Overview
There is only one planet Earth, yet by 2050, the world will be consuming as if there were three.
The traditional linear model of ‘take, make, use, dispose’ is unsustainable and pushes us beyond planetary boundaries.
In a circular economy, products and materials are kept in circulation for as long as possible, and waste and resource use are minimised.
The EU’s transition to a circular economy is crucial for reducing pressure on natural resources, halting biodiversity loss, achieving climate neutrality by 2050, and building a more resilient and competitive Europe.
Circular Economy Act
Due for adoption in 2026, the Circular Economy Act aims to establish a Single Market for secondary raw materials, increase the supply of high-quality recycled materials and stimulate demand for these materials within the EU. It will contribute to the ambition laid out in the Competitiveness Compass to make the EU the world leader in the circular economy by 2030.
The circularity rate is one way to measure how circular our economy is. This number shows how much of the materials we use are recycled or reused instead of being thrown away. Right now, Europe’s circularity rate is about 12%, but the goal is to double it to 24% by 2030. This target is part of the EU’s Clean Industrial Deal.
In August 2025, the Commission launched a public consultation on the upcoming Circular Economy Act.
The Circular Economy Act will build on the second Circular Economy Action Plan, reinforcing and broadening its measures to accelerate Europe’s shift to a resource-efficient, low-waste and climate-neutral economy.
Circular Economy Action Plan (2020)
Adopted in March 2020, the second Circular Economy Action Plan is one of the main building blocks of the European Green Deal, Europe’s agenda for sustainable growth.
The action plan includes initiatives addressing the entire life cycle of products, including how products are designed, as well as ensuring that waste is prevented and that used resources are kept in the EU economy for as long as possible.
It introduces legislative and non-legislative measures targeting areas where action at the EU level brings real added value.
Actions
Most of the legal acts foreseen under the second Circular Economy Action Plan have been adopted and entered into force.
A sustainable product policy framework
- The Ecodesign for Sustainable Products Regulation (ESPR) entered into force in July 2024. It is the cornerstone of the Commission’s approach to more environmentally sustainable and circular products.
- The Directive empowering consumers for the green transition from March 2024 ensures that consumers are provided with better information at the point of sale on the durability and reparability of goods and the consumer’s legal guarantee rights.
- The Directive on repair of goods establishing the 'right to repair' entered into force in July 2024.
- The review of the Industrial Emissions Directive resulted in the adoption of the Industrial and Livestock Rearing Emissions Directive (IED 2.0). Integrating circular economy practices and resource efficiency in the Best Available Techniques, it began to apply from August 2024.
- In March 2023, the Commission submitted a proposal for a Directive on substantiating green claims.
Key product value chains
- The new Regulation on Packaging Waste (PPWR) entered into force in February 2025. Replacing the previous Directive, it harmonises national measures further - strengthening the internal market - notably for secondary raw materials, manufacturing, recycling and reuse.
- A new Batteries Regulation was adopted in July 2023, ensuring that batteries placed on the EU market are sustainable and circular throughout their whole life cycle.
- In March 2022, the EU strategy for sustainable and circular textiles was adopted.
- A new Regulation on end-of-life vehicles was proposed in 2023.
Less waste, more value
- A new Regulation on waste shipments entered into force in May 2024, aiming to ensure that the EU does not export its waste challenges.
- The Commission has evaluated the Directive on Waste Electrical and Electronic Equipment (WEEE). The Commission will use the evaluation findings to inform a proposal to revise the WEEE Directive, as part of the upcoming Circular Economy Act.
- Restrictions on intentionally added microplastics and measures on unintentional release of microplastics: A REACH restriction was adopted in 2023.
- The Commission also proposed a Regulation on Microplastics in 2023.
See our circular economy at the global level, plastics, sustainable development and waste and recycling pages for related policies.
Implementation
It is essential to monitor the implementation and progress towards a circular economy and its direct and indirect benefits. This allows the EU and national authorities to assess whether policies are effective and to identify best practices.
In 2023, the Commission revised the Circular Economy Monitoring Framework, previously adopted in 2018, adding new indicators.
- August 2025Commission launches public consultation on Circular Economy Act
- May 2023Commission revises circular economy monitoring framework
- Circular economy monitoring framework
- Find out more in the news announcement and factsheet
- 11 March 2020Commission adopts second Circular Economy Action Plan
- December 2015Commission adopts first Circular Economy Action Plan
All 54 actions under this plan have been delivered or are being implemented.
Tips
Below you can find some tips and advice from circular economy experts on how to increase your sustainable consumption.
"Embrace the Nose-to-Tail Philosophy! Try using more parts of the animal in your cooking. Instead of only buying standard cuts of meat, consider incorporating offal (like hearts, livers, or kidneys) into dishes."
"Take reusable bags or glass jars and head to a local market, a cooperative or local farmer. It's a great way to support small producers, reduce packaging, and enjoy the morning air."
"Measure your food waste for one week - it will reveal any bad habits you might have."
"Look for quality materials. Check the label for fabric composition, country of origin, and stitching. The details say a lot about how long a piece will last."
"Learn how to repair or find someone to do it for you. Mending a small hole or sewing back a button can extend the life of the garment. And if you don't have time, find a local repair shop or tailor who can do it for you."
"If you're short on fabric, consider buying second-hand clothes online to upcycle the material — it’s cheaper, offers more variety, and most importantly, it’s eco-friendly."
"Think before you buy. Do you really need that new gadget? How often are you going to use it? And if you do buy something - take care of it!"
"Focus on fun! Support young people to collect friends and experiences, not things. Be guided by their interests! They may already have a lot of passion or knowledge and be keen to explore, learn, or campaign around a particular area."
"Make sorting waste easy at home and work. Place the right bins in the right spots with fun reminders (like stickers) for kids or even your in-laws! It’ll help everyone sort waste correctly."
"Connect people through process – circularity is a mindset and a community builder."
"Participate in public consultations. Voting, activism, and raising awareness all contribute to systemic change."
"Visibility creates change. Be the post, the story, the movement. What we normalise, we multiply!"
- Communication: new circular economy action plan and annex
- Publication: Circular Economy Action Plan
- Factsheet: Circular Economy Action Plan
- Communication on a revised monitoring framework for the circular economy
- Staff working document: Measuring progress towards circular economy in the EU – revised monitoring framework
- Staff working document: Leading the way to a global circular economy: state of play and outlook
- Publication: Leading the way to a global circular economy, state of play and outlook
- Factsheet: Circular economy action plan as part of the European Green Deal
- Factsheet: International aspects of the circular economy action plan
- Factsheet: How research and innovation enables the transition to a circular economy
Contact
For questions about EU environmental policy, please contact Europe Direct.
Latest news
Today, the European Commission published guidelines on the implementation of the Packaging and Packaging Waste Regulation (PPWR) to facilitate the uniform application of the new packaging rules across the EU and simplify compliance for economic actors and Member States.
The document, which also aims to increase circularity, will support authorities and building professionals in their efforts to decarbonise buildings.
A hotel part of the Accor Group is making sustainability part of the stay. The EU Ecolabel checked in, and competitiveness followed. Check out their success story!