Increasing the potential of the circular economy

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Cabinet decision Increasing the potential of the circular economy

Better conservation of resources, and thus better protection of the environment – this is why the Cabinet has adopted the action programme for the circular economy strategy. The aim is to make Germany less dependent on raw material imports, and thus more competitive.

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A hand with symbols for recycling, sustainability and environmental protection

The action programme also aims to promote AI applications for the circular economy and resource efficiency.

Photo: mauritius images / Paradee Kiets

The Cabinet has approved a draft action programme for the implementation of the National Circular Economy Strategy . The Federal Government is thus realising a central component of the coalition agreement in the area of the environment. 

Federal Environment Minister Carsten Schneider emphasised: “In the current global situation, it is truer than ever: the circular economy makes our economy more independent. It protects our companies when international supply chains become fragile or trade routes are blocked. And it strengthens the innovative power of German companies in markets that are growing significantly faster than others.”   

A platform for stakeholders and targeted promotion

The Federal Government is pursuing a series of objectives with this action programme: more resource conservation, and thus also more environmental protection and more raw material sovereignty, because Germany will become less dependent on imports. It is also striving for greater competitiveness and growth: this results in greater security of supply for the domestic economy and more sustainable jobs. 

An important element of the action programme is a platform that is to be set up to bring together all relevant stakeholders to implement key measures. Promoting investment and innovation in the circular economy is another element. The funding is intended to better dovetail environmental and industrial policy and support the potential of the circular economy – for example in innovative recycling plants and start-up companies with circular business models. 

More digitalisation for greater efficiency

In addition, a digitalisation initiative aims to close material cycles. Among other things, digital product passports are envisioned for this purpose. AI applications for the circular economy and resource efficiency will also be promoted. 

The key is to further develop so-called circular industrial data spaces, which should enable the sovereign, secure and dialogue-capable exchange of data along the entire industrial value chain. This is intended to facilitate collaboration between companies, promote innovation and nevertheless simultaneously allow them to retain control over their own data.  

Public procurement and legal framework

In addition, public procurement will be used as a lever for circular procurement. Last but not least, the legal framework in the areas of circular economy law and product stewardship will be further developed. Minister Schneider was certain: “The Circular Economy Action Programme is good for the environment and good for the future of the economy.”