Every day across Europe, millions of citizens wear, sleep on, eat off or rely on
rental textiles provided by industrial laundries. From hospital linens and
reusable surgical gowns to industrial workwear, hotel bedding, restaurant
textiles and hygiene products, textile services operate quietly but
indispensably at the heart of Europe’s economy. In many countries, more than 90
percent of hospitals and hotels would be forced to close within days without a
continuous supply of hygienically cleaned textiles, while pharmaceutical and
food production facilities would halt operations within 24 hours.
Behind this essential service stands a highly organi z ed European industry that
combines operational excellence with a circular, service-based business model —
washing and keeping textiles in use for longer, reducing waste and lowering
environmental impact while safeguarding public health. By relying on reuse,
repair and professional maintenance, the system significantly reduces the need
for virgin raw materials sourced from outside Europe.
At the same time, these locally anchored service models create skilled jobs,
generate tax revenues in the communities where companies operate and drive
continuous innovation in circular solutions — supporting new business
opportunities and industrial development across the European Union .
> In this time of on going and challenging geo-political change, it will become
> crucial to fully recogni z e the strategic value of circular, service-based
> business models, which strengthen competitiveness and resilience while
> delivering on Europe’s sustainability objectives.
>
> Hartmut Engler, CEO of CWS Workwear
As several important legislative files move forward in Brussels, it is time to
reflect on what textile services need to continue to implement sustainable
solutions. Public procurement rules are a great vector to promote and encourage
circular business models while delivering on the strategic autonomy ambition of
the EU.
Public authorities across the EU spend over € 2.6 trillion annually on
purchasing services, works and supplies, accounting for around 15 percent of the
EU ’s GDP. However, too much of this investment is directed toward linear
services and disposable goods, slowing down progress toward Europe’s
environmental and industrial objectives.
With the revision of the EU public procurement rules, it should be recogni z ed
that the EU’s circular economy and environmental aims are greatly advanced by
the textile rental industry. Specifically, g reen p ublic p rocurement should
become mandatory across all EU m ember s tates and should also encourage
alternatives to direct purchase such as leasing models or product-as-a-service
business models.
Public procurement should not be driven solely by value-for-money
considerations, but by a holistic lifecycle approach that reflects long-term
environmental and social performance. Introducing mandatory lifecycle costing as
an award criterion would ensure that sustainability is measured over the full
duration of a contract, not just at the point of purchase.
> Longevity of product should be the first priority of the upcoming Circular
> Economy Act. The most sustainable product is ultimately the one that is kept
> in use the longest, putting durability and repairability at the centre of
> environmental benefits.
>
> Elena Lai, s ecretary g eneral of the European Textile Services Association
European Textile Services Association (ETSA) members already deliver sustainable
business models with product-as-a-service models implementing repair, reuse and
extended use. Such business models should be empowered and further supported in
legislation, hand in hand with recycling. Extending a product’s useful life
delivers far greater climate and resource benefits than breaking products down
for recycling after short use cycles. It preserves the embedded energy, water
and raw materials already invested.
However, prioriti z ing longevity does not mean neglecting end-of-life
solutions. At the same time, ETSA members are joining forces to invest in a
joint recycling pilot project, translating circular ambition into practical
industrial solutions. They are developing innovative processes to transform
end-of-life textiles into recycled fib er s suitable for insulation materials,
industrial wipers and other high-value applications — with the long-term vision
of advancing closed-loop systems in which recycled fib er s can increasingly
serve as raw materials for new textile production.
Recycling requires stable markets and long-term policy certainty, and the sector
is actively investing in building both. By developing concrete use cases for
recycled content, these initiatives help strengthen European recycling value
chains while further reducing dependency on third-country suppliers.
> Europe does not need to invent circular solutions from scratch. They already
> exist. The priority now is to put in place policies that support circular,
> service-based business models. These models are built on durability and
> extending product lifespans to get more value from the resources we already
> use.
>
> Elena Lai, s ecretary g eneral of the European Textile Services Association
Textile services are not an emerging concept but a proven, scalable European
solution — reducing consumption, anchoring jobs locally, safeguarding public
health and lowering emissions. By recogni z ing and supporting service-based
reuse models in forthcoming legislation, the EU can accelerate its
sustainability ambitions while strengthening competitiveness and strategic
autonomy.
--------------------------------------------------------------------------------
Disclaimer
POLITICAL ADVERTISEMENT
* The sponsor is ETSA – European Textiles Service Association
* The ultimate controlling entity is ETSA – European Textiles Service
Association
* This political advertisement advocates for the recognition and support of
circular, service-based business models within forthcoming EU legislation; by
addressing the Circular Economy Act, the revision of EU Public Procurement
rules, Green Public Procurement requirements and lifecycle costing criteria,
it seeks to influence policymakers and the public debate on EU
sustainability, industrial policy and procurement frameworks, bringing it
within the scope of the TTPA.
More information here.
Tag - Circular economy
EUROPE’S VANISHING CARS ARE JEOPARDIZING ITS RAW MATERIALS SECURITY
Used cars are a treasure trove of metals essential in energy technology, but the
EU is letting them vanish without a trace.
By MARIANNE GROS
in Brussels
Illustration by Natália Delgado/ POLITICO
EU decision-makers don’t have to look far to find cheap critical raw materials:
Just 5 kilometers away from the EU quarter, car dealers up and down Heyvaert
Street are scooping them up and shipping them to Africa.
Dealerships in this industrial precinct in southwest Brussels send European used
vehicles — many too polluting to be allowed on the continent’s roads — to
African countries like Senegal, Sierra Leone and Nigeria, where the market for
Europe’s unwanted automobiles is thriving.
That one street intimately connects the capital of the EU — where some 10
million new cars hit the roads each year — to a global supply chain of used
vehicles that sustains road transport in developing markets.
One day these cars will end up in junkyards far away, and with them tons of
valuable metals that the EU could recycle and reuse to run its economy.
But Europe’s age-old habit of exporting unwanted goods is coming back to bite it
as the bloc looks to recycle its way out of its reliance on raw materials
imported from China.
The EU is scrambling to secure new sources of critical metals and minerals
necessary for clean energy and military technology — a task of increasing
urgency as geopolitical tensions disrupt traditional supply chains.
For a small continent like Europe that is poor in natural resources but rich in
consumer goods, old cars are a promising source of these materials. The vehicles
are full of metals such as copper, platinum and steel that are essential in a
long list of critical industries such as clean energy and military technology.
