The European Environment Agency (EEA), an EU body that provides independent data and policy insights on sustainability and environmental progress, has released its 2024 report on the circular economy, offering a detailed analysis of Europe’s shift towards a more sustainable, inclusive, and resource-efficient future. With the EU aiming for climate neutrality by 2050, this report highlights key challenges, policy progress, and future directions needed to accelerate circularity across industries, communities, and everyday life.

Europe still largely operates in a linear economy, where products have short lifespans, leading to excessive waste, economic inefficiencies, and dependency on raw material imports. The report underlines that waste management alone is not enough - the real focus must be on extending product lifecycles, increasing reuse and repair, and creating strong local markets for high-quality recycled materials. Despite some progress, recycling rates have stagnated, and the demand for secondary raw materials remains weak, requiring better incentives and policies to support social enterprises, cooperatives, and local circular initiatives.

The report also stresses that the circular economy is about more than just waste - it is a key solution to the triple planetary crisis of climate change, biodiversity loss, and pollution. It also presents opportunities for the social economy, with sectors such as construction, textiles, and manufacturing needing to rethink material use, empower local circular enterprises, and create job opportunities through repair, remanufacturing, and sustainable production models.

The transition to a circular economy is underway, but progress is too slow to meet 2030 targets. While positive changes are happening, bolder action is needed to reduce material consumption, strengthen community-driven circular initiatives, and create sustainable, localised business models. The report makes it clear: if Europe wants to lead on circularity, decisive action must happen now with the social economy playing a key role.

For a full overview of the findings, download the report below.