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How can tax policy promote the circular economy?

Published

28 September 2026

Topic

regulatory

◆ Sectors

Circular Economy

◆ Geography

Europe

◆ Source

Read at bruegel.org →

◆ Verified

Fusion42 · 28 September 2026 · Fusion42 review

EU nations largely favour linear production models via tax systems that underprice virgin material extraction while penalising labour-intensive repair, impairing circular economy incentives. The upcoming EU Circular Economy Act aims to improve governance around producer responsibility and alter tax structures to favour repair and reuse over new purchases.

This Wire brief sits within Fusion42's coverage of Circular Economy.

◆ ◆ The Wire takeaway

Tax incentives are shifting from new goods towards repair and reuse in Europe. You must adapt your pricing and product strategy to benefit from new rules favouring second-hand markets and resource efficiency.

◆ Coverage

1 source · 28 Sep 2026

◆ Related on Wire

◆ Topics

Circular Economycircular-economytax-policyeu-legislationsustainabilityresource-efficiency