Annexes to COM(2019)190 - Implementation of the Circular Economy Action Plan - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2019)190 - Implementation of the Circular Economy Action Plan. |
|---|---|
| document | COM(2019)190  |
| date | March 4, 2019 |
Access to information about presence and composition of hazardous substances in waste stream is key to improving dismantling and decontamination techniques, which facilitate the recovery of waste. The European Chemical Agency is setting up a database to gather information and to improve knowledge about substances of concern in products and in products when they become waste. In addition, the EU platform ‘Information for Recyclers’ 46 is collecting and sharing information about preparation for re-use and treatment of new equipment placed for the first time on the Union’s market.
Information about the composition of waste can also be used to enable efficient recovery of critical raw materials (CRMs). The Commission´s report on ‘Critical Raw Materials and the Circular Economy’ 47 identifies key actions necessary to tap into these potential benefits – extraction at end-of-life of key components, improving data management on mining waste and mobilising funding. However, the report also showed that there is significant room to improve recycling and to ensure that CRMs remain in Europe.
To help build confidence in secondary raw materials, the Commission together with the European Standardisation Organisations has initiated a standardisation process and as a first step launched a comprehensive analysis of related standardisation activities. Standardisation organisations are also working on possible standards for material-efficient high-quality recycling of CRMs out of waste batteries, waste electrical and electronic equipment and other complex end-of-life products.
The action plan also seeks to boost the market for reused water, in order to tackle water scarcity across the EU. The Commission proposed dedicated legislation setting minimum requirements for reused water for agricultural irrigation 48 . In addition, practices on water reuse are integrated into water planning and management 49 or in the review of the relevant BREFs.
2.5A Systemic Approach: the EU Strategy for Plastics in a Circular Economy
The EU Strategy for Plastics in a Circular Economy 50 is the first EU-wide policy framework adopting a material-specific lifecycle approach to integrate circular design, use, reuse and recycling activities into plastics value chains. As such, it is a catalyser for action. The strategy sets out a clear vision with quantified objectives at EU level, so that inter alia by 2030 all plastic packaging placed on the EU market is reusable or recyclable.
The strategy also identifies key actions enabling multi-stakeholder engagement and collaboration along the value chain. For instance, the call from the Commission on stakeholders to make voluntary pledges triggered strong momentum in the industry to boost the uptake of recycled plastics in products. However, as identified in the accompanying document assessing these pledges 51 , more efforts are necessary to reach the objective set out in the strategy, namely to ensure that 10 million tonnes of recycled plastics find their way into new products by 2025. While pledges received from suppliers of recycled plastics, if delivered as expected, meet this target, the demand for recycled plastics based on the industry pledges amounts to approximately 6.2 million tonnes per year by 2025. The recently established Circular Plastics Alliance 52 will facilitate next steps by businesses to bridge this mismatch and help achieve the above-mentioned target in line with the objective of the strategy to improve the quality and economics of plastics recycling in Europe.
Key milestones were already delivered to achieve higher quality recycling of plastics. These include the new recycling target for plastic packaging, set at 55% in 2030, obligations for separate collection and improvements in Extended Producer Responsibility (EPR) schemes. The latter are expected to facilitate design for recyclability through ‘eco-modulation’ of producers’ fees. Future improvements will stem from the review of the essential requirements for packaging planned for the end of 2020.
The strategy creates synergies between economic and environmental goals. Evidence of potential health and environmental risks of microplastic pollution justifies restricting the use of intentionally added microplastics and to gather knowledge on measuring and labelling in the case of microplastics resulting from unintentional release. The Commission also committed to develop a framework on biodegradability of plastics, to ensure that the development and use of such plastic products is only encouraged, when it is beneficial to the environment and does not interfere with waste management systems nor compromise food safety. Actions in this regard include providing information on how to handle them at the end-of-life stage (e.g. marking of home compostable plastic carriers bags). Further policy synergies in particular in combination with research needs are also explored in the recently published report on circular economy of plastics 53 .
The strategy spurs change beyond Europe’s border. Building on exemplary actions, in particular on Single-Use Plastics, EU leadership in bilateral and multilateral fora has been instrumental to keep up the international momentum around the plastic agenda, as shown by initiatives such as the Global Plastics Platform with UN Environment and the upcoming International Partnership on Plastic Waste in the context of the Basel Convention. In parallel, the EU is supporting developing countries in their efforts to tackle plastic pollution.
