Seventeen circular economy actions could cut the EU’s climate impact by 22% — almost one billion tonnes of CO2-equivalents — while also reducing biodiversity loss by 19% and fine particle air pollution by 25%.
The figures come from new assessments by the European Environment Agency published on Tuesday that modelled specific measures across sectors including housing, mining, food and mobility.
The EEA said the same measures could also reduce the EU’s reliance on some strategic raw materials extracted outside Europe, including a decline of around 20% for aluminium, nickel and platinum group metal ores, and 12% for copper.
It said circularity measures reduce demand for natural resources, while the EU imports large amounts of resources and products whose extraction can affect local environments in other regions.
Investment gap estimated at €82bn a year
Faster investment will be needed for the EU to meet the objectives of circular economy policies already adopted, with an estimated investment gap of around €82 billion per year up to 2040, the agency said.
Product design and end-of-life stages need the most attention, with the biggest sector gaps in construction, textiles, and batteries and vehicles.
Private finance currently provides most circular economy investment, while public funding can help de-risk projects and support blended and longer-term financing.
A separate EEA briefing said improving the circularity — the reuse or recycling potential — of long-lived products such as buildings, cars, roads and machinery could provide more cost-competitive, homegrown raw materials.
Europe consumes 14.4 tonnes of materials per person each year, and almost half — over 6 tonnes — becomes embedded in buildings, infrastructure or machinery as “material stock.”
