Assessing the Climate Mitigation Potential of Circular Economy

This briefing provides information about the interlinkages between circular economy and climate change mitigation. It is based on a literature review of recent modelling results and supports the 2025 Clean Industrial Deal and 2020 Circular Economy Action Plan.

European Environmental Agency

• Over the past five years more than 130 articles have been published documenting the significant climate mitigation potential of the circular economy.
• However, methodological differences across studies make direct comparison of results challenging, yet some general highlights can be made.
• Based on an average of the estimates for reductions across the studies, the circular economy could deliver a reduction in greenhouse gas (GHG) emissions of 33%, yet this ranges from 2% to 99%.
• Results from individual sectors, indicate that emissions from waste management could be reduced by an average of 52% (range: 9-88%); from construction by 48% (range: 15-99%); and from industry by 26% (range: 5-61%).
• Smaller living spaces, dietary shifts and shared mobility are commonly cited in modelling exercises as individual measures with high mitigation potential.
• Further work is needed to integrate circular economy measures into climate change scenarios and to develop modelling tools that support policymakers in assessing their potential benefits.