Time to rethink taxation and procurement – the EU needs clear rules for the circular economy

Recommendations from Helsinki-Uusimaa:

• All EU legislation must support resource use within planetary boundaries and promote biodiversity and climate action.
• Binding, clear and harmonised EU-level legislation for the circular economy is crucial for the competitiveness of the whole EU. Circular economy is the source of growth in the EU and reinforces EU’s position in the green transition globally.
• Recycled materials strengthen EU’s strategic autonomy and reduce dependency on critical raw materials. Circular economy increases food system resilience by reducing reliance on imported and finite resources.
• Material design must prioritize environmental safety, circularity, and compatibility with nature.
• Public procurement plays a key role in driving circularity — mandatory and reportable circular criteria for procurements above EU thresholds are needed.
• Taxation should promote circularity by shifting the burden from labour to virgin resource use; recycled materials must be taxed less.
• Producer responsibility should be extended to all sectors and harmonised across all Member States.
• Harmonised EU rules are needed to prevent reusable materials from being wrongly classified as waste.
• Cities and regions are key to implementing circular economy policy on the ground. Long-term funding and investment incentives are vital for regional circular economy ecosystems and skills development.