In the framework of the European Green Deal, in march 2020 the EU adopted a sustainable industrial strategy that will support companies to invest in circular economy.

From 1970 to 2017, the annual global extraction of materials tripled and it continues to grow.  Therefore, more than 90% of biodiversity loss and water stress come from resource extraction and processing. In particular, EU’s industry accounts for 20% of the EU’s emissions and only 12% of the materials used by EU industry come from recycling. 

The Circular Economy Action Plan presents a set of interrelated initiatives that will support the green transformation:

• Industries must be helped to modernise and exploit opportunities domestically and globally.

• A key aim will be to stimulate the development of new markets for climate neutral and circular products. The Commission will present a ‘sustainable products’ policy that will set minimum requirements to prevent environmentally harmful products from being placed on the EU market.

• The Commission will propose measures to ensure that all packaging in the EU is reusable or recyclable by 2030.

• New business models based on renting goods and services will help to shift consumption patterns away from single or limited use products.

• The decarbonisation and modernisation of energy-intensive industries such as textiles, construction, electronics and plastics is essential. The Commission will make a proposal to support zero carbon steel-making by 2030.

A recent study shows that applying circular economy principles across the EU economy has the potential to increase EU GDP by an additional 0.5% by 2030 creating around 700.000 new jobs. There is a clear business case for companies too, since manufacturing firms in the EU spend about 40% on materials, closed loop models can increase their profitability while sheltering them from price fluctuations.

For information on how B2EU Consulting could support your organisation in developing a funding strategy and in unlocking different financing tools for your operation in the green sector, please don’t hesitate to contact us at: info@b2eu-consulting.com