This new legislation seeks to address three main challenges: dependence on imported raw materials, low resource efficiency, and the lack of internalized environmental costs in the current linear economic model.

By promoting sustainable production and circular business models, the Act aims to reduce the EU's dependence on imported raw materials.

Proposed measures include enhancing the supply and quality of recycled materials and stimulating market demand for recycled inputs across industries.

The European Commission has initiated a public consultation for the upcoming Circular Economy Act, aiming to position the EU as a global leader in circular economy by 2030.

The initiative will also reform 'end of waste' criteria, digitalize extended producer responsibility schemes, and set mandatory procurement criteria for circular goods and services.

Despite growing awareness of circular economy practices, the EU's circularity rate has stagnated, increasing only from 10.7% in 2010 to 11.8% in 2023, underscoring the need for effective legislation.

Two primary policy pillars of the Act include improving e-waste recycling and scaling demand for secondary critical raw materials.

Set for adoption in 2026, the Act focuses on enhancing economic security, resilience, competitiveness, and decarbonization efforts within the EU.

The Commission has outlined measures for effective collection and recycling of electronic waste, alongside developing a single market for waste and recycled materials.

Key objectives of the legislation include creating a single market for secondary raw materials, increasing the supply of high-quality recycled materials, and stimulating demand for these materials within the EU.

Portugal has been reported among the EU countries with the lowest circularity rates, at approximately 2% in 2022, according to Eurostat data.

The consultation period for stakeholders and the public is open until November 6, 2025, inviting contributions from various sectors to shape the final legislation.