On 1 August, the European Commission launched its public consultation on the Circular Economy Act (CEA), which is expected to be published at the end of 2026. The CEA aims to accelerate Europe’s transition to a circular economy by removing barriers in the single market for waste, secondary raw materials, and reusable or recycled products. Today, New ERA publishes its contribution to the consultation, seizing a pivotal opportunity to tackle structural barriers and put reuse at the heart of Europe’s circular economy.

Over the past legislative term, several regulations have sought to advance circularity, such as the Waste Framework Directive¹ (WFD), the Packaging and Packaging Waste Regulation² (PPWR), the Ecodesign for Sustainable Products Regulation³ (ESPR), or the Right to Repair Directive⁴. Yet, progress remains limited: the EU’s circularity rate has stagnated, rising only marginally from 10.7% in 2010 to 11.8% in 2023⁵.

To unlock Europe’s full circular potential, the economic framework must support the legislative agenda and enable businesses to meet the objectives of the EU Competitiveness Compass⁶ – positioning Europe as a global leader in the circular economy by 2030. Therefore, the CEA should serve as a strategic guide to transform production and consumption patterns, strengthen resilient economies, and create high-quality employment in circular sectors.

To turn the EU Clean Industrial Deal⁷ objective into reality – doubling the circularity rate from 12% to 24% by 2030 –  New ERA is calling on the European Commission to focus on three key levers:

• • Optimising the EU tax framework through circular VAT to incentivise reuse, repair, and secondary materials;
  • Embedding circularity through EU public procurement, creating strong demand for durable, reusable, and environmentally sound products;
  • Modernising Extended Producer Responsibility (EPR) to reward circular design, repairability, and reuse while supporting operational and capital needs for reuse systems.