DBU and project partners visit plastics processor Pöppelmann

Joint press release

How well does the circular economy work in practice?

Pöppelmann has been consistently using plastic products made from PCR (post-consumer recyclate) for plant pots for horticulture since 2018. "Over the last few years, we have opened up more and more areas of application for PCR. Wherever we can, we work with recyclates, such as in products for the automotive industry," explains Benjamin Kampmann, responsible for circular economy and climate at Pöppelmann. In future, there will be EU-wide recycling quotas for packaging and vehicles. Pöppelmann is in favor of more recyclate use through a quota, but also sees risks: "Such specifications can be helpful in ensuring that more PCR is used. However, there is a risk that in future packaging will have to be made from the recyclates that are currently used for pipes and agricultural film, for example. This is because there is not enough PCR on the market and companies will have to meet the quotas in future. We fear that new plastic will then be used instead of recyclate for all products that are not subject to quotas and that recyclates will no longer be used at all."

Professor Jens Hesselbach from the University of Kassel adds: "Such regulations do not make it easy for companies to switch to a circular economy. Circular economy can mean problems with prescribed recycling quotas: When companies launch long-lasting products on the market, they are used for longer, components or raw materials are recycled later and can only be reused as recyclates much later. As they have to meet their recycling quotas, companies have too little incentive to develop long-lasting products. In practice, the circular economy can therefore hinder the development of long-lasting products, even though this is precisely the aim of the circular economy."

"Circular economy can reduce significant environmental impacts, conserve natural resources and actively promote climate protection," says DBU Secretary-General Alexander Bonde. "We support companies in replacing linear with circular business models so that the circular economy works comprehensively." According to Bonde, the DBU-funded project "Towards a circular business model" helps participating companies to identify problems, minimize negative interactions, for example with legal requirements, and develop solutions. Recommendations are also being developed for these and other companies that want to move towards a circular economy.

The Managing Director of the climate protection companies, Philipp Andree, would also like to see a functioning circular economy. "Everyone is talking about the circular economy, we have a national circular economy strategy, but how many companies have really already changed their business models and are working in a circular way? We are close to the federal elections and our members would like to see a new federal government take the circular economy forward. Many questions still need to be clarified for it to work in practice. For example, digital product passports (DPP) can strengthen the circular economy and make the environmental impact of products transparent. However, this must not mean even more bureaucracy for companies or that they have to disclose information relevant to competition. Politics and business must work together to make Germany a circular economy country."

The 18-month project with 13 companies from various sectors such as plastics, logistics, medicine, metal and textiles with different functions in cycles such as production, services or recycling has been running since September 2024. Ten of the companies are climate protection companies. The project partners are currently investigating the challenges of transformation and possible solutions for the individual companies.

More information on the project can be found here. The results of the survey on challenges and possible solutions will also be available there shortly.