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What is the EU Circular Economy Act?
The Circular Economy Act is a planned EU law to make recycled materials easier to trade and more attractive to use across Europe. The European Commission is expected to present its proposal in early December 2026, with 2 December the current provisional date. Its stated aim is to create a single market for secondary raw materials, and it is meant to contribute to doubling the EU's circularity rate. Recycled materials made up 12.2% of the materials the EU used in 2024. The Commission wants 24% by 2030.
Why the EU wants a Circular Economy Act
Europe has no single rulebook for recycled materials. There are 27 different national regimes for deciding when waste stops being waste, and the European Parliament's research service says the lack of common criteria has been identified as a primary barrier to competitiveness. The same briefing notes that recycling rates for lithium and rare earths remain below 1%, and that the EU exported 35.7 million tonnes of recyclable raw materials in 2024.
That matters for the critical minerals shortage. Under the Critical Raw Materials Act, the EU wants recycling capacity able to supply 25% of its yearly use of strategic raw materials by 2030. The Circular Economy Act is meant to build the market that recycling depends on.
What the Circular Economy Act is expected to include
The Commission has said the Act could rest on three pillars: changes to the Waste Framework and Landfill Directives, a revision of the WEEE Directive, and further measures, according to the European Parliament's research service.
| Measure | What it would do | Status |
|---|---|---|
| Single market for waste and recycled materials | Make it simpler to move recoverable waste between member states, with harmonised waste classifications and definitions | Expected |
| Common end-of-waste rules | Set EU-wide criteria for when waste becomes a product again, replacing differing national regimes | Expected |
| Harmonised producer responsibility | Align national extended producer responsibility (EPR) schemes, under which producers pay for collecting and recycling their products | Expected |
| Revised WEEE Directive | Update e-waste rules on collection targets, producer responsibility, scope and the recovery of critical raw materials | Expected |
| Demand for recycled materials | Make secondary raw materials more competitive with newly mined or virgin materials | Expected |
Sources: European Commission, EUWID, European Parliament research service.
Why the WEEE revision matters
Waste electrical and electronic equipment is one of the few sources of copper, gold, silver and palladium already inside Europe. Since 2019, the WEEE Directive has required each member state to collect 65% of the average weight of electrical equipment sold in the three previous years, or 85% of the e-waste it generates.
Most countries are well short. The EU collected 39% in 2024, and only Bulgaria, Slovakia, Czechia and Latvia met the target, according to Eurostat. That year it collected 12.3 kg of e-waste per person, against 32.4 kg of new equipment sold per person, Eurostat reports.
What happens next
A Commission proposal is not law. The European Parliament and the Council of the EU, which represents member state governments, each set out their positions and must agree a final text. Any parts that amend directives then have to be written into national law by each member state.
Where Majestic fits
Majestic Corporation plc (AQSE: MCJ) operates a 50,000 sq ft facility in Wrexham, supported by its subsidiary Telecycle. The site handles several material categories, including waste electrical and electronic equipment (WEEE). Material is sent on to specialist smelters and refiners, which recover metals such as copper, gold, silver and palladium.
Have WEEE, IT equipment or end-of-life solar panels to recycle? Contact the Majestic team to talk more.
Circular Economy Act: frequently asked questions
When will the Circular Economy Act be published?
The European Commission is expected to present its proposal on 2 December 2026, according to its provisional agenda of 3 November. It was first planned for the third quarter of 2026 and was pushed back after the Commission's Regulatory Scrutiny Board raised concerns about its impact assessment. The date has since moved several times, from 11 November to 18 November and then to 2 December.
Is the Circular Economy Act law yet?
No. It becomes law only once the European Parliament and the Council of the EU agree on a final text.
What does the Circular Economy Act mean for e-waste?
It is expected to revise the WEEE Directive, covering collection targets, producer responsibility, scope and the recovery of critical raw materials. The EU collected 39% of its e-waste in 2024, against a 65% target.
Does the Circular Economy Act apply in the UK?
No. It is EU law, so it will not apply directly in the UK. UK businesses that sell products into the EU or ship recyclable material there would still need to meet EU rules when they do.
How does it relate to the Critical Raw Materials Act?
The Critical Raw Materials Act sets a 2030 goal for recycling capacity able to supply 25% of the EU's yearly use of strategic raw materials. The Circular Economy Act aims to make recycled materials easier to trade and use, which that goal depends on.
What is the EU circularity rate?
It is the share of materials used in the EU that come from recycling. It was 12.2% in 2024, and the Commission aims for 24% by 2030.
Related reading
- Critical minerals shortage: the data, the policy and where recycling fits
- EU strategic projects 2026: what they mean for recycling
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