The transition towards a circular economy (CE) relies on a supporting policy framework. The EU is currently recognised as a global leader in climate action and has adopted a comprehensive policy package to reach the objectives set out in its Circular Economy Action Plan. This paper examines current and planned CE policies, their key impact on industries
The world faces multiple sustainability crises, including climate change, biodiversity loss, and increasing waste production. A major contributor to these crises is the linear economic model, where raw materials are extracted, used briefly, and then discarded. The circular economy (CE) offers a solution by rethinking product design, material use, and waste management to ensure a more sustainable, resource-efficient system.
The EU has made significant progress in environmental policies over the past two decades, with frameworks such as the EU Green Deal and the Circular Economy Action Plan. However, despite ambitious targets, material consumption and waste levels remain high, and recycling efforts often result in downcycling, where material quality is lost. Key industries, including manufacturing, electronics, and textiles, struggle to integrate circular practices due to regulatory gaps, economic barriers, and lack of incentives.
This paper explores existing and proposed EU policies for CE, particularly in manufacturing and industrial sectors. It evaluates regulatory frameworks, financial mechanisms, and standardization efforts while proposing policy recommendations to enhance the CE transition. The report also examines the role of public procurement, industrial strategies, and cross-border cooperation in shaping a smarter, more inclusive circular economy.
Ultimately, a successful CE transition requires strong governance, industry collaboration, and targeted policy reforms. This paper serves as a guide for policymakers, industry leaders, and sustainability advocates to drive meaningful progress in Europe’s circular economy journey.
Mattias Lindahl: Since 2003, Mattias Lindahl is a professor at Linköping University, specializing in EcoDesign, Product Service Systems (PSS), and Circular Economy and in October 2023, he began a guest professorship at Luleå University of Technology. He has led major research projects such as the Mistra REES program, a 180 MSEK initiative promoting the transition of Sweden’s manufacturing industry towards a circular economy. He has contributed to international ISO and IEC standards and chairs the SIS committee responsible for circular economy. He has also been a member of Sweden’s circular economy delegation and serves as an associate editor for the Journal of Cleaner Production.
Carl Dalhammar: Associate professor at IIIEE, Lund University. In his research he has analysed numerous environmental laws and policies, including the Ecodesign Directive, Circular Economy policies, right-to-repair policies, planned obsolescence, EU energy efficiency laws, government procurement programs, and product destruction. Carl teaches environmental law and politics in several European and Swedish master and undergraduate programs. He is a member of the Research Council at the Swedish Competition Authority, and board member of the Swedish national innovation program Re:Source.
Fores – Forum for reforms, entrepreneurship and sustainability – is the green and liberal think tank based in Sweden. With one foot in academia and the other in the public debate, Fores works every day towards solutions and policies that strengthen the liberal democracy. For more information, visit Fores.se.