The urgency for resource transition is high: half of Dutch companies expect resource scarcity to result in higher prices for both products and services. They anticipate having to pass this cost increase on to their end customers. With the end of 2025 in sight, we look back at the past year. Where do we stand in Europe with the resource transition? And what steps are needed towards 2026 to accelerate the raw materials transition? You can read it in this blog.
What is the raw materials transition?
The raw materials transition is the shift from linear to circular use of raw materials. Instead of using materials once and then throwing them away, it's about reusing, retaining value and preventing waste.
The goal? Less waste, less dependence on scarce materials and an economy where raw materials are used instead of consumed.
How circular is the European Union in 2025?
The European Union aims to achieve a fully circular and climate-neutral economy by 2050. To reach this goal, the EU has set an interim target: by 2030, the level of circularity should be double that of 2020, moving from 12%. to 2 24%.
Compared to the global average of 6.9%, the EU’s current circularity of 12% is relatively high. However, the increase remains very limited: in 2023 , circularity in the EU was still around 12%. Despite the increase of talking about circularity, the progress lags behind. This is due to several reasons.
Several factors contribute to this stagnation. For instance, multiple recycling companies went bankrupt, as new raw materials often remain cheaper than recycled ones, making it difficult for recycling businesses to stay profitable.
Where are companies in the Netherlands and Belgium?
About a quarter of Dutch organizations are largely or fully circular. In Belgium, it is about one in three. The reasons companies give for this? Conflicting regulations (21%), lack of internal urgency or support (20%) and high costs of circular solutions (16%).
Measuring circularity is also a challenge: 20% of organizations need more insight into measurement methods and circular KPIs to steer effectively, while 28% do not use KPIs at all. Among those that do, the main focus is on:
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Waste reduction (49%)
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CO2 emissions from production (36%)
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Product lifecycle and reuse (27%)
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Proportion of recycled materials in production (26%)
In addition,lack of regulations hinders the circular ambitions of Dutch organizations. For example, 42 percent of companies believe that without stricter legislation, the sector will never become truly circular. In addition, half (49 percent) believe that the government is doing too little to support companies in the transition to a circular economy. Remarkably, 41 percent even believe that the government is making circular business more difficult than promoting it.
What steps are accelerating the resource transition towards 2026?
Although many organizations are behind on their circularity goals, organizations are aware of the urgency for business risks. For example, a quarter of companies say they believe that organizations that do not invest in sustainability in the near future will disappear.
Currently, many companies are still at the beginning. ''Towards 2026, it is important that companies really take steps toward circular entrepreneurship. Those who have yet to start run the risk of not achieving the European goal of a fully circular economy by 2050. Not starting is simply not an option," says Gijs Derks, Managing Director at Milgro.
Circular entrepreneurship starts with insight. After all, you can't steer on something you don't know. Which raw materials enter your organization, what happens to them and where do they eventually end up?
Has your organization already taken steps in the field of circularity, now is the time to further strengthen that basis. You probably already have insight into your material flows, waste and perhaps impact figures. But how well do you manage this? Where is unnecessary value being lost and where can real gains be made?
We understand that this can be complicated. Therefore, we have developed a roadmap where you can help your organization with these steps, among others. Whether you are just starting with circular entrepreneurship or already more advanced. With the roadmap your organization will become truly circular.
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