What is the new EU Circular Economy Action Plan?
The new Action Plan announces initiatives for the entire life cycle of products, from design and manufacturing to consumption, repair, reuse, recycling, and bringing resources back into the economy. It introduces legislative and non-legislative measures and targets areas where action at the EU level brings added value. The Action Plan is at the core of the European Green Deal, the EU roadmap towards climate-neutrality. Half of total greenhouse gas emissions come from resource extraction and processing. It is not possible to achieve the climate-neutrality target by 2050 without transitioning to a fully circular economy.
The aim of the Action Plan is to reduce the EU’s consumption footprint and double the EU’s circular material use rate in the coming decade, while boosting economic growth. This will be done in full cooperation with stakeholders and business. Applying ambitious circular economy measures in Europe can increase EU’s GDP by an additional 0.5% by 2030 and create around 700,000 new jobs.
What measures are foreseen for products?
At present, many products break down too quickly, cannot be reused, repaired or recycled, or can only be used once. This linear pattern of production and consumption (“take-make-use-dispose”) does not give producers an incentive to make more sustainable products. The Sustainable Product Policy Framework aims to change this situation with actions to make green products become the norm. The rules will also aim to reward manufacturers of products based on their sustainability performance and link high performance levels to incentives.
A new Sustainable Product Policy Framework includes three main building blocks – actions on product design, on empowering consumers and on more sustainable production processes.
What measures do you foresee on design?
The Commission will launch a sustainable product legislative initiative. This initiative will have at its core a proposal to widen the Ecodesign Directive beyond energy-related products. The approach is to make the Ecodesign framework applicable to the broadest possible range of products and make it deliver on circularity.
As part of this legislative initiative, and, where appropriate, through other instruments, the Commission will consider establishing sustainability principles. The new rules will in particular address the need to improve product durability, reusability, upgradability and reparability, addressing the presence of hazardous chemicals in products and increasing the recycled content in products. We will also aim at restricting single-use and countering premature obsolescence. Introducing a ban on the destruction of unsold durable goods will also be part of the measures.
The Commission will launch a European Circular Dataspace to mobilise the potential of digitalisation of product information, introducing for example digital product passports.
What actions are foreseen for consumers and public buyers?
The Commission will work towards strengthening the reparability of products. The aim is to embed a “right to repair” in the EU consumer and product policies by 2021.
The Plan foresees also actions to give consumers more reliable information about products at the point of sale, including on their lifespan and other environmental performance. The Commission will propose that companies substantiate their environmental claims by using Environmental Footprint methodologies. Stricter rules will be proposed to reduce greenwashing and practices such as planned obsolescence.
New measures will increase the uptake of green public procurement, such as introducing minimum mandatory green criteria or targets for public procurement.
How will the transition to a circular economy benefit our economy and contribute to reach the target of climate-neutrality by 2050?
Between 1970 and 2017, the global extraction and processing of materials, such as biomass, fossil fuels, metals and minerals tripled – and it continues to grow, causing greenhouse gas emissions, biodiversity loss and water stress.
The circular economy model where value and resources are maintained in the economy for as long as possible and waste generation is minimised, reduces pressures on natural resources.
The circular economy can make a decisive contribution to the decarbonisation of our economy. In the past few years only, several studies have shown the substantial potential of circularity as a tool for climate mitigation.
The Commission will step up the synergies between achieving circularity and climate neutrality. All actions in the Action Plan will contribute to reducing both EU’s carbon and material footprint. In parallel, the Commission will work with Member State to promote circularity in future revisions of the National Energy and Climate Plans (NECP) and in other climate policies.
What does the Plan propose for:
electronics and ICT
The Action Plan proposes setting up a ‘Circular Electronics Initiative’ to promote longer product lifetimes through reusability and reparability as well as upgradeability of components and software to avoid premature obsolescence.
The sector will be a priority area for implementing the ‘right to repair’. The Commission is aiming to adopt new regulatory measures for mobile phones, tablets and laptops under the Ecodesign Directive, as well as new regulatory measures on chargers for mobile phones and similar devices. An EU-wide take back scheme to return or sell back old mobile phones, tablets and chargers will also be considered.
