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Circular economy

Published:
16 December 2022
Updated:
16 December 2022

The circular economy is an economic model based on, among other things, sharing, leasing, reusing, repairing, refurbishing and recycling, in an (almost) closed loop, with the aim of retaining the highest utility and value of products, components and materials at all times.The European Commission put forward an initial circular

European Industrial Relations Dictionary

Definition

The circular economy is an economic model based on, among other things, sharing, leasing, reusing, repairing, refurbishing and recycling, in an (almost) closed loop, with the aim of retaining the highest utility and value of products, components and materials at all times.

Overview

First circular economy action plan

The European Commission put forward an initial circular economy package in July 2014. However, it withdrew the legislative proposal on waste included in the package in February 2015 to make way for new proposals. On 2 December 2015, the European Commission presented its new circular economy package, containing a communication (the action plan for the circular economy, together with a list of measures in its annex) and four legislative proposals on EU waste policy.

Among the main measures put forward in these legislative proposals was the setting of new waste management targets to be met by 2030: increasing the share of municipal waste prepared for reuse and recycling to 65%, increasing the share of packaging waste prepared for reuse and recycling to 75% (with specific targets for various materials used in packaging) and gradually limiting the share of municipal waste landfill to 10%.

The action plan for the circular economy aims to ‘close the loop’ by complementing the measures contained in the legislative proposals and to contribute to meeting the United Nations Sustainable Development Goals, adopted in 2015, in particular Goal 12 on sustainable consumption and production. The action plan highlights several broad areas for action besides waste management. In particular, the Commission proposes to foster new skills within the workforce, and to engage with stakeholders through sectoral platforms.

On 4 March 2019, the European Commission published a comprehensive report on the implementation of the first action plan. The report presents the main results of implementing the plan, and details challenges to paving the way towards a climate-neutral, competitive circular economy, where pressure on natural and freshwater resources as well as ecosystems is minimised.

Second circular economy action plan

The second action plan aims to accelerate and scale up action to support the circular economy. New circular economy policies are expected to shape future sustainable products, empower consumers and reduce waste generation, with a particular focus on high-impact sectors such as textiles, construction and electronics.

New circular economy package

On 30 March 2022, the European Commission presented a package of European Green Deal proposals to boost the circular economy, which will have significant impacts on the world of work in light of the necessary adaptations involved, including in relation to reorganisations linked to changes in production methods, training staff, etc.

The Commission is proposing a framework, in the form of a proposal for an Ecodesign for Sustainable Products Regulation, ‘to make almost all physical goods on the EU market more friendly to the environment, circular, and energy-efficient throughout their whole lifecycle from the design phase through to daily use, repurposing and end-of-life’.

Based on this framework, it will publish texts tailored to individual products. So far, it has presented the following:

  • A communication relating to the EU Strategy for Sustainable and Circular Textiles to combat the trend towards ‘fast fashion’. The aim is that, by 2030, textile products placed on the EU market will be durable and recyclable, largely made of recycled fibres, free of hazardous substances, and produced in ways that respect social rights and are not harmful to the environment. The Commission also plans to adopt guidelines to boost social enterprises engaged in the businesses of collecting and recycling, as these companies create 20–35 jobs per 1,000 tonnes of textiles collected.
  • A proposal for a regulation laying down harmonised conditions for the marketing of construction products. The proposal includes new requirements to ensure that the design and manufacturing of these products are based on techniques that will make them ‘more durable, repairable, reusable and recyclable’.

 

Related dictionary terms

European Green Deal fundamental rights international labour standards

Eurofound (2022), Circular economy, European Industrial Relations Dictionary, Dublin