EU Launches Public Consultation on the Circular Economy Act

On August 1, 2025, the European Commission launched a public consultation on the upcoming Circular Economy Act (CEA): a landmark regulation expected to reshape how businesses across the EU approach sustainability and compliance. 

For companies in sectors such as electronics, packaging, textiles, batteries, vehicles, and construction, this initiative will have far-reaching consequences.

At its core, the Act seeks to close the gap between policy ambition and real-world progress on circularity. That means stricter requirements around material declarations, end-of-life management, traceability of secondary raw materials, and harmonized reporting standards.

For GoCompliance customers, this represents a shift that will demand better supply chain transparency, proactive data management, and streamlined regulatory reporting to remain competitive in the Single Market.

In this blog, we will guide you through 5 key considerations your business should be making in light of these new measures. By engaging early in the consultation and preparing systems now, your business can avoid the pitfalls of fragmented national frameworks and position themselves ahead of compliance deadlines. 

1. Tackling EU’s Circularity Shortfall

On August 1, 2025, the European Commission officially launched a public consultation and call for evidence to inform its upcoming Circular Economy Act, slated for adoption in 2026. This marks a pivotal moment in the EU’s journey toward fully integrating circular economy principles.

Despite over a decade of legislative efforts, the EU’s circularity rate has barely budged: from roughly 10.7 % in 2010 to just 11.8 % in 2023.

The Commission emphasizes the urgent need for a robust, harmonized framework that addresses fragmented national systems and better supports secondary raw materials within a unified Single Market.

2. What's at Stake?

The CEA is designed to:

• Establish a Single Market for secondary raw materials, boosting both supply and demand for high-quality recycled materials.
  
  
• Support broader EU strategic frameworks like the Competitiveness Compass, Clean Industrial Deal, Single Market Strategy, Steel and Metals Action Plan, and recent laws related to sustainable products, packaging, and critical raw materials.
  
  
• Address key sectors ripe for circular impact, including electronics/e-waste, packaging, plastics, textiles, batteries and vehicles, construction, and food systems.
  
  
• Specifically target the growing e-waste challenge (currently rising at ~2 % annually, with only about 40 % recycled) through strengthened measures under one of the Act’s two core pillars.

Moreover, to overcome the fragmentation posed by disparate extended producer responsibility (EPR) schemes, the Act proposes tools like a digital one-stop-shop and harmonized end-of-waste or by-product criteria to streamline cross-border recycling.

3. Stakeholder Engagement 

The Commission is calling on businesses, civil society, and citizens to share their insights via the “Have Your Say” portal. This consultation remains open until November 6, 2025. Stakeholder groups like ERRIN are even hosting a dedicated event in Brussels on October 21, 2025, to deepen regional engagement.

4. Why This Matters 

For GoCompliance readers, spanning compliance officers, legal teams, and sustainability professionals, this consultation is more than policy news. It’s a chance to get ahead of regulation in 3 critical ways:

• Early Engagement: Providing feedback during the consultation phase allows stakeholders to help shape the Circular Economy Act, rather than waiting to react once obligations are finalized.
  
  
• Sector Alignment: With the Act focusing on high-impact industries like electronics, packaging, and textiles, organizations can begin aligning practices with EU priorities for reparability, recyclability, and transparent supply chains.
  
  
• Future-Ready Strategy: Anticipating measures such as digital compliance hubs, harmonized waste standards, and recycled content quotas positions companies to design forward-looking compliance systems and resilient circular supply chains.
  
  

5. What’s Next 

In Summary

The European Commission’s launch of the Circular Economy Act consultation on August 1, 2025, marks a singular opportunity for stakeholders to co-design a more resilient, competitive, and resource-efficient EU.

With adoption expected in 2026, the next year will be critical in ensuring the Act’s ambition translates into impactful regulatory frameworks. For GoCompliance’s audience, participating today isn’t just recommended—it’s strategic.