What are the latest news in the climate tech market?
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The circular economy market is moving fast, and the latest news proves it: big acquisitions, record fundraising rounds, and new regulations are reshaping how companies and investors think about keeping products and materials in use longer.
In this blog post, we cover the most important circular economy news from the past few weeks, with simple explanations for each piece of news so anyone can understand what happened and why it matters.
We constantly update this blog post so you always have the freshest view of what is happening in the circular economy market.
And if you want to better understand this new industry, you can download our pitch covering the circular economy.
Insights
- eBay's $1.2B acquisition of Depop shows that recommerce platforms focused on circular fashion can now command valuations comparable to major tech deals, signaling a new level of maturity in the secondhand market.
- Google joining Redwood Materials' $425M Series E round is a sign that Big Tech sees circular battery supply chains as critical infrastructure for powering data centers, not just an environmental initiative.
- At least 5 of the 12 biggest circular economy news items from this period involve regulatory or standards changes, showing that policy is now one of the fastest-moving forces in the circular economy market.
- Spiro's $50M debt financing (not equity) for battery swapping in Africa signals that lenders are starting to treat circular asset models as bankable infrastructure, which is a major shift from the early venture-only era.
- The restart of the Circulose textile-to-textile recycling plant in Sweden shows the circular fashion supply chain is entering a more mature phase, where industrial-scale operations matter more than pilot projects.
- The new CSA/PR3 reusable container standard (RES-001:26) is the kind of infrastructure-level development that often precedes rapid market growth, because it removes the "will this work everywhere?" risk for big buyers.
- Iowa's right-to-repair push for farm equipment is particularly significant because agriculture is one of the largest equipment markets in the world, and opening repair access there could unlock billions in aftermarket circular economy activity.
- The How2Recycle upgrade for polypropylene cups reaching 60%+ of US households shows that material-level wins in recycling access can happen quickly once infrastructure investments are made by enough partners.
- The circular economy market is seeing consolidation at multiple levels at the same time: resale platforms (eBay/Depop), recycling operators (Papilo/Allwood, NG Nordic/Kuljetusrinki), showing that the industry is entering a roll-up phase.
- Aveda and AeroFlexx entering refillable packaging in prestige beauty is a strong signal that refill models are moving beyond the niche eco-consumer segment into mainstream premium retail, which typically accelerates supplier adoption across the category.
In our climate tech market deck, we identify repeatable patterns you can use if you’re building in this market
Summary table of the latest news in the circular economy
We define the circular economy market as all activities that keep products and materials in use for longer and return them safely to the economy or nature instead of sending them to waste.
We include circular design, sharing and product-as-a-service models, repair and refurbishment, remanufacturing, high-quality recycling, bio-based and compostable materials, regenerative agriculture, and the digital, logistics, consulting and financial services that enable these loops.
We exclude purely linear "take-make-waste" activities, traditional waste disposal (landfilling and non-recovering incineration), and generic sustainability actions that do not materially change how resources and materials flow through the economy.
You can also read our detailed analysis to understand 'what are the quarterly updates in the circular economy.
| News | Category | Date | Source |
|---|---|---|---|
| Aveda and AeroFlexx launch a refillable packaging innovation, pushing refill models into prestige beauty | Partnerships | Feb 26, 2026 | Estée Lauder Companies |
| Iowa advances a tougher right-to-repair bill for farm equipment, raising pressure on locked-down machinery manufacturers | Regulations & Policies | Feb 26, 2026 | WIRED |
| Ireland launches a national Circular Economy Strategy (2026-2028) to cut waste and boost reuse across sectors | Regulations & Policies | Feb 25, 2026 | Circular Online |
| New reusable-container standard sets safety and durability rules for reuse systems across food, beverage, and consumer goods | Regulations & Policies | Feb 25, 2026 | CSA Group |
| Spiro lands $50M to expand battery-swapping infrastructure across African cities | Fundraisings | Feb 24, 2026 | AP News |
| US packaging policy shifts accelerate across states with new EPR, labeling, and reporting requirements | Regulations & Policies | Feb 20, 2026 | Sustainable Packaging Coalition |
| eBay buys Depop for $1.2B, supercharging Gen-Z resale and circular fashion at scale | M&A | Feb 18, 2026 | eBay Investors |
| NG Nordic buys Kuljetusrinki to scale AI and robotics sorting for higher-quality recycling near Helsinki | M&A | Feb 17, 2026 | NG Nordic |
| Circulose restarts the former Renewcell textile-recycling plant, reviving chemical textile-to-textile recycling at commercial scale | Company updates | Feb 16, 2026 | Circulose |
| UK recycler Papilo acquires Allwood Recycling Solutions to expand multi-material recovery capacity | M&A | Feb 5, 2026 | Recycling Today |
| Polypropylene cold cups earn "Widely Recyclable" label, unlocking easier recycling for over 60% of US households | Regulations & Policies | Feb 2, 2026 | GreenBlue |
| Redwood Materials raises $425M as Google joins the round, linking circular battery recycling to energy infrastructure | Fundraisings | Jan 28, 2026 | Business Insider |
Latest news of the circular economy
Aveda bets on refillable packaging with AeroFlexx, making circular beauty a mainstream experience
Partnerships
What happened?
