Stakeholders in the circular economy have voiced scepticism over the European Commission’s (EC) decision to introduce a ‘more ambitious’ proposal next year.

This afternoon (16 December), the EC announced that it was withdrawing plans to introduce a circular economy package and new waste targets, and instead would resubmit ‘more ambitious’ proposals.

The announcement has come as somewhat of a surprise, as a leaked document suggested that EC was to withdraw the circular economy package from its working programme for 2015, because it believed there would be ‘no foreseeable agreement’ with EU states that have poor recycling records. This was met with widespread criticism from industry, politicians and environmental groups, and saw many lobby the EC to change its mind, which may have led the EC to its amended decision.

‘Uncertainty is not helpful’

Although some commentators have tentatively welcomed the news of the ‘more ambitious’ package, members of the waste and resources industry and some environmental campaigners have been less optimistic.

Commenting on today’s announcement, Susanne Baker, Senior Climate & Environment Policy Adviser at EEF, the manufacturers’ organisation, said: "We are pleased the commission has decided not to axe the package but simply review it. This is the right decision. There is now a compelling body of evidence to suggest that the economic value of perusing a circular economy is as strong, if not stronger, than the environmental benefits that accompany it."

However, the Environmental Services Association’s (ESA) Europe Policy Adviser Roy Hathaway said that “while it is reassuring to hear that the commission plans to bring back the circular economy proposals in a broader and more ambitious form in 2015, rather than abandon them altogether, the uncertainty around what this means is not helpful”.

He added: “Progress towards a more circular economy in Europe is vital for jobs and growth as well as for resource efficiency and environmental protection. The commission’s previous proposals were not perfect, but the direction of travel they set was right, and would have helped encourage private-sector investment in better resource management.”

Commenting on behalf of the Resource Association (RA), a trade association for the reprocessing and recycling industries and their supply chain, Chief Executive Ray Georgeson reiterated that the ‘mixed signals’ from the EC were ‘not welcome’, adding: “[I]n our view, this raises more questions than it answers. I do not see why the package needed to be withdrawn completely – which it has – in order to inject more ‘ambition’. Surely this could have been done within the existing timetable, and maintained momentum?

"By deprioritising the package for this year’s programme the commission signal they do not see the circular economy as a priority that delivers jobs and growth in line with their stated objectives for revising their work. This underplays the significance of the potential of the circular economy… [and] sends a mixed signal to our industry about the future of the circular economy package and it is not a welcome move."

Georgeson added that there now needed to be an ‘early indication’ of the timetable for review and resubmission, and further details of which areas the EC believes need more ‘ambition’.

Likewise, Chief Executive of the Chartered Instiution of Wastes Management (CIWM), Steve Lee, said that the news was "unwelcome" and was, "at best, an unnecessary delay and at worst... a sword of Damocles hanging over the future of green growth and resource efficiency and our sector's ability to deliver it".

He added: "The commission does not have a good track record on 'shelved' initiatives and Mr Timmermann's statement is somewhat confusing. 2015 is only two weeks away and there is no reason given for shelving the package rather than working on the version that is already on the table. To suggest that this delay will result in a more ambitious package also appears to contradict previous assertions that the proposals were undeliverable."

Speaking on behalf of environmental campaigning group Friends of the Earth (FoE), Executive Director Andy Atkins said: "Action on… using our precious resources more efficiently is urgently needed – these crucial plans should have been fast-tracked, not parked.

"Careful resource use is crucial for the long-term wellbeing of both our economy and environment – it’s little wonder so many forward-looking retailers and manufacturers are deeply concerned about European Commission plans.

"Europe claims a proud history of protecting our health and environment, but recent decisions have put a huge dent in its green reputation. A green and healthy environment and a thriving economy are two sides of the same coin."

UK stance on the circular economy ‘spineless’

The EEF, ESA, RA, CIWM and FoE have been petitioning the EC to rethink its plans to withdraw the package, and are amongst the signatories of a letter sent to the Telegraph that called on British ministers to ‘send a clear message… that the programme must be retained to protect the continent’s environment, economy and competitiveness in the long term’.

However, the UK government has previously said it would not support the introduction of new EU waste targets, or the extension of current targets, as they ‘would be unlikely to improve the current system and could result in perverse or unintended outcomes’.

Speaking today, Resource Minister Dan Rogerson welcomed the news that some of the EC air quality proposals were going ahead, adding “we also fully support 2020 targets but believe amendments are needed so 2030 ceilings are realistic, evidence-based and deliverable. We also support efforts to reduce waste and make better use of our resources”.

Speaking to Resource, Julian Kirby, Waste and Resources Campaigner for Friends of the Earth Europe, said: “From a political point of view, the Lib Dems have completely failed to differentiate themselves from their Conservative partners. What we’re seeing from Dan Rogerson is a ‘non-denial denial’, in that he says he supports air quality targets, but then doesn’t really say anything about the waste targets – and that’s almost certainly because Defra have been lobbying against them. That’s pretty spineless of the Lib Dems, as well as yet another example of political suicide given the opportunity they had to look good here. In the UK government’s behaviour, what we’re seeing is dinosaur politicians listening to dinosaur business, and ignoring huge numbers of progressive, forward-thinking business such as those who signed a letter to the Telegraph today.

“Cameron’s government is continuing to ignore repeated requests not just from environmentalists but, increasingly, from businesses demanding that it take seriously the impact of resource insecurity and the vulnerability of supply chains so far as access to raw materials is concerned. That’s a damning indictment of the government’s ability to understand and handle the long-term interest of the economy and the environment.”

He added that the EC’s decision to revise the proposals was “in effect, pushing the agenda to the bottom of the to-do list”.

Find out more about the plans to revise the circular economy package.