Boosting Circular Economy in Spain and Europe: Recycling, Innovation, and Sustainability Initiatives in 2025

Spain and Europe intensify circular economy efforts with stronger recycling targets, regional action plans, industrial innovation, and sustainable business practices in 2025.

    Key details

  • • Transport & Environment calls for ambitious EU recycling targets for batteries, steel, and aluminum.
  • • Canary Islands launch 20-action Circular Economy Plan focused on innovation and waste reduction.
  • • Spanish Industry Minister highlights biotransformation's role in job creation and sustainability.
  • • Companies adopt circular business models like 'product as a service' to boost sustainability.

Recent developments across Spain and Europe demonstrate a concerted drive to advance the circular economy by promoting recycling, innovation, and sustainable production practices.

In the European Union, the sustainability organization Transport & Environment (T&E) has called for stronger recycling targets within the upcoming Circular Economy Act (CEA), emphasizing the need to ramp up recycling capacity, especially for critical materials like batteries, steel, and aluminum. Currently, the EU's recycling capacity is estimated to be ten times lower than required by 2030, putting nearly half of planned battery recycling projects at risk. T&E proposes five priority actions for the CEA, including setting ambitious recycled content targets linked to local sourcing, simplifying waste transfer regulations within the EU, limiting exports of valuable waste materials, standardizing recycled material classification, and modernizing mining waste regulations to improve recycling safety and efficiency.

Spain is also making strides, highlighted by regional and industrial initiatives. The Canary Islands government recently hosted Circular Monday, an event promoting alternatives to excessive consumption during Black Friday. The event showcased a 2024-2026 Circular Economy Action Plan comprising 20 measures aimed at transforming Tenerife and the archipelago by boosting innovation, improving competitiveness, and reducing waste management costs through circularity projects such as new composting facilities and updated local regulations conforming to European standards.

At the industrial level, Spain’s Minister of Industry emphasized the intersection of innovation, entrepreneurship, and circularity as key drivers of sustainable job creation and economic growth. The government supports circular initiatives like the Dapibus biotransformation center in Abrera, which annually processes over 16,000 tons of agro-food by-products into high-value protein meals, fats, and organic fertilizers.

Meanwhile, Spanish companies across sectors are increasingly adopting circular business models that incorporate sustainable product design, reuse, and recycling strategies. These include the emerging 'product as a service' model designed to extend product lifespans and reduce waste. Despite infrastructural and cultural challenges, industry recognizes circular economy practices as essential for long-term competitiveness and sustainability, with government policy seen as critical to driving broader adoption.

Together, these efforts reflect a comprehensive approach to embedding circular economy principles across regulatory, regional, and industry levels, positioning Spain and Europe on a path toward more sustainable resource use in 2025 and beyond.

This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.