What are the benefits for Europe?
An important reason for EU’s circular ambition is that the transition has the potential to increase EU GDP by an additional 0.5% by 2030 creating around 700 000 new job. In addition, the transition will substantially reduce the ecological footprint. Nevertheless, the European Commission itself states that a lot of policy is still needed to achieve all the benefits of a circular economy.
Figure 1: differences between the current and a circular scenario in Europe Ellen MacArthur Foundation, 2015b
Growing economy
If the European Union can make the transition to a circular economy, the benefits will be great. From 2030 onwards, €600 billion could be saved annually on primary material costs, €500 billion through lower costs for negative side-effects and €700 billion through other cost savings. These cost savings and new business models will increase gross national product by 11% by 2030 compared to the increase in following current practices (Ellen MacArthur Foundation, 2015b).
Reduced ecological footprint
In addition to these economic benefits, the European Union also gains a great deal in terms of the environment. Applying the principles of the circular economy to the construction, food and mobility sectors could lead to a 48% reduction in CO2 emissions by 2030 and as much as 83% by 2050, compared to the CO2 emissions in those years if the current model is adopted. The application of circularity to the economy also reduces the use of metals and concrete for means of transport and construction, fossil fuels, land, fertilizers, water and pesticides. By optimising the construction, food and mobility sectors, space for infrastructure can be replaced by green areas and housing, thereby increasing the quality of life in cities and improving air quality (Ellen MacArthur Foundation, 2015b
