New EU Circular Economy Package: benefits for both the environment and the economy

This article was produced by Nabarro LLP, which joined CMS on 1 May 2017.

The European Commission has adopted a revised Circular Economy Package. The package aims to retain the value of products, materials and resources in the economy for as long as possible by encouraging greater sharing, re-use and recycling. The package consists of an action plan of measures and a set of legislative proposals on waste policy.

What are the benefits?

The EU claims that the benefits of the package will include: protecting businesses against shortage of resources and subsequent volatile market prices; creating new business opportunities and innovative ways of producing and consuming resources; and saving energy and tackling climate change.

Which sectors does the plan target?

The action plan element of the package prioritises five sectors - plastics, food waste, critical raw materials, construction and biomass. Across these sectors, the plan introduces a range of different measures, including: measures aimed to improve support and information across sectors; the development of standards and indicators; and the publication and sharing of guidance and best practices.

The plan also targets areas outside of waste management. For example, in respect of production, improvements in product design (e.g. durability) will be promoted and in respect of consumption, efficiency in production processes will be targeted.

What are the highlights of the proposals?

Highlights of the legislative proposals on waste policy include draft new directives on waste, packaging waste, landfill and electronic waste/batteries/end-of-life vehicles. The draft directives contain proposals for new waste management targets, the streamlining of provisions on by-products and end-of-waste status and the aligning of legal definitions, methods for calculating targets and reporting obligations.

The revised waste targets include:

• recycling at least 65% of all municipal waste by 2020;
• recycling at least 75% of all packaging waste by 2030;
• sending a maximum of 10% of all waste to landfill by 2030 (binding); and
• a ban on landfilling separately collected waste.

The document setting out the plan, as well as the annex to the plan which sets out the timeframe for implementation of the plan, can be found here.