Commission off to a good start but a competitive EU economy requires stronger circular economy package

2nd December 2015

The Aldersgate Group welcomed the EU Commission’s intent to drive much greater resource efficiency across European economies with the publication of its Circular Economy Package today. However, whilst the package touches on most of the right issues, it now needs to be much clearer in terms of how it will promote a significant increase in the reuse of secondary materials that is needed to deliver an EU economy that is competitive and fit for the 21st century.

Nick Molho, Executive Director of the Aldersgate Group said: “The Commission should be given credit for having reintroduced a new circular economy package today, having made it a priority across departments and showing a desire to drive much greater investment in the EU’s circular economy. All the businesses we work with are already innovating to find new ways to be more resource efficient and competitive but a strong circular economy package could help them go much further by removing barriers and introducing smart incentives.

The EU Commission’s own research found that greater resource efficiency could save EU businesses around €630bn a year by 2030 and just yesterday, Green Alliance found that the move to a circular economy could also help deliver net employment benefits across the EU. The business case for a strong circular economy package is compelling and goes far beyond the important environmental benefits.”

The Aldersgate Group, which is working closely with other UK and EU organisations as part of the Alliance for Circular Economy Solutions, stressed however that much more needed to be done to make the package a success. Whilst today’s package touches on the right issues and rightly focuses on increasing resource efficiency across the whole product lifecycle, a lot more detail was needed in order to boost the use of secondary materials across the economy. In particular, using the Commission Ecodesign working plan to develop standards that would facilitate the disassembly and repairability of products beyond just electronics will be important as well as a clear timetable for introducing quality standards to address consumer confidence in secondary goods.

Nick Molho added: “The package today provides a decent starting point but it is not yet detailed enough to give the resource efficiency makeover the EU economy needs. The package needs a clear overall resource efficiency goal, clear standards to facilitate material reuse across all key products, quality standards to boost consumer confidence in secondary materials and a clear strategy to favour those businesses that are more resource efficient through public procurement policy.

The Aldersgate Group and its business members stand ready to work with the EU Commission and Parliament to build on today’s positive announcements and thrash out the important detail that will determine whether or not the package will be a success.”

Car manufacturing