Germany is investing €565 million in the transition to a circular economy

The German federal government has adopted a comprehensive action plan to implement the National Circular Economy Strategy (NKWS), according to SteelOrbis.

The document sets out 12 priority measures to be implemented by the end of 2027, aimed at strengthening industry, reducing dependence on primary raw materials and cutting CO₂ emissions by 80 million tonnes by 2030. It is expected that, thanks to the reform, added value in this sector will rise from the current €60 billion to €125 billion by 2045.

€565 million has been allocated to implement the strategy. Specifically, €260 million will be directed towards the new ‘Future Circular Economy’ programme, and a further €305 million towards climate protection projects between 2027 and 2030. The funds will go towards supporting start-ups, digitalisation, and the recycling of batteries, wind turbines and textiles. A dedicated platform will be created to coordinate efforts between business and the state.

Key tools will include digital product passports, the use of artificial intelligence and the launch of an information ecosystem (CEIS) to track supply chains. It is planned to stimulate demand for eco-friendly products through the public procurement system, in particular by raising requirements for building materials in public projects

By mid-2027, Berlin will update the Circular Economy Act and bring national legislation into line with EU regulations. This will enable at least 25% of annual consumption of critical raw materials to be met through recycling by 2030. At the international level, Germany plans to strengthen cooperation with China, India and Brazil to promote its ‘green’ technologies.

The German Steel Industry Association (WV Stahl) generally welcomed the approval of the government programme after months of delays. At the same time, the association’s managing director, Kerstin Maria Rippel, noted that the document still contains uncertainties regarding key industrial policy issues. She emphasised that for steelmakers, the circular economy is already an established practice that ensures their competitiveness and protects the climate.

WV Stahl insists that the strategic goals declared by the government — in particular amendments to the relevant legislation and new public procurement rules — must be given a clearer implementation framework and stricter obligations.

According to the association, the authorities must take three critical steps to unlock the industry’s potential:

1. Introduce a mandatory system for monitoring scrap exports.
2. Improve conditions for investment in modern sorting infrastructure and new capacity.
3. Support public procurement of environmentally friendly products under the ‘Made in the EU’ principle.

As reported by GMK Center, Germany will allocate €5 billion ($5.8 billion) in financial aid to energy-intensive industries to facilitate the adoption of low-carbon technologies. For the first time, the funding programme will include support for carbon capture and storage (CCS) technologies.