Technical solutions for a more efficient circular economy are already well developed in many areas. However, regulatory fragmentation and a lack of economic incentives make their widespread application difficult.

Energy-intensive industries are at the heart of European climate, environmental and industrial policy.

The consequences of climate change are increasingly affecting infrastructures, material flows and the supply of secondary raw materials.

In addition to the intended effects, measures to promote the circular economy can also have unintended effects that undermine political objectives or cause new conflicting goals.

According to Eurostat, environmental tax revenues in the EU amounted to 371.9 billion euros in 2024.

In its report "Scaling circular business models in Europe", the European Environment Agency (EEA) makes it clear that the circular economy in Europe is structurally underdeveloped despite political support and increasing investment in Europe.

Prices of recycled commodities such as metal scrap, plastics, aggregates, paper and cardboard have dropped significantly, yet the cost of processing recyclables has remained steady or even risen due to the higher prices of fuel raw materials.

The construction sector is one of the world's largest consumers of raw materials and at the same time among the most substantial sources of greenhouse gas emissions.

The current global crisis - marked by soaring oil prices, rising energy costs and ongoing supply chain disruptions - is placing significant pressure on the plastics and recycling sector.

Nitrogen and phosphorus losses are among Europe's most pressing environmental problems.

Recycling is considered a major component of the circular economy concept. At the same time, how-ever, the actual recycling rates of many packaging streams fall short of political and social expecta-tions.

Recycling operations lose value when important decisions remain fragmented across intake, sorting, dis-mantling, inventory, resale and material recovery. AI-supported systems can help operators structure these decisions earlier, improve consistency and connect physical processing with digital workflows.