The Challenges, Opportunities and Pathways for European Business in Circular Economy report is a EUROCHAMBRES initiative launched in order to better understand if and how the circular economy will benefit European businesses, and to delineate a successful transition. This will be the basis for a policy strategy to contribute to an enriching debate on future legislative proposals at European level.

This report is a comprehensive meta-analysis of the most up-to-date quantitative studies on the circular economy, and elaborates on nine industrial sectors (agriculture, construction, mobility, hospitality and food services, metal manufacturing, electronics, textile, food & drink manufacturing, and plastics) including case studies. Bearing in mind the future of European manufacturing industries and businesses, the paper focuses on European trends derived from available data regarding investment costs, cost savings, and investment opportunities.

The EU faces multiple challenges (climate crisis, environmental disasters, a lack of competitiveness, falling behind in the digital race, etc.) that it will need to address if it is to ensure long-term sustainable prosperity for European citizens. At the same time, there are two ongoing transitions – the creation of a circular economy and the digital transformation – that could provide the means to address these challenges, if they are managed well.

As the EU and national policymakers are making significant efforts to promote a circular economy on the one hand and a digital economy on the other, Annika Hedberg and Stefan Šipka, together with Johan Bjerkem, argue that it is time to align the agendas as a means to achieve greater sustainability and competitiveness.

This publication:

• demonstrates what digitalisation means in the context of a circular economy;
• considers what a greater focus on sustainability would mean for the digital transition;
• examines the role of the EU policy framework, tools and initiatives in steering a (digital) transition towards a (digital) circular economy and makes recommendations for EU institutions for the next five year.

It suggests that the EU must:

• think systemically, define a vision and act;
• provide an adequate governance framework and economic incentives for a (digital) transition to a (digital) circular economy;
• encourage collaboration across European society and economy as well as globally, and empower its citizens to contribute to the transition.

This Discussion Paper builds on the findings of the EPC’s "Digital Roadmap for a Circular Economy" project of 2017-19 and paves the way for a more extensive final study, scheduled to be published in the late autumn of 2019.

The project has been supported by Aalto University and the Natural Resources Institute Finland (Luke) (members of Helsinki EU Office), Central Denmark region, Climate-KIC, the Estonian Ministry of the Environment, Estonian Environment Investment Centre, HP, Orgalim, the province of Limburg, UL, Fondazione Cariplo and Cariplo Factory.

This report investigates how a more circular economy can contribute to cutting CO2 emissions. It explores a broad range of opportunities for the four largest materials in terms of emissions (steel, plastics, aluminium, and cement) and two large use segments for these materials (passenger cars and buildings). The key conclusion is that a more circular economy can make deep cuts to emissions from heavy industry: in an ambitious scenario, as much as 296 million tons CO2 per year in the EU by 2050, out of 530 Mt in total – and some 3.6 billion tonnes per year globally. Making better use of the materials that already exist in the economy thus can take EU industry halfway towards net-zero emissions. Moreover, doing so often is economically attractive. Initiatives for a more circular economy therefore deserve a central place in EU climate and industrial policy.