The Action Plan announces a comprehensive policy framework that will aim to strengthen industrial competitiveness and innovation, boosting the EU market for sustainable and circular textiles, including the market for textile reuse, and driving new business models.
Textiles are the fourth highest-pressure category for the use of primary raw materials and water, and fifth for greenhouse gas emissions. This future strategy will boost the market for sustainable and circular textiles, including the market for textile reuse. It will support new consumption patterns and business models. The Commission will also provide guidance on separate collection of textile waste, which Member States have to ensure by 2025.
The Commission will work with the industry and market actors to identify bottlenecks in circularity for textiles and stimulate market innovation.
The Action Plan builds on the 2018 Plastics strategy, and focuses on increasing recycled plastic content. Mandatory requirements on recycled content will be suggested in areas such as packaging, construction materials and vehicles.
The Action Plan addresses also challenges related to microplastics and sourcing and use of bio-based plastics bio-based and biodegradable plastics. On microplastics, the Commission will restrict the intentional adding of microplastics. It will also work on their unintentional release, further developing and harmonising measurement methods, pursuing labelling, certification and regulatory measures, and consider measures to increase the capture of microplastics in wastewater.
construction and buildings
The building sector consumes about 50% of all extracted material and is responsible for more than 35% of the Union’s total waste generation.
The Commission will adopt a new comprehensive Strategy for a Sustainable Built Environment to promote circularity principles throughout the whole lifecycle of buildings. The Commission will propose to revise the Construction Product Regulation, which may include recycled content requirements for certain construction products.
The amount of materials used for packaging is continuously growing and in 2017 packaging waste in Europe reached 173 kg per inhabitant – the highest level ever.
The Commission will propose measures to ensure that the increase in the generation of packaging waste is reversed as a matter of priority, including by setting targets and other waste prevention measures.
The Commission’s aim is to make all packaging placed on the EU market reusable or recyclable in an economically viable way by 2030. The Commission will propose to reinforce the mandatory essential requirements for all packaging placed on the EU market.
batteries and vehicles
The Commission will propose a new regulatory framework for batteries. It will include measures to improve the collection and recycling rates of all batteries and ensure the recovery of valuable materials, sustainability requirements for batteries, the level of recycled content in new batteries, and the provision of information to consumers.
The Commission will propose the revision of the rules on end-of-life vehicles in order to improve recycling efficiency, as well as rules to address the sustainable tretatement of waste oils
An estimated 20% of the total food produced is lost or wasted in the EU. The Commission will propose a target on food waste reduction as part of the EU Farm-to-Fork Strategy. That Strategy will address the entire food value chain to ensure the sustainability of the sector – strengthening efforts to tackle climate change, protect the environment and preserve biodiversity.
The Commission will launch analytical work to determine the scope of a legislative initiative on reuse to replace single-use food packaging, tableware and cutlery by reusable products in food services.
What measures are foreseen on waste?
Preventing waste from being created in the first place is key. Once waste has been created, it needs to be transformed into high-quality resources.
The Commission will put forward waste reduction targets for more complex streams, and enhance the implementation of the recently adopted requirements for Extended Producer Responsibility schemes, amongst other actions.
The Commission will continue modernising EU waste laws. Rules on waste shipments facilitating recycling or re-use within the EU will be reviewed. This will also aim to restrict exports of waste that cause negative environmental and health impacts in third countries by focusing on countries of destination, problematic waste streams and operations.
The Commission will also consider how to help citizens to sort their waste though an EU-wide harmonised model for separate collection of waste and labelling.
How does the Plan support innovation and investments?
Many EU funds will be mobilised to support the transition to a circular economy – from the EU Cohesion funds, the European Regional Development Fund and the LIFE programme to spending under the social, research and innovation programmes.
The Action Plan also includes actions to mobilise private financing in support of the circular economy through EU financial instruments such as InvestEU.
How will the circular economy be promoted at international level?
