This report aims to provide a diagnostic to underpin the Clean Industrial Deal and the Single Market Strategy. It responds to calls from businesses to prioritise competitiveness.

The circular economy is identified as one of the keys to making the EU more competitive. The report looks at the barriers to this transition, such the higher cost of secondary raw materials, the difficulty of scaling up and replicating solutions in a fragmented market and diverging national regulatory frameworks which hinder the development of enhanced supply chains and discourage upscaling innovative recycling facilities.

The Critical Raw Materials Act and Ecodesign for Sustainable Products Regulation will enhance conditions for circular business models and the circular transition needs to pick up the pace.