Sweden Proposes Measures to Enhance Circular Economy as Recycled Materials Decline
Sweden proposes new measures to enhance circular economy practices in response to declining recycled material usage.
Key Points
- • Circular Economy Delegation proposes four key measures for improvement.
- • Only 6.9% of raw materials globally now come from recycled sources, a decline since 2018.
- • New business report highlights circular economy benefits, including cost savings and emissions reduction.
- • Sweden urged to set national circularity goals and reform procurement practices.
In response to a concerning decline in the use of recycled materials globally, the Circular Economy Delegation in Sweden has proposed a series of measures aimed at advancing the country's transition to a circular economy. This development comes alongside a new report indicating significant potential for businesses to embrace circular practices, highlighting their importance for both cost reduction and environmental sustainability.
On May 28, 2025, the Circular Economy Delegation presented four key recommendations to the government. These include setting national circularity goals, ensuring that public procurement supports circular economy initiatives, limiting the incineration of resources, and reforming waste legislation to be more circular. The urgency of these measures is underscored by findings from the Circularity Gap Report, which noted that global usage of recycled materials has decreased from 9.1% in 2018 to just 6.9% in 2025, despite a 200 million-ton increase in reused materials since 2018. This trend emphasizes the need for structural changes to improve resource efficiency and sustainability in production processes.
Supporting these governmental efforts, a new report titled "First Steps in the Circular Economy" illuminates the potential for businesses to adopt circular economy models. It highlights that raw materials account for up to 50% of a company's production costs, demonstrating the economic incentives for transitioning away from linear business models. The report asserts that implementing circular practices could reduce emissions, mitigate waste issues, and alleviate resource inefficiencies.
The report identifies three main business models for companies transitioning to circularity: designing out waste, prolonging the lifecycle of materials, and restoring natural systems. It emphasizes that integrating circularity across the entire value chain—from suppliers to customers—is vital for successful transformation.
As regulatory pressures from the EU and national governments continue to escalate, there is an increasing push for businesses to adopt new requirements, including eco-design standards and digital product passports. Companies like McDonald's and Neville Johnson have been highlighted as case studies in the report, showcasing successful strategies for reuse and effective waste management.
Together, these initiatives reflect Sweden's commitment to not only improving circularity at a national level but also positioning itself as a leader in sustainable economic practices within the European framework. The next steps will involve government action to address the recommendations and support businesses in implementing these transformative practices.