Sustainability Watch

1. EU Targets Doubling Circularity Rate with New Circular Economy Act by 2030

The European Commission has opened a public consultation and Call for Evidence to guide the creation of its upcoming Circular Economy Act, scheduled for adoption in 2026. The legislation aims to speed up the EU’s transition from a linear to a circular economy, strengthening economic security, resilience, competitiveness, and decarbonization. It will also advance the objectives of the Competitiveness Compass and the Clean Industrial Deal, positioning the EU to lead globally in circular economy practices by 2030.

Key Takeaways:

• Doubling Circularity by 2030: The EU aims to double its circularity rate to 22–24% by 2030, up from 11.8% in 2023.
• Single Market for Secondary Materials: The Act will create a single market for secondary raw materials to strengthen supply and quality.
• Focus on E-Waste Recycling: Strengthening e-waste recycling will ensure greater availability of critical secondary materials.
• Policy and Regulatory Reforms: Measures include updating end-of-waste rules, digitalizing EPR, and mandating circular public procurement.
• Timeline and Consultation: A public consultation runs until November 6, 2025, with adoption expected in 2026.

The Circular Economy Act is a pivotal step in reshaping Europe’s economic model towards sustainability and resilience. By creating stronger markets for recycled resources and enforcing circular practices, it aligns growth with decarbonization. If implemented effectively, it could position the EU as a global leader in circular innovation by 2030.

2. China Launches Green Foreign Debt Financing to Accelerate Global Capital Inflows

In August 2025, China’s State Administration of Foreign Exchange (SAFE) rolled out a pilot program across 16 provincial-level regions—including Beijing, Shanghai, Hebei, and Qingdao—encouraging non-financial enterprises to direct cross-border financing toward green and low-carbon projects. The scheme expands the upper limit for such borrowing, streamlines foreign debt services (like registration), and aims to balance financial openness with macroeconomic security while supporting the real economy’s decarbonization efforts.

Key Takeaways:

• Pilot scope: The program spans 16 provinces and cities, targeting diverse economic hubs to pilot green debt financing.
• Expanded borrowing capacity: It raises the ceiling on cross-border financing for eligible green investments.

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