And they’ll become even more valuable as early generations of electric vehicles
— full of battery metals like lithium, cobalt and nickel — reach the end of
their lifespans.
But the EU isn’t close to taking advantage of this prospect. Along with those
that are legally exported, between 3 million and 4 million end-of-life cars
disappear without a trace from the EU each year.
That’s a third of all cars that get deregistered. Some go missing because of
a gap in the paper trail. Others get exported through obscure trade routes. Many
are dismantled illegally, with the more valuable parts sold online or in
non-compliant dealerships — while the rest are dumped, creating a pollution
risk.
“We see big and currently unused potential in recycling, reuse and also
substitution” of critical raw materials, said Keit Pentus-Rosimannus, a member
of the European Court of Auditors who last month co-authored a report on the
EU’s difficulties in securing a supply of critical raw materials.
But that recycling and reuse can only happen if the waste products, e.g. cars,
make it to recycling hubs in the first place.
The market for Europe’s unwanted automobiles is thriving in cities like Lagos in
Nigeria. | Olympia De Maismont/AFP via Getty Images
“The illegal dismantling and export of [end-of-life vehicles] is mainly
motivated by profits from the sale of spare parts and metals,” the German
Environment Agency wrote in a study on the topic back in 2020. Unauthorized
dismantlers are “neglecting proper depollution, to avoid additional costs,” the
study explained.
In a separate paper published in 2022, the agency estimated that 20 percent of
all German vehicles that “go missing” — over 72,000 cars — are exported
illegally.
According to Interpol data, nearly 3.6 million vehicles and vehicle parts from
Europe — not just EU countries — were registered in the Stolen Motor Vehicles
database as of Dec. 31, 2025.
EUROPE’S MISSED OPPORTUNITY
The EU has made materials recycling a strategic pillar of its mission to reduce
reliance on imports from China in an increasingly hostile geopolitical
environment.
Europe’s economy runs on importing critical raw materials, such as nickel,
copper and lithium, as well as rare earths and so-called platinum group metals
like palladium or platinum. It needs them to build car engines, weapons and
products that contribute to the bloc’s green tech transition, including
batteries, chips and solar panels.
While the metals are mined all over the world, China overwhelmingly
dominates the processing and refining of these critical raw materials.
To address this, the European Commission says it wants to launch new mining
projects, sign deals with other countries to diversify its supply, and promote
recycling projects.
With the introduction of the Critical Raw Materials Act in 2024, EU
governments are required to adopt national circularity measures to boost the
recovery of critical raw materials and simplify permitting processes for
recycling and recovery projects.
The law says that 25 percent of the EU’s annual strategic raw material
consumption should come from domestic recycling by 2030. Last December, the
Commission announced additional measures as part of a new plan
called RESourceEU.
But many argue that progress is too slow. “Most EU targets that are in place do
not incentivize the recycling of specific individual materials. High processing
costs, limited availability of materials, technical and regulatory issues also
make the use of the recycling sector less competitive,” the Court of Auditors’
Pentus-Rosimannus said.
Others say the EU is doing little to reduce consumption in the first
place. Policymakers need to be “addressing [materials] consumption aspects
to accelerate this process in addition to everything else that is being done on
the recycling part” said the European Environment Agency’s head of the clean and
circular economy group, Daniel Montalvo. EU policies should tackle “how we can
change this upstream part of the material cycle so that we use products more
intensively and for longer,” he added.
RECYCLERS NEED HELP
End-of-life vehicles should all end up in one of Europe’s 13,000 authorized
treatment facilities like the one in Menen, Belgium, which straddles the
country’s border with France and is run by recycling company Galloo.
Running a recycling center is expensive and illegal dismantlers create unfair
competition because they avoid regulatory and compliance costs. | Sebastian
Kahnert/picture alliance via Getty Images
“We can dismantle 17 cars at once here. Usually, we treat 10 to 15 thousand cars
a year, but this year we’re around 3 or 4 thousand on this
site,” said Emmanuel Katrakis, the company’s director of public and regulatory
affairs.
Galloo set up Valorauto, a joint venture
with French-Italian automaker Stellantis, in 2023. Valorauto runs a vehicle
take-back and recycling service through 300 authorized treatment facilities in
Western Europe.
The low turnover in Europe’s car fleet — a result of stagnating sales since the
Covid pandemic due to Europe’s weaker economy — means fewer cars end up
in recycling centers.
Once the vehicles reach what can only be described as a cemetery for cars, the
vehicles get scrubbed of polluting substances and taken apart. Most of
the plastic, rubber, glass and iron can be recycled.
Crucially, the more precious resources in their engines, catalytic converters
and electrical systems can be collected. Two thirds of vehicles that reach
end-of-life status end up in this system.
But running a recycling center is expensive. Illegal dismantlers create unfair
competition because they avoid regulatory and compliance costs, which drives
the price down, while also diverting some of the end-of-life-vehicle flow — and
therefore revenue — away from authorized centers.
“We’re tired of having bad actors in our sectors who are willing to work with a
completely illegal market,” Katrakis said.
Cars also get dropped off with missing parts.”We’re going to buy their car
for €150, maybe €200, but they know they can sell their catalytic
converter separately for €60. They do the math,” he added.
For Valorauto’s general manager, Thomas Delgado, online marketplaces should be
held responsible for enabling the car dismantling grey market, saying they
don’t monitor the sellers properly. “There are several marketplaces that
should do their part to help [us] fight this system” he said, by preventing
individual sellers from selling a car part unless they can prove they are
registered as an authorized treatment facility.
Then there are Europe’s faulty registration systems. A lot of these cars go
missing because they are sold second-hand in another country but are never
deregistered in their country of origin. “Today we have national computer
systems that are supposed to track things, but they’re totally
overwhelmed,” Delgado said.
There are also gaps between the car registries and the database of insured
vehicles. Responsibility for monitoring these systems is often shared by several
national ministries.
National governments have tried to address the issue by creating incentives for
car owners to drop their vehicles off at authorized centers. In Denmark, for
example, owners can get a “scrapping premium” when their vehicle is dropped off
at an approved dealer.
A new regulation on end-of-life vehicles aims to clarify when a car is legally
considered waste. | Nicolas Tucat/AFP via Getty Images
At the EU level, a new regulation on end-of-life vehicles aims to address the
issue with “clearer rules on the distinction between a used vehicle and an
end-of-life vehicle” and “a strict framework for transfers of ownership,” but
some of the technical aspects of the law are still being discussed. The law also
aims to clarify when a car is legally considered waste.
