5 Things This Week #2
Your weekly dose of what’s actually happening in circular economy and waste no greenwashing, just the numbers.
Let me tell the most difficult thing for me at the beginning. I'm trying to build something that cuts through the sustainability BS. If this helps you see clearer, share it with someone else who's tired of the noise.
1. EU Announces Circular Economy Act for 2026
What happened: The European Commission unveiled plans for a comprehensive Circular Economy Act to be proposed by end of 2026, alongside immediate measures to rescue Europe’s struggling plastics recycling sector.
The context: Europe’s circularity rate has barely moved in 14 years from 11.2% in 2015 to just 12.2% in 2024. Of the 58 million tonnes of plastic produced in the EU, only half is collected and sorted, and a measly 13% gets recycled into new plastics. Worse, plastics recycling capacity has been declining, with a projected net decrease of 1 million tonnes by end of 2025.
What’s happening now:
End-of-waste criteria for plastics being established EU-wide (public feedback until January 26, 2026)
Circular Plastics Alliance relaunched with goal of getting recycled plastics into products
Trans-Regional Circularity Hubs being set up via European Investment Bank
€115 million already deployed (2021-2024) through Horizon Europe for plastics circularity solutions
€300 million awarded via Innovation Fund for plastic product proposals
Why it matters: The comprehensive Circular Economy Act coming in late 2026 will create horizontal measures across all sectors, not just plastics. This is Europe trying to avoid becoming uncompetitive as Chinese imports flood the market while EU recyclers face high energy costs and fragmented regulations. The measures acknowledge what we already knew: voluntary action hasn’t worked, and the economics don’t favor recycling without policy intervention.
2. Circular Economy Market Hits $463 Billion, Heading to $1.34 Trillion by 2034
What happened: New market analysis shows the global circular economy reached $463 billion in 2024 and is projected to grow to $1.34 trillion by 2034.
The numbers:
2024: $463.07 billion (7.78% CAGR from 2019)
2029 projection: $793.36 billion (11.37% CAGR)
2034 projection: $1.34 trillion (11.15% CAGR)
Market leader: Western Europe dominates with 33.09% ($153.24 billion)
Fastest growth: Asia-Pacific (13.12% CAGR) and Western Europe (11.35% CAGR) through 2029
What’s inside the market:
Plastic waste leads at 25.87% of market ($119.8 billion)
E-waste is the fastest growing segment (15.12% CAGR 2024-2029)
Top 10 companies control only 3.75% of market (extremely fragmented)
Leading players: Veolia, Suez, Braskem
Why it matters: The circular economy is shifting from niche environmental initiative to massive industrial opportunity, but it’s still wildly fragmented. Electronic waste growth at 15% annually means urban mining and e-waste recovery are where the money will be. The fact that Asia-Pacific is growing fastest (13%) while also being the region with the lowest recycling rates (11.7% for e-waste) shows we’re building infrastructure where it’s desperately needed but also where challenges are greatest.
3. Africa’s $546 Billion Circular Economy Opportunity Could Create 11 Million Jobs by 2030
What happened: At the UN Environment Assembly (UNEA-7), the African Development Bank positioned circular economy as both environmental necessity and industrial growth strategy for Africa.
The scale:
$546 billion annual opportunity across African economies
11+ million jobs could be created by 2030
Key sectors: Construction, food systems, plastics, textiles, electronics, mining value chains
Critical context: Nearly 50% of global greenhouse gas emissions linked to materials and resource use
What the AfDB is pushing:
Circular approaches reduce exposure to global supply shocks by keeping materials in use locally
Value addition within domestic/regional markets instead of exporting raw materials
Coherent policy frameworks with predictable regulation and aligned incentives
Standards promoting durability, safe design, resource efficiency
Why it matters: Africa generates only 3.0 million tons of e-waste (lowest globally at 2.5kg per capita) but has massive potential for circular growth without being locked into linear infrastructure. The AfDB is positioning this as industrial competitiveness, not charity reducing import dependency on materials while creating domestic jobs. With climate shocks intensifying and commodity prices volatile, keeping materials circulating locally is strategic resilience, not just environmentalism. The question is whether Africa can build circular systems from the ground up, or whether it will follow the West’s path of building linear then retrofitting circular.
4. €14.2M EU Battery Recycling Call Closes Soon for Next-Gen Chemistries
What’s happening: The European Commission’s Horizon Europe call for direct recycling of Lithium Iron Phosphate (LFP), Lithium Manganese Iron Phosphate (LMFP), and sodium-ion batteries closes February 17, 2026, with €14.2 million in funding available.
