On 4 December 2024, the Federal Cabinet adopted the National Circular Economy Strategy (NKWS). This strategy aims to accelerate the transformation of the German economy towards a more sustainable, resource-conserving model. It aims to reduce the consumption of primary raw materials and orientate value chains towards circular use.
But what is behind it, what are the goals being pursued and how is the plastics industry reacting to the strategy?
Why a Circular Economy Strategy?
The extraction of raw materials causes considerable ecological, social and economic costs. The growing demand for primary raw materials burdens the environment through high CO₂ emissions, pollutant emissions and the consumption of natural resources such as water and soil.
At the same time, the economy is becoming more vulnerable due to global dependencies on raw material imports. Geopolitical conflicts and disrupted supply chains emphasise the need for a sustainable resource policy. A national circular economy strategy is therefore not only a contribution to environmental protection, but also an economic security concept.
The Key Objectives of the NKWS
Image: Symbolic image for circular economy; Copyright: littlekid – stock.adobe.com
Advanced technologies such as chemical recycling are a central component of the new circular economy strategy. Copyright: littlekid – stock.adobe.com
To promote sustainable economic activity in Germany, the National Circular Economy Strategy focuses on three central goals:
Reducing the consumption of primary raw materials
The German government plans to reduce annual per capita consumption from the current 16 tonnes to 6-8 tonnes by 2045. This is to be achieved through the efficient use of resources and the promotion of durable, repairable and reusable products.
Closing material cycles
Currently, only 13% of the materials used in Germany come from recycling processes. The aim of the strategy is to double this proportion at EU level by 2030. To this end, recycling infrastructures are to be modernised and innovative processes such as chemical recycling are to be promoted.
Independence from raw material imports
Germany’s dependence on imports of critical raw materials is to be reduced by establishing a robust recycling economy. The strategy envisages covering 25% of the demand for strategic raw materials through recycling and thus making supply chains more stable and crisis-proof.
Industry comments on the NKWS
The adoption of the National Circular Economy Strategy (NKWS) has provoked different reactions in the plastics and chemical industries. While key objectives of the strategy have been welcomed, industry associations have also criticised it and called for improvements.
PlasticsEurope Germany praises the recognition of new recycling processes:
It is important that we make faster progress in establishing circular raw materials. It is therefore positive that the circular economy strategy recognises chemical recycling as a useful addition to mechanical recycling.
Dr Alexander Kronimus, former Managing Director
PlasticsEurope Germany
Image: Dr. Alexander Kronimus; Copyright: PlasticsEurope Deutschland
However, Kronimus also warns of regulatory hurdles: ‘The recommendations for circular product design need to be concretised, especially with regard to polymer diversity.’
The Gesamtverband Kunststoffverarbeitende Industrie e.V. (GKV) emphasises the political signal effect of the strategy. ‘The National Circular Economy Strategy recognises the great social benefits of plastics and shows how the plastics value chain can become more circular,’ explains Managing Director Dr Oliver Möllenstädt. The association is particularly positive about the planned introduction of a certificate trading system for plastic recyclates, which could create economic incentives.
The IK Industrievereinigung Kunststoffverpackungen also supports the goals of the NKWS and emphasises the economic benefits:
A policy that promotes the circular economy not only makes ecological sense, but also creates jobs in a crisis-proof economic sector: the production of plastic packaging and mechanical recycling.
Georg Pescher, President
IK Industrievereinigung Kunststoffverpackungen
Image: Georg Pescher; Copyright: IK Industrievereinigung Kunststoffverpackungen
The bvse Federal Association for Secondary Raw Materials and Waste Management is more critical. Managing Director Eric Rehbock complains: ‘We would have liked to see more courage and commitment.’ In particular, he criticises the lack of support measures for medium-sized recycling companies and calls for ‘privileged treatment of recycling projects in approval procedures’.
The German Chemical Industry Association (VCI) also sees a need for improvement. ‘The development of the world and the climate show that Raw materials must be recycled more urgently than ever. The strategy is a late first step,’ explains Managing Director Wolfgang Große Entrup. He calls for more speed in the promotion of new processes such as chemical and biotechnological recycling.
These voices make it clear that the industry recognises the circular economy as a key factor for the future, but insists on a clear political course and reliable economic framework conditions.
International Perspective: Importance of the NKWS beyond German borders
Image: Bundestag with German flag; Copyright: Norbert – stock.adobe.com
The National Circular Economy Strategy paves the way for sustainable resource utilisation and strengthens Germany as a business location. Copyright: Norbert – stock.adobe.com
The National Circular Economy Strategy is not only a national project, but also an important signal to the international community. By expanding its technological leadership in the circular economy, Germany can become a global pioneer for sustainable economic solutions.
In addition, the strategy supports the climate targets of the EU and the United Nations, particularly through the planned reduction of greenhouse gas emissions. At the same time, it creates potential for the export of innovative technologies and business concepts that can help other countries to overcome the raw materials crisis.
Outlook and Challenges
The National Circular Economy Strategy marks a decisive turning point in German environmental and economic policy. The German government wants to create a future-orientated, resilient and sustainable economy with clear goals. Implementation will be a long-term process that requires regular evaluations and adjustments.
Innovations in recycling technology, investment in infrastructure and a comprehensive package of policy measures are crucial to achieving the ambitious targets. If these elements work together successfully, the NKWS can not only make Germany more sustainable, but also serve as a model for other industrialised nations.
It is now up to industry and society to make this vision a reality.