Aveda, the prestige hair care brand owned by The Estée Lauder Companies, announced a partnership with packaging innovator AeroFlexx to launch a new refillable packaging format. The new format is designed to make refilling easier and more convenient for everyday consumers, not just eco-conscious shoppers. Aveda and AeroFlexx are positioning this as a way to make circular packaging a normal part of the beauty shopping experience rather than a niche option.
When was it?
The partnership was announced on February 26, 2026.
Why is it big news?
Beauty is one of the highest-volume packaging categories in the world, and when a premium brand like Aveda adopts circular packaging at scale, competitors and suppliers usually follow quickly.
Why should you care?
If you're an investor in the circular economy, this is a signal that refill models are crossing into mainstream premium retail, which typically creates recurring revenue opportunities in refill packs, dispensing systems, and reverse logistics. If you're an entrepreneur in the circular economy, this opens real partnership opportunities in packaging technology, in-store refill enablement, and logistics for beauty refill programs.
In our climate tech market deck, we have collected signals proving this market is hot right now
Iowa's right-to-repair push for farm equipment could unlock billions in circular aftermarket activity
Regulations & Policies
What happened?
Iowa lawmakers advanced a new right-to-repair bill that would require manufacturers to give farmers access to the repair tools, software, and information they need to fix their own equipment. The bill directly challenges the locked-down ecosystems built by major agricultural machinery manufacturers. This is one of the strongest right-to-repair proposals seen in the US farm equipment sector, and it is getting serious political traction.
When was it?
The bill advanced on February 26, 2026.
Why is it big news?
Repair rights directly extend the working life of products, which is one of the most powerful levers in the circular economy, and farm equipment is a multi-hundred-billion-dollar market where repair access has been heavily restricted for years.
Why should you care?
If you're an investor in the circular economy, regulation forcing open repair markets can shift significant value toward parts suppliers, diagnostics platforms, and independent repair networks almost overnight. If you're an entrepreneur in the circular economy, more repair access means growing demand for diagnostics software, spare parts logistics, certified repair networks, and refurbishment pipelines for agricultural machinery.
In our climate tech market deck, we help you understand how the market is structured
Ireland's national Circular Economy Strategy (2026-2028) creates a government-backed roadmap for circular growth
Regulations & Policies
What happened?
Ireland published a whole-of-government Circular Economy Strategy covering 2026 to 2028, targeting higher rates of circular material use, less waste, and better resource productivity across the entire economy. The strategy coordinates action across many sectors and is designed to improve Ireland's resilience and competitiveness. It sets a clear direction for where public funding, procurement, and compliance requirements will flow over the next three years.
When was it?
Ireland launched the strategy on February 25, 2026.
Why is it big news?
National circular economy strategies reshape procurement priorities, compliance requirements, and funding flows, creating predictable demand for reuse, repair, and recycling services that businesses can plan around.
Why should you care?
If you're an investor in the circular economy, policy tailwinds like this often create "forced markets" through EPR rules, reuse targets, and reporting requirements, which improve revenue visibility for circular businesses. If you're an entrepreneur in the circular economy, Ireland's strategy is a concrete roadmap showing where tenders, budgets, and partnership opportunities will appear in the coming years, especially in enabling services and infrastructure.
In our climate tech market deck, we will give you useful market maps and grids
A new global reusable container standard removes the biggest barrier to circular reuse systems scaling up
Regulations & Policies
What happened?
CSA Group and PR3 jointly published RES-001:26 / CSA R304:26, a new standard defining safety and durability requirements for reusable containers across food, beverage, and consumer goods. The standard is designed to make reusable containers safer and more interoperable, so they can work across many different operators and supply chains without each buyer needing to invent their own rules. This kind of technical standard is what turns fragmented pilots into coordinated industry systems.
When was it?
The standard was published on February 25, 2026.
Why is it big news?
Standards reduce buyer risk and unlock procurement at scale, which is often the critical missing ingredient that allows circular reuse business models to grow from niche to mainstream.
Why should you care?
