Circularity is industrial policy
Why resource efficiency belongs at the core of the IAA
TOMRA has joined Recycling Europe, Plastics Recyclers Europe, and Zero Waste Europe in calling on the European Commission and co-legislators to recognize the circular economy as a central pillar of the EU's Industrial Accelerator Act (IAA).
The case for the circular economy is too often made in environmental terms alone. It is, first and foremost, an economic model — one that extracts more value from the resources already in circulation and outperforms the linear "take, make, dispose" model on efficiency, resilience, and long-term returns. That is the argument at the heart of a joint statement TOMRA has co-signed with (partners).
"Every ton of material kept in use is a ton Europe does not have to import. But circularity at scale doesn't happen on ambition alone: it takes technology and infrastructure to make it real. This is why we urge the European Commission to recognize circularity and resource efficiency as essential to a long-term strategic industrial policy,” said Tove Andersen, President and CEO, TOMRA.
An economic and strategic imperative
In a Europe defined by resource scarcity, circularity is not a nice-to-have. By making the most of materials already in the economy, it directly reduces exposure to the risks that run through global supply chains: price volatility, supply constraints, and import dependency. The signatories point to a potential reduction of around 20% in the EU's reliance on metals extracted in other regions, with comparable gains for virgin materials such as plastics.
The competitiveness logic follows from there. Fewer virgin resources consumed means more value produced with less, and a shift in where value is created: away from extraction and towards the use phase of products. Applying circular economy principles across the EU could lift GDP by 0.5% by 2030; the European remanufacturing market alone is projected to grow from EUR 31 billion to EUR 100 billion over the same period; and the transition is expected to generate around 700,000 new green jobs.
A recent European Environment Agency assessment finds that a targeted set of circular measures could cut Europe's climate footprint by 22%, while also curbing biodiversity loss and air pollution. But the signatories are clear that this should not obscure the central point: the circular economy earns its place in industrial policy on economic grounds.
The gap in the IAA
The Industrial Accelerator Act sets out to stimulate demand for low-carbon, European-made technologies, strengthen manufacturing, support business growth, and speed the shift to cleaner industrial systems. The circular economy advances every one of those goals. However, as it stands, the IAA does not fully integrate circularity as a core industrial pillar.
This matters because recycling, reuse, repair, and remanufacturing – together with the sorting, processing, and logistics infrastructure that underpins them – are the kind of value-creating, capital-intensive, and labor-intensive activities that operate continuously and at scale. Recognizing circular infrastructure as a genuine part of Europe's industrial base offers a credible, differentiated route to competitiveness and resilience, rather than simply rebuilding the linear models Europe is trying to move beyond.
For TOMRA, this is not an abstract position. Sorting, processing, and the systems that return materials to productive use are the core of what we do. The infrastructure the statement describes is the infrastructure our technologies make possible every day.
What the signatories are asking for
The statement calls on the European Commission and co-legislators to take three concrete steps:
- Embed circularity in the core objectives of the IAA. The Act's ambition should be framed explicitly around maximizing the value of resources and retaining that value within the European economy. Circularity is central to the mission.
- Recognize resource efficiency activities as strategic. The activities that enable circularity, from collection and sorting to reprocessing and remanufacturing, should be granted strategic industrial status that reflects their economic and security value.
- Introduce circular public procurement measures for plastics, minerals, glass, and other products from the chemical industry, and ensure that requirements for electric vehicles also promote low-carbon standards and the use of recycled materials sourced within the European industrial sphere.
A circular Europe is a more competitive, more resilient, and more secure Europe, and this principle should be embedded in the IAA.