The Circular Economy Act (CEA) seeks to reduce waste, improve resource efficiency, and support sustainable production and consumption across the Single Market. It is a key opportunity to strengthen circular business models, promote reuse, and support consumers and businesses in making more sustainable choices.
For this reason, we welcome the Commission’s ambition to accelerate the circular transition and address barriers limiting circular business models. At the same time, we believe it is essential that the CEA explicitly recognises the economic, environmental and social value of second-hand trade and ensures that regulatory frameworks support, rather than unintentionally hinder, reuse and consumer-to-consumer circular transactions.
For this to be achieved, CME highlights several proposals that the Commission can take into account when shaping and implementing the Circular Economy Act, including:
- Introduce fiscal measures that support circular choices, notably reducing VAT on second-hand goods and on the shipping of second-hand goods.
- Simplify and harmonise Extended Producer Responsibility (EPR) schemes across Member States, including the introduction of a one-stop shop to register, report, and pay EPR obligations in one place.
- Review the DAC7 reporting framework to better reflect the reality of second-hand trade by combining and raising its thresholds.
- Encourage EU- and national-level education and awareness initiatives, as called for by the European Parliament (NLF INI), to inform citizens in clear, relatable ways about how to take part in reuse and circular practices.
- Promote expert collaboration and exchange of best practices, drawing on examples such as Norway’s circular economy expert group, to inform proportionate and evidence-based policymaking.
- Apply a ‘second-hand lens’ approach in all future legislation and impact assessments, ensuring that new measures strengthen, rather than hinder, the circular economy.
