Germany Urged to Accelerate Circular Economy Shift for Sustainability and Competitiveness
Germany is pushing for a stronger circular economy to bolster sustainability and competitiveness. Key players like the German Energy Agency (DENA), the Wuppertal Institute, and the Association of Climate Protection Companies have proposed bolstering legal frameworks to accelerate this shift.
The German government's National Circular Economy Strategy (NKWS) aims to create favourable conditions for a swift transition. However, progress has been slow, with Germany taking only small steps so far. The raw materials industry faces a central challenge: developing viable circular business models. These models could significantly reduce the industry's carbon footprint and give Germany an innovation edge in the global economy.
Circular economy processes can produce materials using 50 to 90 percent less energy than classic extraction of primary raw materials. To encourage investment in new, circular-oriented products and processes, companies need long-term planning security and incentive structures. Effective product design is crucial for successful recycling and cost-effective use of recycled materials. Moreover, a circular economy strengthens regional production by collecting, processing, and reusing materials locally.
While Germany acknowledges the benefits of a circular economy, such as increased supply security and competitiveness, the transition is progressing too slowly. Strengthening the institutional framework, as proposed by key stakeholders, is vital to unlock the full potential of a circular economy and drive sustainability in the German economy.
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