Every five years, the European Environment Agency publishes a state of the environment report.

The 2025 report stresses that climate change and environmental degradation pose a direct threat to Europe’s competitiveness, which depends on natural resources. Protecting natural resources, mitigating and adapting to climate change, and reducing pollution will build the resilience of vital societal functions that depend on nature, such as food security, drinking water and flood defences.

We need to rethink the links between our economy and the natural environment, land, water and natural resources. The circular economy is part of this dynamic, and is addressed in chapter 4 on Managing the dynamic between our economy and our natural resources.

This policy brief aims to shed light on the circular economy’s role as a systems approach to delivering the Kunming-Montreal Global Biodiversity Framework (GBF) and addressing the global biodiversity crisis.

The circular economy does not explicitly feature in the GBF. It is often narrowly associated with waste reduction, particularly in the plastics sector. This risks obscuring the broad potential of circular approaches across sectors to help achieve biodiversity objectives, including through improved resource use, sustainable land management and funding mobilisation. 

The brief underscores the circular economy’s potential to transform the whole economic system into one that values, preserves and regenerates nature – a transformation essential to the GBF’s long-term success.