European Commission takes steps to advance the circular economy

The European Commission is progressing the circular economy agenda with a series of new proposals and measures. The Circular Economy Act is expected to be proposed by the Commission in 2026. It will support the European Union’s ambitions under the Competitiveness Compass and the Clean Industrial Deal to double the share of recycled material in the EU’s economy and position the EU as a global leader in the circular economy by 2030. In its press release, the Commission announced that a public consultation with stakeholders and a call for evidence will start soon.

On 2 July 2025, the Commission launched several initiatives to accelerate the EU’s transition to a circular economy. Furthermore, on 4 July, the Commission published new rules for calculating and verifying recycling efficiency and the recovery of materials from waste batteries. These actions are intended to lay the groundwork for the forthcoming Circular Economy Act.

Digital Waste Shipment System

The Commission has adopted detailed rules allowing economic operators to use exclusively digital systems for shipping waste within the EU single market. The Digital Waste Shipment System is designed to simplify waste shipments between Member States and ensure waste is recycled at the most advanced facilities in the EU. From 21 May 2026, DIWASS will fully replace paper-based procedures.

The digitalisation of waste shipment procedures is a key objective of the Waste Shipment Regulation, adopted in April 2024. According to the Commission, digitisation will strengthen markets for secondary materials and support the transition to a competitive circular economy across the EU. It will also improve traceability and tackle illegal waste shipments. In the future, DIWASS may be used voluntarily by competent authorities and economic operators in non-EU countries for shipments involving at least one EU Member State.

The Commission will continue to develop DIWASS, including the preparation of technical documentation and user instructions by the end of 2025.

Public consultation on the classification of green-listed waste

The Commission has launched a public consultation on harmonising the classification of certain waste types (“green-listed” waste) to facilitate shipments across borders. The Waste Shipment Regulation enables the Commission to identify, through delegated acts, specific waste streams that should be subject to the “green-list” procedure for shipments for recovery between Member States. This consultation aims to gather information from stakeholders to prepare such delegated acts for “green-listing” certain waste. The consultation is open until 31 October 2025.

Evaluation of the Waste Electrical and Electronic Equipment Directive

The Commission has also published an evaluation of the Waste Electrical and Electronic Equipment (WEEE) Directive. The evaluation notes that, in general, good progress has been made on the environmentally sound management and proper treatment of all types of waste electrical and electronic equipment in the EU. The amount of WEEE collected increased significantly between 2012 and 2021, primarily as a result of greater sales of such equipment in the EU. However, nearly half of WEEE generated is still not being collected, and the majority of Member States do not reach the collection targets set out in the Directive. Currently, only about 40 per cent of WEEE is recycled in the EU.

The evaluation identified five main shortcomings of the Directive:

• The scope does not adequately address new waste streams from renewable energy and digital technologies, rich in critical raw materials (CRM) such as wind turbines, which will reach the end of their lifecycles and be disposed of in the coming decades.

• Various barriers prevent the attainment of WEEE collection targets.
• Missed opportunities in the recovery of critical raw materials such as copper, rare earth elements, gallium, germanium, or tungsten; current recycling targets do not effectively encourage the recovery of secondary raw materials.
• Fragmented implementation of Extended Producer Responsibility (EPR) schemes across the EU and gaps in enforcement, particularly regarding online sellers.
• Inconsistent treatment requirements and a need to improve the quality of recycling.

The Commission noted that a new approach to incentivising improved WEEE collection and treatment is required. Potential measures could include redefining the scope of future WEEE legislation to cover green and digital equipment and introducing mandatory WEEE treatment standards to ensure more comprehensive and effective waste management across the EU.

The Commission will consider the evaluation findings in the context of the Circular Economy Act.

Rules to improve recycling efficiency and material recovery from waste batteries

On 4 July, the Commission published new rules for calculating and verifying recycling efficiency and the recovery of materials from waste batteries. These rules aim to ensure high-quality recycling and recovery, especially for batteries containing critical and strategic raw materials. The rules establish calculation guidelines for recyclers and are designed to prevent unfair competition in the EU market for secondary raw materials derived from waste batteries.

The methodology for measuring recyclers’ efficiency quantifies the total amount of materials recycled, and it covers batteries containing lead-acid, nickel-cadmium, lithium and other substances. The rules also outline processes for measuring the recovery of materials, specifically for critical raw materials such as cobalt, copper, lithium and nickel, as well as lead.

To support consistent application, a harmonised format for documentation provided by recyclers to Member State authorities has also been introduced.

The new rules will enter into force on 24 July 2025.