COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS on a revised monitoring framework for the circular economy
Date: 2023-05-15
Institutions: Directorate-General for Environment, European Commission
Subjects: EU action, carbon neutrality, circular economy, competitiveness, consumption, ecological footprint, innovation, raw material, sustainable development, waste recycling

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 15.5.2023  COM(2023) 306 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS on a revised monitoring framework for the circular economy {SWD(2023) 306 final}  
 
 
1.  Introduction 

In  1972,  the  Club  of  Rome’s  report,  The  Limits  to  Growth,  warned  about  the 
environmental  and  climate  consequences  of  the  current  unsustainable  growth  model, 
which was based on the global consumption of 28.6 billion tonnes of materials every year. In 
the  50  years  since  the  publication  of  this  report,  the  trend  of  ever-increasing  demand  for 
resources  has  become  even  more  worrisome.  Since  1972,  the  global  use  of  materials  has 
nearly  quadrupled,  rising  to  54.9  billion  tonnes  per  year  in  2000  and  surpassing  100  billion 
tonnes in  2019. Worldwide material  use is  projected to  reach 167 billion tonnes per  year in 
20601.  

The  natural  regeneration  capacity  of  the  planet  has  not  been  able  to  absorb  the 
exponential rise in the extraction of resources, which are then quickly  discarded  into our 
atmosphere,  water  bodies  and  land2.  Nature’s  global  and  interconnected  system  has  been 
knocked  off  balance,  and  is  now  reaching  breaking  point,  as  the  devastating  impacts  of 
climate change and biodiversity loss are severely felt around the globe. 

Resource  extraction  and  resource  processing  are  responsible  for  half  of  total 
greenhouse-gas  (GHG)  emissions  and  more  than  90%  of  biodiversity  loss  and  water 
stress3. Cutting GHG emissions and reducing primary material use are two sides of the same 
coin.  The  important  link  between  biodiversity  and  the  circular  economy  in  increasingly 
recognised.  Unless  we  radically  transform  the  way  we  use  materials  to  meet  our  needs, 
promoting  change  throughout  our  systems  of  production  and  consumption,  we  can  neither 
substantially reduce our emissions, nor preserve nature for the current and future generations. 

Most  materials,  together  with  the  embedded  energy  and  other  resources  used  in  their 
production, are lost at the end of their initial economic cycle: global material circularity4 
decreased from 9.1% in 2018 to 7.2% currently5. In the EU, 8.1 billion tonnes of materials are 
processed into energy or products annually, but only 0.8 billion tonnes of this originate from 
recycling. Although the rate of circularity of material use in the EU has been increasing and in 
2021  was  at  11.7%,  3.4  percentage  points  up  from  2004,  there  is  significant  potential  for 
improvement,  in  particular  by  increasing  the  use  of  recycled  materials  and  reducing  the 
amount of materials used in the economy. 

The EU economy depends on raw materials from the rest of  the world. In 2021, the EU 
imported  1.6  billion  tonnes  of  materials  from  the  rest  of  the  world6.  Metal  ores  and  fossil-
energy materials accounted for 58% of these imports7. Moreover, the EU’s supply of critical 
raw materials,  which are  required for the  green transition,  is  exposed to significant  risk and 
often associated with adverse environmental impacts in third countries.  As part of its recent 
initiatives on critical raw materials, the EU is stepping up efforts in assuring their circularity 

1 Global Material Resources Outlook to 2060. 
2 Circularity Gap Report 2022. 
3 International Resource Panel report ‘Global Resources Outlook 2019’. 
4 The circularity measures the share of secondary materials on overall material input in the economy. 
5 Circularity Gap Report 2023. 
6 Eurostat, Material Flow Accounts , Statistics Explained article. 
7 Eurostat, Statistics Explained article.  

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in  the  broad  sense8,  and  in  particular  strengthening  the  recycling  capacities,  systems  and 
technologies to produce secondary materials in the EU9. 

By  reducing  EU  demand  for  primary  resources  and  energy,  the  transition  to  a  more 
circular  economy  has  the  potential  to  increase  our  resilience,  reduce  our  dependencies 
on  imports  of  energy  and  materials,  while  contributing  to  the  clean  energy  transition. 
This  is  even  more  important  in  the  wake  of  the  COVID-19  crisis  and  in  the  context  of  the 
ongoing brutal war of aggression by Russia against Ukraine. The contribution of the circular 
economy to security of supply is particularly important as the demand for key raw materials 
from  the  renewable-energy  and  e-mobility  sectors  will  increase  greatly  between  2030  and 
205010.  

