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VIETNAM INSTITUTE OF STRATEGY AND POLICY FOR INDUSTRY AND TRADE

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OVERVIEW OF THE NEW EU CIRCULAR ECONOMY ACTION PLAN (CEAP)

The circular economy is a model of production and consumption that emphasizes sharing, renting, reusing, repairing, refurbishing, and recycling existing materials and products for as long as possible. This approach extends the life cycle of products, thereby minimizing waste. When a product reaches the end of its life, its materials are retained within the economy, allowing them to be reused multiple times and create further value. This contrasts with the current linear economic model, where materials are consumed and discarded.

The EU's new Circular Economy Action Plan (CEAP) aims to create a cleaner and more competitive Europe. The CEAP is a comprehensive set of initiatives designed to reduce pressure on natural resources by transforming product design, production, and consumption patterns to achieve zero waste. These initiatives cover various materials and goods, including packaging, technology, media, and textiles.

Adopted by the European Commission in March 2020, the CEAP is a core component of the European Green Deal, Europe’s new agenda for sustainable economic growth. The EU's transition to a circular economy will alleviate pressure on natural resources while fostering sustainable growth and job creation. This transition is also essential for achieving the EU's target of climate neutrality by 2050.

In the EU, the circular economy is recognized as more than just a waste management issue. Initially, a Legislative Proposal on Waste was anticipated in 2014. However, the European Commission suspended this proposal in favor of a more holistic approach with the Circular Economy Package introduced in 2015. This package addresses the entire process, from production and consumption to the market for secondary raw materials.

Subsequently, the EU launched the Circular Economy Action Plan (CEAP), sometimes referred to as the 'new CEAP,' along with the Ecodesign Working Plan 2016-2019. These plans set the foundation for Europe’s ongoing transition to a sustainable and circular economy.