#Economic principle definition plus#

In February 2021, the Parliament adopted a resolution on the new circular economy action plan demanding additional measures to achieve a carbon-neutral, environmentally sustainable, toxic-free and fully circular economy by 2050, including tighter recycling rules and binding targets for materials use and consumption by 2030. There is a focus on resource intensive sectors, such as electronics and ICT, plastics, textiles and construction. In March 2020, the European Commission presented the circular economy action plan, which aims to promote more sustainable product design, reduce waste and empower consumers, for example by creating a right to repair). What is the EU doing to become a circular economy? Redesigning materials and products for circular use would also boost innovation across different sectors of the economy.Ĭonsumers will be provided with more durable and innovative products that will increase the quality of life and save them money in the long term. Moving towards a more circular economy could increase competitiveness, stimulate innovation, boost economic growth and create jobs ( 700,000 jobs in the EU alone by 2030).

This especially applies to critical raw materials, needed for the production of technologies that are crucial for achieving climate goals, such as batteries and electric engines. Recycling raw materials mitigates the risks associated with supply, such as price volatility, availability and import dependency. In 2021, this resulted in a trade deficit of €35.5 billion. Regardless, the EU still imports more than it exports.

#Economic principle definition plus#

The total value of trade (import plus exports) of raw materials between the EU and the rest of the world has almost tripled since 2002, with exports growing faster than imports. According to Eurostat, the EU imports about half of the raw materials it consumes. However, the supply of crucial raw materials is limited.įinite supplies also means some EU countries are dependent on other countries for their raw materials. The world's population is growing and with it the demand for raw materials. The aim is to tackle excessive packaging and improve its design to promote reuse and recycling. Packaging is a growing issue and, on average, the average European generates nearly 180 kilos of packaging waste per year. According to the European Environment Agency, industrial processes and product use are responsible for 9.10% of greenhouse gas emissions in the EU, while the management of waste accounts for 3.32%.Ĭreating more efficient and sustainable products from the start would help to reduce energy and resource consumption, as it is estimated that more than 80% of a product's environmental impact is determined during the design phase.Ī shift to more reliable products that can be reused, upgraded and repaired would reduce the amount of waste. Reusing and recycling products would slow down the use of natural resources, reduce landscape and habitat disruption and help to limit biodiversity loss.Īnother benefit from the circular economy is a reduction in total annual greenhouse gas emissions. Benefits: why do we need to switch to a circular economy?