Federal Government Action Plan to Implement the National Circular Economy Strategy

The future of the economy is circular. Now more than ever, Germany needs a circular economy to enhance its competitiveness, succeed in global markets and strengthen its security of supply. Protectionist tendencies, industry’s dependence on raw materials and fragile supply chains pose particular challenges for Germany’s globally integrated economy. The circular economy means preserving the value of raw materials and products over the long term, using materials efficiently and keeping them in circulation for as long as possible.

Unlocking the potential of a comprehensive circular economy requires closely coordinating innovation-oriented environmental policy and strategic industrial policy. Since the end of 2024, the Federal Government’s National Circular Economy Strategy (NCES) has provided a reliable framework for doing so. In implementing the Strategy, we will involve all relevant stakeholders and combine supply- and demand-side instruments to maintain and enhance Germany’s competitiveness through innovation and investment. This requires, in particular, consistent efforts to reduce administrative burdens and streamline measures to strengthen the circular economy, while keeping bureaucracy to a minimum, maintaining an open trade policy and taking account of market-based incentives and technology neutrality. Where legally permissible and necessary, we will make use of the scope available in law-making and enforcement to enable innovative technologies to be tested under real-world conditions. This will provide valuable experience of how best to support innovation while maintaining important safeguards such as environmental standards.