From aspiration to implementation: circular economy in North Rhine-Westphalia

Its aim is to systematically integrate resource efficiency, waste prevention and circular value creation into North Rhine-Westphalia’s economic and industrial policy while strengthening the region's competitiveness. NRW faces particular challenges in this regard: The plastics and chemical industries are among the largest in Europe, and structural change in the Rhineland region requires the development of new, resource-efficient value chains. Businesses play a central role, as they shape production processes, product designs and business models. This report provides a survey-based insight into the status quo of the circular economy in North Rhine-Westphalian businesses: Circular business models: In North Rhine-Westphalia, industrial firms have implemented circular business models mainly through gradual product and process adjustments, while far-reaching strategic realignments remain less common.

Circular measures: Firms in North Rhine-Westphalia are increasingly relying on circular measures to promote circularity. So far, the focus has been primarily on raw material recycling and energy efficiency.

Data in a circular economy: The Digital Product Passport (DPP) is mandated by various EU product regulations and provides essential data for a circular economy. However, many companies, especially SMEs, are not yet sufficiently prepared for its implementation.

Need for action and recommendations: In North Rhine-Westphalia's industry the main impediments for the introduction of digital solutions for circular approaches are a lack of expertise, limited financial resources and insufficient information. Technical hurdles such as missing data interfaces, non-retrofittable equipment and the absence of complete solutions further exacerbate these challenges. The need for action is particularly great in the areas of data and the DPP: low awareness, a lack of standards and inadequate implementation require targeted competence building and a digital infrastructure. Legal and financial barriers must be removed and investments specifically supported to enable circular business models on a broader scale. The following table provides an overview of recommendations in the different areas.