Beware of the side effects
In addition to the intended effects, measures to promote the circular economy can also have unintended effects that undermine political objectives or cause new conflicting goals.

In addition to the intended effects, measures to promote the circular economy can also have unintended effects that undermine political objectives or cause new conflicting goals.

According to Eurostat, environmental tax revenues in the EU amounted to 371.9 billion euros in 2024.

In its report "Scaling circular business models in Europe", the European Environment Agency (EEA) makes it clear that the circular economy in Europe is structurally underdeveloped despite political support and increasing investment in Europe.

The European Commission has presented an action plan for the electrification of Europe as well as proposals for the revision of the European emissions trading system.

From 19 July, large companies in the European Union will no longer be allowed to destroy unsold clothing, clothing accessories and shoes.

The decarbonization of the cement and concrete industry is increasingly being slowed down less by technological limits than by regulatory frameworks.

Renewable carbon is considered a key to freeing the plastics and chemical industries from fossil raw materials. At the same time, it forms an important basis for the future of the recycling industry. Current EU regulations set hurdles for bio-based raw materials, for the use of CO₂ and for new recycling methods. The Renewable Carbon Initiative's analysis "Policy barriers for renewable carbon uptake" shows where regulatory regulations are slowing down investment.

Europe has developed many of the technologies needed to improve battery recycling. However, experts from the European Union-funded projects FREE4LIB and RESPECT say stronger political coordination and broader industrial deployment are necessary to expand these solutions and secure access to critical raw materials.

The European Parliament has approved the end-of-life vehicles regulation during its plenary session in Strasbourg. Nearly 80 per cent of participating Members of the European Parliament supported the legislation.