The Action Plan proposes the launch of a Global Circular Economy Alliance to explore the definition of a ‘Safe Operating Space’, kick-starting a discussion on a possible international agreement on the management of natural resources. Moreover, the Commission will lead efforts at the international level to reach a global agreement on plastics, and promote the uptake of the EU’s circular economy approach on plastics.
The EU will continue to advocate for the circular economy in its free-trade agreements, its bilateral, regional and multilateral policy dialogues and its international and multilateral environmental agreements – for example via Circular Economy Missions to partner countries. The Commission will step up cooperation with other regions, such as Africa.
How will the transition towards a circular economy be monitored?
In 2021, the Commission will update the existing monitoring framework with indicators related to the current action plan and reflecting the interlinkages between circularity, climate neutrality and the zero pollution ambition. Indicators on resource use, including our consumption and material footprints will also be further developed. The Commission will also reinforce the monitoring of circular economy national plans and other national circular economy measures, including under the efforts to refocus the European Semester process towards integrating a stronger sustainability dimension.
70% of the EU adult population fully vaccinated
Today, the EU has reached a crucial milestone with 70% of the adult population now fully vaccinated. In total, over 256 million adults in the EU have now received a full vaccine course. Seven weeks ago already, the Commission’s delivery target was met, ahead of time: to provide Member States, by the end of July, with enough vaccine doses to fully vaccinate 70% of the adult EU population.
The President of the European Commission, Ursula von der Leyen, said: “The full vaccination of 70% of adults in the EU already in August is a great achievement. The EU’s strategy of moving forward together is paying off and putting Europe at the vanguard of the global fight against COVID-19. But the pandemic is not over. We need more. I call on everyone who can to get vaccinated. And we need to help the rest of the world vaccinate, too. Europe will continue to support its partners in this effort, in particular the low and middle income countries.”
Stella Kyriakides, Commissioner for Health and Food Safety, said: “I am very pleased that as of today we have reached our goal to vaccinate 70% of EU adults before the end of the summer. This is a collective achievement of the EU and its Member States that shows what is possible when we work together with solidarity and in coordination. Our efforts to further increase vaccinations across the EU will continue unabated. We will continue to support in particular those Member States that are continuing to face challenges. We need to close the immunity gap and the door for new variants and to do so, vaccinations must win the race over variants.”
Global cooperation and solidarity
The rapid, full vaccination of all targeted populations – in Europe and globally – is key to controlling the impact of the pandemic. The EU has been leading the multilateral response. The EU has exported about half of the vaccines produced in Europe to other countries in the world, as much as it has delivered for its citizens. Team Europe has contributed close to €3 billion for the COVAX Facility to help secure at least 1.8 billion doses for 92 low and lower middle-income countries. Currently, over 200 million doses have been delivered by COVAX to 138 countries.
In addition, Team Europe aims to share at least 200 million more doses of vaccines secured under the EU’s advance purchase agreements to low and middle-income countries until the end of 2021, in particular through COVAX, as part of the EU sharing efforts.
Preparing for new variants
Given the threat of new variants, it is important to continue ensuring the availability of sufficient vaccines, including adapted vaccines, also in the coming years. That is why the Commission signed a new contract with BioNTech-Pfizer on 20 May, which foresees the delivery of 1.8 billion doses of vaccines between the end of the year and 2023. For the same purpose, the Commission has also exercised the option of 150 million doses of the second Moderna contract. Member States have the possibility to resell or donate doses to countries in need outside the EU or through the COVAX Facility, contributing to a global and fair access to vaccines across the world. Other contracts may follow. This is the EU’s common insurance policy against any future waves of COVID-19.
A safe and effective vaccine is our best chance to beat coronavirus and return to our normal lives. The European Commission has been working tirelessly to secure doses of potential vaccines that can be shared with all.
The European Commission has secured up to 4.6 billion doses of COVID-19 vaccines so far and negotiations are underway for additional doses. The Commission is also working with industry to step up vaccine manufacturing capacity.
At the same time, the Commission has started work to tackle new variants, aiming to rapidly develop and produce effective vaccines against these variants on a large scale. The HERA Incubator helps in responding to this threat.
