With bold targets and new legislation, the EU is driving a push to boost recycling and build a circular economy – but progress is falling short. Without stronger markets and streamlined rules, reaching these goals will be an uphill battle.
The EU is stepping up efforts to boost recycling, strengthen resource resilience, and drive the shift to a circular economy. Achieving these goals relies on building strong recycling markets by cutting costs, growing demand, and securing financing. Without this, the EU risks missing its 2030 recycling targets.
New innovations are needed to tackle persistent challenges. Recycling remains costly, demand for recycled materials is low, and fragmented rules across Member States risk undermining new investment. Companies that recycle materials often struggle to compete with low-cost virgin alternatives, and current collection and sorting capacities are limited. To accelerate progress, the EU is revising key regulation like the Waste Framework Directive and introducing measures such as the Ecodesign for Sustainable Products Regulation to boost recyclability and demand. Extended Producer Responsibility schemes are also being expanded to improve financing. However, such solutions can be complex and costly, adding additional costs to companies and, ultimately, consumers.
To turn Europe’s circular economy into reality, the EU must align rules, and the industry must invest in innovation and recycling infrastructure. Without faster market development and more coherent rules, the transition to a truly circular economy remains difficult.
In this Insight piece, we take a look at the recycling market in the EU, its challenges, and potential solutions.
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