Review of the UK and EU Circular Economy Legislation Landscapes and Implications for Businesses

This report finds the UK’s circular economy regulation is increasingly diverging from the EU’s, as European product standards are strengthened. Without prompt action, UK businesses could face additional costs while consumers are hit with an influx of low-quality products.

The report calls on the UK government to address this through a strengthened vision for policy and regulation in the UK, including with the upcoming Circular Economy Strategy for England due in the autumn. This includes identifying and mitigating challenges caused by divergence, boosting collaboration with the EU on data sharing, and bolstering legislation further up the waste hierarchy to reduce resource use and consumption.

It highlights the EU’s ecodesign policy as one of the starkest examples of divergence between the two jurisdictions. UK businesses that export products to the European single market will need to comply with this regulation, potentially leaving them vulnerable to competition from producers only selling to the UK market, alongside higher costs if required to comply with different and incompatible standards across different markets.

Without measures to address this situation, ambitious and innovative businesses selling into the EU market will be placed at a disadvantage. Conversely, UK consumers would find themselves facing lower-quality products, with less access to repair, reuse and recycling compared to those in Europe.