The transition to a circular economy is a cornerstone of the European Commission's climate goals, and it is also essential for Europe's industrial strength, independence, and long-term competitiveness. As the European Commission prepares to present the new Circular Economy Act (CEA) in 2026, the urgency to embed circular practices across industrial value chains has never been greater.
Steel and aluminium are permanent materials. They retain their intrinsic properties no matter how many times they are recycled. With proper collection, sorting, and processing, metal packaging becomes a valuable circular resource contributing to multiple value chains, from food and beverages to chemicals and aerosols. Such materials will remain at the heart of any proven and well-functioning circular economy.
The upcoming CEA represents a transformative opportunity for Europe to strengthen its sustainability agenda. For Metal Packaging Europe, it is a chance to ensure that permanent materials like steel and aluminium are fully integrated into the circular economy model. By recognising the intrinsic value of metals and supporting a more coherent regulatory framework, the EU can promote a system that is both circular and resilient, driving progress toward climate neutrality and industrial sustainability.
With the right policies, metal packaging can become a model for circularity and industrial transformation
Circularity is vital for maximising Europe's limited resources, cutting waste, reducing production costs and emissions, and fostering sustainable growth and quality jobs. It supports an industrial model that protects the environment while enhancing economic sovereignty. This transition is not a distant goal, but a reality in motion for the European metal packaging industry.
Currently, 80.5% of steel packaging and 75% of aluminium beverage cans are recycled. The European metal packaging industry is a recycling success story, proactively developing Design for Recycling guidelines for aluminium and steel in alignment with the Packaging and Packaging Waste Regulation (PPWR). This framework will help unlock the full potential of EU recyclability targets.
The new CEA presents a valuable opportunity to address fragmentation and inefficiencies in Extended Producer Responsibility (EPR) systems. Establishing clear, predictable EPR governance will empower producers and sorting plants to plan and invest. A reformed EPR system should place metal packaging's recyclability and circularity credentials at the heart of its incentive structure.
Europe's circular economy cannot thrive if high-quality secondary raw materials are exported beyond the EU. This is especially true for metal scrap, which is crucial for steel and aluminium production. The uncontrolled export of scrap undermines Europe’s decarbonisation goals and strategic autonomy in an increasingly volatile global market. The Steel and Metal Action Plan rightly acknowledges this risk.
Strong measures to retain valuable scrap within the EU and prevent detrimental recycling practices abroad should be introduced in the CEA. This could include mechanisms for priority access or export restrictions based on circular performance criteria. Additionally, the absence of EU-wide end-of-waste criteria continues to hinder the circular economy. Establishing clear, science-based criteria would eliminate legal ambiguities, facilitate trade in recycled materials, and boost investor confidence in secondary markets.
A successful circular economy relies heavily on citizen engagement. Deposit Return Systems (DRS), particularly the return-to-retail model, offer a proven way to achieve high collection rates. Europe already boasts an average beverage container return rate of 87%, with leading Member States achieving even higher rates under harmonised DRS schemes. Metal Packaging Europe strongly supports establishing consumer-friendly and interoperable DRS systems across the EU. Well-designed DRS will play an essential role in helping to achieve the circular economy ambitions of the European aluminium beverage can industry.
While the EU has made significant progress, there is an urgent need to reduce the amount of recyclable packaging that ends up in landfills. This represents not just an environmental challenge but also an economic opportunity. By retaining these valuable materials within the European economy, we can reduce resource dependence and lower emissions. The new CEA can play a pivotal role by placing stronger restrictions on landfilling recyclable packaging, especially for permanent materials. Enforcing minimum recycling performance standards and ensuring proper sorting and collection will help us achieve this goal.
As the EU shapes its CEA, it has a unique opportunity to be bold and visionary. Circularity enhances resilience, supports innovation, and reduces our reliance on unpredictable global supply chains. High-quality scrap is an essential circular resource for European steel and aluminium producers. With the right policies in place, the metal packaging sector can be a model of circularity and an engine of industrial transformation. By recognising permanent materials, advancing EPR reforms, addressing illegal exports, clarifying end-of-waste criteria, promoting consumer engagement, and phasing out landfill for recyclable materials, Europe can build a truly circular and competitive industrial ecosystem.
The metal packaging sector is ready to lead, and with the support of coherent, forward-looking policies, we can achieve remarkable progress. The CEA has the potential to be the blueprint for Europe’s next industrial chapter, fostering innovation, sustainability, and economic growth.
Metal Packaging Europe is the united voice of Europe’s rigid metal packaging industry (steel and aluminium), bringing together manufacturers, suppliers, and national associations. Our members produce over 140 billion cans annually, supporting 66,000 direct jobs in Europe across 350 sites. Metal packaging actively contributes to the Circular Economy and supports numerous value chains and applications, like beverages, food, fish, chemicals, paints, aerosol and others. For further information: info@mpe-eu.com
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