Trends in the circular economy development in the European Union

Abstract

The article examines current trends in the circular economy development in the European Union, which is justly considered to be the leader in this area. The author enlists priority sectors, which are targeted by the Circular Economy Action Plan adopted in 2015. The paper examines a European strategy for plastics, which has ambitious targets till 2030, and a Critical Raw Materials initiative that is important for the EU as for an importer of many commodities. The latter leads to such benefits as supply risks mitigation and savings in energy and water. European Union’s key instruments aimed at making products more sustainable are discussed. Specifically, Ecodesign and energy labelling, Green Public Procurement, Ecolabel, and Enhanced Producer Responsibility scheme are presented. The author touches upon financing of circular economy innovations and adaptation of the industrial base in the EU. Over the 2016–2020 period, more than 10 billion euro in public funding has been provided. Half of this amount is designated for the purpose of the waste legislation support. Horizon 2020, Europe’s largest research and innovation programme, is one of the circular economy financing tools. 257 circular economy related projects were selected as a result of three calls for projects proposals amounting to 1,45 bln. The author’s review shows the large scale of changes in the European Union driven by implementation of the circular economy principles, which is important for the region’s trade partners.