The German Federal Government has adopted a comprehensive program of action to implement its National Circular Economy Strategy (NKWS), aimed at strengthening industrial competitiveness, improving resource security and reducing dependence on virgin raw materials.
Published on 3 June 2026, the program identifies 12 priority actions to be implemented by the end of 2027, and positions circular economy practices as a key element of climate and industrial German policymakers
Scaling up circular economy activities could help Germany cut an additional 80 million tonnes of CO₂ equivalent emissions by 2030, while lowering climate protection costs and reducing exposure to supply chain disruptions, according to the government. Authorities also expect the strategy to strengthen markets for recycled materials and support the development of a more competitive European recycling sector.
A dedicated implementation platform will be created to coordinate collaboration between industry, government and civil society. The platform will focus on areas such as digitalization, digital product passports, critical raw materials, markets for secondary raw materials, pilot projects and public-private partnerships.
565 million euros allocated for investment in the circular economy
To accelerate investment and innovation, Germany plans to provide around 260 million euros through a new funding program “Circular Economy of the Future”, funded by the Climate and Transformation Fund. An additional €305 million has been allocated for the period 2027-2030 as part of the 2026 Climate Action Agenda. The funding will support pilot and demonstration projects including recovery of critical raw materials, battery recycling, wind turbine and photovoltaic module recycling, textile recycling, digitalization initiatives, circular business models and start-up development.
Government studies estimate that Germany's circular economy could generate gross value added of up to €125 billion by 2045, compared to approximately €60 billion today. The total economic value is projected to reach between 700 and 880 billion euros in the coming decades.
Public procurement is expected to be a key mechanism for stimulating demand for circular products
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