Cities can play a pivotal role in creating an enabling environment through regulations and incentives, but the private sector needs to collaborate and explore the cross-sectoral synergies required to achieve a circular model. There are immense opportunities for public-private collaboration in achieving goals that might not otherwise be possible for cities to accomplish alone.

Cities are embedding circular thinking in their utility processes, placing the onus on the private sector to come up with new business models that are both economically viable and ecologically sustainable. This could potentially result in a situation whereby circular products and services become the new market standard.

The previous Commission policy on resources management was part of the priority for jobs and growth and economic competitiveness. The circular economy will be no less important for the new political priority of climate neutrality; it will become one of the indispensable elements for meeting the EU’s ambitions.

EU climate policy and the circular economy are, by and large, complementary and mutually reinforcing. The circular economy is more than just another ‘product standards’ policy.

Circular economy products for the foreseeable future will require both technology push and market pull policies. The principal challenge will be to create ‘lead markets’ for the circular economy in combination with low-carbon products. 

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.

Waste and pollution from the production of textiles and clothing have become critical global issues. This report launched by Ecopreneur.eu and the European Sustainable Business Federation calls for decisive policy measures based on 5 pillars:

• Innovation policies: funding research programmes, investment tax deduction, support for technological development and SMEs.
• Economic incentives: procurement, extended producer responsibility, VAT, tax shift.
• Regulation: common regulatory framework for transparency and traceability, circular design, improved end-of-waste status.
• Trade policies: facilitating export of reusable textile waste and avoiding negative social impacts in producing countries.
• Voluntary actions: covenants, commitments and standards to engage stakeholders.