To accelerate the transition to circularity, the Commission is pursuing a two-step approach. In the first step, as pressure on certain sectors is acute, this package of pilot measures includes a set of concrete short-term actions to support circularity in particular in the plastics sector, while encouraging investment and innovation more broadly. Second, in 2026, the Commission will propose a Circular Economy Act with further horizontal measures that will improve the functioning of the Single Market for secondary raw materials.

The circular economy represents a major opportunity for the plastics sector. Evidence from the European Commission's Joint Research Centre shows that circular solutions can cut the sector's climate-related emissions by 45%, decarbonise energy use, and improve the sector's trade balance by €18 billion per year by 2050.

The sector of plastic recycling faces mounting pressures: fragmented markets for recycled materials, high energy costs, volatile virgin plastic prices, and unfair competition from third countries. These challenges are already taking a toll, with reduced capacity use and financial losses for EU recyclers, which threaten the EU's circularity targets and industrial competitiveness. 

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