The federal government wants to provide greater support for the preservation, repair and recycling of products. The action program for the National Circular Economy Strategy, which was approved by the Federal Cabinet in Berlin, outlines how this should succeed. The almost 20-page action program is intended to specify the federal government’s previous circular economy strategy from 2024.
Schneider sees growth potential
Minister Carsten Schneider (SPD) emphasized that Germany has few raw materials of its own. “Circular economy makes our economy more independent. It protects our companies when international supply chains become fragile or trade routes are blocked.” The area also has great growth potential.
Among other things, a platform is planned that will network companies, scientists, administration and civil society in order to pave the way for more sustainable products to come to market. In addition, digital product passports should be developed that can contain information, for example, about the chemical components of goods or information about repairability or disposal.
No specific goals for public procurement
The decision in the cabinet was preceded by months of struggle within the federal government, which primarily concerned public procurement, i.e. the state as the client of construction projects, for example. “We will use public procurement more than before for the circular economy,” it now says. The annual order volume for circular – i.e. particularly long-lasting or recyclable – products is expected to increase continuously across all companies with a majority shareholding from the federal government. However, there are no concrete goals.
The action program provides for 260 million euros from the so-called climate and transformation fund by 2029. The KTF is a pot that is intended to support the restructuring of the German economy towards greater environmental and climate protection.
WWF misses targets for resource conservation
The Federation of German Industries (BDI) sees great growth potential in the circular economy. According to a study by the Boston Consulting Group on behalf of the BDI, the gross value added in this area in the mobility, mechanical engineering, construction, energy and textile sectors could more than double to up to 125 billion euros per year by 2045.
The environmental organization WWF criticized the program for placing too much emphasis on recycling, innovation and digitalization. There were no binding targets and concrete steps to actually reduce the consumption of primary raw materials in Germany.