The rules on Single-Use Plastics items and fishing gear 54 , addressing the ten most found items in EU beaches, port reception facilities and the Commission’s proposals on fisheries control 55 , place the EU at the forefront of the global fight against marine litter, one of the major concerns of EU citizens regarding plastic pollution. These rules offer opportunities for EU companies to innovate in products, materials, technologies and business models taking into account consumers’ behaviour and available alternatives.
These sets of tailored measures, undergoing final steps of the legislative procedure, include:
-A ban of single use products made of plastic 56 and of oxo-degradable plastic.
-Measures to reduce consumption of food containers and beverage cups made of plastic and specific marking and labelling of certain products 57 .
-A target to incorporate 30% of recycled plastic in beverage bottles as from 2030 and 25% for PET bottles as from 2025 as well as a 90% separate collection target of plastic bottles by 2029 and the introduction of design requirements to connect caps to bottles.
-EPR schemes covering the cost to clean-up litter, applied to products such as tobacco filters and fishing gear.
-Measures aimed at reducing plastic litter from ships such as the establishment of a flat fee for waste from ships.
-Improved reporting obligations for lost fishing gear and obligations for marking and control of fishing gear for recreational fisheries.
3Accelerating the Transition
3.1Innovation and Investments
To accelerate the transition to a circular economy, it is necessary to invest 58 in innovation and to provide support for adapting the industrial base. Over the 2016-2020 period, the Commission has stepped up efforts in both directions totalling more than €10 billion in public funding to the transition. This includes:
-€1.4 billion from Horizon 2020 until 2018 (on areas such as sustainable process industries, waste and resource management, closed loop manufacturing systems or the circular bio-economy), among which € 350 million are allocated to making plastics circular. The Commission has published an inventory 59 of the projects relevant to the circular economy funded under H2020 between 2016 and 2018.
-At least €7.1 billion from Cohesion Policy (€1.8 billion for uptake of eco-innovative technologies among SMEs and €5.3 billion to support the implementation of the EU waste legislation); in addition, significant support is available through smart specialisation for market-led innovation and deployment.
-€2.1 billion through financing facilities such as the European Fund for Strategic Investments and Innovfin.
-At least €100 million invested through LIFE in more than 80 projects contributing to a circular economy.
To stimulate further investments, the Circular Economy Finance Support Platform has produced recommendations 60 to improve the bankability of circular economy projects, coordinate funding activities and share good practices 61 . The platform will work with the European Investment Bank on providing financial assistance and exploiting synergies with the action plan on financing sustainable growth 62 .
In addition to funding the transition, the Commission has also addressed regulatory obstacles that may hinder circular innovation with two pilot Innovation Deals launched in 2016 63 . Based on the experience of these two pilots, the Commission is now looking at testing the approach in other sectors.
Circularity should remain a pillar of the Cohesion Policy over the 2021-2027 programming period. The Commission’s proposal for a new European Regional Development Fund and Cohesion Fund 64 places the circular economy as a priority in EU’s efforts to achieve a greener and smarter Europe and excludes investments in landfills and facilities for the treatment of residual waste, in line with the waste hierarchy.
3.2 Strong Stakeholder Engagement
Stakeholder engagement is vital for the transition. The systemic approach of the action plan has given public authorities, economic actors and civil society a framework to replicate in order to foster partnerships across sectors and along value chains.
EU actions have inspired national debates on circular economy and a majority of Member States have adopted or are in the process of adopting national strategies for the transition to a circular economy. These frameworks are often replicated at regional and local level, bringing the circular economy closer to citizens and businesses. The role of the Commission in promoting this systemic approach and in placing the circular economy in European and international agendas was also recognized at the World Economic Forum 2019 where the Commission received the Circulars award 65 in the Public Sector Category.
The European Circular Economy Stakeholder Platform brings together numerous networks and initiatives on the circular economy. It acts as a multiplier for best practices from the public and the private sectors. In its first year of activity 66 , the Platform gathered and disseminated more than 300 examples of best practices, strategies and reports.
Stakeholders are driving the transition in different sectors. For example, industry engagement has led to the adoption of the EU Construction and Demolition Waste Protocol and Guidelines 67 with the final objective of increasing confidence in the waste management process and in the quality of recycled materials in the sector. In addition, businesses have committed to improving the resource performance of buildings and are testing Level(s) 68 , the first framework of indicators for measuring sustainability in the sector, in more than 130 projects through Europe.
