DS Circular economy > Policy conext EN REVAMP

What is the circular economy about?

A circular economy aims to maintain the value of products, materials, and resources for as long as possible. This is achieved by returning them into the product cycle at the end of their use. As a result, this, minimises the generation of waste. The fewer products we throw away and the less materials we extract from the environment to produce new products, the better for our environment.

This circular process starts at the very beginning of a product’s lifecycle: smart product design and production processes can help save resources, avoid inefficient waste management, and create new business opportunities.

What are the benefits?

The circular economy offers an opportunity to reinvent our economy, making it more sustainable and competitive. This brings benefits for European businesses, industries, and citizens such as:

  • more innovative and efficient ways of producing and consuming
  • protection for businesses against scarcity of resources and volatile prices
  • opportunities for local jobs and social integration
  • optimisation of waste management which boosts recycling and reduces landfill
  • energy savings as less production processes requires less energy
  • benefits for the environment in terms of climate and biodiversity, air, soil and water pollution.

What is the European Commission doing?

The EU wants to become a circular economy to make Europe cleaner and more competitive. To accelerate this transition, the European Commission adopted the circular economy action plan in 2020. It is one of the main blocks of the European Green Deal, Europe’s new agenda for sustainable growth.

In May 2023, the Commission adopted a revised EU monitoring framework for the circular economy, together with an accompanying staff working document explaining the indicators. 

What is Eurostat's role?

To monitor the progress towards the circular economy, several tools and instruments accompany the action plan of the European Commission. Eurostat's role is to provide access to relevant data which help monitoring progress. For this purpose, Eurostat publishes the circular economy monitoring framework.

For example, monitoring allows the European Commission and other policy makers to keep track of any progress made and assess the effectiveness of their actions.