Circular Economy and Resource Efficiency

In recent years, circular economy (CE) and resource efficiency (RE) have taken centre stage in the G7 and G20 processes, contributed to the sustainable development agenda (SDGs), and played a role in addressing climate change. Circular economic processes aim to realise resource circulation. In other words, they are not linear, but cyclical flows encompassing procurement, production, consumption, and disposal—through practices such as recycling, reuse, remanufacturing, resource-efficient product development, and sharing.

Transitions to circular economic models are increasingly perceived as a positive and strategic approach to contributing toward climate neutrality, economic competitiveness, and social inclusion. In contrast, traditional linear economic models often imply overconsumption, generate excessive waste, and result in significantly higher nocive emissions throughout the value chain. As such, promoting circularity is essential for building resilient, low-carbon economies and achieving long-term sustainability goals.