What’s different about this:
Direct recycling focus: NOT traditional hydrometallurgical or pyrometallurgical methods
Goal: Recover high-purity active materials while preserving original functionality
Target: Next-generation and low-value battery chemistries (LFP, LMFP, sodium-ion)
Funding: ~€4.7 million per project, approximately 3 projects expected
Deadline: February 17, 2026
Requirements:
Must use Safe and Sustainable by Design (SSbD) framework
Robust techno-economic analyses required
Must prove competitive advantage over conventional recycling
Life-Cycle Assessments focusing on CO2 reduction and energy savings
Why it matters: This is smart strategic targeting. LFP batteries are becoming dominant in EVs (30-44% of market in 2023) because they’re cheaper and safer than NMC, but they contain less valuable materials making traditional recycling less economically viable. If we can’t crack LFP recycling economics, we’ll have a massive waste problem in 10-15 years as these batteries reach end-of-life. The EU is betting on direct recycling (keeping materials in their original form) rather than breaking everything down and rebuilding potentially much more efficient but technically challenging. The timing matters: get this right now before China dominates both LFP production AND recycling.
5. What to Watch: WEF 2026 Puts Circular Economy at Center of Clean Energy Debate
What’s happening: The World Economic Forum’s Annual Meeting 2026 (taking place this week in Davos) has circular economy front and center on the agenda — not as environmental initiative, but as critical industrial strategy for the clean energy transition.
Why it’s on the agenda:
Post-COP30 (November 2025), there’s growing recognition that the world can’t meet expanded renewable and electrification targets without a vastly more resilient supply of critical minerals. The circular economy is being positioned as the answer.
What’s being discussed:
The critical minerals crunch:
Recycled critical minerals (nickel, cobalt, lithium) generate ~80% less GHG emissions vs. primary mining
Geographic concentration of mineral resources creates vulnerability (think: China dominance in rare earths, DRC for cobalt)
Circular supply chains could create a “second major supply source” alongside traditional mining
The strategic shift:
Moving circular economy from “peripheral environmental initiative” to “core pillar of industrial strategy”
Countries embedding circularity into governance and supply chain strategy will define clean energy competitiveness
Focus on which nations will control the manufacturing advantages of the 2030s
What needs to happen:
National systems for end-of-life product collection and movement
Investment in recycling and refining infrastructure for high-purity manufacturing inputs
Clear regulatory frameworks for recycled material quality, cross-border movement, carbon accounting
Producer responsibility systems with actual enforcement
The business case: When energy efficiency lowers operating costs, when circularity reduces input price volatility, when digital systems cut waste and downtime — adoption becomes automatic, even for companies that don’t “care” about sustainability. This framing is about superior economics, not virtue signaling.
Why it matters: This is a major reframing moment. For years, circular economy was the domain of sustainability officers writing reports nobody read. Now it’s being discussed at WEF as supply chain resilience and industrial competitiveness — which means CEOs, finance ministers, and heads of state are paying attention.
The discussion matters because it shapes where capital flows. If circular economy gets positioned as “the cost of doing business in a resource-constrained world” rather than “nice to have ESG initiative,” we’ll see serious infrastructure investment. If it stays in the sustainability silo, it’ll remain underfunded.
Watch for: Which countries announce concrete circular economy industrial strategies coming out of WEF, and whether any major manufacturers commit to recycled content targets with actual procurement commitments behind them.
Bonus: Corporate Sustainability Reporting Gets Major Simplification
What happened: In December 2025, the European Parliament adopted “Omnibus I” reforms (pending final Council approval expected early 2026) that dramatically narrow the scope of both the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD).
The changes:
CSRD:
Wave two and wave three companies get 2-year deferral (already passed)
“Quick fix” revisions ensure wave one companies don’t need to report additional info for 2025-2026
New “value chain cap” limits information requests from smaller suppliers
Listed medium and small companies removed from scope entirely
CSDDD:
Scope limited to companies with 5,000+ employees AND €1.5B+ revenue (way fewer companies)
First compliance deferred to July 26, 2029
Climate transition plans no longer mandatory
Member states will set penalties (must be “effective, proportionate, and dissuasive” but no specific percentage required under Omnibus I)
Why it matters: This is the ESG backlash playing out in regulation. After years of expanding reporting requirements that generated “too much data, too little insight,” the EU is pulling back to focus on strategic materiality what actually matters for business value. Companies get breathing room. But don’t mistake simplification for retreat the requirements that remain have real teeth, and 2029 deadlines will arrive faster than companies think. Smart money is using this reprieve to build systems that’ll work under tighter rules, not celebrating that they can ignore ESG for another few years.
You can check European Commission’s related page here
What are you seeing in your world? Hit reply and tell me what’s actually happening on the ground where you work.
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See you soon
Umut