3 April, 2025
Legislation is a key lever to support the reuse economy
by Fernando Rodríguez-Mata, Director General at New ERA
On December 11, 2019, Ursula von der Leyen, president of the European Commission, unveiled the European Green Deal, an ambitious and holistic policy roadmap to 2050 with the main objective to reconcile the economy with our planet. Von der Leyen referred to it as “Europe’s man on the moon moment” [1]. An unambiguous declaration of intent towards a new era of production and consumption in Europe. Five years have passed, and perhaps the only thing that remains from that day is that Von der Leyen is still the president of the EU executive power. A global pandemic, a war on the continent, disruptions in global supply chains, peaks of inflation unseen since the establishment of the EU single market, commercial tensions with reintroduction of tariffs… A perfect cocktail leading to an economic turmoil that has opened the door to rethink the route towards a greener, cleaner Europe that seemed unchangeable in 2019.
The triple planetary crisis isn’t going away
Reducing administrative burden and costs to help EU businesses shall not mean to deregulate and throw away the legislative achievements of the last mandate. However, that is exactly what the Omnibus Regulation recently proposed by the Commission aims to do: a step back on some of the previously approved reporting requirements on sustainability. This marks not only a critical turning point in history, but also undermines the rule of law – a fundamental principle of any democratic system, which requires legislation to be clear and predictable. Lifting already adopted obligations is unfair to those organisations that have complied with the law, and sets a dangerous precedent – suggesting that other existing laws could be indefinitely suspended or revoked sine die. The near future doesn’t look much promising either, as two other initiatives to “alleviate” existing regulation have been announced to come out soon.
The current refocus of priorities towards more simplification and competitiveness will not help in addressing climate change, biodiversity loss and air, land and water pollution problems we are suffering. Indeed, a balanced approach should be found in trying to facilitate the processes for businesses to operate in the market without undermining environmental objectives and demands fixed in the legislation.
Making reuse the norm
The reuse economy aims to extend the lifespan of products by designing them for multiple use, putting in place the adequate infrastructure and incentives to return the products and providing reconditioning services to enable their reintroduction in the loop. It has proved environmental, economic and social benefits, but its successful implementation and widespread adoption relies on the development of effective and robust legislative frameworks. Today, regulations actively favour linear consumption models by failing to account for their true costs and harmful impacts -costs that are routinely externalised onto society and the environment. Let’s take for example the end-of-life management of single-use packaging, whose collection and waste treatment costs represent a significant portion of municipal budgets. In European city centers, up to 45% of the weight in public waste bins is associated with food and drinks packaging for takeaway. In these cases, legislation is a fundamental tool to level the playing field to make the polluter pays principle a reality. Reuse shall be incentivised using inter alia fiscal and financial measures that rewards companies adopting truly circular practices, via tax subsidies and supportive extended producer responsibility schemes.
As important as having legislation, it is to ensure its correct implementation. Lack or poor enforcement is a scourge that erodes the confidence in institutions and legal systems. Competent authorities are frequently understaffed or flawed of resources to safeguard regulatory provisions. Legislation should not only contain sanction mechanisms to fine uncompliant entities, but must also include in their impact assessment the means necessary for the effective application of penalties.
Over the last years, the EU has made some progress with the adoption of various legal instruments, such as the Right to Repair Directive, the Ecodesign Directive or the Packaging and Packaging Waste Regulation. But we are still far from having a comprehensive policy framework that can act as a catalyst of innovation and unlock the full potential of reuse systems across Europe. Let’s seize the opportunity that the upcoming EU Circular Economy Act provides (expected in 2026) to remove all the barriers that circular business models currently face. The issue isn’t about having more regulation, but about having smarter, stronger, and more effective regulation that drives real change. Let’s forget about the Moon or Mars and concentrate on restoring harmony with our dear Earth.
