A new circular economy Action Plan for a cleaner and more competitive Europe

As half of total greenhouse gas emissions and more than 90% of biodiversity loss and water stress come from resource extraction and processing, the European Green Deal launched a concerted strategy for a climate-neutral, resource-efficient and competitive economy.
Scaling up the circular economy from front-runners to the mainstream economic players will make a decisive contribution to achieving climate neutrality by 2050 and decoupling economic growth from resource use, while ensuring the long-term competitiveness of the EU and leaving no one behind. To fulfil this ambition, the EU needs to accelerate the transition towards a regenerative growth model that gives back to the planet more than it takes, advance towards keeping its resource consumption within planetary boundaries, and therefore strive to reduce its consumption footprint and double its circular material use rate in the coming decade.

A recent study estimates that applying circular economy principles across the EU economy has the potential to increase EU GDP by an additional 0.5% by 2030 creating around 700 000 new jobs. There is a clear business case for individual companies too: since manufacturing firms in the EU spend on average about 40% on materials, closed loop models can increase their profitability, while sheltering them from resource price fluctuations. Building on the single market and the potential of digital technologies, the circular economy can strengthen the EU’s industrial base and foster business creation and entrepreneurship among SMEs.
Innovative models based on a closer relationship with customers, mass customisation, the sharing and collaborative economy, and powered by digital technologies, such as the internet of things, big data, blockchain and artificial intelligence, will not only accelerate circularity but also the dematerialisation of our economy and make Europe less dependent on primary materials. For citizens, the circular economy will provide high-quality, functional and safe products, which are efficient and affordable, last longer and are designed for reuse, repair, and high-quality recycling. A whole new range of sustainable services, product-as-service models and digital solutions will bring about a better quality of life, innovative jobs and upgraded knowledge and skills.
In particular, electrical and electronic equipment continues to be one of the fastest growing waste streams in the EU, with current annual growth rates of 2%. It is estimated that less than 40% of electronic waste is  recycled in the EU. Value is lost when fully or partially functional products are discarded because they are not reparable, the battery cannot be replaced, the software is no longer supported, or materials incorporated in devices are not recovered. About two in three Europeans would like to keep using their current digital devices for longer, provided performance is not significantly affected.
To address these challenges, the Commission will present a ‘Circular Electronics Initiative’ mobilising existing and new instruments. In line with the new sustainable products policy framework, this initiative will promote longer product lifetimes and include, among others, the following actions:
- Regulatory measures for electronics and ICT including mobile phones, tablets and laptops under the Ecodesign Directive so that devices are designed for energy efficiency and durability, reparability, upgradability, maintenance, reuse and recycling.
- Focus on electronics and ICT as a priority sector for implementing the ‘right to repair’, including a right to update obsolete software;
- Regulatory measures on chargers for mobile phones and similar devices, including the introduction of a common charger, improving the durability of charging cables, and incentives to decouple the purchase of chargers from the purchase of new devices; 
- Improving the collection and treatment of waste electrical and electronic equipment including by exploring options for an EU-wide take back scheme to return or sell back old mobile phones, tablets and chargers;
- Review of EU rules on restrictions of hazardous substances in electrical and electronic equipment and provide guidance to improve coherence with relevant legislation, including Ecodesign and REACH (Regulation (EC) No 1907/2006 of the European Parliament and of the Council of 18 December 2006 concerning the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) and establishing a European Chemicals Agency, OJ L396, 30.12.2006, p. 1).      
Here, the text of the European Communication.