If you're an investor in the circular economy, the publication of this standard is the kind of infrastructure-level event that often signals an upcoming acceleration in adoption and scale economics for reuse platforms. If you're an entrepreneur in the circular economy, aligning your reusable container products with RES-001:26 now can position you as the default supplier when large buyers begin standardizing their reuse systems.
In our climate tech market deck, we have designed useful charts to give you full market clarity
Spiro raises $50M to build circular battery-swapping infrastructure across African cities
Fundraisings
What happened?
Spiro secured $50M in debt financing from Afreximbank and partners to expand its network of battery swap stations and improve the underlying technology, including automation, faster charging, and integration with renewable energy. Spiro's model keeps batteries actively circulating through managed fleets, extending battery life and creating reuse pathways rather than disposing of them. The financing is structured as infrastructure debt, not startup equity, which is a meaningful shift in how lenders view circular mobility businesses.
When was it?
Spiro announced the financing on February 24, 2026.
Why is it big news?
This is one of the clearest examples of a "circular mobility" model being financed at scale as infrastructure, not just a startup experiment, which shows that lenders and climate investors are now willing to back circular asset models when utilization is proven.
Why should you care?
If you're an investor in the circular economy, Spiro's debt financing shows that proven circular asset utilization can attract institutional lending capital, potentially unlocking a much larger pool of financing than venture alone. If you're an entrepreneur in the circular economy, Spiro's approach shows that controlling the full asset loop, including ownership, swapping, maintenance, and end-of-life recovery, creates the kind of predictable cash flows that infrastructure lenders will back.
In our climate tech market deck, we show you long-term trends so you can make better decisions
US packaging policy is changing fast state by state, and circular economy companies need to keep up
Regulations & Policies
What happened?
The Sustainable Packaging Coalition published a summary of major US packaging policy changes happening rapidly across multiple states, covering extended producer responsibility rules, new labeling requirements, and reporting obligations. The key takeaway is that compliance expectations for packaging are evolving quickly and at the same time in many markets. Brands and suppliers that are slow to respond are already at risk of falling out of compliance.
When was it?
The policy roundup was published on February 20, 2026.
Why is it big news?
Rapidly shifting packaging policy across US states drives urgent spending on compliance systems, recyclable design changes, and circular packaging alternatives, creating demand even when other markets slow down.
Why should you care?
If you're an investor in the circular economy, compliance-driven markets in packaging tend to grow even in economic downturns because brands must act to keep selling their products. If you're an entrepreneur in the circular economy, this fast-moving policy environment creates concrete demand for data and reporting tools, packaging redesign services, certification support, and recycled-content sourcing.
In our climate tech market deck, we answer all the common questions from investors and entrepreneurs
eBay's $1.2B acquisition of Depop is the biggest circular fashion deal ever and a major recommerce milestone
M&A
What happened?
eBay signed a deal to acquire Depop from Etsy for approximately $1.2 billion in cash. Depop will continue to operate as its own brand and platform, but will gain access to eBay's payments infrastructure, shipping network, and trust features. The deal brings together eBay's scale with Depop's strong position in Gen-Z circular fashion and secondhand clothing.
When was it?
The acquisition was announced on February 18, 2026.
Why is it big news?
This is a major consolidation moment for recommerce and circular fashion, showing that resale platforms built around keeping products in use longer can now command deal values comparable to major technology acquisitions.
Why should you care?
If you're an investor in the circular economy, this deal is proof that recommerce platforms can reach "big tech-sized" valuations and that sector consolidation is accelerating, which changes how you should think about exit timelines and comparable transactions. If you're an entrepreneur in the circular economy, it shows that large acquirers are actively looking for circular marketplaces with strong communities and supply liquidity, meaning well-positioned niche platforms may become attractive acquisition targets.
In our climate tech market deck, we tell you what to focus on
NG Nordic acquires Kuljetusrinki to bring AI and robotics sorting to circular waste management near Helsinki
M&A
What happened?
NG Nordic announced the acquisition of Kuljetusrinki Oy, a waste management operator in the Helsinki metropolitan area that features an AI and robotics-based sorting line. The deal is expected to close in March 2026 and will allow NG Nordic to improve sorting quality, increase material purity, and serve more end markets in the circular economy. Better sorting is one of the most effective ways to increase the value and volume of materials recovered from the waste stream.
When was it?
The acquisition was announced on February 17, 2026.
Why is it big news?
Established circular economy operators are now acquiring automation and AI capabilities to defend margins and improve output quality, which is a sign that the circular economy waste management sector is maturing beyond manual operations.
Why should you care?
If you're an investor in the circular economy, this shows that established recycling operators are willing to pay for differentiated sorting and processing capabilities, which supports valuations for tech-enabled circular economy companies. If you're an entrepreneur in the circular economy, if you build differentiated sorting technology, traceability tools, or contamination reduction solutions, incumbents like NG Nordic may be interested in partnerships or acquisitions.
