The European Commission has announced its first “pilot action package” aimed at accelerating the European Union’s transition to a circular economy, with a particular focus on the plastics sector. In a statement issued on 23 December, the Commission said the package is designed to address immediate market bottlenecks in the short term, while broader regulatory measures are expected to follow through the Circular Economy Act planned for 2026.
According to the Commission’s Joint Research Centre, circular solutions could reduce climate-related emissions in the plastics sector by 45% and contribute €18 billion annually to the sector’s trade balance by 2050. However, the Commission noted that the recycling sector is currently under significant pressure. High energy costs, volatile virgin plastics prices and a fragmented market for recycled materials are negatively affecting capacity utilisation and profitability across the sector.
EU-wide common standards for recycled plastics
Under the new package, the Commission is preparing an implementing act that will establish EU-wide “end-of-waste” criteria, allowing recycled plastics to be reclassified as products rather than waste. The move is expected to facilitate the free movement of recycled plastics within the EU, reduce administrative burdens and support a more stable and integrated market. Public feedback on the draft will be open until 26 January.
Clearer rules for chemical recycling
The Commission is also submitting for a vote by member states a separate implementing act regarding the calculation of recycled content in polyethylene terephthalate (PET) single-use plastic beverage bottles. The new rules are expected to provide greater clarity on how chemical recycling can contribute to EU targets under specific conditions, while complementing mechanical recycling. The Commission believes this will strengthen legal certainty and encourage investment in chemical recycling across Europe.
Single-Use Plastics Directive under review
In addition, the Commission has launched a public consultation to evaluate the effectiveness of the Single-Use Plastics Directive. The process aims to assess how well the directive has reduced the impact of certain plastic products on the marine environment and human health. The consultation will remain open until 17 March 2026.
The Commission noted that while the EU has been a global frontrunner in circular economy policies, progress has been gradual. In 2024, only 12.2% of materials used in the EU came from recycled sources. The EU’s goal is to become the global leader in the circular economy by 2030, with the Circular Economy Act expected to be adopted by the end of 2026.
