Simplification, Competitiveness and Circularity. What Is Changing for Companies
Europe’s sustainability agenda is entering a new phase. Simplification, competitiveness and strategic autonomy now occupy a much more visible place in the European policy debate, while the long-term direction of the transition towards a circular economy remains unchanged.
For companies, the challenge is no longer only about compliance. It is increasingly about anticipating how new rules will affect products, materials, supply chains and investment decisions.
Over the past few years, the European Union has built an extensive regulatory framework for the transition towards a more circular economy, from ecodesign and batteries to packaging, raw materials and corporate responsibilities across value chains.
At the same time, the new European political cycle has placed competitiveness and the reduction of administrative burden much higher on the agenda. This raises a legitimate question for businesses: is Europe becoming less ambitious on sustainability, or are we witnessing a change in the way these objectives are being implemented?
In a recent conversation on Sustainable Living Podcast, Aurel Ciobanu-Dordea, Director for Circular Economy at the European Commission, highlighted an important distinction: political cycles are relatively short, while economic and industrial transformations require much more time.
The fundamental regulations adopted in recent years were designed precisely with this 10–15-year horizon in mind. Products cannot be redesigned overnight, industrial investments operate on long cycles, and moving from innovation to production requires both time and capital.
Simplification does not necessarily mean abandoning the objectives
For companies, this is perhaps one of the most relevant conclusions. The simplification agenda aims to reduce certain administrative obligations and eliminate requirements considered disproportionate. However, according to Aurel Ciobanu-Dordea, the structural direction of European sustainability policies remains largely unchanged.
This distinction matters for business decisions. If the long-term objectives remain in place, companies need to shape their investment strategies, product portfolios and technology choices not only around immediate legislative changes, but also around the broader direction in which the European market is moving.
Regulations on batteries, packaging and ecodesign will continue to affect very different sectors, from automotive and energy to textiles, footwear, steel, aluminium and consumer goods.
In other words, sustainability is increasingly moving from the reporting sphere into the real economy.
Circularity is also becoming a matter of strategic autonomy
One of the most significant shifts in perspective is the growing link between the circular economy and Europe’s strategic autonomy. Circularity is no longer justified exclusively by the need to reduce environmental impact. It is increasingly connected to access to resources, supply-chain security and industrial competitiveness.
In a geopolitical context in which access to raw materials and markets can become an instrument of economic pressure, Europe is seeking to retain more value within its own economy.
End-of-life batteries, aluminium, steel, plastics and construction materials are no longer viewed simply as waste. They are potential secondary resources that can be brought back into production.
This creates one of the key challenges for industry: the issue is not only how much we recycle, but also how much economic value we manage to keep in circulation.
Packaging: responsibility is moving closer to the brand
European packaging regulation offers a concrete example of how this transformation reaches company level.
Aurel Ciobanu-Dordea explained that one important change is the clearer responsibility placed on the producer of the marketed product for the compliance of the packaging it uses. The declaration of conformity is more than another administrative formality. It changes the relationship between brands and their material suppliers.
The producer that has the direct relationship with the consumer must be able to request information and guarantees from suppliers regarding the materials used and their compliance with European legal requirements, including certain hazardous substances.
As a result, sustainability and safety requirements increasingly travel upstream through the supply chain.
For companies, the implication is clear: material traceability and the quality of supplier data are becoming part of product management, rather than remaining solely the responsibility of sustainability teams.
Circular design cannot work without infrastructure
Product regulation is only one part of the equation. A product may be designed for recycling, but the outcome depends on the system it enters after use. Responsibility is therefore shared between businesses, national administrations and local authorities.
Separate collection directly affects the quality of secondary raw materials. When economically valuable materials are contaminated by organic waste, their potential for reuse in industrial processes decreases, while recycling becomes more difficult and more expensive.
For Romania, this issue is particularly relevant because a significant share of waste still ends up in landfill. From a circular-economy perspective, this represents not only an environmental cost, but also a loss of resources and economic value.
A functioning circular economy therefore requires more than obligations for producers. It also needs infrastructure, efficient collection systems, markets for secondary materials and public policies capable of stimulating their use.
From compliance to industrial strategy
For companies, perhaps the most important shift is this: the circular economy can no longer be treated solely as a compliance exercise. Decisions concerning materials, product design, suppliers, recyclability and resource recovery will increasingly influence costs, access to raw materials and competitive positioning.
At the same time, new markets are emerging. Material recovery, high-quality recycling, the development of secondary raw materials and technologies that keep resources in the economy are becoming sectors with growing economic potential.
The question for industry is therefore no longer only:
“What new obligations do we need to comply with?”
but also:
“Where will value be created in the circular economy that is now being built?”
This is likely to be one of the most important shifts in perspective for the coming years.
We discussed the direction of European sustainability policies, the simplification agenda, new packaging requirements, corporate responsibility, strategic autonomy and the role of the circular economy in Sustainable Living Podcast with Aurel Ciobanu-Dordea, Director for Circular Economy, European Commission.
The episode is part of the Sustainable Living Podcast special series dedicated to European Sustainable Development Week 2026.
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