The National Circular Economy Strategy (NCES)

Circular economy is not only essential to achieving our climate and environmental policy goals, it also creates tremendous opportunities for growth, employment and competitiveness. The transition to a circular economy has an important role to play in securing the supply of raw materials. It increases the resilience of supply chains and the economy by making greater use of secondary raw materials and improving resource efficiency. And it lowers the demand for primary raw materials. Circular economy also offers considerable additional and low-cost opportunities to decarbonise industry with technologies that are already available today. It has the potential to encourage the development of new technologies and business models, thereby creating more added value and boosting productivity throughout the economy. This gives rise to tremendous opportunities, particularly when combined with the rapid deployment of digital technologies. Circular economy can become a key factor driving the success of the German economy in international competition. We want to harness Germany’s innovative strength to modernise the economy so that value is mainly created in circular processes and far fewer new resources are needed. The German government has therefore undertaken to make economic processes more circular and resource efficient. The National Circular Economy Strategy (NCES) aims to drive this process forward.

The term “circular economy” is used in the NCES as defined in the EU Circular Economy Action Plan and covers all phases of value creation – from product design and production to consumption, repair, waste management and secondary raw materials returned to the economy.  In Germany, the Circular Economy Act provides a legal definition: “Circular economy within the meaning of the present Act shall constitute the prevention and recovery of waste”, Circular Economy Act (KrWG) Section 3 (19). This more narrowly defined term is included in the concept of the NCES, but is only one part of the comprehensive approach.