The EU Circular Economy Act: What It Means for Forwarders and Global Trade

On 1 August 2025, the European Commission (EC) launched a public consultation and call for evidence to inform the development of its upcoming Circular Economy Act—legislation positioned to reshape how goods are produced, traded, and reused across the EU.

This Act is designed to enhance the EU’s economic resilience and competitive edge while reinforcing its environmental commitments. By promoting sustainable production practices and circular business models, the legislation aims to support the region’s broader decarbonisation goals and long-term growth.

At its core, the Circular Economy Act will facilitate the free movement of circular products, support more efficient management of waste and secondary raw materials, and lay the groundwork for a unified internal market for high-quality recycled inputs. For logistics providers, manufacturers, and global supply chain stakeholders, this could significantly affect sourcing, packaging, reverse logistics, and regulatory compliance across the bloc.

Set for adoption in 2026, the Act will build on existing frameworks such as the Eco-design for Sustainable Products Regulation and the Critical Raw Materials Act. It aligns with key strategic documents and declarations including the Competitiveness Compass, Clean Industrial Deal, the Letta and Draghi reports, the Antwerp Declaration, and directives from both the European Council (Budapest Declaration) and the European Parliament.

The consultation—open via the Commission’s Have Your Say portal until 6 November 2025—marks a pivotal step in the impact assessment phase. The EC is seeking input from all sectors to ensure the final legislation reflects on-the-ground realities and fosters practical, scalable change.

With a target to double the EU’s circularity rate by 2030, this initiative could redefine the future of industrial trade and materials flow in Europe. For companies with cross-border operations, like Future Forwarding, engaging with these changes early is not just proactive—it’s essential to staying aligned with the next generation of European trade policy.