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Circular economy

The EU aims to transition to a circular economy to make Europe cleaner and more competitive.


There is only one planet Earth, yet by 2050, the world will be consuming as if there were three. The EU’s transition to a circular economy will reduce pressure on natural resources, create sustainable growth and jobs, and is necessary to achieve the EU’s 2050 climate neutrality target and to halt biodiversity loss.

Moving away from the linear “take-make-use-dispose” model and transitioning to a regenerative growth model is essential to keep resource consumption within planetary boundaries. In a circular economy, the value of products, materials and resources is maintained in the economy for as long as possible, and the generation of waste is minimized.

The current linear economy continually increases its demands of scarce natural resources. By using and consuming in a more circular way, we can substantially reduce the impacts of human economic activities on the environment, including on biodiversity.

To accelerate the EU’s transition to a circular economy, the European Commission adopted the new circular economy action plan in March 2020.

of biodiversity loss is caused by resource extraction and processing
Up to 80%
of products’ environmental impacts are determined at the design phase
the current circular material use rate in the EU


The circular economy will help us decouple economic growth from resource use, protecting Europe’s natural resources while boosting sustainable growth. It will help the European Union to strive to reduce its consumption footprint and double its circular material use rate in the coming decade.

The circular economy will

  • enable an healthier planet and reduce pollution
  • reduce pressure on natural resources such as water and land use
  • reduce emissions to help the EU become the first climate-neutral continent
  • create new business opportunities and local quality jobs
  • enable more resilient value chains

Specific policies

EU action on plastic production and pollution to contribute to a circular economy.

New criteria to stop companies from making misleading environmental claims.

EU action to address the production and consumption of textiles.

Tools and instruments

The EU’s label of environmental excellence, helping consumers make greener choices.