The circular economy constitutes a novel economic paradigm that goes far beyond improved waste management and increased recycling rates. A circular economy model implements material efficiency strategies applied throughout the value chain, from improved product design for longevity and durability to mechanisms that enable proper separation of materials at the end-of-life phase, allowing for re-circulation. A path toward climate neutrality must include a shift to a circular economy.

EDF Europe has produced a literature review of the synergies between climate action and circular economy measures.

Among our findings:

• EU-wide adoption of circular measures in major industrial sectors could deliver 13-18% annual greenhouse gases (GHG) emission savings – roughly 390-550 million tonnes (Mt) CO2e each year – more than the annual carbon footprint of France or Italy.
• Shifting to renewable energy and improving energy efficiency will only take us so far – estimates suggest around 55% of global emissions – so product and circular economy measures will be essential to reach net zero.
• The literature currently points to the greatest potential in the building, agrifood, and transportation (especially automotive) sectors, where circular measures could reduce emissions by 85%, 60% and 55% respectively.

See below a short summary document of the most important findings, including the mitigation potential of different sectors, and the most promising measures to achieve emissions reductions through the circular economy.