The EU Circular Economy Act: implications for ITAD operators in 2026

The EU Circular Economy Act is moving from consultation to implementation in 2026, and for the ITAD sector, it is one of the most significant regulatory shifts since the WEEE Directive. Unlike the WEEE framework, which focuses on end-of-life waste management, the Circular Economy Act targets the entire product lifecycle, from design through to disposal. ITAD operators sit at the centre of this new framework in ways that will reshape how equipment is sourced, processed, and redistributed across Europe.

What the Circular Economy Act covers

The EU Circular Economy Act builds on the Circular Economy Action Plan (CEAP), first adopted in 2020 and updated in 2023 under the European Green Deal. In 2026, the legislative framework is entering a more concrete implementation phase, with binding requirements beginning to take effect across several product categories. IT equipment, including laptops, servers, smartphones, and networking hardware, falls within scope of both the Ecodesign for Sustainable Products Regulation (ESPR) and the extended producer responsibility (EPR) frameworks that the Circular Economy Act draws together.

Key provisions now active or approaching implementation include:

• Minimum repairability and durability standards for electronic products sold in the EU
• Extended producer responsibility obligations requiring manufacturers to support secondary market operations and end-of-life take-back
• Digital Product Passports (DPPs) that must accompany devices, recording material composition, repair history, and end-of-life guidance
• Binding targets for the use of recycled content in new products across designated categories
• A prohibition on the destruction of unsold or returned consumer goods, now being extended across EU member states

Why it matters for ITAD operators

The Circular Economy Act creates both compliance obligations and commercial opportunities for the secondary market.

On the compliance side, operators handling large volumes of enterprise IT equipment will increasingly need to document the disposition of each device. As Digital Product Passports are introduced for IT categories, every device will carry a verified record of its material composition, repair history, and lifecycle stage. This raises the bar for traceability and documentation across the secondary market chain.

On the commercial side, the regulation strengthens the legal and economic case for reuse. When manufacturers are required to facilitate repair and are prohibited from destroying unsold goods, more devices enter the secondary market through legitimate, documented channels. This supports supply stability for ITAD operators who depend on predictable inflows of equipment from corporate disposals.

The prohibition on destroying unsold consumer goods is particularly significant. Already in force in France under Loi AGEC since 2022, and now being extended across the EU, this provision means equipment that would previously have been written off or destroyed must instead be redirected toward reuse or certified recycling. For the ITAD sector, this is a structural shift in how surplus inventory is handled upstream.

What to watch in 2026 and beyond

Several developments will shape how the Circular Economy Act affects ITAD operations in practice.

ESPR delegated acts for IT equipment. The European Commission is producing specific product group regulations under the Ecodesign for Sustainable Products Regulation. When finalised for IT categories, these will introduce minimum repairability scores, spare parts availability windows, and information disclosure requirements that directly affect device lifespan and residual value in the secondary market.

Digital Product Passport rollout. DPP infrastructure is being built across the EU, with a phased approach beginning with higher-impact product categories. For the IT secondary market, DPPs will eventually allow buyers to verify a device's condition history independently, improving confidence in graded equipment and supporting more transparent valuation.

Extended producer responsibility harmonisation. As EPR frameworks are aligned across EU member states, end-of-life treatment costs will shift increasingly toward manufacturers. This may change the economics of take-back schemes and how surplus equipment flows toward the secondary market.

National implementation timelines. Member states are transposing requirements into national law at different speeds. ITAD operators working across borders should monitor key markets, particularly Germany, France, and the Netherlands, where enforcement tends to be earlier and more rigorous.

For background on the existing e-waste obligations that sit alongside these new requirements, see The WEEE Directive and what it requires from ITAD operators in 2026.

Frequently asked questions

What is the EU Circular Economy Act? The EU Circular Economy Act is a legislative framework that extends the EU's Circular Economy Action Plan into binding policy. It introduces requirements across product design, repairability, recycled content, producer responsibility, and end-of-life management for a wide range of products sold in Europe, including electronic equipment.

How does the Circular Economy Act affect ITAD operators? ITAD operators face new documentation and traceability requirements, Digital Product Passport obligations as they are phased in for IT categories, and shifts in how surplus equipment must be handled. The prohibition on destroying unsold goods is particularly relevant for operators managing excess inventory from corporate clients.

What are Digital Product Passports and when will they apply to IT equipment? A Digital Product Passport is a standardised electronic record that travels with a product throughout its lifecycle, recording material composition, repair history, and end-of-life instructions. For the IT secondary market, DPPs are expected to improve traceability and support consistent grading. The rollout is phased, with IT categories coming into scope progressively.

Is the ban on destroying unsold goods already in force? France introduced a prohibition on destroying unsold non-food consumer goods, including electronics, under Loi AGEC in 2022. The EU-wide extension is being phased in through the Circular Economy Act, with implementation across all member states expected through 2026 and 2027.

How does the Circular Economy Act relate to the WEEE Directive? The WEEE Directive governs collection, treatment, and recycling of waste electrical and electronic equipment. The Circular Economy Act is broader, covering product design, supply chain responsibility, and reuse obligations before a device reaches end of life. The two frameworks work in parallel across the same IT equipment categories.

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