The EU is in the midst of one of the biggest changes to product legislation in decades. Companies that start in time can take control of their material flows, strengthen relationships with suppliers, and build long-term competitiveness.
The new circularity regulations make circularity an integral part of business and aim to ensure that products last longer, use resources more efficiently, and are easier to repair, reuse, and recycle. At the same time, requirements for transparency and traceability throughout the value chain are being tightened.
For companies, this means not only new obligations – but also a clear direction forward.
“For companies, this means not only new obligations – but also a clear direction forward. When sustainability, resource efficiency, and security of supply become business-critical issues, circular business models become increasingly vital for long-term competitiveness,” says Elin Blomgren, a member of the Sustainability Team, who supports companies in their transition through the circular economy.
Circular Economy Act – the next major lever in the transition
The Circular Economy Act legislative package is expected to be presented in the second half of 2026. Unlike several of the regulations already adopted, which focus on individual products, this package takes a broader approach to material flows and the systems level.
The purpose is to:
- increase the use of secondary raw materials
- strengthen the EU’s resilience and security of supply
- remove barriers to reuse, recycling, and circular business models
The legislation is expected to cover electronic waste, critical raw materials, and common rules for how secondary materials can be used and traded within the EU. For industries such as construction, electronics, chemicals, textiles, and packaging, this could represent a significant shift – from linear flows to business models where longevity, disassembly, and reuse are central value drivers.
“There is an important opportunity here: companies that start building business cases linked to life-cycle costs, reuse, and circular procurement now can both reduce their vulnerability and create new revenue streams. Circularity simply becomes a way to future-proof the business,” Elin explains.
Elin’s three concrete first steps:
- Map your products’ life cycles and identify opportunities for improvement to increase circularity
- Follow the development of the Circular Economy Act and stay updated on existing legal requirements and trends through environmental scanning
- Assign responsibility and develop a clear plan for the transition
Other important EU circularity regulations – in brief
- Ecodesign for Sustainable Products Regulation (ESPR)
Introduces detailed sustainability requirements directly for products, such as repairability, energy efficiency, and recycled content. - Right to Repair Directive
Makes repair the preferred choice through strengthened consumer rights and requirements for manufacturers. - Digital Product Passports
Ensures traceability and transparency throughout the value chain by providing access to product data throughout the entire life cycle. - The Battery Regulation
Regulates the carbon footprint, traceability, replaceability, and recycling of batteries – from raw material to end-of-life. - Packaging and Packaging Waste Regulation (PPWR)
Tightens requirements for all packaging to reduce waste and increase reuse and recycling.
Do you want to know more about how your company can become more circular or which legal requirements will affect you? Contact us, and together we will find a way forward that suits your specific business!