Report on the European Union’s Circular Economy Initiatives and Alignment with Sustainable Development Goals

Introduction and Strategic Objectives

The European Union is advancing a comprehensive strategy to transition towards a circular economy, a key pillar of the European Green Deal and its agenda for sustainable growth. This strategy is designed to meet ambitious environmental and economic targets, directly contributing to the achievement of the United Nations Sustainable Development Goals (SDGs). A primary objective, outlined in the Competitiveness Compass, is to establish the EU as the global leader in the circular economy by 2030. This ambition supports sustainable economic models in line with SDG 8 (Decent Work and Economic Growth).

A critical metric for this transition is the circularity rate, which measures the proportion of material resources that are recycled and reused. The EU has set a clear target for this indicator as part of its Clean Industrial Deal:

• Current Circularity Rate: Approximately 12%
• 2030 Target: To double the rate to 24%

Achieving this target is fundamental to progress on SDG 12 (Responsible Consumption and Production) by fundamentally reshaping patterns of resource use and waste generation.

Key Legislative Frameworks

Circular Economy Act

The upcoming Circular Economy Act, due for adoption in 2026, is poised to accelerate Europe’s shift to a resource-efficient, low-waste, and climate-neutral economy. A public consultation was launched in August 2025 to inform its development. The Act will build upon the foundation of the second Circular Economy Action Plan, with specific objectives that align with multiple SDGs:

• Establish a Single Market for secondary raw materials: This fosters industrial innovation and builds sustainable infrastructure, directly supporting SDG 9 (Industry, Innovation, and Infrastructure).
• Increase the supply of high-quality recycled materials: This measure promotes the core principles of a circular economy.
• Stimulate demand for recycled materials within the EU: By creating robust markets, this objective reinforces responsible production cycles as envisioned in SDG 12.
• Promote a climate-neutral economy: The reduction in virgin material extraction and processing directly contributes to SDG 13 (Climate Action).

Circular Economy Action Plan (2020)

Adopted in March 2020, the second Circular Economy Action Plan provides the strategic foundation for the EU’s initiatives. It introduces a range of legislative and non-legislative measures targeting areas where EU-level action provides significant added value. Its core principles are centered on sustainable resource management:

1. Product Lifecycle Integration: The plan addresses the entire lifecycle of products, from sustainable design to end-of-life management, which is a central tenet of SDG 12.
2. Waste Prevention: A primary focus is on preventing waste, which contributes to the development of SDG 11 (Sustainable Cities and Communities) by reducing the environmental burden of urban centers.
3. Resource Longevity: The plan ensures that used resources are kept within the EU economy for as long as possible, maximizing material efficiency and minimizing reliance on virgin resources.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on the EU’s Circular Economy Act and Action Plan addresses several Sustainable Development Goals (SDGs) by focusing on resource efficiency, sustainable economic models, and climate action. The following SDGs are directly connected:

• SDG 8: Decent Work and Economic Growth: The article connects the circular economy to economic ambition through the “Competitiveness Compass” and the goal to “make the EU the world leader in the circular economy by 2030.” This implies a focus on sustainable economic growth that is decoupled from resource depletion.
• SDG 9: Industry, Innovation, and Infrastructure: The plan aims to establish a “Single Market for secondary raw materials” and stimulate demand for recycled materials. This involves creating new industrial processes and infrastructure to support a circular model, aligning with the goal of building resilient and sustainable infrastructure.
• SDG 12: Responsible Consumption and Production: This is the most central SDG in the article. The entire concept of a “circular economy,” which aims to keep resources “in the EU economy for as long as possible,” directly addresses sustainable consumption and production patterns. The article explicitly mentions making the economy “resource-efficient” and “low-waste.”
• SDG 13: Climate Action: The article explicitly states that the Circular Economy Act aims to accelerate Europe’s shift to a “climate-neutral economy.” This directly links the principles of circularity and resource management to the broader goal of combating climate change.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s focus, several specific SDG targets can be identified:

1. Target 8.4: “Improve progressively, through 2030, global resource efficiency in consumption and production and endeavour to decouple economic growth from environmental degradation…” The article’s core theme of creating a “resource-efficient” economy that also enhances competitiveness directly supports this target.
2. Target 9.4: “By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes…” The establishment of a “Single Market for secondary raw materials” and the goal of increasing the supply of high-quality recycled materials necessitate upgrading industrial processes as described in this target.
3. Target 12.2: “By 2030, achieve the sustainable management and efficient use of natural resources.” The article’s ambition to create a “resource-efficient, low-waste” economy is a direct implementation of this target.
4. Target 12.5: “By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.” The article highlights that the action plan focuses on preventing waste and ensuring that “used resources are kept in the EU economy for as long as possible,” which aligns perfectly with this target.
5. Target 13.2: “Integrate climate change measures into national policies, strategies and planning.” The Circular Economy Act itself is a clear example of a policy initiative that integrates climate change measures (aiming for a “climate-neutral economy”) into the EU’s strategic planning.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article explicitly mentions a key indicator for measuring progress:

• The Circularity Rate: The article defines this indicator as a way “to measure how circular our economy is,” showing “how much of the materials we use are recycled or reused instead of being thrown away.” This directly measures progress towards targets related to waste reduction and resource efficiency, such as Target 12.5.
• Specific Measurable Goal: The article provides a quantifiable goal for this indicator, stating the ambition is to “double it to 24% by 2030” from the current rate of “about 12%.” This provides a clear, time-bound metric to track the success of the Circular Economy Act.

4. Summary Table of SDGs, Targets, and Indicators

Source: environment.ec.europa.eu