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Policy Brief: Closing All Loops: Circularity Down to the Last Scrap

EPICO KlimaInnovation has published a new policy brief outlining concrete recommendations for advancing circularity in the EU’s waste sector. The paper aims to equip policymakers and industry leaders with strategies to maximise resource efficiency, reduce landfill emissions, and enhance Europe’s economic resilience.

Front page of the Policy Brief

The EU is transitioning from a linear ‘take-make-dispose’ waste model to a circular economy, but significant gaps remain. Recycling rates stand at just 40.8%, while landfills and incineration continue to generate emissions. To align environmental and economic goals, the EU must address systemic inefficiencies and implement harmonised policies that incentivise circularity.

EPICO’s policy brief sets out three key recommendations:

  1. Establishing a functional European waste market through Carbon Contracts for Difference (CCfDs) to promote low-carbon technologies and improve recycling incentives.
  2. Creating a transition pathway for waste circularity, including evaluating the integration of waste-to-energy (WtE) into the EU Emissions Trading System (ETS) while ensuring alignment with the waste hierarchy.
  3. Launching an EU Circular Economy Waste Fund to support investments in sustainable waste management infrastructure, carbon capture and utilisation technologies, and capacity building.

This publication was developed using the results of the two-day Policy Accelerator organised by EPICO, in Brussels, in December 2024, gathering experts from EU institutions, industry, and civil society.

Read the Policy Brief here.