The President of the European Commission, Ursula von der Leyen, has announced plans to enhance the focus on developing a circular economy within the EU. She highlighted the alarming trend of sending significant quantities of valuable waste back to China, urging the need for the EU to start reclaiming critical raw materials.
Von der Leyen spoke at the European Industry Summit in Antwerp on Wednesday, where she outlined key elements of the Clean Industrial Plan, a new initiative aimed at positioning the EU to compete effectively with the USA and China. The plan includes securing over 100 billion euros to support “clean production in the EU.”
She reaffirmed the Commission’s commitment to the goals of the European Green Deal, which aims for climate neutrality by 2050. “We are on track to achieve a 55% reduction in emissions by 2030,” she stated.
Addressing business leaders, von der Leyen acknowledged the numerous challenges they face, including high energy prices and excessive regulations. She pointed out that production costs have risen significantly, particularly in energy-intensive sectors, leading some investments to shift to other regions. “We must reverse this trend, which is the primary objective of the Clean Industrial Plan,” she emphasized. She also expressed a desire for the EU to invest more than ever in innovation, identifying access to financing as a major hurdle. “We need to mobilize significantly more private and public investments,” she stressed.
Von der Leyen added that the Commission will introduce a new framework for state aid. “Public assistance for decarbonization and clean technology will be approved more swiftly and for extended periods, creating greater predictability and fostering innovation,” she explained.
Additionally, she announced that Brussels will prioritize the circular economy, which aims to reduce raw material use in production and minimize waste. “Europe has a distinct advantage in this area, with one-third of all global companies engaged in circular technologies being European. Over 50% of our steel, iron, zinc, and platinum comes from recycled materials, fulfilling more than 25% of European consumption. However, we need to act more decisively. For instance, China currently holds 80% of the world’s battery recycling processing capacity, and we continue to send valuable waste back to them. Instead, retired batteries could supply nearly 15% of our lithium needs,” von der Leyen noted.
She announced plans to present a draft of new regulations focused on the circular economy.
Under the Clean Industrial Plan, the European Commission also proposes establishing a European critical raw materials center to jointly procure essential metals, which is expected to reduce their costs. (27.02.2025)
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