Monitoring

Overview

Transitioning to a circular economy is one of the EU’s key strategic ambitions. This systemic transformation will improve sustainability, reduce pollution, and mitigate climate change. In particular, circularity calls for: a) minimising consumption of resources, b) keeping products in use for as long as possible, and c) making use of generated waste so these materials are fed back into the economy. Moving to circularity involves introducing a series of changes across thematic areas with Europe’s economic and societal systems.

There are currently a number of monitoring frameworks focussed on Europe’s circular economy, including the European Commission’s Circular Economy Monitoring Framework. The existing frameworks are strong in understanding macrophenomena, and, particularly, aggregated accounting of material flows associated with resource supply and waste. These aspects are part of “circularity” in that a sustainable circular economy would be one with material flows with low virgin resource supply and high recirculation of waste. However, some other elements of circular economy are less well covered in existing monitoring approaches, often because the data flows to understand them are fragmented or non-existent. By combining novel sources and a wide range of perspectives, the CML complements existing initiatives by compiling responsive data on the growth of the circular economy.

Assessment

Based on the metrics presented within the CML, the following assessment points are evident:

• A strong enabling framework has been developed at EU-level to foster and support the circular economy — and this is also evident at national level for most member states.

• Companies and consumers are showing early signs of adopting new business models and consumption patterns. However, linear systems continue to prevail and the effectiveness of ongoing efforts remains unclear, partly due to limited monitoring data.

• Continuing high levels of consumption and waste generation are barriers to reaching high circularity. Recycling rates have been improving, though progress has slowed, and trends are at risk of reversing.

• Resource productivity across the EU is increasing, and the consumption footprint is broadly stable. However, consumption of resources, materials and services is substantially beyond the planet’s safe operating space.

• The material circularity in the EU is low and the observed increasing trend is very gradual. Moreover, residual municipal waste production remains stable. The EU’s aspirations to double the circular material use rate and halve residual municipal waste by 2030 are unlikely to be realised.