German government paves the way for circular economy and reducing primary raw material consumption
Today, the Federal Cabinet adopted the National Circular Economy Strategy (NCES). The strategy is based on the guiding principles of reducing overall primary raw material consumption in Germany, closing material cycles and preserving the value of raw materials and products for as long as possible. With it, the German government has created a long-term framework – for the environment, society and industry – for the transition to a circular economy.
Federal Environment Minister Steffi Lemke commented, "The National Circular Economy Strategy is an innovative and effective response to the challenges faced by the environment and industry. Germany is taking the lead in driving this change, as a technological leader and a forerunner for circular economy in industry and society. Far too many new raw materials are still being extracted from nature. They are rarely used economically or efficiently enough and too few are reused. The strategy adopted today paves the way for a transition to a circular economy: in future, products will be designed to be more durable and recyclable so that they can be reused more often. This will ensure that resource management is environmentally and climate-friendly. The National Circular Economy Strategy also gives rise to new opportunities for business. We are creating incentives for innovation and reducing our economy’s dependency on raw material imports at a time when supply chains are vulnerable and raw materials are scarce. And finally, consumers are also given true freedom of choice when the advantages of circular consumption are made transparent."
Key goals of the Strategy
The National Circular Economy Strategy provides guidance for a transition to a circular economy and society in Germany:
- Reduce primary raw material consumption: the aim is to significantly reduce annual consumption by 2045. We are guided here by the proposal of the UNEP International Resource Panel to reduce consumption to 6-8 tonnes per capita in the long term. The current figure is around 16 tonnes.
- Close material cycles: currently, only 13 percent of materials used are secondary raw materials. The goal at EU level is to double this share by 2030. Germany is working towards this goal.
- Increase the security of raw material supply and raw material sovereignty: here too, the NCES builds on EU goals, such as those formulated for strategic industrial raw materials in the Critical Raw Materials Act. Accordingly, the EU has set the goal of covering at least 25 percent of the demand for strategic raw materials through recycling by 2030.
- Prevent waste: we aim to produce ten percent less waste per capita by 2030 and 20 percent less by 2045, compared to 2020.
NCES action areas, measures and instruments
The transition to a circular economy involves all areas of industry and society. The Strategy focuses on eleven priority action areas that offer particularly high potential for circular economy: digitalisation, circular production, vehicles and batteries, mobility, ICT and electrical and electronic appliances, renewable energy installations, clothing and textiles, buildings and building materials, metals, plastics and public procurement.
All phases of the product life cycle have to be considered in practice: product design, materials selection, production, use (where durability, repairability and reusability are crucial), and finally recycling. Circular economy seeks to ensure waste is avoided in the first place and raw materials are kept in circulation for as long as possible. This applies to smartphones and textiles, as well as building materials and industrial metals.
The objectives of the NCES will be achieved through specific measures and instruments. Examples include standards for product durability, the introduction of digital product passports, minimum requirements for the share of recycled content in plastics at EU level, further development of the right to repair for consumers and sustainable public procurement. Measures are necessary at both national and EU level.
Circular economy as an economic factor
An economy that needs more and more primary raw materials is neither economically nor environmentally sustainable in the long term. This means the economy of the future will be a circular economy that preserves the value of raw materials and products for as long as possible. If nothing else, circular economy makes industry more independent and competitive – raw materials are often scarce and expensive and supply chains are prone to disruption and risk. Circular economy also creates new economic opportunities through new business models. To ensure its success and enable Germany to become a leading market for circular economy, the right political framework conditions are crucial.
This will pay off economically: the Federation of German Industry (BDI) and the consulting firm Deloitte forecast an annual increase in gross added value in the German economy of 12 billion euros and the creation of around 120,000 new jobs by 2030.
A transition in close cooperation
In implementing the NCES, the continuation of the stakeholder dialogue and successful cooperation will be crucial to carrying through on the strategy’s goals, measures and instruments. A platform for circular economy will create the basis for cooperation. By adopting the NCES, the German government has committed to becoming a leader in circular economy at EU level and setting new standards for the further development of the EU-wide framework.
New online service
A new online service will also be launched at www.kreislaufwirtschaft-deutschland.de to coincide with the publication of the NCES. The new website is designed to be an information hub for the National Circular Economy Strategy and the associated transition to a circular economy and society.