The European Commission has introduced a first package of pilot measures to accelerate Europe’s transition to a circular economy, with a strong focus on plastics. The initiative aims to strengthen the Single Market for secondary raw materials, enhance competitiveness, and support strategic autonomy and environmental sustainability. For producers of packaging, batteries and electrical equipment, this signals further regulatory developments affecting recycled content, secondary raw materials and market conditions across the EU.

The Commission is following a two-step approach. In the short term, pilot measures address urgent challenges in the plastics recycling sector by reducing market fragmentation, improving regulatory clarity and encouraging investment. In 2026, the Commission plans to adopt a Circular Economy Act introducing horizontal measures to improve supply and demand for secondary raw materials and remove barriers to circular practices.

A key measure is the introduction of EU-wide „end-of-waste“ criteria for plastics under the Waste Framework Directive. Harmonised rules defining when recycled plastics cease to be waste are expected to simplify cross-border trade, reduce administrative burdens and ensure a stable supply of quality recyclates.

In parallel, an implementing act under the Single-Use Plastics Directive clarifies how chemically recycled plastics may count toward recycled content targets in PET beverage bottles. This aims to provide greater legal certainty and stimulate investment in chemical recycling technologies.

To ensure fair competition, separate customs codes will distinguish virgin from recycled plastics, strengthening enforcement and market transparency. The Commission will also monitor EU and global plastics markets.

Although focused on plastics, the measures indicate a broader policy direction. The upcoming Circular Economy Act is expected to impact recycled content obligations, traceability requirements and compliance frameworks relevant also for battery and electric equipment producers. With only 12.2% of materials used in the EU in 2024 coming from recycled sources, accelerating circularity is positioned as both an environmental and competitiveness priority.

Producers should monitor regulatory developments closely and align procurement, product design and compliance systems with emerging circular economy requirements.