On track to a circular economy

Specific goals are formulated in the National Circular Economy Strategy (NKWS): It aims to accelerate the transformation to a circular economy, reduce primary raw material consumption in Germany to eight tonnes per capita per year by 2045 and contribute to reducing emissions in the long term.  The draft sees significant synergies in the interface between the energy and resource transition, which not only facilitate the energy transition but also make resource utilisation more efficient. The NKWS is the starting point - some aspects of the strategy now require readjustment and a more specific design.

The NKWS marks the beginning of a complex transformation. The specific implementation of the proposed measures is crucial for success. Stakeholder dialogue to date has been characterised by transparency and broad participation, and is due to be stepped up further going forward. The Federal Ministry for the Environment proposes a platform for the circular economy to further develop the strategy and network relevant stakeholders.

The financial resources of the NKWS are essential for its implementation and the creation of long-term, stable framework conditions. In addition to direct funding, economic incentives are needed to promote the circular economy. An example of this is the targeted establishment of incentive systems - to steer private investment away from the linear economy towards the circular economy. Tax advantages for companies that manufacture circular products and levies for non-circular products could be crucial here.

The planned bundling of existing raw materials policy strategies in the NKWS makes a lot of sense. However, the close link with existing strategies and funding programmes has so far been missing from the draft. In the context of industrial transformation in particular, there is a need for greater integration with other processes, such as the carbon management strategy, the national biomass strategy and the future long-term strategy for negative emissions. Existing measures and instruments must be reviewed for potential conflicts of interest.

For the energy sector, the inclusion of renewable energy systems as a separate field of action in the NKWS is an important step in the context of the energy transition. In addition to the utilisation phase, the production and end of life of the systems also play a role, and consequently the life cycle of renewable energy systems is considered holistically. The NKWS mentions measures in the field of renewable energy systems. However, the current draft still lacks specific goals that would make the strategy binding and make its success measurable by means of specific indicators. As things stand, the strategy primarily refers to the EU targets from the Critical Raw Materials Act (CRMA) and the development of specific indicators. This will probably not be enough to create predictable framework conditions for the energy industry and the recycling sector. Fine-tuning is needed in order to formulate measurable and binding targets and specific indicators.

In the construction sector, there is a clear need to give greater consideration to the preservation of existing buildings and exploitation of demolishable structures, e.g. through the prompt introduction of the building resource pass and the introduction of demolition authorisation procedures. To date, however, the NKWS has focussed primarily on the preservation of existing buildings and new construction using mineral building materials. Further development of targets and measures is needed here to accelerate the reduction of resource consumption in the building sector and to expand it to include natural building materials.  

Conclusion: The National Circular Economy Strategy offers a promising basis for a circular future. Its successful implementation will be crucial for the transition to a circular economy. dena recommends securing funding for the circular transformation and organising the measures in industry, the building sector and renewable energy systems in a targeted manner:

• The introduction of incentive systems, such as tax benefits for recyclable products and levies for non-circular products, is crucial for financing and promoting the circular economy.
• A harmonised design of the NKWS with existing governance systems, especially in connection with the carbon management strategy and the national biomass strategy.
• Measures to preserve buildings should be stepped up, e.g. by introducing a building resource passport and demolition authorisation procedures.
• It is important to clearly formulate binding targets and indicators for renewable energy systems in the NKWS in order to maximise their role in the circular economy.