Global EPR & Circular Economy trends 2025 2026
As 2025 comes to a close, sustainability and environmental compliance have shifted from abstract goals to practical, everyday considerations for companies across the world. While political and regulatory pushbacks have created some uncertainty this year, the overall trend remains steadfast: what was once a “nice to have” has now become fully ingrained into business strategies. Regulations are tightening, expectations are rising, and producers are being asked to take clearer responsibility for the materials they introduce into the market. What once felt optional is now firmly part of operational planning and long-term strategy.
This year brought continued evolution in Extended Producer Responsibility (EPR) and related policies. Europe pushed forward with ambitious packaging reforms, North America expanded its state and provincial programs, and Latin America accelerated its transition toward circularity. Together, these developments outline a global trajectory that will shape how businesses prepare for 2026 and beyond.
Europe Leads the Way in Extended Producer Responsibility (EPR)
Europe remains at the forefront of environmental regulation. Over the past year, companies have been adapting to new requirements that touch packaging, batteries, textiles, and corporate reporting frameworks.
The Packaging and Packaging Waste Regulation is nearing finalization and companies are preparing for new rules that strengthen accountability for reuse, recyclability and the overall environmental performance of packaging placed on the market. At the same time, the gradual rollout of the European Battery Regulation is prompting businesses to evaluate product footprints, integrate recycled materials and strengthen supply chain transparency.
Corporate reporting is undergoing its own transformation. Early adopters of the Corporate Sustainability Reporting Directive (CSRD) have submitted their first disclosures following the European Sustainability Reporting Standards (ESRS), demonstrating how data-driven sustainability can be integrated into traditional business processes. The shift is encouraging companies to improve internal systems so that environmental data becomes as reliable and auditable as financial information.
Textile EPR and Circular Economy Compliance in Europe
One of the most significant developments of the year is the proposal to introduce Extended Producer Responsibility for textiles through updates to the Waste Framework Directive. Europe has long identified textiles as a high-impact material stream due to low collection rates, inconsistent recycling infrastructure and the growing volume of fast fashion. The inclusion of textile EPR represents a turning point for the industry and signals a stronger effort to address waste at its source.
Alongside Textiles EPR, the Ecodesign for Sustainable Products Regulation (ESPR) links directly to these requirements by defining eco-design criteria and eco-modulation rules for fees under EPR. ESPR also introduces Digital Product Passports, which will affect textiles as well as other sectors, such as batteries, and establishes a ban on the destruction of unsold goods.
Countries are now preparing for phased implementation that focuses on building national collection systems, encouraging fiber-to-fiber recycling, and improving product traceability. Brands and retailers are beginning to evaluate design practices and material choices to ensure products can be recovered more easily. They are also exploring take-back programs, reuse initiatives, and partnerships with recyclers to support compliance once national systems go live.
Key milestones to watch are July 2027, when all EU member states must transpose the legislation into national law, and April 2028, when EPR must be fully operative across the EU. While this transition will not happen overnight, the groundwork being laid in 2025 positions Europe to establish a more consistent and efficient approach to textile waste by 2026 and beyond.
North America EPR Trends and Regulatory Updates 2025–2026
Momentum in the United States continues to build as state level packaging programs advance from policy to implementation. Maine and Oregon are finalizing registration processes and fee structures for producers. California’s SB 54 now requires a 25% reduction in plastic packaging by 2032, alongside funding for statewide recycling programs, and the state has also passed the Responsible Textile Recovery Act (SB 707), establishing the nation’s first EPR law specific to textiles. New York continues to advance its Packaging Reduction and Recycling Infrastructure Act, which could significantly reshape producer responsibilities once enacted.
The Canadian EPR landscape continues to mature. In 2026, provinces like Saskatchewan and New Brunswick are set to expand the scope of electronics covered under EPR regulations. Notably, Saskatchewan will become only the second province, after British Columbia, to designate medical and monitoring devices. Battery and lighting EPR will also come into effect in New Brunswick, following their initial announcement in 2024.
Late in the year, British Columbia introduced several amendments to its Recycling Regulation, including new definitions and additional product categories, as the province seeks to refine its EPR framework with an eye toward 2027.
2026 will also mark the second year of the Federal Plastics Registry Report, which is set to expand reporting obligations to the ICI sector and to additional product categories such as construction materials and textiles.
Together, these developments bring North America closer to a more consistent, circular approach to resource management. Companies that prepare now will find themselves ahead of the curve.
Latin America: Emerging Leadership in EPR
Latin America is close behind, aligning policies with international best practices. Chile continues to lead with its EPR Law, in particular for WEEE and batteries, for which the draft regulation, requiring producers to meet collection and recycling targets, was published mid-2025.
Uruguay’s national packaging recovery initiative, Plan Vale, partnered with CIEMSA, CSI, and RLG to launch the country’s first Deposit Return System (DRS) for single-use beverage containers. This pioneering project makes Uruguay the first Latin American nation to adopt such a system. Colombia and Mexico are also implementing regulations focused on packaging waste, plastic reduction, and recycled content.
These programs show that circular economy principles are becoming central in the region, balancing environmental responsibility with economic and social goals.
Looking Ahead: Preparing for 2026
As companies prepare for 2026, it is becoming clear that global EPR systems are moving toward greater coordination and consistency. Regulators are also beginning to shift their expectations from basic disclosure to measurable performance. In practical terms, businesses are finding that strong sustainability reporting must be paired with tangible improvements in product design, material choices and end of life recovery. To achieve this, companies will need clear and detailed insights into their supply chains to identify opportunities for these improvements. Expectations surrounding reuse, recyclability and recycled content will become more visible and more quantifiable over the next year.
Digital reporting and product level traceability are emerging as core elements of environmental compliance. Companies will need a centralized data system and improve supplier engagement so that information can move smoothly through the value chain.
The rise of digital product passports and similar tools will accelerate during 2026 as governments seek better oversight of materials and as consumers demand clearer information about the products they purchase.
Circular design is becoming a foundational expectation rather than a niche practice. Regulators are paying closer attention to unnecessary packaging, non recyclable materials and product features that make disassembly or repair difficult. These pressures are encouraging businesses to evaluate design practices earlier in their development cycles, often resulting in cost savings as well as improved environmental performance.
With these trends converging, many companies are choosing to work more closely with external partners who can help interpret regulatory changes, assess exposure and translate sustainability goals into actionable steps. Expertise in EPR mapping, material assessments and supplier coordination is becoming increasingly valuable as organizations navigate more complex compliance environments.
Partnering for Progress
At RLG, we help businesses stay ahead of evolving EPR and environmental compliance regulations. Through our environmental compliance service, including Horizon Scanning and EPR Assessments, we provide insights and practical strategies to turn sustainability into real business value.
As 2025 comes to a close, the global push for circularity, transparency, and compliance is stronger than ever and shaping the way businesses operate worldwide. Organizations that prepare now will be ready to lead as new expectations unfold throughout 2026 and beyond.
