The chemical industry is at the heart of almost all value chains and plays a key role in helping Europe move towards a circular economy. By designing materials and products for longevity, reuse, repair, and recyclability, and by turning low-value resources into high-impact solutions, the sector enables circularity not only within its own operations but across industries like automotive, construction, electronics, textiles, agriculture, and retail. In its latest position paper, Cefic lays out key policy requirements to scale up circularity within the chemical industry for a competitive, sustainable, and strategically more autonomous EU.
Findings from the recently-released Cefic-UNITY study, “Accelerating the Circular Transformation: Insights, Challenges, and Pathways for the Chemical Industry and Beyond”, show that while the chemical industry is making progress, circular economy projects still face significant financial challenges. These include a lack of competitiveness, regulatory clarity, and public funding support. Alignment of all policies behind the EU’s objectives is therefore crucial to deliver a thriving European chemical industry that is both circular and competitive.
To achieve a thriving circular chemical industry in Europe, Cefic proposes several policy recommendations:
- Use end-of-life materials as raw materials to minimise the waste being diverted to landfills and incineration
This requires stronger EU-wide rules to treat waste as valuable raw materials, harmonised end-of-waste waste criteria, compliant intra-EU movement of waste and better producer responsibility schemes to secure reliable recycling streams and boost Europe’s raw material supply.
- Enhance the use of circular feedstocks to strengthen more sustainable carbon cycles
Promoting recycled, biomass, and carbon capture and utilisation-based feedstocks requires clear sustainability standards and verification. Setting ambitious circular content targets and supporting diverse technologies, including chemical recycling, can drive demand and investment in sustainable materials. Additionally, clarity must be provided on the calculation rules leveraging a mass balance chain-of-custody as a key enabler to contribute to circular content targets.
- Apply technology diversity and customised approach for each product value chain
Circular solutions must fit each product’s needs, there’s no one-size-fits-all. Focus should be on end-products, supported by Digital Product Passports to track recyclability and sustainability, enabling tailored circular strategies across industries.
- Support the business case for scaling circularity
Making commercial circular projects financially viable needs market pull incentives, easier trade in recycled materials, and faster permitting. More funding and risk-sharing will help innovations grow, supported by dedicated EU funds and streamlined regulations to accelerate the circular economy.
Targeted incentives, harmonised regulation, and predictable funding mechanisms that lower investment risks will not only support recyclers and circular innovators currently struggling with low demand but also reinforce the integrity of the EU single market and Europe’s long-term industrial resilience.
With the right conditions in place, the chemical industry can lead the way in building a competitive and sustainable circular economy.