The  transition  to  a  circular  economy  is  therefore  a  unique  opportunity  to  make  our 
economy  more  sustainable,  competitive  and  resilient:  it  contributes  to  climate  neutrality; 
preserves  biodiversity  and  ecosystems;  improves  security  of  supply  and  alleviates  strategic 
dependencies  on  raw  materials;  creates  local  decent  and  green  jobs;  and  boosts  innovation. 
Circularity  is  a  key  instrument  to  foster  competitiveness  and  offers  a  major  opportunity  to 
increase  resource  productivity,  employment  and  growth  as  highlighted  in  the  long-term 
competitiveness strategy of the EU looking beyond 203011. Doing this will also help achieve 
the UN’s sustainable development goals12. Therefore, monitoring trends in areas related to the 
circular  economy  is  needed  in  order  to  assess  the  effectiveness  of  policies  and  actions  and 
help identify gaps and success stories across the EU.  

In January 2018, the European Commission adopted the EU monitoring framework for the 
circular economy13  composed of a set  of key indicators to  track progress  in the EU and in 
Member States. Other EU institutions welcomed the monitoring framework and in the context 
of  its  revision  they  have  emphasised  the  need  to  put  a  greater  focus  on  the  production  side 
rather than focusing on waste and to use footprint indicators.  

In line with the commitment in the new circular economy action plan for a cleaner and more 
competitive  Europe14,  this  communication  presents  a  revised  monitoring  framework  that 
captures  the  circular  economy  focus  areas  and  the  interlinkages  between  circularity, 
climate  neutrality  and  the  zero  pollution  ambition.  This  monitoring  framework  takes 
account of the circular economy priorities in the context of the European Green Deal, the 8th 
environment  action programme, the 2030 agenda for sustainable development and the EU’s 
security of supply and resilience objectives. 

2.  Revision of the EU monitoring framework for the circular economy 

8 COM(2023) 165 final. 
9 COM(2023) 160 final. 
10 In-depth reviews of strategic areas for Europe’s interests | European Commission (europa.eu). 
11 COM(2023) 168 final. 
12 https://commission.europa.eu/strategy-and-policy/international-strategies/sustainable-development-goals_en  
13 COM(2018) 29 final  and SWD(2018) 17. 
14 COM(2020) 98 final. 

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The new monitoring framework aims to provide a comprehensive overview by measuring 
direct and indirect benefits of increasing circularity. It comprises 11 indicators grouped into 
5  dimensions:  (1)  production  and  consumption;  (2)  waste  management;  (3)  secondary  raw 
materials; (4) competitiveness and innovation; and (5) global sustainability and resilience.  It 
includes some new indicators, notably: 

  Material footprint, measuring the overall use of materials and reflecting the amount 

of materials embedded in overall consumption, including imported goods;  

  Resource  productivity,  measuring  the  amount  of  GDP  from  materials  use  and 
demonstrating  the  efficiency  in  using  materials  in  the  production  of  goods  and 
services; 

  Consumption  footprint,  comparing  consumption  to  the  planetary  boundaries  for  16 
impact categories based on a life-cycle assessment and according to the 5 main areas 
of consumption (food, mobility, housing, households goods and appliances); 

  GHG emissions from production activities, measuring the GHG emissions produced 
by production sectors (therefore excluding emissions from households) and reflecting 
the contribution of the circular economy to climate neutrality; 

  Material dependency, measuring the share of imported materials on overall material 
use,  describing  how  much  the  EU  depends  on  imports  of  materials  and  reflects  the 
contribution of the circular economy to security of supply of materials and energy and 
to  the  EU’s  open  strategic  autonomy15.  An  indicator  on  self-sufficiency  for  raw 
materials has been used since 2018. 

Further  changes  in  the  sub-indicators  are  made  to  reflect  methodological  changes  in  some 
indicators or further align them with policy developments16. 

The revision of the monitoring framework has taken into account the responses to the public 
consultation  on  the  call  for  evidence17,  as  well  as  discussions  with  Member  State 
representatives and stakeholder experts. The indicators also consider national, international18 
and stakeholder19 actions on monitoring the circular economy and sustainability20. 

