In January of 2026, the Spanish Government published its 2nd Circular Economy Action Plan (PAEC), a key instrument to continuing the rollout of 'Circular Spain 2030', Spain's circular economy strategy. This second plan draws on experience gained during the 1st PAEC (2021-2023) and is tailored to a more demanding European context, the Green Deal, the Ecodesign for Sustainable Products Regualtion, and the increasing importance of reducing our reliance on primer materials.
What are the Spanish Government's PAECs?
The Circular Economy Action Plans (PAECs) are oporational instruments that develop the national strategy towards 2030. While 'Circular Spain 2030' establishes general objectives, the PAECs translate these objetives into concrete measures, calendars, and avenues for action.
The 1st PAEC led to key legislation being proved like 'Law 7/2022 Waste and Polluted Soils: Towards a Circular Economy', activate financial support for circular business projects, and begin to integrate sustainability criteria into sectorial policies. The 2nd PAEC builds upon these foundations, widening its scope to allow for transformation of strategic sectors with a more transversal approach that is aligned with the evolution of European regulations.
What are the PAEC's objectives?
The plan aims to reduce the pressure on natural resources, reinforce the strategic autonomy of the country, reduce the generation of waste, and increase the circularity of materials in the economy. The Plan means that 'circular economy' is no longer only an environmental policy but rather becomes a policy instrument for industry and competitiveness.
The 2nd PAEC prioritises sectors with high material impact and potential for transformation - such as construction, the manufacturing industries, agrifood, consumable goods or textiles - and drives the integration of ecodesign criteria, reuse, and recyclability from the beginning of a product's development.
How does it attempt to achieve this?
In regulatory terms, the Plan moves towards the adaptation of the national framework to new EU demans, particularly in terms of ecodesign, durability, repairability, and Extended Producer Responsibility.
In economic terms, the 2nd PAEC opens new support mechanisms for businesses to allow them to transition towards circular production models, with an emphasis on the importance of SMEs. This includes incentives for industrial modernisation through the incorporation of recycled materials and the implementation of more efficient processes in the use of resources. The circular economy is linked in this way to the policy of reindustrialisation and business competitiveness.
As for innovation, the Plan backs technologies that allow material cycles to be close, impove traceability, and develop new business models based on servitisation, repair, and reuse.
Examples of the 1st PAEC in Murcia
The publication of the 2nd Plan is of interest to the business community in the Región de Murcia given that the 1st PAEC meant that several businesses received financial support from the Spanish Government to implement circular projects.
For example, PROSUR, a business in the agrifood sector received support for a project aimed at resuing byproducts in the food industry, transforming them into high-value ingredients via Nature-Based Processes. In the waste management sector, Miguel Hernández Scrapyards obtained money for a project aimed at reducing the amount of waste they send to landfill, improving the recuperation and management of materials.
These cases show that PAECs are not just strategic framework, but that they are tools that can lead to real finance opportunities for businesses, meaning it's vital for businesses to follow the rollout of the 2nd PAEC.
To find out more...
We hope this publication has helped you to understand the new Circular Economy Action Plan. We invite you to explore other publication about sustainability and the circular economy in the publications section of this website.
