The European Circular Economy Strategy is one of the pillars of the European Green Deal and sets out the European Union's transition towards a regenerative, resource-efficient and climate-neutral economic model.
Its first version was published in 2015, followed by the new Circular Economy Action Plan of 2020 (CEAP 2020), which strengthened the objectives and measures needed to transform production systems, reduce material pressure and cut the emissions linked to the life cycle of products. The strategy focuses on keeping the value of products and materials in use for as long as possible, reducing resource extraction, preventing waste, enabling repair and reuse, boosting recycling and prioritising high-quality secondary materials.
The EU recognises that only an advanced circular economy will make it possible to reach climate neutrality by 2050, reduce the global material footprint and strengthen Europe's strategic autonomy at a time of growing instability in raw materials markets.
These objectives feed directly into the Green Deal, the EU Taxonomy, the Corporate Sustainability Reporting Directive (CSRD) and the Sustainable Development Goals.
The strategy is delivered through several regulatory frameworks:
The strategy identifies seven value chains with high material impact and circular potential.
The most transformative instrument. It requires products placed on the EU market to meet strict requirements on durability, repairability, refill compatibility, recyclability, recycled content and the removal of substances of concern. It also introduces the Digital Product Passport, which becomes mandatory between 2026 and 2030 depending on the sector.
The strategy calls for stronger, broader EPR schemes in sectors such as packaging, plastics, textiles, electronic waste, tyres, oils and vehicles, with producers bearing costs, traceability and target compliance.
This includes the availability of spare parts, repair manuals, disassembly criteria and an obligation to repair under guarantee.
The EU is introducing reuse targets for hospitality, beverages, retail, e-commerce and takeaway packaging.
For reusable and single-use packaging, with binding targets for 2030-2035.
Prioritising durable products, recycled content, low-carbon criteria and certified secondary materials.
Especially relevant for batteries, electronics, textiles and plastics.
The circular economy is closely linked to cutting emissions, because a large share of global greenhouse gas emissions stems from the extraction, processing and disposal of materials. The Ellen MacArthur Foundation estimates that applying circular economy strategies in key sectors such as construction, food and mobility could reduce global greenhouse gas emissions by around 39% by 2050. The sectors with the greatest impact include construction (cement, steel, aluminium), automotive and mobility, electronics, food, and textiles and fashion.
The strategy uses a European set of indicators, including the recycling rate by stream, the landfill rate, the recovery rate, the material footprint, domestic material consumption (DMC), resource productivity, waste generation per capita, preparation for reuse, and the Circular Material Use rate (the EU circularity indicator).
The strategy is supported by NextGenerationEU funds for circular technology, digitalisation, waste management and industrial modernisation; by European Investment Bank green finance linked to circular goals; and by the EU Taxonomy, which classifies economic activities as sustainable when they reduce waste, increase circularity, lower the material footprint and meet minimum technical criteria.
The European strategy is the framework from which national instruments derive, including the Spanish Circular Economy Strategy 2030, Law 7/2022, Royal Decree 553/2020, the regional waste plans, the ESRS E5 requirements and the ESPR. Spain must transpose and apply these rules within strict deadlines, with a direct impact on companies, the public sector, EPR schemes, waste operators and consumption.
Meeting circular economy requirements and reporting on them depends on reliable data. At Manglai we help companies measure their carbon footprint, including the emissions linked to materials and waste, and prepare their sustainability reporting on auditable figures. Discover how Manglai can help you.
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Directive 1999/31/EC, the Landfill Directive, sets strict technical and environmental requirements for landfills and progressively reduces the waste, especially biodegradable waste, sent to landfill in the EU.
Directive 2010/75/EU, the Industrial Emissions Directive, is the EU framework for preventing and controlling pollution from large industrial installations through integrated permits and best available techniques.
The Spanish Circular Economy Strategy 2030 (EEEC 2030) is Spain's national framework for moving from a linear to a circular, resource-efficient and climate-neutral economy, with measurable 2030 targets.
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