‘Bolder measures’ needed to reduce Europe’s consumption

The report comes ahead of the release of the Circular Economy Act which is expected to be proposed in the fourth quarter of 2026.  

ZWE called current policy measures “insufficient” to reduce the absolute levels of resource use. 

Theresa Mörsen, waste and resources policy officer at ZWE, said: “Reducing environmental impact requires not just more efficient resource use, but also a fundamental shift in our use rate.  

“The failure to fully internalise externalities, like environmental degradation and carbon emissions, keeps the market skewed in favour of primary materials, undercutting the competitiveness of secondary materials and circular business models.” 

The report outlines a roadmap for how the EU can internalise costs and reshape economic incentives.  

This includes expanding the scope of the EU Emissions Trading System (ETS) and the Carbon Border Adjustment Mechanism (CBAM) to cover downstream products and organic chemicals. 

In the long term, it also recommended pricing a wider set of pollutants and introducing border tax adjustments to reflect their true environmental impacts abroad. 

Mörsen added: “These changes are essential to guide Europe towards greater resource resilience and environmental integrity.  

“Ultimately, we need to remember that a strategic use of materials is directly linked to the EU’s long-term competitiveness and intergenerational fairness, ensuring future generations can live well within planetary boundaries.  

“Our recommendations provide the bedrock for this to happen.” 

The report called for a transition toward a tax-based scheme targeting resource use and pollution as a long-term strategy, shifting the burden away from labour-based taxation. 

To support this transition, the report urges the EU to revise the “Circular Material Use Rate” (CMUR) as an indicator for circularity. 

Alongside economic measures, the report called for targeted policy to boost the uptake of high-quality recycling and increase the availability of secondary materials.  

It also suggested that the EU explore strategic cooperation with third countries to strengthen waste management systems abroad, securing access to critical raw materials.  

ZWE urged decisive action in the announced Circular Economy Act to adopt measures and complementary policies outlined in this report.