Circling forward to sustainability
If the entire world population lived like the average EU citizen, we would need 2.8 planet Earths to provide a stable supply of natural resources. There is another way: a well-designed and implemented circular economy can address these crises by moving the market away from an extractive economic model and towards an approach which will allow us to stay within the Earth’s carrying capacity.
Why does the EU need a circular economy?
Overexploitation of raw virgin materials drives 90% of biodiversity loss, causes 90% of water stress, and contributes to over 45% of global greenhouse gas emissions.
This dependence on (mostly imported) raw materials makes Europe vulnerable to global market fluctuations and geopolitical tensions – a reality that has already been highlighted by price spikes and supply chain disruptions from both the COVID-19 pandemic and the war in Ukraine.
Since the Circular Economy Action Plan launched in 2015, the EU has introduced multiple important pieces of legislation to promote sustainable production and consumption. These initiatives have been positive, but they also require careful evaluation. Despite political momentum, and even though these initiatives have not yet had enough time to realise their potential, with a circularity rate of just 11.5%, the EU remains heavily dependent on virgin materials, often controlled by autocratic regimes, unsustainable, and associated with environmental degradation and social injustice. Much more needs to be done to accelerate the transition to a circular economy.
How can the EU enable the transition to a circular economy?
Our report focuses on three key enablers for the EU to effectively and efficiently transition to a circular economy:
- Circular economy pillars: Build on solid foundations
- Targets and metrics: Set a clear direction
- Systems thinking: Focus on the big picture
