Plastics and chemical recycling

The trilateral strategy for the chemical recycling collaboration by the regions of Flanders, North –Rhine-Westphalia and the Netherlands represents a game changer in sustainability and circularity. As a direct result, their chemical federations, VCI (Germany), VNCI (Netherlands) and Essenscia (Belgium), have propelled the development of the international project “Cracker for the future” consortium, whereby six petrochemical companies are jointly investigating the possibility of running cracker installations on renewable electricity while exploring the use of hydrogen in the future.

In that regard, The NorthRhine-Westphalia region in Germany is taking bolder decisive steps toward a policy landscape that scales up the absorption capacity of other waste streams while sustaining competitiveness in international markets. The coalition agreement in Germany included chemical recycling as a key element in the German Packaging Act (VerpackG), with gradual adoption for all industries using all types of packaging.

Textiles

The transition towards a circular textile industry in Germany is still in its infancy due to a wide range of socio-economic, environmental and legal barriers which create path dependencies and inhibit the adoption of circular solutions on a broader scale. Still, Germany is among frontrunners of post-consumer textile collection in Europe, mainly due to well-established collection networks of charitable organizations. Although, most volumes are reused or recycled, a considerable share is still incinerated. While annual collection rates have increased, the consumption rank is among the highest across all European countries. Germany makes profits through garment export but, due to the economic rationale of textile exports, fails to take advantage of post-consumer textiles as unused resources. 

In the presence of globalized and highly complex textile supply chains, there is a need for better international cooperation to implement joint processes to foster a shift towards a circular textile sector. Among others, sharing information and best practices between Dutch and German knowledge institutes, businesses and public actors is perceived as particularly important in order to advance circular practices in the textile industry. 

Many innovative companies active in the textile sector in Germany. A cooperation with Dutch circular textile companies that developed new business models for all stages of the value chain (design and production, distribution retail and use) might open new opportunities for both countries. An example of a successful German-Dutch cooperation in circular textile on a regional level between NRW, Limburg and Overijssel is an INTERREG supported project that develops industrial standard for yarns made of old textiles.

Circular batteries

In Germany, more than 60,000 tonnes of portable batteries and accumulators are placed on the market annually. Consumers can return portable waste batteries free of charge to retailers or voluntary collection points. However, there is a great need for innovation to mitigate the environment of battery production, which will be increasing at a pace with the demand for EVs. At the intersection of the energy transition and the sustainable products revolution, the battery supply chain is one of the strategic hubs for circular management.

In 2022, a consortium of German companies and global players in the sector launched the Battery Pass project. The goal is to develop an interoperable and open standard data collection platform which is the basis for the digital battery passport. The latter ensures transparency and sustainability from production to recycling, supporting seamless documentation of the battery life information on raw material extraction, repairability and recyclability conditions. The funding decision for the “battery ecosystem” comprises a total of 8.2 million euros, which will go to a consortium led by Systemiq Deutschland GmbH.

CE in the automotive industry

The German automotive industry is one of the largest in the world, it secures jobs, drives national export and invests in research and development. With growing concerns about climate change and environmental degradation, sustainability has become a strategic priority for most of the German automotive companies. Among the main challenges the industry is facing today is the fuel economy, GHG emissions reduction, electrification, autonomous driving and car sharing.

Increased energy efficiency, recycling and a reduction in emissions benefit both companies and consumers. Incorporating circular economy practices across the automotive value chain helps to effectively address these challenges. It has the potential to offer big economic benefits and make electric vehicles more sustainable, improve design and introduce new business models that support longer lifetimes of products and services. 

The Dutch market offers attractive opportunities for many types of companies active in e-mobility: electric vehicle manufacturers, charging infrastructure companies, battery makers, and auxiliary power unit producers. Cooperation with the Dutch automotive industry, which is characterized by a dynamic mix of innovative approach and component suppliers could support German automotive industry in a faster transition towards a circular economy.