EU’s defence measures against unfair trade practices remained effective in 2020
The system for protecting EU businesses from dumped and subsidised imports continued to function well in 2020 thanks to the EU’s robust and innovative ways of using trade defence instruments (TDI), despite the practical challenges presented by the COVID-19 pandemic. This is part of the European Commission’s new trade strategy, whereby the EU takes a more assertive stance in defending its interests against unfair trade practices.
Executive Vice-President and Commissioner for Trade Valdis Dombrovskis said: “The EU needs effective tools to defend ourselves when we face unfair trade practices. This is a key pillar of our new strategy for an open, sustainable and assertive trade policy. We have continued to use our trade defence instruments effectively during the COVID-19 pandemic, improved their monitoring and enforcement, and tackled new ways of giving subsidies by third countries. We will not tolerate the misuse of trade defence instruments by our trading partners and we will continue to support our exporters caught up in such cases. It is crucial that our companies and their workers can continue to rely on robust trade defence instruments that protect them against unfair trade practices.”
At the end of 2020, the EU had 150 trade defence measures in force, in line with previous years’ activity levels with an increase in the number of cases lodged towards the end of 2020. In addition, for the first time, the Commission addressed a new type of subsidy given by third countries in the form of cross-border financial support that was a serious challenge for EU companies.
The following are the main trade-defence highlights of 2020:
Continued high level of EU trade defence activity
Due to the COVID-19 pandemic, the Commission had to swiftly introduce temporary changes to its work practices, especially concerning on-the-spot verification visits. This allowed the Commission to continue applying the instruments at the highest standards without a drop in the levels of activity. At the end of 2020, the 150 trade defence measures that the EU had in place – 10 more than at the end of 2019 – included 128 anti-dumping, 19 anti-subsidy and 3 safeguard measures.
In 2020, the Commission launched:
- 15 investigations, compared to 16 in 2019, and imposed 17 provisional and definitive measures, compared to 15 in 2019;
- 28 reviews, compared to 23 the previous year.
The highest number of EU trade defence measures concerns imports from:
- China (99 measures);
- Russia (9 measures);
- India (7 measures);
- The United States (6 measures).
Tackling new types of subsidies
In 2020, the Commission strengthened its action against subsidies granted by third countries. In particular, the Commission imposed countervailing duties on cross-border financial support given by China to Chinese-owned companies manufacturing glass fibre fabrics and continuous filament glass fibre products based in Egypt for export to the EU.
This means that, for the first time, the Commission addressed cross-border subsidies given by a country to enterprises located in another country for exports to the EU.
Support to, and defence of, EU exporters facing trade defence investigations in export markets
The importance of monitoring trade defence action taken by third countries was again evident in 2020. The number of trade defence measures in force by third countries affecting EU exporters reached its highest level since the Commission started this monitoring activity, with 178 measures in place. In addition, the number of cases initiated also increased in 2020, with 43 compared to 37 the previous year.
The report outlines the Commission’s activities to ensure that WTO rules are correctly applied and procedural errors and legal inconsistencies are addressed in order to avoid any misuse of trade defence instruments by third countries. The Commission’s interventions yielded success in some cases where measures were not ultimately imposed, affecting important EU export products such as ceramic tiles and fertilisers.
Strong focus on monitoring and enforcement
There was a renewed focus on the monitoring of measures in place in 2020, including changes to surveillance practices to ensure the ongoing effectiveness of the trade defence instruments. This also involved customs authorities, EU industry, and in certain instances, the European Anti-Fraud Office (OLAF). Continuing its efforts to address instances where exporters tried to avoid measures, the Commission initiated three anti-circumvention investigations in 2020 and completed five such investigations during the year, where measures were extended in four cases to also address imports from third countries where transhipment was found to have taken place.
The report also recalls the findings of the European Court of Auditors from July 2020, which confirmed the successful enforcement of the EU’s trade defence instruments by the Commission. The report made a number of recommendations to further strengthen the Commission’s response to the challenges posed by unfairly traded imports that the Commission has started to implement in 2020, such as improving monitoring to ensure the effectiveness of measures.
