European Economic
and Social Committee
EUROPE’S PATH TOWARDS A GENUINE CIRCULAR ECONOMY FOR THE BENEFIT OF ALL
By Cillian Lohan
One of Europe's biggest challenges today is tackling the 'triple planetary crisis' – climate change, pollution and biodiversity loss – which is largely driven by increased resource consumption. Despite years of policy effort, the European Union remains off track to meet its circularity targets.
The forthcoming Circular Economy Act offers a unique opportunity to change direction. It must go beyond fine‑tuning and implementing existing rules and instead set a clear course towards an economy that respects planetary boundaries while strengthening Europe’s resilience and competitiveness. Circularity should no longer be viewed as solely environmental policy, but must be considered as economic and geopolitical strategy.
A necessary shift: reducing demand, not just waste
For too long, policy has focused on efficiency: recycling more and producing better. These efforts are necessary, but they are no longer sufficient. If overall consumption continues to increase, efficiency gains will simply be outweighed.
The EESC therefore calls for a fundamental shift: reducing resource use must become a central objective. This means complementing recycling with strong demand‑side measures that directly address overconsumption.
In other words, Europe must move from 'using resources better' to 'using fewer resources'.
Setting clear limits
This transition requires clear direction. The Committee recommends introducing material footprint targets aligned with planetary boundaries, providing a framework similar to climate targets.
Such targets would offer predictability for businesses, guide investment and ensure accountability — anchoring Europe’s economy within ecological limits.
Making circularity economically viable
Circular solutions will only scale if markets support them. Today, recycled materials often struggle to compete due to price gaps, fragmented regulation and quality concerns.
The Circular Economy Act must create a genuine single market for secondary raw materials. Removing barriers and establishing clear standards will allow circular business models to thrive and deliver both environmental and economic value.
Putting people at the heart of circularity
This transition must work for everyone. Workers, consumers and SMEs will experience the shift differently, and their concerns must be addressed from the outset. This is why the EESC positions civil society as a key actor in designing and implementing circular solutions on the ground.
A circular economy is not just about materials; it is about people. It must create opportunities, support adaptation and ensure that no group is left behind.
A strategic choice for Europe
Ultimately, the Circular Economy Act is about more than sustainability. It is about Europe’s ability to reduce dependence on imported resources, strengthen its competitiveness and build resilience in an uncertain world.
The EESC’s message is clear: the transition must be systemic, ambitious and fair. With the right choices now, Europe can lead the way towards an economy that thrives within planetary boundaries — and delivers lasting benefits for its citizens.