China embarks on 5-year plan to boost circular economy in Beijing; recycling industry to 1 trillion euro by 2030

China embarks on 5-year plan to boost circular economy

China embarks on 5-year plan to boost circular economy

10.08.2026, 09:51 Uhr Beijing - China wants to glean 16 percent more value from resources, cut energy use by 10 percent and water use by 25 percent compared to last year, and grow the country’s recycling industry to 1 trillion euro by 2030, according to the Ellen MacArthur Foundation. The plan seeks to promote greener designs, industries, and consumption patterns.

( CONNECT ) To turn waste into valuable materials and curb the extraction of virgin resources, the Chinese government recently released a five-year plan for the development of circular economies in the world’s second-largest economy. That plan demonstrates how China is taking a more systemic and integrated approach to recycling and reusing resources, wrote the Ellen MacArthur Foundation in an August 3 article .

The plan aims to increase resource productivity by 16 percent, decrease energy consumption by 10 percent compared to 2025, and cut water consumption by 25 percent compared to 2025, the Chicago-based organization wrote. The plan would also expand the country’s recycling industry to 1 trillion euro (8 trillion yuan) by 2030.

“China is moving away from focusing on end-of-life recycling towards a systemic transition which encompasses product design, manufacturing, consumption, recycling, and industrial upgrading,” wrote Foundation analysts.

The plan also promotes green product design, cleaner production in key industries, and seeks to accelerate greener consumption patterns in society. Compelling green industries to adopt circular economic business models, including rolling out extended producer responsibility rules, greener public procurement, and carbon markets are among the measures that officials hope will advance those goals.

Recommendations in the plan, moreover, include targeted government spending, encouraging financial institutions to lend to circular plans, tax incentives, and reverse invoicing, where the buyer provides sellers with bills to more easily track resource consumption. ce

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