woody biomass and support to innovation in
•   Increase recycling         the bio-economy
    of bio-waste
                           •   New target for recycling wood packaging and
                               a provision to ensure the separate collection
                               of bio-waste
                           •   Report and possible revision of the Bio-
                               economy Strategy
Main
elements
of the
legislative
proposal
      New targets municipal- waste recycling
60%                                                              •   Separate collection
                                                                     extended to
50%                                                                  biowaste
40%
                                                                 •   One calculation
30%                                                                  method by 2025
20%
                                                                 •   Time extension for 7
10%                                                                  MS recycling less
                                                                     than 20% in 2013
0%
       2014 (current Target 2020   Target 2025     Target 2030
          status)      (exis8ng)   (1 method)      (1 method)    •   Review clause
                     (4 methods)                                     (2025) to consider
                                                                     more stringent
                 % Prep. For reuse and recycling                     targets
New targets municipal- waste landfilling
 35%
                                                •   By 2030 : max 10%
 30%
                                                    landfilling of MSW
 25%
                                                •   5 years derogation for
 20%                                                the same 7 MS as for
                                                    the recycling rate
 15%
 10%                                            •   Review clause (2025)
                                                    to consider more
 5%                                                 stringent targets
 0%
       2013 (reported)          Objec8ve 2030
             % Municipal waste in landfill
                                 New targets – packaging waste recycling
                                 90%
                                 80%
% Prep for resue and recycling
                                 70%
                                 60%
                                 50%
                                 40%
                                 30%
                                 20%
                                 10%
                                 0%
                                         Plas8c       Wood    Ferrous metal   Aluminium        Glass         Paper and      Overall
                                                                                                             cardboard
                                            Exis%ng targets   Target 2025        Target 2030           2012 (latest data)
                                       → Clarification on measuring (same as for municipal waste)
                                       → Repeal of the recovery and max recycling targets
                                       → New target for aluminium
 Targets: Definition and Calculation Rules
Definitions:
• Municipal waste (OECD/Eurostat-based)
• Backfilling, construction and demolition waste,
   (building on COM Decision 2011/753/EU)
• Food waste
• Preparation for reuse
Calculation rules:
• A single method
• Main rule: input to the final recycling
• Derogation: output of sorting operation if losses are < 10% and tracking
   system is in place
New calculation rules to cover :
• Output of recognised re-use centres and products prepared for reuse by
   deposit-refund schemes;
• Metal recycling from energy recovery
                       Prevention
• Focus on food waste, textile, WEEE, furniture
• Measures to promote the use of recyclable, durable,
  resource efficient products
• Target to be set at national level on disposed/incinerated
  waste (max kg/inhab)
        Extended producer responsibility
Minimum requirements to be respected by MS when
developing and applying EPR, including:
•   Definition of the roles and responsibilities of the actors
•   Defining measurable targets and a reporting procedure
•   Information, transparency, dialogue
•   Full cost coverage
•   Focus on monitoring by MS
•   Link between the product's true end-of-life cost
    and fees to be paid by producers
                  Conclusions
• Ambitious and comprehensive package
• Waste legislation proposal now to be considered by
  EU co-legislators
• Action Plan with EU actions for 2016-19