Coalition Approves Circular Economy Strategy to Boost Resource Efficiency and Sustainability
Politics

Coalition Approves Circular Economy Strategy to Boost Resource Efficiency and Sustainability

The black-red coalition has reportedly agreed on a planned action program focused on the circular economy after several months of disagreement, according to a report by the “Frankfurter Allgemeine Zeitung” referencing the draft. The cabinet is scheduled to formally adopt the program this coming Wednesday.

The program presents a priority list aimed at accelerating the shift from a linear to a circular economy. Specifically, it involves using materials efficiently, maximizing the lifespan and value of raw materials and products, and avoiding waste. The federal government intends to prioritize efforts across twelve key areas. These areas include economic promotion, public procurement, a digitalization initiative designed to close material loops, securing critical raw materials, and increasing the use of plastic recyclates. These measures are slated for implementation by the end of 2027.

To support these investments and innovations, the government plans to utilize the “Future Circular Economy” program within the Climate and Transformation Fund. The draft states that a total of 260 million euros will be allocated for this purpose in the coming years. Furthermore, an additional 305 million euros will be made available through the 2026 Climate Protection Program for the fiscal years 2027 through 2030. This supplementary funding aims to reduce greenhouse gas emissions by promoting the efficient use and reuse of materials.

During a press conference at the Environmental Technologies Fair in Munich in May, Environment Minister Schneider had commented on the controversy surrounding the program, which centers on the extent to which the public sector will take action on the demand side concerning recycled products.