Circular economy

The Earth’s resources are limited. If we keep producing and consuming as we do today, we will need three planet Earths by 2050.

EU countries are working to transform the EU’s economy into a circular system where products are more sustainable and materials are recovered to prevent waste.

Three planets in a row: the first in blue, the other two dotted.

What is a circular economy?

A circular economic model is based on sharing, repairing, reusing and recycling products and materials for as long as possible. By extending the life cycle of products, the circular economy contributes to cutting waste to a minimum.

Going circular means using fewer natural resources and reducing dependence on imports of raw materials. It means producing less and so releasing fewer greenhouse gas emissions, thus reducing our impact on the environment and nature. A circular model is also an opportunity to increase competitiveness and create new jobs and business opportunities.

The circular economy explained

Resources

Raw materials are essential for the economy and their demand is set to increase exponentially in the coming years. However, resource extraction and processing heavily impact the environment.

In a circular economy, demand for raw materials is reduced, and materials are recycled and brought back into the production cycle.

Critical raw materials

Production

White t-shirt of which 10% is coloured in green; recycling symbol.

In a circular model, products are made to last and are more recyclable, energy-efficient and repairable.

EU rules set sustainability requirements for all products covering their entire life cycle and create incentives for both producers and consumers to repair goods instead of disposing of them immediately after use.

Consumption

In addition to measures prolonging the life of products, EU rules aim to empower consumers to make more informed and sustainable choices when they buy a product or a service.

Under these rules, when companies claim that their products are green, they need to prove it, including by participating in certification schemes like the EU Ecolabel.

Empowering consumers

Recovery and waste

Waste is a resource in the circular economy. EU legislation sets rules on recovering and re-using materials to transform them into new products and resources.

EU countries have adopted measures to prevent and reduce waste, for instance by restricting plastic items and certain types of packaging.

80% of the waste found in the ocean is plastic. Since 2021, the EU has banned the 10 most common single-use plastic items from the market.