The report Research & Innovation projects supporting the Circular Economy Act, with a focus on the extended producer responsibility, prepared by Axel Darut, Circular economy policy consultant at Circulearth, for the European Commission’s Directorate-General for Research and Innovation. It analyses 27 Horizon Europe and Horizon 2020 projects to identify circular solutions and policy measures that could inform the forthcoming Circular Economy Act, with a particular focus on strengthening Extended Producer Responsibility (EPR) schemes.  

Key Insights

1. EPR needs to move beyond waste management. The report finds that EPR should evolve from a conventional mechanism for funding waste management into a data-driven instrument that can influence eco-design, resource efficiency and the development of secondary raw material markets.
2. Fragmented national systems remain a major barrier. Producers operating across the EU currently face 27 different national producer registers and reporting systems. The report identifies this administrative fragmentation as a significant obstacle to cross-border circular business models, particularly for SMEs.  
3. Digital infrastructure can support more effective EPR schemes. Projects including CIRPASS and CircThread demonstrate how the Digital Product Passport can provide standardised information on material composition and other product characteristics. The report identifies this data infrastructure as important for traceability and more precise eco-modulation of EPR fees.  
4. Textiles are among the sectors addressed by the project portfolio. The report highlights textile-related work alongside projects covering packaging, electronics, construction and other value chains. It notes, for example, the challenges faced by social enterprises in the textile reuse sector, where current EPR fee allocation can favour low-cost recycling over higher-value prevention and repair.
5. Circular solutions need stronger conditions for scaling. The portfolio includes projects addressing recycling, reuse, remanufacturing, material recovery and industrial symbiosis. The report finds that successful scaling depends not only on technical feasibility but also on harmonised regulation, cross-sectoral governance and financial incentives that favour value retention.  
6. Harmonised rules are needed to support secondary material markets. The report identifies inconsistent End-of-Waste criteria and other regulatory barriers as obstacles to cross-border movement of secondary materials. It recommends harmonised criteria so certified secondary feedstocks can move more easily across the Single Market.  
7. The report prioritises stronger economic and governance incentives. Its recommendations include more precise eco-modulation of EPR fees, mandatory recycled content targets, an EU-wide EPR registration portal, greater liability for digital marketplaces, and more inclusive governance of Producer Responsibility Organisations, including support for repair and reuse infrastructure.  

The report concludes that technological readiness alone is not sufficient to scale circular solutions. It highlights the need for coordinated economic incentives, digital infrastructure, harmonised regulation and more inclusive governance to enable EPR schemes to support circular business models across the EU.  

For more detailed insights, please read the report on European Union website.