This briefing presents key facts and figures around Europe’s effort to forge a circular economy. It uses key indicators for acknowledging
Key messages
With a circularity rate of 11.8% in 2023, Europe consumes a higher proportion of recycled materials than other world regions, although improvements have been limited in recent years. Accelerating the transition to a circular economy has become a policy priority.
Monitoring the circular economy involves tracking not only material flows but also environmental degradation, as it is associated with resource extraction, processing, and use.
A strong enabling framework of policies, knowledge, and financing has been developed at the EU level to foster and support the circular economy. Companies and consumers are showing early signs of adopting new business models and consumption patterns. However, linear systems continue to prevail, and the effectiveness of ongoing efforts remains unclear, partly due to limited monitoring data.
Each European uses about 14 tonnes of material and generates 5 tonnes of waste annually—among the highest levels globally and beyond sustainable limits, posing barriers to narrowing material cycles in Europe. On the positive side, the EU has managed to grow its economy while using a stable amount of resources and generating a stable amount of waste, achieving a modest level of decoupling.
Europe is highly efficient in extracting value from resources, with resource productivity exceeding €2/kg since 2015, more than 2.5 times the world average. Similarly, Europe recycles almost half of the waste it generates, and would benefit from promoting high-quality recycling and supporting the effective functioning of secondary material markets.
Material circularity in Europe has been low and relatively stable in recent years, as both recycling volumes and material use have stagnated since 2014. Furthermore, global environmental impacts from Europe’s consumption are increasing, and the environmental benefits of circularity have not yet become apparent.