Fishing opportunities in the Baltic Sea for 2022: improving long-term sustainability of stocks
The Commission today adopted its proposal for fishing opportunities for 2022 for the Baltic Sea. Based on this proposal, EU countries will determine how much fish can be caught in the sea basin, for what concerns the most important commercial species.
The Commission proposes to increase fishing opportunities for herring in the Gulf of Riga, whilst maintaining the current levels for sprat, plaice and by-catches of eastern cod. The Commission proposes to decrease fishing opportunities for the remaining stocks covered by the proposal, in order to improve the sustainability of those stocks and to help other stocks such as cod and herring recovering.
Virginijus Sinkevičius, Commissioner for Environment, Oceans and Fisheries, said: “The poor environmental status of the Baltic Sea is heavily affecting our local fishermen and women, who rely on healthy fish stocks for their livelihoods. This is why the Commission is doing its utmost to restore those stocks, and today’s proposal is a reflection of that ambition. However, the state of the Baltic Sea is not only related to fishing, so everyone must do their part to build the long-term sustainability of this precious sea basin.”
Over the past decade, EU’s fishermen and women, industry and public authorities have made major efforts to rebuild fish stocks in the Baltic Sea. Where complete scientific advice was available, fishing opportunities had already been set in line with the principle of maximum sustainable yield (MSY) for seven out of eight stocks, covering 95% of fish landings in volume. However, in 2019 scientists discovered that the situation was worse than previously estimated. Decisive action is still necessary to restore all stocks and ensure that they grow to or remain at sustainable levels.
The proposed total allowable catches (TACs) are based on the best available peer-reviewed scientific advice from the International Council on the Exploration of the Seas (ICES) and follow the Baltic multiannual management plan adopted in 2016 by the European Parliament and the Council. As regards western Baltic cod, western Baltic herring and salmon, the Commission will update its proposal once the relevant scientific advice will be available (expected by mid-September).
For eastern Baltic cod, the Commission proposes to maintain the TAC level and all the accompanying measures from the 2021 fishing opportunities. Despite the measures taken since 2019, when scientists first alarmed about the very poor status of the stock, the situation has not yet improved.
For western Baltic cod the scientific advice from the International Council on the Exploration of the Seas (ICES) is postponed to mid-September, and the Commission will update its proposal accordingly. However, since it seems unlikely that the stock has developed favourably, the Commission proposes already now to maintain the spawning closure. It also proposes to maintain all accompanying measures in the eastern part of the catch area, given the predominance of eastern Baltic cod in that area.
The stock size of western Baltic herring remains below safe biological limits and scientists advise for the fourth year in a row to stop catching western herring. The Commission, therefore, proposes to close the directed fishery and set a TAC limited to unavoidable by-catches, whose level the Commission will propose at a later stage, as ICES is currently not in a position to provide sufficient scientific data.
For central Baltic herring, the Commission proposes a reduction of 54% in line with the ICES advice, because the stock size has dropped very close to the limit below which the stock is not sustainable. In line with the ICES advice, the Commission proposes to decrease the TAC level for herring in the Gulf of Bothnia by 5%, while the situation for Riga herring allows for an increase of the TAC by 21%.
While the ICES advice would allow for an increase, the Commission remains cautious, mainly to protect cod – which is an unavoidable by-catch in plaice fisheries as currently conducted. It therefore proposes to maintain the TAC level unchanged.
Similarly to plaice, the ICES advice for sprat would allow for an increase. The Commission however advises prudence and proposes to maintain the TAC level unchanged. This is because sprat and herring are caught in mixed fisheries and the TAC for central Baltic herring has to be reduced again significantly. Moreover, sprat is a prey species for cod, which is not in a good condition.
ICES has postponed its scientific advice for salmon to mid-September. The Commission will update its proposal accordingly. A special advice from ICES of April 2020 already provides information about the issues affecting these stocks, pointing to the fact that the MSY objective cannot be achieved for all salmon river stocks if the commercial and recreational mixed-stock sea fisheries are continued at current levels.
The Council will examine the Commission’s proposal in view of adopting it during a Ministerial meeting on 11-12 October.
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