Similarly, key players from the public and private sector along the food value chain are working together in the EU Platform on Food Losses and Food Waste to accelerate EU’s progress towards the Sustainable Development Goal target of halving per capita food waste by 2030. The Platform has enabled the Commission to make important progress in implementing food waste prevention actions, including guidelines to facilitate food donation, the development of food waste measurement methodology and the improvement of date marking practices.
Stakeholders are also exporting the transition outside Europe. European companies regularly engage in joint circular economy missions 69 , reinforcing the ties between European institutions, NGOs, companies and relevant stakeholders in third countries.
4 Open Challenges
The circular economy is now an irreversible, global mega trend. Yet, much is still needed to scale up action at EU level and globally, fully close the loop and reap the competitive advantage it brings to EU businesses. Interaction with stakeholders suggests that areas not covered by the action plan could be investigated to complete the circular agenda.
Should the EU want to maintain its leadership in designing and producing circular products and services and in better empowering consumers to adopt more sustainable lifestyles, new actions would be needed. As suggested in the Reflection Paper Towards a sustainable Europe by 2030 70 , the circular economy should be made a backbone of the EU industrial strategy, enabling circularity in new areas and sectors, life-cycle assessments of products should become a norm and the eco-design framework should be broadened as much as possible. The work started on chemicals, the non-toxic environment, eco-labelling and eco-innovation, critical raw materials and fertilisers needs to be accelerated if the EU want to reap the full benefit of a transition to a circular economy. Similarly consumers should be empowered to make informed choices and efforts should be enhanced by the public sector through sustainable public procurement.
With the support of the Commission, Member States – in particular in regions identified as at risk of missing the 2020 recycling targets or facing specific challenges 71 ‒ and businesses will need to step up their efforts to implement the revised waste legislation and develop markets for secondary raw materials. The objective is to ensure that materials going back into the economy are cost-efficient and safe for citizens and the environment.
The EU should also continue supporting research, innovation and investment in the priority sectors identified 72 in the action plan. Building on the example of the European Strategy for Plastics in a Circular Economy, many other sectors with high environmental impact and potential for circularity such as IT, electronics, mobility, the built environment, mining, furniture, food and drinks or textiles could benefit from a similar holistic approach to become circular. In none of them, the full potential of the EU’s Single Market has yet been tapped into 73 .
Implementing the recently updated Bioeconomy Strategy 74 and the revised renewable energy framework 75 will be further steps towards using biological resources in a circular way, respecting the ecological boundaries and contributing to halting biodiversity loss.
As stated in the strategic long-term vision for a prosperous, modern, competitive and climate-neutral economy by 2050 76 , the transition towards a circular economy and a climate-neutral economy should be pursued together, based on a strong industrial ambition and reaping the EU businesses’ first-mover advantage in these areas 77 . New circular business models, recycling, energy and material efficiency and new consumption patterns have a significant potential to cut global greenhouse gas emissions. Promoting this joint approach in companies – including SMEs – and communities can at the same time reduce production costs and support new forms of business interaction such as industrial symbiosis. In addition, circularity and sustainability in the sourcing, use and treatment of raw materials (in particular critical ones) will be key to ensure the necessary security of supplies, a level playing field with industrial competitors and the EU’s global leadership in the production of key enabling and low-carbon technologies.
Artificial intelligence and digitalisation 78 have the potential to optimise energy and resource use and make information available in support of circular business models and responsible consumption choices. However, a circular digital economy must have a positive net resource impact and address substantial challenges, including the risk of fuelling unsustainable consumption patterns, shortening durability of smart products and compromising security of sensitive business data.
Above all, the circular economy transition reinforces social and territorial cohesion and favours a balanced distribution of jobs meeting health and safety standards, enabling generation of fair and sustainable growth.
5Conclusions
Implementing the Circular Economy Action Plan has accelerated the transition towards a circular economy in Europe. At the same time, a stronger, shared vision of the circular economy can only boost ongoing efforts to modernise the EU industrial base to ensure its global competitive edge and preserve and restore the EU’s natural capital.
These elements and successful actions from the Action Plan as referred to in this report can help and guide future work by the European institutions, Member States, businesses and social partners.
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