European Commissioner for Environment, Water Resilience and a Competitive Circular Economy Jessika Roswall announced on Monday that the upcoming Circular Economy Act will focus on market-building for secondary raw materials, aiming to reduce the EU's exposure to vulnerable supply chains and geopolitical shocks. Speaking at the Technical University of Munich's Europe Week, Roswall framed the circular transition as an economic necessity, not merely an environmental choice, and stressed that water resilience and circularity are interdependent.
Roswall said the Circular Economy Act, now in its final preparation stages, will strengthen the Single Market for secondary raw materials and address bottlenecks on both supply and demand sides. She cited a study suggesting additional circular practices could cut metals use for EU manufacturers by 10%, electricity by 7% and fossil fuels by 6%. The Commissioner also highlighted that less than 40% of electronic waste is currently collected and only 30% recycled, leaving hundreds of thousands of tonnes of critical raw materials unrecovered. She noted that material recovery from batteries could supply half of the EU's cobalt demand by 2040, and phosphorus recovery from wastewater in Germany could meet over 40% of current agricultural demand.
Roswall pointed to European companies already leading in circular innovation, including BMW's closed-loop system for electric vehicle batteries in Bavaria, Traceless from Hamburg producing compostable packaging, and Made of Air from TUM's startup ecosystem turning bio-waste into engineered biocarbon. She also referenced the EU's Water Resilience Strategy, which is based on the principle that there is no circular economy without water resilience, and no water resilience without circularity. The Commissioner noted that Europe's digital water market is on track to double to about 23 billion euros by 2033, and that a Digital Strategy for the Water Sector will guide that growth.
the Circular Economy Act with specific objectives on market-building and bottleneck removal, and a Digital Strategy for the Water Sector. However, it did not provide numerical targets or deadlines for the Act. The policy orientation is toward increasing EU-level market intervention to boost circularity, reducing dependence on imported raw materials, and integrating water policy with circular economy goals. The speech was largely declarative and supportive of existing EU environmental leadership, without shifting toward a more assertive or conciliatory foreign policy stance.
Stakeholder impact - EU businesses (especially manufacturers and recyclers): Positive impact from new market opportunities and reduced material costs, but may face compliance costs from new regulations under the Circular Economy Act. The impact is moderate. - EU consumers: Positive impact from potentially lower prices and more sustainable products, but may face higher upfront costs for circular goods. Impact is small. - EU environmental NGOs: Positive impact from stronger circular economy framework and reduced resource extraction. Impact is moderate. - EU member state authorities: Mixed impact – they will need to implement new rules and invest in water and waste infrastructure, but benefit from reduced import dependence. Impact is moderate.
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