Germany’s New Circular Economy Strategy Wins Industry Backing for Sustainable Growth
The German federal cabinet has approved the National Circular Economy Strategy (NKWS), a move welcomed by the Association of German Engineers (VDI). The organisation sees the decision as a vital step toward securing investment and boosting the country’s circular economy. It also expects future governments to uphold the strategy without challenge.
The VDI actively contributed to discussions before the NKWS was finalised. Its leadership now urges swift implementation to reinforce Germany’s competitiveness and innovation. A key demand is for public authorities to prioritise product circularity when awarding contracts.
Equal market conditions for circular materials and business models form a central part of the new plan. However, the strategy does not address the healthcare sector, which accounts for roughly five percent of Germany’s raw material use. Martin Urban, who took over as chairman of the VDI State Association Baden-Württemberg in January 2026, succeeds Oliver Riedel in the role. Under his leadership, the VDI continues to push for policies that support sustainable resource management.
The NKWS aims to create stable conditions for businesses investing in circular solutions. By embedding circularity in public procurement, the strategy seeks to drive long-term change. The VDI’s involvement highlights the importance of technical expertise in shaping Germany’s economic and environmental policies.
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