On April 21, 2026, twelve major international businesses—including industry giants like IKEA, H&M, and Philips—issued a joint public letter to the leadership of the European Commission, supported by the Ellen MacArthur Foundation. The coalition of companies is calling for the creation of a true, cross-border single market and the adoption of an ambitious EU Circular Economy Act. According to these industry leaders, the stakes involve strengthening European competitiveness, accelerating industrial decarbonisation, and boosting economic resilience in a global landscape where resource price volatility and supply chain risks place immense pressure on markets.
The Circular Economy as the Core of European Industrial Strategy
The joint business letter was officially addressed to Commission President Ursula von der Leyen, along with key Executive Vice-Presidents Teresa Ribera and Stéphane Séjourné, and Commissioners Jessika Roswall, Valdis Dombrovskis, Wopke Hoekstra, and Maroš Šefčovič. This broad initiative encompasses representatives from seven critical sectors: consumer goods, electronics, fashion, furniture, healthcare, packaging, and finance.
The undersigned businesses emphasize that they are actively implementing and supporting circular solutions to reduce their exposure to resource price volatility and to mitigate supply chain risks. Currently, however, the transition to a circular economy is heavily obstructed. Circular business models—which include reuse, repair, refurbishment, remanufacturing, and Product-as-a-Service—face significant disadvantages compared to traditional linear alternatives. The primary causes are market fragmentation, a lack of harmonised policies, and economic instruments that inherently penalize circularity. The coalition urges that the upcoming Circular Economy Act must embed the circular economy directly at the heart of Europe’s industrial strategy to overcome these barriers.
Priority 1: Building a Single Market for Circular Solutions
The first critical priority outlined by the twelve corporations is the establishment of a streamlined and harmonised regulatory framework to eliminate cross-border barriers. To achieve this, the businesses demand clear, EU-level regulatory definitions for waste and circular economy activities, accompanied by harmonised end-of-waste criteria to ensure consistent implementation across all Member States.
Furthermore, the companies call for the seamless movement of products, parts, and secondary raw materials across EU borders. This requires simplified, risk-based procedures that minimize administrative burdens for goods traded through circular business models. The document also strongly advocates for the convergence of Extended Producer Responsibility (EPR) systems. To maximize efficiency, the businesses propose a digital “one-stop shop” for registration and reporting, supported by EU-level criteria for the eco-modulation of fees, transparent fee structures, and legal clarity regarding Producer Responsibility Organisations (PROs).
Priority 2: Levelling the Playing Field via Fiscal and Demand Levers
To combat the upfront cost disadvantages of circular solutions and the risks of cascading taxes when reselling used products, the joint letter calls for comprehensive VAT reforms. The coalition urges the Commission to leverage the planned Green VAT initiative to eliminate double taxation and significantly enhance consumer affordability. A coordinated implementation of reduced VAT rates is required for the resale of second-hand goods and repaired parts, which must be connected to harmonised margin-scheme calculations and simplified cross-border reporting.
In the realm of circular public procurement, the document pushes for mandatory, harmonised award criteria. These criteria must incentivize circular solutions, ensuring that lifecycle value is consistently prioritized over upfront purchasing costs. Additionally, the businesses emphasize the need for complementary economic incentives, calling for the operationalization of funds under the Multiannual Financial Framework explicitly for circular investments, alongside the alignment of selective material, incineration, and landfill taxes.
Priority 3: Unlocking Private Finance and Strengthening Value Chains
The third foundational pillar focuses on structural investments and private capital. Scaling circular solutions requires immediate investment de-risking. The businesses call for the deployment of financial instruments designed to mobilize private capital by improving the financial viability and overall risk profile of circular business models.
To provide market certainty, transparency, and price visibility, the companies propose the creation of an EU Secondary Materials Platform. This platform would track material flows using digital product passports, harmonise EU-wide material specifications, and aggregate small batches of secondary materials into industrial-scale volumes to enable stable market pricing. Finally, to address physical infrastructure gaps across Member States, the coalition recommends establishing “trans-regional circularity hubs”—industrial clusters equipped with the technologies necessary for circular processing.
The 12 Global Corporations Shaping the Future
The joint action coordinated by the Ellen MacArthur Foundation delivers a clear message: the European business sector is ready to act, provided the regulatory conditions allow them to scale. The open letter was signed by the following corporate leaders:
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Gerald Rebitzer, Vice-President Sustainability and Advocacy Europe & Asia, Amcor
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Markus Horcher, Vice President Sustainability & Public Affairs, Borealis
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Marie Castelli, Head of Sustainability & Public Affairs, Back Market
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Daniel Berry, Global Head of Public Affairs, Brambles
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Marieke van Winkelen, Head of Sustainability, DLL
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Pernilla Halldin, Senior Director, Global Head of Public Affairs, H&M Group
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Roberta Dessi, Head of EU Affairs, Inter IKEA Group
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Jacques Moscianese, Executive Director Institutional Affairs, Intesa Sanpaolo
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Ed Lewin, Vice President Government and Public Affairs, The LEGO Group
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Simon Braaksma, Global Head of Sustainability, Philips
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Darren West, Global Head of Circular Economy Solutions, SAP
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Wolfgang Ringel, Senior Vice President, Group Public Affairs, TOMRA
These twelve international corporations are urging the European Commission to ensure that the upcoming EU Circular Economy Act makes circular solutions the most economically viable option for both businesses and consumers alike.
References and Official Sources:
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Ellen MacArthur Foundation Official Announcement: Businesses call for an ambitious EU Circular Economy Act
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Joint Business Letter to the European Commission (PDF): CEA-Joint-Business-Letter-April-2026.pdf