The German federal government is accelerating the transition to a circular economy through its National Circular Economy Strategy (NKWS). By the end of 2027, a comprehensive action programme comprising twelve measures is intended to reduce the use of primary raw materials, strengthen material circularity and increase the resilience of the German economy. Around €260 million from the Climate and Transformation Fund has been earmarked for implementation through 2029. The overarching objective is to reduce dependence on imported raw materials while strengthening Germany's long-term competitiveness and resilience in an increasingly uncertain geopolitical and economic environment.
Building the infrastructure for a circular economy
A central element of the programme is the creation of new structures to promote innovation, investment and collaboration. From autumn 2026, a national implementation platform will bring together stakeholders from industry, academia and public administration to support the development of new circular value chains, including those for battery recycling and construction materials. This will be complemented by the Future Circular Economy funding programme, which is expected to launch at the end of 2026. The programme will support innovative production processes, technologies for recovering secondary raw materials and digital applications that advance circular business models. Alongside these initiatives, the federal government plans to accelerate digitalisation through the introduction of digital product passports, shared data spaces and artificial intelligence applications. Public procurement will also play a greater role in stimulating demand, with federally owned companies expected to increase their purchasing of products containing recycled materials. At the same time, regulatory requirements are to be streamlined to make the use of secondary raw materials easier and more economically attractive.
New requirements for products and markets
The legislative changes will have significant implications for producers and retailers. New requirements will apply to sectors including textiles, packaging and construction products, with businesses expected to provide greater transparency on how their products can be reused, repaired and recycled. In addition, the destruction of unsold goods in online retail is set to be prohibited. The direction of travel is clear: moving away from a linear "take-make-dispose" model towards products that are designed to last longer, are easier to repair and can be effectively collected and recycled at the end of their life. Digital product passports will play a central role in this transition by providing information on a product's origin, composition, repairability and recyclability. These measures will be supported by digital tools, AI-assisted repair solutions and the expansion of local repair services. The German federal government's objective is to extend product lifespans, increase repair rates and promote greater reuse of materials throughout the economy. For businesses, this represents a significant shift in the regulatory landscape. While the transition will require substantial adaptation, it also creates new opportunities for investment, innovation and growth in an economy increasingly centred on circularity and resource efficiency.
VERE e.V. remains in close contact with the relevant stakeholders and will continue to keep its members informed of further developments via the “VERE Insider”.
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