EU launches plastics circularity pilot and Circular Economy Act

The European Commission has announced a pilot to boost plastics circularity and a proposal for a Circular Economy Act in 2026.

• Main action: The European Commission will propose a Circular Economy Act in 2026 and has launched a pilot focused on plastics that includes an implementing act under the Waste Framework Directive to set Union-wide end-of-waste criteria for mechanically recycled plastics (public feedback launched with this Communication), mass balance allocation rules for chemical recycling outputs (to apply to Single Use Plastics Directive targets), and the re-launch of the Circular Plastics Alliance with a joint workplan for 2026. Key timelines: Presented with this Communication (mass balance rules transmission), Q1 2026 (CPA re-launch and Trans-Regional Circularity Hubs pilot), Q2 2026 (amendment of Regulation (EU) 2022/1616 and initiation of separate customs codes), and November 2026 (ban on exports of plastic waste to non-OECD countries begins).
• Background and concrete measures: The package addresses market fragmentation, unfair import competition and investment gaps by: proposing end-of-waste criteria to reduce ~EUR 120 million/year in extra costs for the recycling sector (approx. EUR 260,000 per recycler on average); supporting chemical recycling with industry-planned investments of up to EUR 8 billion; coordinating with the EIB / JICE (JICE has invested >EUR 16 billion between 2019–2024); amending food-contact recycled plastics rules, creating separate customs codes, conducting audits of external recycling installations, and deploying TAIEX-EIR tools for control laboratories. All items are concrete regulatory or implementation actions with specified timelines (Q1–Q2 2026 and November 2026).