The Circular Economy Act – outlined in the political guidelines for von der Leyen’s second Commission – will aim to establish the foundations for a resource-efficient society, less dependent on finite resources.
In support of these aims, there’s one material that will be crucial, thanks to its ability to be recycled multiple times without any loss of quality - steel. Steel is the ideal material for a more circular economy. Its closed-material loop means products can be recycled at high quality into new steel products, over and over again. In Europe, the recycling rate of steel for packaging reached 80.5% in 2022, according to the new EU calculation methodology, showcasing how effective steel packaging recycling is already and its ability to reduce waste.
The Packaging and Packaging Waste Regulation (PPWR) – expected to be adopted imminently – and the proposed Circular Economy Act, aim to make all packaging in the EU reusable or recyclable by 2030. In light of these developments, MEP Dimitris Tsiodras – who sits on the ENVI and IMCO committees – recently hosted a debate in the European Parliament in Brussels. Organised by The Parliament Magazine and supported by Steel for Packaging Europe, the event brought together policymakers, environmental campaigners, and industry leaders to discuss the role of high-quality recycling and permanently recyclable materials like steel in advancing circularity.
Highly recyclable, ‘permanent materials’ like steel, which can stay in the circular economy, should not be equated with less recyclable packaging materials
Participants emphasized the need for updated, harmonised policies to achieve the EU’s Green Deal goals, including carbon neutrality by 2050. “Climate neutrality cannot be achieved without tackling overconsumption, including material overconsumption, to make sustainable choices accessible for both companies and consumers,” said Marco Musso, team lead for the circular economy at the European Environmental Bureau, a network of citizens organisations campaigning on the environment.
Luc Brantjes, President of Steel for Packaging Europe, reinforced the importance of promoting steel as a key contributor to circular economy whilst also being committed to achieving carbon neutrality by 2050.
MEP Tsiodras supported Brantjes’ vision, noting that the steel industry employs over 300,000 people and has made significant strides through regulations like the PPWR. “At the centre of establishing a single market, we have to make a shift from a linear to a life-cycle approach,” explained Tsiodras, advocating for a comprehensive strategy to limit waste, and emphasizing that the closed material-loop cycle of steel can play a key role in this transition. He underscored the importance of harmonizing regulations, addressing market inefficiencies, and investing in circular infrastructure for improved collection, sorting, and reuse.
In addition to its recyclability, Brantjes reminded the audience that steel offers practical benefits for food preservation. “Steel has multiple benefits, but it can play an important role in food preservation. Using steel to pack food allows it to be preserved for years without refrigeration, maintaining flavour, nutritional value, and vitamin content for extended periods comparable to freshly prepared food.”
Read Steel for Packaging Europe’s EU Vision Paper HERE
Mathias Kirkegaard, the environment attaché from the Danish Permanent Representative to the EU, outlined three challenges facing the circular economy: low demand for recycled materials, short-term focus in businesses, and the establishment of markets. He explained that primary materials are often cheaper than recycled ones because the cost of recycling is not factored into their price. Businesses are hesitant to increase demand for recycled materials when high-quality primary materials are available, perpetuating low demand. Kirkegaard also noted that many companies prioritise short-term profits over long-term sustainability.
As potential solutions, Kirkegaard suggested leveraging public procurement, which accounts for 14% of the EU’s GDP, to stimulate the circular economy. “Imagine using this to grow circular practices—that would shift the market in the right direction,” he proposed. He also recommended extended producer responsibility (EPR) programs to hold producers accountable for their products' entire lifecycle.
Echoing this statement, Musso explained that the new Circular Economy Act should focus on sustainable resource management and guide toward a fair, autonomous, and resilient economy.
Producer responsibility is also a key enabler of the circular economy, explained Steve Claus, Secretary General at Steel for Packaging Europe. He emphasized that designated, rather than shared, responsibilities could ensure effective recycling practices. He also pointed to Belgium’s practice model: “Each stakeholder in that chain has its dedicated responsibilities.”
Claus highlighted how the PPWR is introducing new recyclability grades for packaging materials. “Highly recyclable, ‘permanent materials’ like steel, which can stay in the circular economy, should not be equated with less recyclable packaging materials,” he said.
MEP Bruno Tobback – an S&D MEP who sits on the ITRE Committee – argued that producers should bear more responsibility for creating and funding the recycling infrastructure, rather than relying on consumers alone. He also addressed another challenge that the EU is facing, namely transporting waste across borders internally. “It is easier to export than to bring it from Greece to Italy, which limits recycling,” he explained.
In the coming years, EU Member States will need to incorporate complex, detailed legislation to support material circularity, and stakeholders agreed the importance of collaboration, not only within the steel sector but also with other organisations, to advocate for sustainable practices and to engage consumers in the transition.
As the discussion concluded, Brantjes emphasized that the road ahead demands education, discussion, and preparation—key elements that will set a solid foundation for the EU's circular economy ambitions.