Live at Rethinking Materials: Future of Regulation in Europe’s Circular Economy

Balancing Innovation, Compliance, and Market Realities in Sustainable Waste Management

At a pivotal panel discussion moderated by Clare Shrewsbury, director of Insights and Innovation at WRAP UK, leaders from across Europe’s policy, business, and waste sectors tackled the evolving role of regulation in driving circular economy outcomes. With an emphasis on Extended Producer Responsibility (EPR) and future PPWR (Packaging and Packaging Waste Regulation) enforcement, innovation, and the practical realities of the recycling market, the conversation highlighted both the promise and pitfalls of current frameworks.

From Directives to Regulations: A Shift in Control

Karolina D’Cunha of the European Commission emphasized a fundamental shift in EU regulatory strategy—from relying on directives targeting member states to passing binding regulations directly affecting producers and economic actors.

“Directives often get lost in translation,” said D’Cunha. “With regulations, we speak directly to producers, ensuring better alignment on product design, labeling, and recycling requirements.”

She also noted that success hinges on enforcement. “If we don’t eliminate free riders, those who fail to comply with the law, then we create a competitive disadvantage for the companies that do follow the rules,” she warned.

Clarity for Industry: Why Consistency Matters

Claudia Mensi, President of FEAD (European Waste Assoc.), echoed the value of uniform regulation—particularly for technical aspects of waste management. “With directives, each member state can interpret things differently. That creates confusion for businesses and delays in permitting processes that can vary wildly across borders.”

Mensi also urged policymakers to update their definitions: “We need to stop seeing waste as something to discard and start seeing it as a resource. That’s how the market must evolve.”

Barriers to Recycling: The Market Gap

Despite technological advances in recycling, Mensi highlighted a critical bottleneck: market demand.

“We keep pushing for better recycling, but companies often won’t buy recycled content because it costs more than virgin materials,” she said. “That’s the real problem we must solve.”

She proposed two concrete actions: prioritize EU-produced recycled content and mandate minimum recycled content in new products.

“We won’t always hit 100%, but if we work with industry, we can set practical, ambitious targets,” Mensi added.

Startup Perspective: Innovation Needs Stability

From the entrepreneurial side, Alice Rackley, CEO of Polytag, called out the risks of regulatory inconsistency for tech innovators.

“We’re building solutions that rely on legislation to take hold,” she said. “But when new laws contradict old ones, it becomes unclear if brands even want the solution we’ve built.”

Rackley stressed the importance of stable policy for businesses looking to scale sustainable technologies. She also highlighted a lack of meaningful incentives:

“There are plenty of sticks, but not enough carrots,” she said. “We need to reward brands investing in reuse, refill, and real recycling infrastructure.”Roger Wright (center and on-screen) of Biffa, the UK’s largest waste management company, works directly with brand owners on designing packaging for recyclability.

Reinforcing Innovation: AI, Data, and Enforcement

Rackley pointed to the need for reliable data to track and enforce compliance. “Without performance data from recycling centers, brands can’t prove they’re meeting targets—and governments can’t hold them accountable,” she explained.

She emphasized that technologies like Polytag’s QR codes and UV tags can bridge that data gap, offering real-time feedback on recycling outcomes.

Bio-based Materials: Don’t Stifle Innovation by Over-regulating

Anindya Mukherjee, co-founder of the Global Organization for PHA, raised concerns about over-regulation that stifles material innovation.

“When the EU defined ‘natural polymers’ under the Single Use Plastics Directive, it unintentionally blocked promising biodegradable and compostable alternatives,” he said.

Mukherjee called for regulations that level the playing field without locking out new solutions.

“Innovation is moving fast. Legislation must be flexible enough to keep up—or we risk banning the very materials that could solve the plastic problem.”

The Realities of Implementation: A Ground-Level View

Roger Wright of Biffa Waste Management brought the conversation back to the boots on the ground. “We’ve had six years of near silence, followed by a year of frantic policy changes,” he said, describing the regulatory rollercoaster UK waste managers are facing.

“Brands and retailers are overwhelmed. They need consistency, strong leadership, and clear, stable policies that give them room to plan.”

Wright stressed the importance of investing not just in new systems, but also in reuse infrastructure and a standardized approach to materials across countries.

Enforcement is Key—and Still Underpowered

Both Wright and Rackley called out the lack of enforcement capacity as a critical issue.

“Greenwashing is a major problem,” Wright said. “Agencies like the CMA and ASA need real teeth to stop false claims. Without enforcement, we risk losing public trust and momentum.”

What’s Next for EPR?

D’Cunha discussed what to expect from future EPR policies. While full EU-wide harmonization isn’t feasible, steps are being taken to coordinate national programs and improve transparency for producers.

“Eco-modulation—adjusting producer fees based on sustainability—is one tool we’re looking at,” she said. “If your product is recyclable and low-carbon, you should pay less—or nothing.”

D’Cunha also mentioned EU efforts to eliminate double taxation on recycled content [VAT tax collected for virgin materials, then again for PCR] to boost market demand.

Policy with Purpose

The panel agreed that effective regulation must balance innovation, clarity, and accountability. Without strong enforcement and meaningful incentives, even the most ambitious legislation risks falling short.

As Shrewsbury wrapped up the session, she invited the audience to reflect:

“Do regulations accelerate sustainable solutions?” she asked. Most attendees raised their hands in agreement—underscoring the critical role of smart, consistent regulation in the transition to a circular economy. PW