The automotive sector is glad to see the EU will “implement an EU-wide
registration/deregistration system and regulate the export of ELVs outside the
EU, preventing valuable raw materials from leaving the European
market,” according to ACEA, the sector’s main lobby.
GETTING A SECOND LIFE
Over 800,000 used vehicles are exported from the EU each year, mainly to African
countries, according to EU data. The revised end-of-life vehicle regulation
states that only roadworthy cars can be exported from the EU.
Just because a car isn’t allowed on the streets of a European city doesn’t mean
it should be dismantled immediately, however.
“It’s important to make the distinction because they are not necessarily at the
end of life everywhere,” said Pierre Hajjar, chief executive officer of Socar
Shipping Agencies, a vehicle shipping company on Brussels’ Heyvaert St. Last
December local police raided the street, seizing 45 vehicles and forcing several
dealerships to close for not complying with national rules on cash payments or
for not having the right environmental permits.
With the revised end-of-life-vehicle regulation, the EU wants to increase
traceability so “only high-quality, technically fit European vehicles will be
exported.” But for African markets, Hajjar says that’s already the case.
“For Africa, everything goes by boat, everything is extremely
traceable,” he said, because port authorities and maritime shipping companies
have high thresholds for the kind of vehicles that can be exported.
“Whereas in Eastern countries it’s road transport … there isn’t really any
traceability, they cross the borders quite easily,” he added.
BRUSSELS — The European Commission has unveiled a new plan to end the dominance
of planet-heating fossil fuels in Europe’s economy — and replace them with
trees.
The so-called Bioeconomy Strategy, released Thursday, aims to replace fossil
fuels in products like plastics, building materials, chemicals and fibers with
organic materials that regrow, such as trees and crops.
“The bioeconomy holds enormous opportunities for our society, economy and
industry, for our farmers and foresters and small businesses and for our
ecosystem,” EU environment chief Jessika Roswall said on Thursday, in front of a
staged backdrop of bio-based products, including a bathtub made of wood
composite and clothing from the H&M “Conscious” range.
At the center of the strategy is carbon, the fundamental building block of a
wide range of manufactured products, not just energy. Almost all plastic, for
example, is made from carbon, and currently most of that carbon comes from oil
and natural gas.
But fossil fuels have two major drawbacks: they pollute the atmosphere with
planet-warming CO2, and they are mostly imported from outside the EU,
compromising the bloc’s strategic autonomy.
The bioeconomy strategy aims to address both drawbacks by using locally produced
or recycled carbon-rich biomass rather than imported fossil fuels. It proposes
doing this by setting targets in relevant legislation, such as the EU’s
packaging waste laws, helping bioeconomy startups access finance, harmonizing
the regulatory regime and encouraging new biomass supply.
The 23-page strategy is light on legislative or funding promises, mostly
piggybacking on existing laws and funds. Still, it was hailed by industries that
stand to gain from a bigger market for biological materials.
“The forest industry welcomes the Commission’s growth-oriented approach for
bioeconomy,” said Viveka Beckeman, director general of the Swedish Forest
Industries Federation, stressing the need to “boost the use of biomass as a
strategic resource that benefits not only green transition and our joint climate
goals but the overall economic security.”
HOW RENEWABLE IS IT?
But environmentalists worry Brussels may be getting too chainsaw-happy.
Trees don’t grow back at the drop of a hat and pressure on natural ecosystems is
already unsustainably high. Scientific reports show that the amount of carbon
stored in the EU’s forests and soils is decreasing, the bloc’s natural habitats
are in poor condition and biodiversity is being lost at unprecedented rates.
Protecting the bloc’s forests has also fallen out of fashion among EU lawmakers.
The EU’s landmark anti-deforestation law is currently facing a second, year-long
delay after a vote in the European Parliament this week. In October, the
Parliament also voted to scrap a law to monitor the health of Europe’s forests
to reduce paperwork.
Environmentalists warn the bloc may simply not have enough biomass to meet the
increasing demand.
“Instead of setting a strategy that confronts Europe’s excessive demand for
resources, the Commission clings to the illusion that we can simply replace our
current consumption with bio-based inputs, overlooking the serious and immediate
harm this will inflict on people and nature,” said Eva Bille, the European
Environmental Bureau’s (EEB) circular economy head, in a statement.
TOO WOOD TO BE TRUE
Environmental groups want the Commission to prioritize the use of its biological
resources in long-lasting products — like construction — rather than lower-value
or short-lived uses, like single-use packaging or fuel.
A first leak of the proposal, obtained by POLITICO, gave environmental groups
hope. It celebrated new opportunities for sustainable bio-based materials while
also warning that the “sources of primary biomass must be sustainable and the
pressure on ecosystems must be considerably reduced” — to ensure those
opportunities are taken up in the longer term.
It also said the Commission would work on “disincentivising inefficient biomass
combustion” and substituting it with other types of renewable energy.
That rankled industry lobbies. Craig Winneker, communications director of
ethanol lobby ePURE, complained that the document’s language “continues an
unfortunate tradition in some quarters of the Commission of completely ignoring
how sustainable biofuels are produced in Europe,” arguing that the energy is
“actually a co-product along with food, feed, and biogenic CO2.”
Now, those lines pledging to reduce environmental pressures and to
disincentivize inefficient biomass combustion are gone.
“Bioenergy continues to play a role in energy security, particularly where it
uses residues, does not increase water and air pollution, and complements other
renewables,” the final text reads.
“This is a crucial omission, given that the EU’s unsustainable production and
consumption are already massively overshooting ecological boundaries and putting
people, nature and businesses at risk,” said the EEB.
Delara Burkhardt, a member of the European Parliament with the center-left
Socialists and Democrats, said it was “good that the strategy recognizes the
need to source biomass sustainably,” but added the proposal did not address
sufficiency.
“Simply replacing fossil materials with bio-based ones at today’s levels of
consumption risks increasing pressure on ecosystems. That shifts problems rather
than solving them. We need to reduce overall resource use, not just switch
inputs,” she said.
Roswall declined to comment on the previous draft at Thursday’s press
conference.
“I think that we need to increase the resources that we have, and that is what
this strategy is trying to do,” she said.
