Signal The EU Circular Economy Act enters into force in 2026

Summary

This signal concerns new European legislation on the circular economy. The EU's Circular Economy Act, due to take effect in 2026, aims to establish a single market for recycled materials. Sitra places it within an EU agenda where the sustainability transition is about climate costs, security of supply, strategic autonomy and competitiveness as much as the environment. The EU is already a market leader in the circular economy, and circular solutions are seen as key to securing strategic materials. This matters as demand for critical minerals rises for renewables, batteries, defence and data centres, while Europe accounts for only a few per cent of global mining output.