Policy barriers undermine potential value of circular economy

The EU could save billions every year if it removed policy barriers that hinder circular economy progress, according to a European Commission-backed report

The EU could save billions every year if it removed policy barriers that hinder circular economy progress, according to a European Commission-backed report.  

Areas where the most money could be saved included efforts to reduce food waste, reuse of electronic items and recycling plastic packaging.

The study, conducted and led by consultancy Technopolis Group on behalf of the European Commission, found that the hospitality sector could save €4bn each year if policies around donating food waste were changed. Currently member states interpret the 2006 EU Directive on VAT to mean food donations should be taxed. This means that giving ‘waste’ food to charity is less financially attractive than throwing it away.

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