As trilogue negotiations on the End-of-Life Vehicles Regulation (ELVR) reach
their decisive phase, Europe stands at a crossroads, not just for the future of
sustainable mobility, but also for the future of its industrial base and
competitiveness.
The debate over whether recycled plastic content in new vehicles should be 15,
20 or 25 percent is crucial as a key driver for circularity investment in
Europe’s plastics and automotive value chains for the next decade and beyond.
The ELVR is more than a recycled content target. It is also an important test of
whether and how Europe can align its circularity and competitiveness ambitions.
Circularity and competitiveness should be complementary
Europe’s plastics industry is at a cliff edge. High energy and feedstock costs,
complex regulation and investment flight are eroding production capacity in
Europe at an alarming rate. Industrial assets are closing and relocating.
Policymakers must recognize the strategic importance of European plastics
manufacturing. Plastics are and will remain an essential material that underpins
key European industries, including automotive, construction, healthcare,
renewables and defense. Without a competitive domestic sector, Europe’s net-zero
pathway becomes slower, costlier and more import-dependent.
Without urgent action to safeguard plastics manufacturing in Europe, we will
continue to undermine our industrial resilience, strategic autonomy and green
transition through deindustrialization.
The ELVR can help turn the tide and become a cornerstone of the EU’s circular
economy and a driver of industrial competitiveness. It can become a flagship
regulation containing ambitious recycled content targets that can accelerate
reindustrialization in line with the objectives of the Green Industrial Deal.
> Policymakers must recognize the strategic importance of
> European plastics manufacturing. Without a competitive domestic sector,
> Europe’s net-zero pathway becomes slower, costlier and more import-dependent.
Enabling circular technologies
The automotive sector recognizes that its ability to decarbonize depends on
access to innovative, circular materials made in Europe. The European
Commission’s original proposal to drive this increased circularity to 25 percent
recycled plastic content in new vehicles within six years, with a quarter of
that coming from end-of-life vehicles, is ambitious but achievable with the
available technologies and right incentives.
To meet these targets, Europe must recognize the essential role of chemical
recycling. Mechanical recycling alone cannot deliver the quality, scale and
performance required for automotive applications. Without chemical recycling,
the EU risks setting targets that look good on paper but fail in practice.
However, to scale up chemical recycling we must unlock billions in investment
and integrate circular feedstocks into complex value chains. This requires legal
clarity, and the explicit recognition that chemical recycling, alongside
mechanical and bio-based routes, are eligible pathways to meet recycled content
targets. These are not technical details; they will determine whether Europe
builds a competitive and scalable circular plastics industry or increasingly
depends on imported materials.
A broader competitiveness and circularity framework is essential
While a well-designed ELVR is crucial, it cannot succeed in isolation. Europe
also needs a wider industrial policy framework that restores the competitiveness
of our plastics value chain and creates the conditions for increased investment
in circular technologies, and recycling and sorting infrastructure.
We need to tackle Europe’s high energy and feedstock costs, which are eroding
our competitiveness. The EU must add polymers to the EU Emissions Trading System
compensation list and reinvest revenues in circular infrastructure to reduce
energy intensity and boost recycling.
Europe’s recyclers and manufacturers are competing with materials produced under
weaker environmental and social standards abroad. Harmonized customs controls
and mandatory third-party certification for imports are essential to prevent
carbon leakage and ensure a level playing field with imports, preventing unfair
competition.
> To accelerate circular plastics production Europe needs a true single market
> for circular materials.
That means removing internal market barriers, streamlining approvals for new
technologies such as chemical recycling, and providing predictable incentives
that reward investment in recycled and circular feedstocks. Today, fragmented
national rules add unnecessary cost, complexity and delay, especially for the
small and medium-sized enterprises that form the backbone of Europe’s recycling
network. These issues must be addressed.
Establishing a Chemicals and Plastics Trade Observatory to monitor trade flows
in real time is essential. This will help ensure a level playing field, enabling
EU industry and officials to respond promptly with trade defense measures when
necessary.
We need policies that enable transformation rather than outsource it, and these
must be implemented as a matter of urgency if we are to scale up recycling and
circular innovations and investments.
A defining moment for Europe’s competitiveness and circular economy
> Circularity and competitiveness should not be in conflict; together, they will
> allow us to keep plastics manufacturing in Europe, and safeguard the jobs,
> know-how, innovation hubs and materials essential for the EU’s climate
> neutrality transition and strategic autonomy.
The ELVR is not just another piece of environmental legislation. It is a test of
Europe’s ability to turn its green vision into industrial reality. It means that
the trilogue negotiators now face a defining choice: design a regulation that
simply manages waste or one that unleashes Europe’s industrial renewal.
These decisions will shape Europe’s place in the global economy and can provide
a positive template for reconciling our climate and competitiveness ambitions.
These decisions will echo far beyond the automotive sector.
Disclaimer
POLITICAL ADVERTISEMENT
* The sponsor is Plastics Europe AISBL
* The advertisement is linked to policy advocacy on the EU End-of-Life Vehicles
Regulation (ELVR), circular plastics, chemical recycling, and industrial
competitiveness in Europe.
More information here.
The European Commission will present a new plan to break the EU’s dependencies
on China for critical raw materials, President Ursula von der Leyen announced on
Saturday.
The EU executive chief warned of “clear acceleration and escalation in the way
interdependencies are leveraged and weaponized,” in a speech Saturday at the
Berlin Global Dialogue.
In recent months, China has tightened export controls over rare earths and other
critical materials. The Asian powerhouse controls close to 70 percent of the
world’s rare earths production and almost all of the refining.
The EU’s response “must match the scale of the risks we face in this area,” von
der Leyen said, adding that “we are focusing on finding solutions with our
Chinese counterparts.”
Brussels and Beijing are set to discuss the export controls issue during
meetings next week.
“But we are ready to use all of the instruments in our toolbox to respond if
needed,” the head of the EU executive warned.
This suggests that the Commission could make use of the EU’s most powerful trade
weapon — the Anti-Coercion Instrument.
This comes after French President Emmanuel Macron called on the EU executive to
trigger the trade bazooka at a meeting of EU leaders on Thursday. His push has
not met with much support from the other leaders around the table.
NEW BREAKAWAY PLAN
To break the EU’s over-reliance on China for critical materials imports and
refining, the Commission will put forward a “RESourceEU plan,” von der Leyen
said.
