Published April 21, 2026

The Circular Economy Act – the ins and outs

The European Union is on the brink of a transformative milestone: the introduction of the Circular Economy Act. Scheduled for adoption in 2026, this legislation aims to double the use of circular materials in the EU from 12% to 24% by 2030. This ambitious target is a cornerstone of the EU’s strategy to achieve climate neutrality by 2050 and reduce pressure on natural resources.

What is the Circular Economy Act?

The Circular Economy Act is designed to establish a Single Market for secondary raw materials, increasing the supply of high-quality recycled materials and stimulating demand within the EU. It builds on the second Circular Economy Action Plan and reinforces measures to accelerate Europe’s transition to a resource-efficient, low-waste, and climate-neutral economy.

Key Objectives:

• Double the circular material use rate to 24% by 2030.
• Create a Single Market for secondary raw materials, ensuring stable supply and demand for recycled materials.
• Harmonize national measures to strengthen the internal market, particularly for recycling, reuse, and sustainable production.

The Role of Digital Product Passports

A pivotal tool in achieving these goals is the Digital Product Passport (DPP). Introduced as part of the Ecodesign for Sustainable Products Regulation (ESPR), DPPs provide detailed, digital records of a product’s material composition, origin, repair history, and end-of-use recycling and reuse options.

How DPPs Support the Circular Economy:

• Transparency: Consumers and businesses can access real-time data on a product’s sustainability, enabling informed purchasing and recycling decisions.
• Traceability: DPPs accompany materials throughout their use cycle, ensuring compliance with circularity requirements and facilitating efficient recycling.
• Innovation: By standardizing product data, DPPs encourage the development of new business models focused on reuse, repair, and recycling.

What Does This Mean for Businesses?

1. New Opportunities for Innovation and Sustainability

Companies investing in circular design and materials will gain a competitive edge. The Act encourages products that are durable, repairable, and recyclable, aligning with the ESPR and consumer demand for sustainable options.

2. Compliance and Responsibility

Businesses must provide greater transparency about product composition and recyclability. Consumers will have access to information on durability and repairability, driving demand for circular alternatives.

3. Access to Secondary Raw Materials

The Act will increase the availability of high-quality recycled materials, reducing reliance on virgin resources. This is particularly relevant for sectors like packaging, textiles, and electronics, where the EU has already introduced specific regulations.

How Cirmar Can Help

At Cirmar, we understand that transitioning to a circular economy presents both challenges and opportunities. We support businesses in:

• Designing circular products that meet new EU standards.
• Optimizing production processes to minimize waste and maximize recycling.
• Sourcing sustainable materials and establishing closed-loop supply chains.
• Implementing C_passport® – our Digital Product Passport. An easy to use platform that goes beyond compliance and focuses on achieving positive, circular impact.

Let’s have a chat

The Circular Economy Act is a critical step toward a sustainable future. Businesses that act now will not only comply with new regulations but also capitalize on a growing market for circular products and materials. We are ready to guide you through this transition.

Contact us to learn how we can help your business embrace the circular economy.