In August 2025, the European Commission launched a public consultation on the planned Circular Economy Act (CEA). Stakeholders and the general public had until early November 2025 to submit their comments and contributions on this key initiative of EU circular economy policy.

The CEA is expected to be presented by the European Commission as a legislative proposal in the fourth quarter of 2026. It will then need to be adopted by the European Parliament and the Council of the EU under the ordinary legislative procedure.

What is the Circular Economy Act (CEA)?

The Circular Economy Act is part of Europe’s efforts to accelerate the transition from a linear economic model (“take–make–dispose”) to circular value creation. Its objective is to use resources more efficiently, reduce waste, and keep products in the economic cycle for as long as possible.

Among other things, the CEA addresses the following topics:

• Product design and durability

• Reuse, repair, and recycling

• Transparency along the supply chain

• Information and reporting obligations

The specific requirements may vary depending on the industry, product group, and national implementation.

Why the CEA Is Relevant for Companies

The Circular Economy Act will affect various areas within companies and will require new strategies:

• Legal & Compliance: New obligations and the need to adapt processes

• Procurement & Product Development: Focus on materials, product life cycles, and supply chains

• Sales: Growing demand for credible, sustainable products

Companies that engage with the goals of the circular economy at an early stage can reduce regulatory risks while at the same time unlocking new market opportunities.

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