She did not provide much detail about the plan, nor when it would be presented.
But she said it would follow a similar model as the REPowerEU plan that the
Commission introduced in 2022 to phase out Russian fossil fuels after Moscow’s
illegal invasion of Ukraine.
Under REPowerEU, the Commission proposed investing €225 billion to diversify
energy supply routes, accelerate the deployment of renewables, improve grids
interconnections across the bloc and boost the EU hydrogen market, among other
measures. The EU executive also put forward a legislative proposal, which is
currently under negotiations with the European Parliament and the Council, to
ban Russian gas imports by the end of 2027.
The aim of RESourceEU “is to secure access to alternative sources of critical
raw materials in the short, medium and long term for our European industry,” von
der Leyen explained. “It starts with the circular economy. Not for environmental
reasons. But to exploit the critical raw materials already contained in products
sold in Europe,” she said.
She added that the EU “will speed up work on critical raw materials partnerships
with countries like Ukraine and Australia, Canada, Kazakhstan, Uzbekistan, Chile
and Greenland.”
“Europe cannot do things the same way anymore. We learned this lesson painfully
with energy; we will not repeat it with critical materials,” von der Leyen said.
A group of 24 European politicians whose blood was tested for toxic PFAS
chemicals over the summer all had the substances in their bodies, the NGOs
involved in the testing revealed Tuesday.
“I tested positive for four substances, and three of them can harm unborn
children, act as endocrine disruptors, cause liver damage, and are suspected of
being carcinogenic,” said Danish Environment Minister Magnus Heunicke in a
written statement, describing his results as a “frightening reality.”
It is “crucial that we take strong action against PFAS pollution so that we are
no longer continuously exposed to these harmful chemicals,” he added.
PFAS substances, commonly known as forever chemicals, don’t break down naturally
and have been shown to accumulate in the environment and cause a host of health
problems, including cancer, liver damage and decreased fertility. Most people in
the world have some level of PFAS in their blood.
For half of the EU leaders tested, contamination reached levels where health
impacts are possible, according to the European Environmental Bureau and
ChemSec. One person had levels indicating a potential risk of long-term health
effects.
The test results come days after the U.N. Special Rapporteur on Toxics and Human
Rights Marcos Orellana slammed Brussels for proposing to dilute several chemical
protection laws to help boost European industry.
Denmark orchestrated the group test during a meeting of EU environment ministers
in the northern Danish city of Aalborg in July. The country currently holds the
rotating presidency of the Council of the EU and is one of five European
countries that sent a joint proposal to the European Commission to phase out
thousands of PFAS chemicals under EU chemicals law back in 2023.
That proposal — currently in the hands of the European Chemicals Agency — has
come under fire from industry groups, many of which are calling for exemptions
to the proposed law.
Tested politicians included EU Environment Commissioner Jessika Roswall,
outgoing French Ecological Transition Minister Agnès Pannier-Runacher and
Federal German Environment Minister Carsten Schneider.
“Like many other citizens across Europe, I have PFAS in my body,” said Roswall
in a written statement. “I tested positively on 6 out of 13 PFAS, including some
that are classified as toxic for reproductive health. PFAS pollution is a vital
public health issue.”
The results of one of the test participants — Executive Director of the European
Environment Agency Leena Ylä-Mononen — showed a decline in PFAS levels since she
last had her blood tested, “reflecting trends observed among the European
population for restricted PFAS.”
Roswall has stated that the Commission will propose phasing out consumer uses of
PFAS and exempt certain critical industries, which are yet to be defined. PFAS
are involved in the production processes of several sectors, including
semiconductors, batteries and pharmaceuticals.
Those promises of exemptions have worried environmental groups, which are hoping
for a wide-reaching phase-out of the chemicals.
In a written statement on the tests, ChemSec’s Anne-Sofie Bäckar called for a
“universal ban on all PFAS — not just in consumer products — before another
generation pays the price for industry’s delay.”
The Commission is expected to release its revision of the major chemicals
regulation, REACH, this year, although the timeline is uncertain. The EU
institutions are also working on a separate Commission proposal to simplify a
set of EU laws spanning cosmetics, fertilizer and chemical classification
regulations in a “chemicals omnibus” bill.
U.N. Special Rapporteur on Toxics and Human Rights Marcos Orellana last week
said the proposal risked undermining the European Union’s credibility as a
“global leader in green policy and the rule of law.”
The leaders of France and Germany issued a joint call Friday for cuts to EU
water pollution and chemical safety rules, in a bid to help European industry.
In a joint statement adopted at the 25th Franco-German Council of Ministers in
Toulon, France, French President Emmanuel Macron and German Chancellor Friedrich
Merz backed calls for a revision of REACH — the EU’s chemical legal framework —
that’s focused on “reducing burdens” by “streamlining procedures.”
It comes months before the European Commission is due to present its
long-delayed revision of REACH. The EU executive has signaled that the
revision’s primary aim would be to simplify rules and speed up procedures for
industry — to the dismay of civil society groups.
The two governments also pushed for an easing of financial constraints for
Europe’s struggling chemicals industry.
Merz and Macron pushed for an easing of recently-revised urban wastewater rules,
which require cosmetics and pharmaceuticals companies to bear the bulk of the
costs of cleaning up micropollutants in urban wastewater from the end of 2028.
The Commission has already committed to producing an updated study on impacts of
the extended producer responsibility scheme, following strong industry pushback.
The statement from the EU’s two biggest economies sends a strong message to
Brussels to push ahead with its drive to cut red tape.
“To unleash our companies’ full potential of growth and productivity it is …
urgent to substantially ease the complexity and simplify the European Union’s
regulatory environment,” the document states.
MATERIALS RECYCLING FOCUS
The two leaders repeated calls for better rules to facilitate the recycling and
reuse of critical raw materials (CRM), as EU countries scramble to reduce
dependency on Chinese minerals essential in defense and the energy transition.
Paris and Berlin committed to “work together on the design of the CRM aspects of
the Circular Economy Act and coordinate their efforts” in the hope of “reaping
the benefits” of the policy proposal, the draft reads.
The Circular Economy Act is expected in 2026 and aims to facilitate the transfer
of materials waste between EU countries to boost recycling and reuse across
European industries.
Back in 2023, the two EU countries had already pledged further cooperation on
critical raw materials alongside Italy, including by setting up working groups
for new extraction, processing and recycling projects.
Giorgio Leali contributed reporting.
