Due for adoption in 2026, the Circular Economy Act aims to establish a Single Market for secondary raw materials, increase the supply of high-quality recycled materials and stimulate demand for these materials within the EU. It will contribute to the ambition laid out in the Competitiveness Compass to make the EU the world leader in the circular economy by 2030.
The circularity rate is one way to measure how circular our economy is. This number shows how much of the materials we use are recycled or reused instead of being thrown away. Right now, Europe’s circularity rate is about 12%, but the goal is to double it to 24% by 2030. This target is part of the EU’s Clean Industrial Deal.
In August 2025, the Commission launched a public consultation on the upcoming Circular Economy Act.
The Circular Economy Act will build on the second Circular Economy Action Plan, reinforcing and broadening its measures to accelerate Europe’s shift to a resource-efficient, low-waste and climate-neutral economy.
Circular Economy Action Plan (2020)
Adopted in March 2020, the second Circular Economy Action Plan is one of the main building blocks of the European Green Deal, Europe’s agenda for sustainable growth.
The action plan includes initiatives addressing the entire life cycle of products, including how products are designed, as well as ensuring that waste is prevented and that used resources are kept in the EU economy for as long as possible.
It introduces legislative and non-legislative measures targeting areas where action at the EU level brings real added value.