The European Commission is preparing to publish the EU Circular Economy Act (CEA) in 2026, setting out new rules that will directly affect packaging, recycling systems and the use of secondary raw materials across Europe.
The proposal forms part of the EU’s wider circular economy strategy, which aims to reduce waste, increase recycling rates and create a functioning single market for recycled materials.
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The planned legislation comes as the EU seeks to double its circular material use rate by 2030. For the packaging sector, this signals tighter requirements on recyclability, material recovery and product design.
Focus on packaging and secondary materials
A central aim of the Circular Economy Act is to improve the availability and quality of secondary raw materials, particularly recycled plastics, paper and metals used in packaging.
The European Commission states that the current system does not generate enough high-quality recycled material to meet industrial demand. The new rules will seek to address this gap by aligning standards across EU Member States and reducing barriers to trade in recycled materials.
The Commission has said the act will “create a single market for secondary raw materials”. This is expected to support packaging manufacturers that rely on consistent supply and quality of recyclates.
For packaging converters and brand owners, the shift could mean stronger requirements to include recycled content and demonstrate material traceability.
Design and recycling requirements tighten
The Circular Economy Act builds on existing EU policies by placing greater emphasis on product design for recycling and reuse. Packaging is expected to be a key focus area due to its high waste volume and short lifecycle.
The legislation will introduce common rules to encourage “repairable products” and more durable materials. While much attention has been on electronics and textiles, packaging is directly affected through requirements on recyclability and waste reduction.
The upcoming Repair Directive, which will apply from 31 July 2026, reinforces this approach. It requires manufacturers to repair goods “within a reasonable time and price”, promoting longer product lifecycles and reducing packaging waste linked to replacement products.
For packaging producers, this policy direction supports a move towards reusable formats, simplified material structures and clearer recycling labelling.
Industry impact and 2030 targets
The Circular Economy Act is part of the EU’s broader Clean Industrial Deal and Competitiveness Compass, which aim to strengthen supply chains and reduce reliance on imported raw materials.
Key sectors identified include packaging-related value chains such as plastics, batteries, vehicles and textiles. These industries will face stricter requirements on material recovery and reuse.
The Commission’s goal is to double the EU’s circularity rate by 2030. This will require significant increases in recycling efficiency and demand for recycled content in packaging applications.
A Commission summary notes the need to “move beyond the take-make-waste model”. For businesses, this means adapting to new compliance frameworks while managing costs linked to redesign, sourcing and reporting.
For international packaging companies operating in the EU, the 2026 proposal is likely to set a benchmark for global sustainability standards. The final legislative details will determine how quickly supply chains must adjust and how enforcement will be applied across Member States.
