New and rapid development of technology worldwide has led to the fact that mobile phones,tablets or TVs have become a necessity in our everyday lives. Every year newer models arelaunched that make the technology a little better and that we update ourselves with it. Butwhere does the e-waste go? Do we know for sure that it will be reused or recycled if we leaveor throw away the e-waste in the right place? The purpose of the essay is to investigate howthe EU's circular economy plan can contribute to managing the growing waste stream, with afocus on electronics and ICT products. To answer the purpose, I look for the challenges thatthe EU faces regarding the directives and measures given in the action plan, based on North's(1993) theory of formal and informal institutions. Previous research describes both the prosand cons of the older directives issued by the commission, and believes that formal measureswill be implemented that will ensure that all member states have the same conditions to beable to recycle and reuse in the best way. Also that stricter laws will be implemented from thebeginning in order for the informal institutions to change. The essay points out that wastemust be seen as a resource instead of waste as we live in a society where e-waste accounts for5 percent of solid waste and is the fastest growing in the world.