A crucial element in the transition to the circular economy (CE) are the innovations at production and recycling facilities that aim at resource efficiency, the prevention of waste and the use of production residues or materials recovered from waste as secondary raw materials. A key condition for making these circular innovations work is to better connect policy, law and regulation on the ground.

This report is guidance for regulators to enable innovations for CE. The guidance helps to understand the opportunities and barriers in EU Environmental Law, identify how regulators can organise themselves more effectively, determine the support needed from policymakers and become more sensitive to the needs and concerns of innovative businesses. The first chapter shows which sections are particularly interesting for specific stakeholders and how each chapter can help regulators. The second chapter discusses legislation regarding three circular innovations: producing and using secondary raw materials; making production processes more resource-efficient; and using industrial symbiosis and chain approach. Furthermore, the guidance sets out the measures regulators can take to support the work enabling circular innovations. Some actions for regulators are proactively working with businesses to identify regulatory barriers to innovation for CE or supporting the development of new CE ideas and business models by encouraging businesses to develop new thinking for their contexts. The next chapter discusses the roles of policymakers. The report identifies three core areas where policymakers can support regulators in enabling circular innovation. One of the areas is providing a coherent, joined-up policy framework with the right mix of instruments to allow circular innovation to be implemented. The fifth chapter addresses the need of businesses for fit-for-purpose legislation, the context in which innovative companies operate, and opportunities for smarter implementation. Businesses give recommendations for regulators to be able to support them to innovate circularly. One of the recommendations is to consider allowing more flexibility in permits. Finally, the report also has two practical tools. One is an end-of-waste status assessment and proposal for a database collecting end-of-waste case-by-case assessments. The second tool is a building block for inspecting end-of-waste activities. Cities and regions can use all the actions, strategies and tools provided in this guidance report to develop Circular Systemic Solutions, while also considering the issues and needs described in every chapter.