Denmark and the EU are increasingly challenged by geopolitical uncertainty affecting their access to raw materials. For a small, open economy like Denmark, secure access to materials is vital for production and consumption. Currently, Denmark is fully dependent on imports for metals, including vital resources for the green transition in sectors such as wind energy, electric vehicles, batteries, and solar panels. More than 43% of Danish material consumption is imported, and this dependency is rising, increasing vulnerability to supply disruptions and global tensions.
‘Settlers of Catan’ is a strategy board game where players trade resources to build settlements and cities
Material, competitiveness and long-term resilience
Circular Economy approaches offer a vital solution. By using resources smarter – recycling materials, extending product lifetimes, and reusing components – Denmark can reduce its dependency on imports and its environmental footprint. However, only 9% of Denmark’s material use currently derives from recycled resources, lagging behind the EU average of 12% and far from leaders like the Netherlands who reached over 20%. Therefore, DI (Confederation of Danish Industry) urges the government to place circular economy at the heart of competitiveness and sustainability policies. This requires ambitious national goals, investment in recycling infrastructure, incentives for circular solutions, and better access to recycled materials for businesses. Circularity not only strengthens supply security but also helps address global climate emissions and biodiversity loss.
The UN estimates that about half of global CO₂ emissions and 90% of biodiversity loss stem from natural resource extraction and processing. Prolonging product lifetimes and recycling reduces the need for new extraction worldwide, thus cutting emissions and protecting ecosystems. By embracing circular economy principles, Danish companies can ensure access to critical raw materials, strengthen resilience, foster green growth, and maintain their competitive edge – at home and in European markets.
Removing barriers to unlock circular markets
The EU Commission is expected to table a ‘Circular Economy Act’ by the end of the year. This act should simplify adoption of circular business models, such as take-back schemes and cross-border waste transport. DI proposes to remove legal and administrative barriers to intra-EU waste transport, reduced requirements for non-hazardous waste shipping, and a unified approach to data collection and reporting—crucial for cross-border business and innovation.
Furthermore, the ‘Circular Economy Act’ is expected to strengthen the Single Market by reducing burdens related to extended producer responsibility, now widely recognized as one of the “terrible ten” administrative burdens in the EU. Specifically, DI proposes that a “one-stop-shop” for extended producer responsibility is established to relieve companies of having to figure out the country specific implementation 27 times.
A game of Catan? – Discussing resource security at LOOP Forum
At Danish Industries, we are very much looking forward to engaging with LOOP Forum’s theme of ‘Securing Resources for Stronger Business’ through circularity. Meet us at the expo floor on both days of the event, or come join our live session on Wednesday, April 29th, at the Main Stage, from 10.45 to 11.30. Here we will discuss “Is reuse the key to increasing independence of China’s metals?”. Read more about the session and book your free ticket to the event.
