Federal Cabinet adopts national circular economy strategy

The Federal Cabinet adopted the National Circular Economy Strategy (NKWS) this week. The industry association bvse still sees a considerable need for action.
BDE Circular economy BDE Circular economy
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This week, the Federal Cabinet adopted the National Circular Economy Strategy (NKWS). It aims to reduce the consumption of raw materials and close material cycles. The bvse Federal Association for Secondary Raw Materials and Waste Management welcomes the goals, but still sees a considerable need for action.

The National Circular Economy aims to drastically reduce the annual consumption of primary raw materials by 2045, close material cycles, increase independence from raw material imports and avoid waste (20 per cent less per capita by 2045 compared to 2020).

„The strategy that has now been adopted creates the basis for the transition to a circular economy: In future, products will be designed to be more durable and recyclable so that they can be reused more frequently. This will enable the environmentally friendly, climate-friendly use of resources. At the same time, Germany is creating new opportunities for companies with its circular economy strategy. We are incentivising innovation and making our economy less dependent on raw material imports in times of fragile supply chains and scarce raw materials. Last but not least, consumers will also have real freedom of choice if the benefits of circular consumption are made transparent.“

Steffi LemkeFederal Minister for the Environment

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bvse: Securing the competitiveness of SMEs

The strategy is too generalised and often refers to future European regulations, which does not help small and medium-sized companies in the circular economy, says the German Association for Secondary Raw Materials and Waste Management (bvse).

„The objectives of the strategy are fundamentally correct and we support the direction taken by the federal government. However, the implementation falls short of expectations. We would have liked to see more courage and commitment.“

Eric Rehbock, Managing Director of the bvse.

One particularly critical point is the insufficient recognition of the role of SMEs. Rehbock states: „There is a lack of targeted support measures and political backing for recycling companies. Instead, large-scale projects are often subsidised while material recycling is neglected.“

The bvse is therefore calling for a clear prioritisation of the circular economy, in particular with regard to authorisation procedures. „We keep experiencing delays and constant additional demands from the authorities, which represent an incalculable risk for companies. We need the necessary political support in order to ensure that recycling projects are prioritised and promote the growth of the industry.“

The association appeals to the German government to promote the circular economy as one of the most important pillars of the future and to take targeted measures to secure the competitiveness of SMEs, strengthen the recycling industry and thus also secure a large part of the raw material supply.

BDE calls for clear framework conditions

The BDE Federal Association of the German Waste, Water and Circular Economy also welcomes the National Circular Economy Strategy. It is one of the many projects announced in the coalition agreement of the coalition government, which have now been implemented. This is the first step of many, that must now follow on the path to a genuine circular economy.

„A strategy initially changes little. The NKWS lacks a clear plan as to how the set goals are to be developed step by step and how the instruments can work on a large scale. Without a clear framework, concrete legislation and budgetary backing, the strategy remains a document with many pages and no impact. More effectiveness would be necessary in the short term, because: We need market regulation to create dynamic markets for recycled raw materials. Simplified authorisation processes are crucial for the recycling infrastructure to grow. And without comprehensive enforcement of federal law in the federal states, the circular economy will already fail due to the separate collection of waste containing recyclable materials. More impact is needed to ensure that a circular economy really pays off. Our companies are ready for a sustainable circular economy. We want to drive innovation, so we need politicians to be willing to remove bureaucratic obstacles and encourage entrepreneurial courage.“

Anja Siegesmund, BDE President

Sources: BMU, bvse, BDE