Circular economy could have net benefit of €1.8 trillion by 2030 study shows


A report by the Ellen MacArthur Foundation has shown that Europe could benefit by €1.8 trillion (£1.27 trillion) from the circular economy by 2030.

The study, produced with McKinsey Center for Business and Environment and Stiftungsfonds für Umweltökonomie und Nachhaltigkeit (SUN), showed that introducing a circular economy to Europe would see its economy grow by €0.9 trillion compared to the linear path.


For households, this would mean an income increase of €3,000. There would also be a reduction in the amount of time lost to congestion by 16% and a halving of carbon dioxide emissions compared with current levels.

Overall, introducing a circular economy would translate into an 11% GDP increase by 2030 compared to today, with only a 4% increase on the current path.

The research investigated how the circular economy could look for three of Europe’s most resource-intensive basic needs: food, mobility and the built environment, which together account for 60% of household costs.

Dame Ellen MacArthur said: “The economy is undergoing profound transformation as the technology revolution reaches scale. This report has shown that by applying circular economy principles we can catalyse change, achieve a real system shift, and open a new era of growth and development, decoupled from resource constraints.”