In a circular economy, materials are more durable and easier to repair, reuse and recycle while waste is turned into a resource. In addition, processes from production to waste management become more resource efficient. Innovative business models enable companies to create value by selling services rather than products. Digital technologies will be pivotal in bringing about this systemic change. The European Union has to make the most of digital solutions for the benefit of a circular economy. This requires addressing the barriers to their uptake, enabling the free flow of data across borders, fostering trust in the data economy, and maximising synergies between the digital and circular economy agendas.