Policymakers are overlooking a $370 billion market that will determine whether
climate goals succeed or fail. In the grand narrative of the clean energy
transition, materials like lithium, rare earths and silicon dominate headlines.
Yet the most strategically important materials for this transition may be hiding
in plain sight, dismissed by policymakers as environmental villains rather than
recognized as the enablers of human progress they truly are.
The $370 billion blind spot
Polyolefins — the family of materials that includes polyethylene and
polypropylene — represent perhaps the greatest strategic oversight in
contemporary clean industry policy
Here is a reality check. Polyolefins represent a global market approaching $370
billion, growing at over 5 percent annually.1,2 They make up nearly half of all
plastics consumed in Europe.3 By 2034, global production is expected to hit 371
million tons.4 Yet in the European Union’s Clean Industrial Deal — a €100
billion strategy for industrial competitiveness — polyolefins receive barely a
mention.4
This represents a profound strategic miscalculation. While policymakers focus on
securing access to exotic critical materials like lithium and cobalt, they
overlook the fact that polyolefins are already critical materials— they simply
happen to be abundant rather than scarce. In the infrastructure-intensive clean
energy transition ahead, abundance is not a weakness; it is the ultimate
strategic advantage.
> While policymakers focus on securing access to exotic critical materials like
> lithium and cobalt, they overlook the fact that polyolefins are already
> critical materials.
The EU’s REPowerEU plan calls for 1,236 GW of renewable capacity by 2030 — more
than double today’s levels.4 Every offshore wind farm, solar array and electric
grid connection depends on polyolefins. They insulate cables, protect components
and form structural parts of turbines and solar panels. Every solar panel relies
on polyolefin elastomers to protect its inner workings for up to 30 years, even
in harsh weather.8 And every grid connection depends on polyethylene-insulated
cables to carry electricity efficiently across long distances. 7
Multiply these requirements across thousands of installations, and the strategic
importance of polyolefins becomes undeniable. Yet, currently, the policy
framework treats these materials as afterthoughts, focusing instead on the
relatively small quantities of rare elements in generators and inverters while
ignoring the massive volumes of polyolefins that make the entire system
possible.
Beyond energy: the hidden dependencies
The strategic importance of polyolefins extends far beyond energy
infrastructure. As one example, modern medical systems depend fundamentally on
polyolefin materials for syringes, IV bags, tubing and protective equipment.
Global food security increasingly depends on polyolefin-based packaging systems
that extend shelf life, reduce waste and enable distribution networks — feeding
billions of people. Meanwhile, water infrastructure relies on polyethylene pipes
engineered for 100-year lifespans. These applications are rarely considered
alongside energy priorities — a dangerous fragmentation of strategic thinking.
The waste challenge and a circular solution
Let’s be clear, plastic waste is a real environmental challenge demanding urgent
action. However, the solution is not abandoning these essential materials, it is
building the infrastructure to capture their full value in circular systems.
The fundamental error in current approaches is treating waste as a material
problem rather than a systems problem. Europe currently captures only 23 percent
of polyolefin waste for recycling, despite these materials representing nearly
two-thirds of all post-consumer plastic waste.3 That’s not because the material
can’t be recycled. The infrastructure to do so isn’t at the scale needed to
collect, sort and recycle waste to meet future circular feedstock needs.
Polyolefins are among the most recyclable materials we have. They can be
mechanically recycled multiple times. And with chemical recycling, they can even
be broken down to their molecular building blocks and rebuilt into
virgin-quality material. That’s not just circularity, it’s circularity at scale.
This matters because the EU’s target of 24 percent material circularity by 20305
is unlikely to be met without polyolefins. However, current frameworks treat
them as obstacles rather than enablers of circularity.
The economic transformation
The transition represents an economic transformation, creating competitive
advantages for regions implementing it effectively. A region processing 100,000
tons of polyolefin waste annually could capture €100-130 million in additional
economic value while creating up to 1,000 jobs.6
> A region processing 100,000 tons of polyolefin waste annually could capture
> €100-130 million in additional economic value while creating up to 1,000 jobs.
At the end of the day, the clean energy transition must be affordable.
Polyolefins help make that possible. They’re cheaper, lighter and longer lasting
than many alternatives. Manufacturers with access to cost-effective recycled
feedstocks can reduce input costs by 20-40 percent compared with virgin
materials. Polyethylene pipes cost 60-70 percent less than steel alternatives
while lasting twice as long.9 These aren’t marginal gains. They’re system-level
efficiencies that make the difference between success and failure at scale.
The strategic choice
The real challenge isn’t technical, it’s institutional. Polyolefins sit at the
crossroads of materials, environmental and industrial policy, yet these areas
are treated as separate domains.
There’s also a geopolitical angle. Unlike lithium or rare earths, polyolefins
can be produced from diverse feedstocks — natural gas, biomass and even captured
CO2 — enabling domestic production and supply chain resilience. This flexibility
is a major asset, but current policies largely overlook it.
> The path forward requires recognizing polyolefins as strategic assets rather
> than environmental problems.
The path forward requires recognizing polyolefins as strategic assets rather
than environmental problems. This means including them in critical materials
assessments — not because they are scarce, but because they are essential. It
means coordinating research and development efforts rather than leaving them to
fragmented market forces. Most importantly, it means recognizing that the clean
energy transition will succeed or fail based on our ability to build
infrastructure at unprecedented scale and speed. And that infrastructure will be
built primarily from materials that combine performance, abundance,
sustainability and cost-effectiveness in ways only polyolefins can provide.
The choice facing policymakers is clear: continue treating polyolefins as
problems to be managed or recognize them as strategic assets enabling the clean
energy future. The regions that understand this integration first will shape the
global economy for decades to come.
--------------------------------------------------------------------------------
1. Grand View Research. (2024). Polyolefin Market Size, Share, Growth |
Industry Report, 2030. Retrieved from
https://www.grandviewresearch.com/industry-analysis/polyolefin-market
2. Fortune Business Insights. (2024). Polyolefin Market Size, Share & Growth |
Global Report [2032]. Retrieved from
https://www.fortunebusinessinsights.com/polyolefin-market-102373
3. Plastics Europe. (2025). Polyolefins. Retrieved from
https://plasticseurope.org/plastics-explained/a-large-family/polyolefins-2/
4. European Commission. (2025). Clean Industrial Deal. Retrieved from
https://commission.europa.eu/topics/eu-competitiveness/clean-industrial-deal_en
5. European Commission. (2022). Circular economy action plan. Retrieved from
https://environment.ec.europa.eu/strategy/circular-economy-action-plan_en
6. Watkins, E., & Schweitzer, J.P. (2018). Moving towards a circular economy
for plastics in the EU by 2030. Institute for European Environmental Policy.
