HOT FROM THE PRESS — on 19 May 2026, the European Environment Agency (EEA) published three new assessments on circularity in the EU, sending a clear message: significantly greater investment is needed to unlock the full potential of the circular economy.

The reports underline that scaling up circular economy measures could deliver major environmental and economic benefits for the EU, including reduced climate and environmental impacts, greater resource security and new business opportunities. At the same time, they stress that investment in circularity must accelerate if the EU is to achieve its climate and environmental objectives.

The new publications include:

• The EEA briefing “The environmental and climate benefits of circular economy” outlines how a package of 17 circular economy actions could reduce the EU’s impact on climate change by 22%, biodiversity loss by 19% and air pollution by 25%. The briefing also highlights the potential of circularity to strengthen resource supply security and reduce external dependencies.
   

• The report “Unlocking the circular economy: investment needs, barriers and enabling conditions” shows that the circular economy represents a major strategic business opportunity for Europe. However, it concludes that accelerated investment will be essential to achieve the objectives of existing circular economy policies, identifying an annual investment gap of approximately EUR 82 billion through to 2040.
  The report also points to persistent structural economic and financial barriers slowing progress, and stresses the need for targeted policy action to improve access to finance and increase the bankability of circular projects.
   

• The EEA briefing “Material stocks in a circular economy” focuses on long-lived product sectors such as buildings, vehicles, roads and machinery, where reuse and recycling offer the greatest potential to increase the uptake of secondary raw materials.
  In the EU, each person consumes an average of 14.4 tonnes of materials per year, of which more than 6 tonnes become embedded in buildings, infrastructure or machinery — collectively referred to as “material stock”. Improving the circularity of these material stocks could play a key role in strengthening Europe’s competitiveness and economic security.