Agenda 2030

Even though there is only one planet Earth, the planet is consuming, and it will consume resources as if there were three by 2050. In the next 40 years, global consumption of biomass, fossil fuels, metals, and minerals is expected to double, while annual waste production is expected to rise by 70% by 2050.

Since resource production and processing account for half of overall greenhouse gas emissions and more than 90% of biodiversity depletion and water stress, the European Green Deal developed a detailed response for a climate-neutral, resource-efficient, and sustainable economy.

Scaling up the circular economy from early adopters to mainstream economic actors would lead greatly to achieving climate neutrality by 2050 and decoupling economic development from resource consumption, all while maintaining the EU's long-term competitiveness and leaving no one behind. To achieve this goal, the EU must accelerate the transition to a regenerative growth paradigm that gives back more to the earth than it takes, make progress in maintaining resource use within global limits, and aim to reduce its consumption footprint and double its circular material usage levels in the next decade.

Working together to create a structure for recycled goods would open up new possibilities for companies in the EU and beyond.

The new EU industrial policy must contain this phased yet permanent transition to a sustainable economic environment. According to a recent report, incorporating circular economy concepts across the EU economy has the potential to raise GDP by 0.5 percent by 2030, resulting in the production of 700.000 new jobs.

^{Figure 8 - Agenda 2030}

Closed loop models can maximize profitability while shielding businesses from resource price fluctuations, which is a straightforward business argument for individual companies. Manufacturing firms in the EU spend around 40% on goods on average, so closed loop models can improve profitability while shielding them from resource price fluctuations.

The circular economy will reinforce the EU's manufacturing base and promote business growth and entrepreneurship among SMEs by exploiting the single market and the power of digital technology. Innovative models focusing on a stronger interaction with consumers, mass customization, the sharing and collaborative economy, and driven by emerging technology like the internet of things, big data, blockchain, and artificial intelligence will not only intensify circularity, but also the dematerialisation of our economy, reducing Europe's reliance on primary materials.

The circular economy would provide people with high-quality, practical, and sustainable goods that are reliable, inexpensive, and designed for reuse, repair, and high-quality recycling. A new set of sustainable services, product-as-a-service models, and emerging solutions would result in increased quality of living, new work prospects, and improved knowledge and skills.

In collaboration with economic leaders, consumers, individuals, and civil society organizations, this Circular Economy Action Plan offers a future-oriented agenda for creating a cleaner and more sustainable Europe.

Its aim is to accelerate the transformational change demanded by the European Green Deal, while still building on circular economy initiatives that have been in place since 2015. This strategy would ensure that the regulatory system is simplified and made ready for a prosperous future, that potential possibilities emerging from the transformation are maximized, and that individuals and companies are burdened as little as possible. The strategy lays out a series of interconnected policies aimed at establishing a clear and consistent product policy structure that will make renewable goods, services, and business models the standard, as well as change consumption habits so that no waste is created in the first place.

This product policy structure would be gradually implemented, with main product value chains receiving priority attention. Additional steps will be introduced to minimize pollution and ensure that the EU's internal demand for high-quality secondary raw materials is well-functioning. The EU's willingness to take responsibility for its pollution would be bolstered as well. By working alone, Europe would not be able to make transformative reform.

On a global scale, the EU will continue to lead the way toward a circular economy, using its authority, experience, and financial tools to help countries meet the 2030 Sustainable Development Goals.

This policy seeks to ensure that the circular economy supports individuals, countries, and communities, contributes completely to climate neutrality, and fully exploits the potential of science, creativity, and digitalization. It envisions the continued implementation of a sound monitoring system that can help to measure well-being in ways other than GDP.