ETC CE Report 2026/1 Climate mitigation contributions from circular economy actions

This ETC CE report provides the detailed analysis underpinning the EEA briefing ‘Assessing the climate mitigation potential of circular economy - European Environment Agency (europa.eu)’

There is growing awareness of the key role that the circular economy can play in reducing greenhouse gas (GHG) emissions based been a notable increase in publications exploring the intersection of CE and climate mitigation and adaptation. This recent surge in research and political attention makes it a timely moment to take stock of existing findings and assess the climate mitigation potential of circular economy actions. Based on a review of over130 publications published between 2020 and March 2025 on this topic, this report provides a consolidated overview of the climate mitigation potential and identifying hot spots and potential “low hanging fruits”. A key finding is that estimates of mitigation potential vary widely across studies. Therefore, the report evaluates possible reasons for the differing results. The report concludes with key lessons learned based on the literature to support future policy developments and climate modelling efforts.