Retrieved from
https://ieep.eu/wp-content/uploads/2022/12/Think-2030-A-circular-economy-for-plastics-by-2030-1.
7. Institute of Sustainable Studies (2025). EU Circular Economy Act aims to
double circularity rate by 2030 EU Circular Economy Act – Institute of
Sustainability Studies
8. López-Escalante, M.C., et al. (2016). Polyolefin as PID-resistant
encapsulant material in PV modules. Solar Energy Materials and Solar Cells,
144, 691-699. Retrieved from
https://www.sciencedirect.com/science/article/pii/S0927024815005206
9. PE100+ Association. (2014). Polyolefin Sewer Pipes – 100 Year Lifetime
Expectancy. Retrieved from
https://www.pe100plus.com/PPCA/Polyolefin-Sewer-Pipes-100-Year-Lifetime-Expectancy-p1430.html
--------------------------------------------------------------------------------
The little Basque village of Zubieta has an unlikely talent for a place its
size: This community of 300 souls can make the trash of half a million people
vanish into thin air.
Each year, as much as 200,000 metric tons of waste from across northwestern
Spain is trucked to the Gipuzkoa treatment plant on the edge of the village.
There it is sorted and fed into a giant incinerator, generating enough
electricity to power 45,000 homes.
The Gipuzkoa plant was meant to be an eco-friendly alternative to landfill, but
it’s backfiring. Locals have accused the plant’s owners and the regional
government of violating European Union environmental laws and releasing
hazardous levels of pollution into the surrounding water, air and soil. It’s
even spurred a criminal court case.
“The court has to decide if the environmental permit [granted by the local
government] is in accordance with [the] EU directive on pollution,” says Joseba
Belaustegi Cuesta, a member of the grassroots GuraSOS movement that is
campaigning against the incinerator.
Gipuzkoa is not a one-off. Across Europe, hundreds of waste-to-energy facilities
have mushroomed over the years, built on the promise that burning trash to
generate electricity is better for the environment than burying it in a
landfill.
But studies increasingly find that the pollution generated by these facilities
also harms the environment and people’s health. The EU, meanwhile, has massively
reduced funding for such projects, while municipalities are still repaying the
debt they accrued to fund them.
At best, critics say, waste-to-energy plants risk becoming unpopular relics of a
misguided waste policy. At worst the existing debt-funded plants could become
“stranded assets” that struggle to find enough trash to burn to ensure they
remain commercially viable.
Gipuzkoa itself was financed with €80 million worth of bonds whose repayment
date is 2047. The plant, in other words, needs to keep running for another two
decades — regardless of the environmental cost.
Belaustegi Cuesta complains that the incinerator now imports “residues that
[are] not even household residues” to feed itself.
French asset manager Meridiam, the biggest shareholder in the Gipuzkoa plant,
did not respond to POLITICO’s request for comment.
EUROPE’S WASTE PROBLEM
Some 500 waste-to-energy plants operate on EU soil today and burn around a
quarter of Europe’s everyday trash, according to waste-to-energy lobby CEWEP.
Plant operators and their investors say these furnaces are essential if Europe
wants to meet its goal of sending less than 10 percent of household waste to
landfills by 2035.
In 2022 Europeans generated roughly 190 million metric tons of household waste,
according to data from Brussels statistical office Eurostat. | Thomas Samson/AFP
via Getty Images
In 2022 Europeans generated roughly 190 million metric tons of household waste,
according to data from Eurostat, Brussels’ statistical office.
Despite recycling roughly 40 percent — more than any other region — the EU still
buries a big chunk of its trash. More than 50 million metric tons of municipal
waste were sent to landfills in the EU in 2023, enough to cover central Paris
with a 20-meter pile of garbage.
Waste-to-energy is considered a slightly cleaner alternative: About 58 million
metric tons were incinerated in 2023, nearly all of which was used to make
energy, EU data shows. EU laws on waste require companies to prioritize reuse
and recycling over waste incineration and landfilling.
“The main objective of a waste-to-energy plant is not to produce energy; its
primary purpose is to manage waste that cannot be recycled,” explained Patrick
Dorvil, senior economist in the circular economy division of the European
Investment Bank.
The power generation benefits are often what the waste-to-energy lobby
advertises when promoting the technology, however.
“With one week of your household’s residual waste, you have enough heat to warm
your home for at least 8 hours,” CEWEP writes in its 2025 brochure. The lobby
also claims that about 10 percent of district heating in Europe comes from
energy made by burning waste, and that the technology contributes to renewable
energy generation and landfill diversion.
POLLUTION CONCERNS
But green groups say it’s a mistake to think waste-to-energy is a cleaner source
of energy than fossil fuels. Poorly sorted municipal waste often means that a
lot of fossil fuel-based plastic gets burnt, releasing planet-warming CO₂ in the
process.
“The argument that burning waste is better than landfilling oversimplifies a
complex issue. Both practices have serious environmental impacts and neither
should be seen as a viable long-term solution,” said Janek Vahk, senior policy
officer at Zero Waste Europe. The NGO estimates that each metric ton of
municipal waste that is burned releases between 0.7 and 1.7 metric tons of CO₂.
Scientists, meanwhile, warn that insufficient research has been conducted on the
dangers faced by people living near incinerators. Plant operators insist that
technological solutions and proper sorting can keep that pollution under
control. But these concerns have not gone unnoticed, and popular backlash
against waste incinerators is growing.
In Rome, for example, tens of thousands of people signed a petition to stop the
mayor from greenlighting a waste incineration project in Santa Palomba. And last
March, French senators proposed to ban the construction of new waste
incinerators in the country.
The pollution concerns have led the EU to reduce its financial support for
waste-to-energy plants and to introduce policy obligations meant to steer EU
countries toward recycling.
Plant operators insist that technological solutions and proper sorting can keep
pollution under control. | Christopher Neundorf/EPA
Over the years, Brussels has introduced strict environmental conditions that
projects must meet to receive EU funding. This has significantly reduced the
amount of public funds allocated to waste incineration compared to larger sums
earmarked for greener projects such as recycling plants.
