Circular Economy Monitoring Framework

The EU has developed a dedicated Circular Economy Monitoring Framework¹ to track progress at the EU level. Following the second CEAP² in 2020, this framework was revised to capture the interlinkages between circularity, climate neutrality and the EU zero pollution ambition. The revised monitoring framework is based on the circular economy priorities in the context of the European Green Deal.³ It includes dimensions such as production and consumption, waste management, secondary raw materials, competitiveness and innovation, and adds a strengthened focus on global sustainability and resilience. Indicators include material footprint, resource productivity, consumption footprint, greenhouse gas emissions from production activities and material dependency.

The transition to a circular economy in the EU is underpinned by a range of targeted funding instruments. Horizon Europe⁴ (2021–2027) provides research and innovation support for circular economy pilots, scale-up and cross-sector projects, while the LIFE Programme⁵ (2021–2027) offers a dedicated environment and climate funding with a strong emphasis on circular economy implementation. InvestEU⁶ operates as a guarantee-based instrument to crowd in private finance for circular economy investments and innovative circular business models.

At the territorial level, Interreg/Interreg NEXT⁷ (2021–2027) supports cross-border /boundary cooperation on resource efficiency and circular solutions through regional projects and knowledge exchange, and the European Regional Development Fund (ERDF)⁸ channels cohesion funding towards circular economy investments, smart economic transformation and low-carbon transition measures across EU regions.

Complementing these instruments, the European Investment Bank (EIB)⁹ provides loans and advisory support for circular economy projects, including through the Circular City Funding Guide¹⁰ and the Circular City Centre (C3)¹¹, helping cities develop bankable circular investments.