Pilots Successfully Launched under the EU-China Circular Economy Action Project

Pilots Successfully Launched under the EU-China Circular Economy Action Project

Two pilot projects "Extending Vehicle Producers' Responsibility for Enhanced Material Circularity" as well as the "Closed-Loop Recycling of r-PET and r-PP for Food-Grade Utilization" - under the EU-China Circular Economy Action Project have been officially launched. The project is co-funded by the European Union and German Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN), implemented by GIZ.

Bart van der Meer, Green Transition Counsellor at the EU Delegation to China participated in both launch events. He stated: "The circular economy is an important political priority for both the EU and China. By piloting circular practices and promoting circularity through extended producer responsibility, we aim to advance EU-China cooperation in this field and accelerate the global shift to a resource-efficient, low-waste and climate-neutral economy."

Shanghai, China, 21 April 2026: Extending Vehicle Producers' Responsibility for Enhanced Material Circularity

Plastics recovered from end-of-life vehicles (ELVs) are currently poorly recycled and rarely reused in new vehicles, due to regulatory, technical and economic barriers. This collaborative pilot seeks to demonstrate a practical and scalable car-to-car recycling model. Bringing together full value chain stakeholders - including ELV dismantler Yucheng, recycler Ausell, and polymer producer LyondellBasell (LYB) - the initiative is open to all automotive OEMs.

Partners will work to enable the recovery of polypropylene (PP) plastics from ELVs and their reintegration into new vehicle components. For achieving this, the pilot will establish a structured intervention focused on rational dismantling, material classification, identification and control planning for selected automotive plastic parts. By selectively dismantling PP-based components and applying consistent identification and quality-control measures, the initiative seeks to improve feedstock reliability and performance, key enablers for closing the loop on automotive plastics at scale and reducing reliance on virgin materials. Beyond technical solutions, the collaboration will help strengthen effective extended producer responsibility (EPR) systems and support globally harmonized automotive supply chains.

For OEMs, the pilot represents a unique opportunity to co-create a closed-loop plastics market for automotive plastics. By validating recycled materials that meet performance and quality requirements, the project supports the sustainable design of vehicles while addressing growing regulatory demands - including the upcoming European End-of-Life Regulation as well as China's Action Plan for the Promotion and Application of Recycled Materials.

Jiaxing, China, 23 April 2026: Closed-Loop Recycling of r-PET and r-PP for Food-Grade Utilization

With the expansion of the fresh-made beverage and takeaway sectors, the consumption of single-use plastic packaging has risen significantly, with polyethylene terephthalate (PET) and polypropylene (PP) - the most commonly used packaging materials - have never been recycled back into packaging in China. The pilot will cooperate with the collector and sorter from Jiaxing City, as well as the recycling partners in the EU and China, aiming to showcase European best practice in Chinese context, specifically how to standardize the entire process from collection and sorting to food-grade recycling, in order to achieve the dual objectives of resource regeneration and food safety.

In this pilot, Europe's practical experiences will lay the necessary groundwork for China to formulate more ambitious policies, which will help the EU and China work together to drive the transition to a circular economy in the plastics sector. This joint effort will not only contribute to the achievement of global green development goals but will also provide a tangible example of how European solutions can be applied in China.

About the EU-China Circular Economy Action Project

The "EU-China Circular Economy Action Project" is an important tool to support the EU-China High-Level Policy Dialogue on Circular Economy and the EU-China Circular Economy Memorandum of Understanding signed in 2018. The EU-China Roadmap on Circular Economy, established under the Memorandum, was launched in 2024, with identified three key sectors: plastics, batteries, and remanufacturing. The implementation of this project (from 2024 to 2026) is largely guided by the framework outlined in the roadmap.

The project is aiming to support High-Level Dialogue between the EU and China and engage in technical exchange to jointly tackle global challenges, particular in circular economy, and promote circularity in products and processes in China, by the following measures:

• Facilitate exchanges and foster understanding, by supporting High-Level Dialogues and providing platforms for exchanges between government and industry.

• Enhance Extended Producer Responsibility (EPR) for selected products and waste streams by proposing innovative EPR schemes and piloting proposed feasible solutions.

• Advance the sustainable consumption and production in three prioritised areas, by showcasing pilot projects with advanced design concepts and practical expertise.

• Increase awareness among public authorities and consumers about sustainable production and consumption, through targeted educational campaigns for different audiences.