On May 11, 2026, the European Commission published a policy assessment examining how different circular economy policy measures could reduce material extraction and consumption across Europe. The study concluded that a combination of supply-side and demand-side circular economy policies could reduce Europe-wide material extraction by approximately 15% by 2030 compared with business-as-usual projections. The assessment evaluated measures including taxes on virgin material extraction, subsidies for recycled materials, product lifetime extension, improved product design, and policies encouraging less material-intensive consumption. According to the findings, current climate mitigation measures alone are insufficient to significantly lower material use, making broader circular economy strategies necessary across the full value chain. The study also highlighted that fiscal measures focused only on production could lead to material leakage through increased imports, while combined policy approaches could deliver more balanced outcomes. Researchers estimated that the overall economic cost of implementing the combined policy package would be around 1% of European GDP by 2030. The assessment further noted potential social impacts, including

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European Commission; Circular Economy; Circular Economy Action Plan; European Green Deal; Material Extraction; Resource Efficiency; Recycling Policies; Sustainable Consumption; Climate Mitigation; Environmental Policy; Resource Taxation; Circular Economy Transition