At the 8th European Recycling Conference (ERC), organized by Recycling Europe and FER (Federación Española de la Recuperación y el Reciclaje), held on June 10 in Madrid, the associations sent a clear message, stating that, in order to allow recycled materials to compete effectively within a circular economy, it is essential to strengthen demand for them through a mandatory green public procurement (GPP) framework.
The conference took place against a challenging backdrop for European industry, marked by geopolitical uncertainty, international trade tensions, high energy and labor costs, and growing regulatory pressure, all of which are weighing on companies’ competitiveness. In this context, the recycling sector is increasingly seen as strategically important both for industry and for the broader economy.
Opening the conference, Ion Olaeta, president of FER, emphasized that a competitive recycling sector requires strong demand for recycled materials, mandatory recycled-content targets and a regulatory framework balancing environmental ambition with industrial competitiveness.
As the EU continues to emphasize industrial autonomy, critical raw materials and economic resilience, he stated that recycling is playing a key role, since, as he noted, “Every tonne of recycled material reduces dependence on virgin raw materials, strengthens European industry and contributes to a more sustainable and competitive economy.”
At the same time, industry players continue to face structural challenges, including insufficient demand for recycled materials and unfair competition from imports originating in countries operating under lower environmental standards. The FER president called for concrete measures to support circularity, including stronger markets for secondary raw materials, effective GPP policies, mandatory recycled-content targets, reduced administrative burdens and a regulatory framework that combines environmental ambition with industrial competitiveness.
In his keynote address, Olivier François, president of Recycling Europe, pointed to the growing regulatory burden as one of the industry’s main challenges, while highlighting the cumulative impact of overlapping EU rules across environmental, chemical, trade and product legislation. He also referred to recent Financial Times research that highlighted the “scary” growth of the number of regulations implemented in the recycling industry in the past decades.
David Moneo (IFEMA) highlighted that the recycling sector has experienced exponential growth in recent years and has become a central pillar of European circularity. At the same time, the current environment, he said, represents a key opportunity to further transform the sector, offering significant business potential and reinforcing its contribution to economic growth.
Rafael García, deputy minister for the environment of the Community of Madrid, underlined the recycling sector’s strategic role in supporting economic growth and employment. He added that in Spain alone more than 5,000 companies operate in the recycling sector, generating around 37,000 direct jobs and over 100,000 indirect jobs, with a total turnover of approximately €15 billion, accounting for more than one percent of the country’s GDP. He also noted that, over the past year, recycling companies have processed nearly 7 billion mt of ferrous scrap, highlighting the scale and importance of the sector within the broader industrial value chain.
Recycling sector priorities and regulatory challenges
During the event, Alicia García-Franco Zúñiga, director general of FER, presented the organization’s strategic priorities, including regulatory advocacy, member services, sector-specific training, communication and digitalisation, including artificial intelligence.
The first panel focused on the upcoming Circular Economy Act (CEA) and the need to better align supply and demand for recycled materials.
Tess Pozzi (Derichebourg Environnement) emphasized the need for better harmonization across EU member states, ensuring a level playing field and consistent rules across the bloc, while noting that such regulations must be clear, well-structured and easy to implement.
Looking ahead to the CEA, Pozzi highlighted the importance of translating political commitments into concrete and enforceable measures. In particular, she referred to the EU objective, announced under the Clean Industrial Deal, to double the use of recycled materials within the EU by 2030, stressing that the sector expects this target to become operational and achievable rather than remaining a political objective.
She added that, while the CEA will cover all sectors, each industry faces specific challenges, with the steel sector being one of the most complex. While initiatives such as the Sustainable Materials Action Plan (SMAP) aim to retain scrap and aluminium within the EU, the steel market remains under pressure. In fact, 2025 marked one of the weakest years for EU steel output, largely due to strong import flows. While safeguard measures are expected to support domestic production and increase scrap usage, she indicated that a key bottleneck remains the lack of investment in decarbonization projects.
Pozzi also pointed out that scrap availability remains insufficient relative to producers’ needs, highlighting the need for better alignment between supply and demand. In this context, she identified recycled-content targets within green public procurement (GPP) as a potential tool to stimulate demand and strengthen the role of secondary raw materials in the European steel value chain.
Daniel Montalvo (European Environment Agency) pointed to the persistent price gap between virgin and recycled materials as a major barrier, noting that, even where quality is comparable, market demand remains weaker. As the European Commission prepares the CEA, creating the right economic incentives will be crucial, he stressed.
From an industry perspective, José Andrés Martín Cubero (MC2 Recycling) emphasized the administrative burden faced by companies and the uncertainty surrounding the implementation of the new Waste Shipment Regulation, calling for harmonized end-of-waste criteria across the EU to improve legal certainty and facilitate trade.
Representing the textile sector, Juan Ramón Meléndez Agudín (RE-VISTE) outlined both challenges and opportunities in scaling circular business models.
Geopolitics, costs and metals markets under pressure
Market dynamics also featured prominently during the conference. Alejandro Moreno García (StoneX) highlighted how geopolitical tensions, rising energy costs and supply-chain disruptions are continuing to affect metal availability and pricing, particularly in the aluminium and copper markets.
Public procurement seen as key policy lever
The second panel addressed the role of “Made in EU” policies and circular criteria in public procurement, widely seen as one of the most effective yet underutilized tools available to policymakers.
Enrique Garcia John (European Commission Joint Research Centre) stated that, despite global challenges, the Commission remains committed to using all available policy tools to support both circularity and industrial competitiveness. Existing frameworks such as the Ecodesign Regulation and the revised Construction Products Regulation already provide pathways toward mandatory GPP requirements, while further initiatives are expected in the coming months.
From the industry side, speakers emphasized that the upcoming CEA should act as a real driver for competitiveness, strengthening demand for recycled materials.
Pär Larshans (Ragn-Sells) highlighted the untapped potential of public procurement to stimulate demand, particularly in plastics and construction, stressing that recyclers are ready to supply high-quality materials but require stronger and more predictable demand signals.
Daniel Schockmann (REGUPOL) argued that GPP should become mandatory, providing the market certainty needed to accelerate investments and scale up circular solutions.
Finally, Beatriz Castillo (Veolia) called for clear and enforceable procurement criteria, stronger monitoring mechanisms and better alignment between procurement rules, Ecodesign requirements and Extended Producer Responsibility (EPR) schemes. She also emphasized the importance of mandatory recycled-content targets to support the long-term development and competitiveness of Europe’s recycling industry.