Accelerating Action: Ireland’s Circular Economy Strategy 

Ireland’s new circular plan aims to cut waste, reuse more, and make everyday systems work better for people, communities, and businesses.

In brief

•  The Strategy sets out clear roles for government bodies so activity can move forward in a steady and coordinated way. 
• New actions on textiles, reuse, and digital tools give teams practical ways to handle materials with more care and value. 
• Plans for local hubs, sector agreements, and shared platforms outline how people, businesses, and communities can work together.

Ireland’s new Circular Economy Strategy is here and not a moment too soon. With a disappointing 2.7% of materials cycled back into the economy, Ireland lags the EU average and is increasingly exposed to resource volatility, supply chain fragility, and escalating waste obligations. 

This new Strategy gives Ireland a real chance to reposition circularity as a means to enhance competitiveness and resilience, and, to build value in how materials flow through the economy. The real test now will be in how quickly Ireland can clear away the structural barriers that have kept circularity on the sidelines. 

For the Strategy to take hold and take off, the bold decisions at its centre need broad buy-in and steady support.

Retail sector under pressure

Following the publication of the Strategy, retailers will face new regulatory demands. This sector will have to move from an existing compliance mindset towards a margin-protection mindset where circularity becomes an opportunity to achieve greater efficiency of resources.

 Retail is being hit by multiple circular-related policy vectors simultaneously:

• Food waste: Ireland’s roadmap trajectory and the revised Waste Framework Directive binding targets (10% reduction in processing/manufacturing; 30% per capita reduction across retail vs 2021–2023 averages) shape the next Food Waste Prevention Roadmap (to be published 2026).
• Packaging: The PPWR introduces waste reduction targets (5% by 2030, 10% by 2035, 15% by 2040 vs 2018 per capita) and reuse/refill obligations with major retail-facing requirements from 2030, plus earlier HORECA obligations from 2027/2028. 
• Product rules: Right-to-Repair and ESPR/Digital Product Passports will reshape obligations and customer expectations across consumer goods categories; the Strategy explicitly calls for dialogue with retailers on these upcoming requirements.

Retailers are under pressure to build the resources and infrastructure needed to scale circular innovation, knowing that circular retail becomes stronger when it lowers the cost of returns, shrink, waste, and logistics. They also see gains in steadier margins as material costs move around. And they point to clear customer value in service models, refurbishment, subscription, and loyalty.

There is strong value in setting out what minimum viable circularity looks like for retail. It would give teams space to phase activity and plan investment in a realistic way. Shared infrastructure would also help smaller Irish retailers build circular operations alongside larger peers, creating a more even market and strengthening capability across the sector.

The need for collaboration

The Strategy is “whole-of-government” by design, and it calls for collective leadership across government, enterprise, and society. It also acknowledges that circularity barriers are structural, especially around standards, markets for secondary materials, and infrastructure coordination.

Three collaboration mechanisms in the Strategy are worth spotlighting:

1. Sectoral compacts: A construction compact is planned for 2027 to speed up circular practices. The same approach fits retail and packaging, where the biggest friction sits in the handovers between players.
2. All-island scaling and industrial symbiosis: The Strategy links circular strength with scale and calls for an All-Island Circular Economy Forum and a study on industrial symbiosis that could lead to a shared digital platform. This creates room for circular markets to grow beyond the limits of Ireland’s domestic scale.
3. Critical raw materials and product ecosystems: The Strategy connects circularity with EU requirements on critical raw materials and supports national work on CRM-rich waste streams like WEEE and batteries, along with better circular design. This brings industry, finance, and regulation into a shared space with clear strategic value.