This report addresses legislative obstacles to innovations that could bring wider societal benefits. As part of this work, an extensive review of the relevant research, directives and white papers, as well as several expert interviews, are conducted to identify the obstacles that seem to be hindering the transition to a Circular Economy in the white goods and automotive industry. In doing so this research has thoroughly analysed 6 highly relevant directives and 5 white papers as well as interviewed 10 experts from these two industries. The report also highlights possible policy adjustments, which are necessary to eliminate these obstacles and thereby, enables the transition to the Circular Economy. These policy adjustments have significant importance for ReCiPSS demonstrators to scale up as well pave the Circular Economy transition path for these two industries and beyond. This work is also considered as the necessary first step to initiate an Innovation Deal. Furthermore, the findings of this research will be a major input to the policy brief that the ReCiPSS project aims to deliver.