Back in 2020, the technology’s carbon footprint was ultimately what prompted
Brussels to exclude waste-to-energy plants from its list of eligible green
projects. The list, called the EU taxonomy, tells investors what counts as a
sustainable investment.
Meanwhile, local governments are stuck, environmental NGOs argue, with many
still paying off the debt they accrued when agreeing to build the sites. “Many
of these installation plans would turn out to be obsolete,” says Anelia
Stefanova, energy transformation area leader for CEE Bankwatch, since EU
countries are expected to meet waste reduction and recycling targets enforced by
EU laws.
STRANDED ASSETS
As countries move toward greener waste management systems, the risk is that
these large infrastructure projects could become useless.
Many waste-to-energy plants already require more trash than tends to be
available in the surrounding area. In Copenhagen, for example, the city’s
infamous ski slope incinerator — itself financed through a 30-year loan —
imports tens of thousands of tons of waste from abroad annually to feed its
furnaces.
Denmark has an “overcapacity in the incineration sector of up to 700,000” metric
tons, according to its climate and energy ministry. The country is already
budgeting to cover the costs of unnecessary waste incinerators.
In 2020, Denmark introduced a plan to green the waste sector, which included
allocating 200 million Danish kroner (€26 million) to municipalities to cover
“stranded costs.”
Lenders, including the EU’s official lending arm the European Investment Bank,
are also acutely aware that the policy landscape has moved away from supporting
the technology unconditionally.
“Everything financed by the EIB must comply with EU directives. We are not
policymakers; we are policy takers,” said the EIB’s Dorvil, adding that there
have been plenty of cases where the bank has refused funding for financial or
environmental reasons.
Still, new waste-to-energy plants are in the works.
“When there are no incineration facilities then there [are] bigger landfills,”
insists Hanna Zdanowska, mayor of the Polish city of Łódź. The city will soon
have a new waste-to-energy plant planned by French energy company Veolia and
paid for with a €97 million loan from the European Bank for Reconstruction and
Development.
Zdanowska says the plant will increase the city’s “energy independence, which is
also very important right now.”
The EU’s Modernisation Fund is one of the last funding programs that still pays
for waste-to-energy; it aims to help lower-income EU member countries transition
their energy sectors away from fossil fuels. The €19 billion cash pot has poured
just shy of €2 billion into waste-to-energy projects since its inception in
2021, all of them in Czechia and Poland.
Asked if there’s a risk the new incinerator could become a stranded asset,
Zdanowska said she “would love to have such a scenario that we really produce
less waste in the future.”
“When the amount of waste goes down in the future and recycling goes up, then
probably only a couple of plants will be left in the area and they will not
limit themselves to collecting waste only from the city but they will expand
their area for the whole region.”
There’s a butterfly-shaped hole in Brussels’ plans for a new European budget
structure.
The European Commission presented its controversial proposal to pool a number of
existing funding programs into a single “Competitiveness Fund” last Wednesday,
as part of a broader €1.816 trillion multiannual budget proposal that has
angered EU countries and civil society groups alike.
Under the new plan, biodiversity goals have no earmarked funding at all — and
will have to compete with the EU’s other environmental aims, including climate
change, water security, the circular economy and pollution.
Some warn that unless clearly allocated, money will inevitably flow to
industrial projects that fit with the Commission’s competitiveness agenda,
leaving unprofitable but no-less-urgent environmental programs unfunded.
“[There’s a] real danger that biodiversity will be sidelined in favour of
industrial priorities that may be presented as green investments,” said Ester
Asin, director of the WWF European Policy Office.
The EU is already facing an estimated €37 billion annual biodiversity funding
gap, according to the Commission.
In the proposed new budget structure, Europe’s existing €5.45 billion
environmental funding program, known as LIFE, would merge with other funds
dedicated to digitalization and defense into a €409 billion competitiveness cash
pot. Money previously earmarked specifically for biodiversity has also now been
merged with a catch-all “environment and climate” target.
The overall amount dedicated to funding green priorities will increase, the
Commission argues, because 35 percent of the total budget — roughly €700 billion
— will be dedicated to reaching the goals of the EU Green Deal.
Around 43 percent of the Competitiveness Fund will go toward climate and
environmental objectives, the Commission said Wednesday, to contribute to this
overarching target.
“I think that this budget actually looks at it in a comprehensive way,”
Environment Commissioner Jessika Roswall told POLITICO. “We have a lot of
[environmental] legislations that are really good, but now we also need to give
the results, and this budget is actually addressing exactly this.”
“I think that this budget actually looks at it in a comprehensive way,”
Environment Commissioner Jessika Roswall told POLITICO. | Guillaume
Horcajuelo/EPA
But not everyone is buying into the idea.
“This is a devastating blow for Europe’s nature and its citizens,” said Birdlife
Europe’s Anouk Puymartin in a statement, warning that biodiversity is “losing
its place in the EU budget with no dedicated funding or clear prioritisation.”
EMBEDDING SUSTAINABILITY
With the new budget structure, the Commission wants environmental protection to
be seen as a horizontal issue rather than a standalone financing priority.
The structure will “ensure that horizontal priorities are applied in a
consistent way across the EU budget, including for climate and biodiversity, the
‘do no significant harm’ principle, social policies and gender equality,” it
writes in the budget document.
The “do no significant harm” principle dictates that EU policies and funds must
not have a negative impact on the EU’s six environmental objectives, which
include protecting and restoring nature.
“What matters now is how sustainability is embedded into the governance and
structure of the EU budget,” said Cornelius Müller, policy officer for the
Sustainable Banking Coalition, a green finance lobby. “The EU needs to hardwire
these principles into all financial instruments.”
But some argue that conserving a nature-focused chunk of the financing is
essential.
WWF’s Asin is calling for “robust and transparent tracking methodologies” —
without which the 35 percent target risks “becoming little more than a PR
exercise.”
In the current budget structure — on top of the 30 percent climate spending
target — 7.5 percent of annual spending was to be allocated to biodiversity
objectives in 2024, ramping up to 10 percent in 2026 and 2027. Under the new
proposal, no target for biodiversity is stipulated.
There is also no ring-fenced cash specifically allocated to water resilience,
one of Brussels’s core concerns according to its 2024-2029 priorities. Some of
Europe’s most water-stressed member countries, such as Spain and Portugal, had
been asking that more money be dedicated to water resilience and risk
management.