In our climate tech market deck, we identify pain points entrepreneurs should prioritize
Circulose restarts Sweden's biggest textile-to-textile recycling plant, giving circular fashion a credibility reset
Company updates
What happened?
Circulose announced the restart of commercial-scale production at the Ortviken plant in Sundsvall, Sweden, previously operated by Renewcell before its shutdown. The plant produces Circulose's recycled textile pulp, which is used to make new fibers from old clothing. The restart is positioned as a return to industrial-scale chemical textile-to-textile recycling after a difficult period for the category.
When was it?
Circulose announced the restart on February 16, 2026.
Why is it big news?
Textile-to-textile recycling is one of the most important and most difficult bottlenecks in circular fashion, and restarting a large commercial plant is a meaningful credibility reset for the entire category after Renewcell's failure.
Why should you care?
If you're an investor in the circular economy, this tests whether next-generation circular materials can move from high-profile failures to repeatable industrial operations, which is the key question for the category's long-term investment case. If you're an entrepreneur in the circular economy, the Circulose restart shows that the market rewards companies that secure downstream demand commitments and demonstrate operational readiness before ramping up capacity.
In our climate tech market deck, we dentify risks investors and builders need to be aware of
Papilo acquires Allwood to build a bigger multi-material circular recycling platform across the UK
M&A
What happened?
UK-based recycling provider Papilo announced the acquisition of Allwood Recycling Solutions, expanding its capacity across cardboard, wood, and plastics recovery. Papilo is backed by Palatine's Impact Fund, which focuses on purpose-driven businesses. The deal is part of a broader consolidation trend in UK recycling, where investors are building larger platforms capable of investing in better logistics and material recovery.
When was it?
The acquisition was announced on February 5, 2026.
Why is it big news?
The circular economy recycling sector is consolidating into larger platforms that can invest in higher-quality recovery and better logistics, which is a typical sign of an industry moving from fragmented early stage to scaled maturity.
Why should you care?
If you're an investor in the circular economy, platform roll-ups like Papilo can build defensible regional networks and improve unit economics through scale, which can be attractive for both PE and strategic buyers. If you're an entrepreneur in the circular economy, strong regional recycling operators with quality processes and good route density may find attractive exits to PE-backed consolidation platforms like Papilo.
In our climate tech market deck, we ensure you have the latest information
PP cold cups get a "Widely Recyclable" label, unlocking real recycling access for over 60% of US households
Regulations & Policies
What happened?
How2Recycle, managed by GreenBlue, upgraded polypropylene cold cups to the "Widely Recyclable" label, following a coordinated effort by multiple partners to expand infrastructure acceptance and collection. The upgraded label means consumers in more than 60% of US households can now put polypropylene cups in their curbside recycling. Starbucks was one of the key partners in the work to make this happen across the US.
When was it?
The upgrade was announced on February 2, 2026.
Why is it big news?
This is a practical system-level win for the circular economy: better labeling combined with verified infrastructure access can shift recycling behavior at a very large scale very quickly.
Why should you care?
If you're an investor in the circular economy, when packaging formats become broadly recyclable at this scale, demand for recycled polypropylene and MRF sorting upgrades tends to rise, creating investment opportunities up and down the value chain. If you're an entrepreneur in the circular economy, the PP cup upgrade creates concrete near-term opportunities in collection improvements, MRF technology upgrades, contamination reduction, and recycled-content polypropylene supply.
In our climate tech market deck, we like to quantify things to make things easier to understand
Google backs Redwood Materials' $425M round, connecting circular battery recycling to Big Tech's energy crisis
Fundraisings
What happened?
Redwood Materials expanded its Series E to $425M by adding Google as a new investor in the round. Redwood Materials recycles lithium-ion batteries and produces recycled battery materials for new cells. Google's investment connects Redwood Materials' circular battery supply chain to the fast-growing demand for energy infrastructure to power data centers and AI workloads.
When was it?
The expanded round was announced on January 28, 2026.
Why is it big news?
Google joining this round ties circular battery recycling to the hottest macro investment theme of the moment, which is energy resilience and power infrastructure for AI, pulling Big Tech capital directly into the circular economy.
Why should you care?
If you're an investor in the circular economy, this signals that "circularity plus infrastructure" models can attract strategic capital from Big Tech and command premium valuations when they solve a problem that matters beyond sustainability. If you're an entrepreneur in the circular economy, Redwood Materials' success shows that large strategic customers and investors want scalable industrial solutions with proven throughput, not early-stage pilots, and that hardware plus logistics plus demonstrated scale is what unlocks this kind of capital.
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