
New solutions for Europe to track and progress its journey to a circular economy
29 Apr 2025
A new set of tools and metrics will support the development of metrics to measure Europe’s transition to circularity thanks to a research project for the European Commission’s Directorate-General for Research and Innovation (DG-RTD) conducted by circular economy experts from Ricardo, Norion, IEEP and Ecorys.
A circular economy approach is essential to achieve sustainable economic performance, to build business resilience, and to meet ambitious targets such as the EU’s aim of reducing carbon emissions by 90% by 2040.
A circular economy approach brings multiple benefits
A circular economy approach reduces the need for resources and keeps those that are used in use for as long as possible.
The 10 Rs of circularity
Circularity does more than just reduce environmental impacts - it can also contribute to strategic autonomy, economic resilience, and social equity.
Circular business models can reduce demand for critical raw materials, reduce waste management costs, and foster green job creation at local and regional levels. Activities such as reuse schemes, product-service systems, community repair workshops, and materials-sharing platforms build community cohesion while supporting EU-wide sustainability and business development ambitions.
To realise these benefits, however, the transition to a circular approach must be supported by policy frameworks grounded in comprehensive data. This requires the use of robust circularity indicators, tailored to specific economic sectors, material flows, and regional priorities.
DG-RTD commissioned Ricardo, Norion, IEEP and Ecorys to conduct a two-year study to identify, develop and apply circularity indicators and metrics to equip policymakers with insight for data-driven, sector-specific decision-making. This will support EU institutions, national governments, regional bodies, and sector organisations in developing their monitoring activities, and accelerating their transition to circularity.
Project scope: 11 key focus areas across multiple economic levels
The project developed and tested circularity indicators across 11 priority sectors and material streams, reflecting a comprehensive and multi-scalar approach:
- Bioeconomy
- Cities and Regions
- Households
- Product-Service Systems
- Batteries and Vehicles
- Construction and Buildings
- Electronics and ICT
- Food, Water and Nutrients
- Packaging
- Plastics
- Textiles
By assessing macro (international and EU-level), meso (regional and sectoral), and micro (company and household-level) implementation scales, the project ensured that circular performance monitoring could be appropriately tailored to these scenarios.
Research methodology: from current understanding to actionable tools
The project progressed through these key steps:
- Policy and funding framework analysis
- Cataloguing and taxonomy of 730+ existing and potential indicators
- Extended sector-specific stakeholder engagement
- Development of a Multi-Criteria Assessment Tool for policymakers
- Testing and analysis of 60 innovative indicators
The outputs included the final project report, a targeted policy brief, indicator tool, 19 detailed case studies covering the 60 tested indicators, and the snapshot policy framework report. Please see below for access to these resources.
Tailored and holistic approaches are essential
The project’s findings reaffirm the need for bespoke regulatory and monitoring strategies for different sectors. Whilst some areas, like product-service systems, need entirely new frameworks, others may benefit more from improved coordination of existing efforts.
Cross-cutting lessons also emerged:
- Holistic Indicator Sets: Indicators should not be used in isolation. For instance, tracking public awareness, adoption rates, and environmental outcomes together can provide deeper insights into the effectiveness of circular initiatives.
- Life cycle thinking: Reuse alone doesn't guarantee environmental benefit. Circularity strategies must be paired with Life Cycle Assessments (LCAs) to avoid unintended consequences such as burden shifting of environmental impact to another part of the life cycle.
- Strategic Communication: From public awareness campaigns to technical design guidance, communication plays a pivotal role. Regulatory bodies, trade associations, and innovation hubs must collaborate to share best practices and foster alignment across borders and sectors.
Overcoming the data challenge
One of the most significant barriers encountered was limited access to relevant data. This stemmed from commercial sensitivities, capacity constraints, inconsistent methodologies, and insufficient granularity. The project offered practical solutions, including:
- Proposals for new reporting regulations
- Enhanced data harmonisation strategies
- Development of digital data collection and reporting tools
- Strategies to minimise administrative burden through open collaboration and support
These recommendations aim to address the root causes of data challenges while enabling a more robust circularity monitoring infrastructure.
Building the foundations for circular policy innovation
This project has significantly advanced the understanding of sector-specific circularity monitoring in the EU. It offers a blueprint for future policy initiatives, identifying both existing gaps and practical ways to fill them. The toolkit and resources developed are now available to support policymakers, sustainability consultants, and circular economy champions across Europe in designing, implementing and monitoring more targeted, effective, and informed circularity policies.
Resources
Project final report and indicator assessment tool (on DGT RTD website)
CASE STUDIES
FRAMEWORK REPORT