The  indicators  in  the  revised  framework  are  consistent  with  other  EU  monitoring  tools,  in 
particular  the  monitoring  framework  for  the  8th  environment  action  programme21;  the zero-
pollution monitoring and outlook22; the EU indicators for the sustainable development goals23; 
and the resilience dashboard24.  

15 Shaping and securing the EU’s Open Strategic Autonomy by 2040 and beyond. 
16 For further details, see SWD(2023) 306. 
17 https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/13465-Circular-economy-monitoring-
framework-revision-/feedback_en?p_id=30764770. 
18 In particular, the Planetary pressures adjusted- Human Development Index from UNDP, IRP reports in 2020 
and 2021, and the circularity gap reports. 
19 In particular, the Bellagio principles on monitoring the circular economy. 
20 For further details, see SWD(2023) 306. 
21  COM(2022) 357 final. 
22 COM(2022) 674 final. 

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Most  –  but  not  all  –  indicators  are  based  on  official  statistics  sourced  by  Eurostat.  All 
indicators meet the criteria of relevance, acceptance, credibility, ease of use and robustness25, 
and are based on existing data as much as possible.  

The framework relies to a large extent on high-quality statistics that are available for all EU 
Member  States,  mostly  using  data  from  the  European  Statistical  System  and  the  research 
community.  When  appropriate, 
the  relevant 
stakeholders, will investigate the use of new data sources to  further improve the monitoring 
framework in the future.  

in  cooperation  with 

the  Commission, 

Eurostat  will  publish  and  maintain  the  new  monitoring  framework  on  its  website, 
continuously updating the indicators. This website will continue to serve as the Commission’s 
entry  point  for  finding  all  information  about  it,  including  indicators,  time  series  and 
visualisation tools26.  

3.  Indicators in the monitoring framework for the circular economy 2023  

Relevance 

Decreasing the consumption of materials 
indicates decoupling economic growth from 
resource use. 
Public procurement accounts for a large 
share of consumption and can drive the 
circular economy. 
In a circular economy, waste generation is 
minimised. 

Source 

Eurostat 

European 
Commission 

Eurostat 

Increasing recycling is part of the transition 
to a circular economy. 

Eurostat 

Progress in recycling key waste streams is 
essential for sustainability and resilience. 

Eurostat 

Indicator 

No  
Production and consumption 
1a-b  Material consumption 

1a Material footprint (tonnes per capita) 
1b Resource productivity (EUR/kg) 
Green public procurement*  

2 

3a-f  Waste generation 

3a Total waste generation per capita (kg per 
capita) 
3b Total waste generation (excluding major 
mineral waste) per GDP  (kg per EUR) 
3c Generation of municipal waste per capita 
3d Food waste (kg per capita) 
3e Generation of packaging waste per 
capita (kg per capita) 
3f Generation of plastic packaging waste 
per capita (kg per capita) 

Waste management 
4a-b  Overall recycling rates 

4a Recycling rate for municipal waste (%) 
4b Recycling rate for all waste excluding 
major mineral waste (%) 

5a-c  Recycling rates for specific waste streams  

5a Recycling rate for overall packaging 
waste (%) 
5b Recycling rate for plastic packaging 
waste (%) 
5c Recycling rate for electrical and 
electronic equipment waste that is 
separately collected (%) 

Secondary raw materials 

23 EU SDG indicators and progress monitoring report. 
24 EU Resilience dashboard.  
25 Also known as the ‘RACER’ criteria for indicators. 
26 https://ec.europa.eu/eurostat/web/circular-economy . 

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6a-b  Contribution of recycled materials to 

demand for raw materials  
6a Circular material use rate (%) 
6b End-of-life recycling input rates (%) 

In a circular economy, secondary raw 
materials are commonly used to make new 
products. 

7a-c 

Trade in recyclable raw materials 
7a Imports from outside the EU (tonnes) 
7b Exports to outside the EU (tonnes) 
7c Intra-EU trade (tonnes) 
Competitiveness and innovation 
8a-c 

Private investments, jobs and gross value 
added related to circular economy 
sectors 
8a Private investments (% GDP) 
8b Employment (% employment) 
8c Gross value added (% GDP) 
Green innovation 
9 Patents related to waste  management and 
recycling  (number  and  number  per  million 
inhabitants) 

9 

Trade in recyclables reflects the importance 
of the internal market and global 
participation in the circular economy. 

The circular economy can contribute to the 
creation of jobs and growth. 

Eurostat 

Innovative technologies related to the 
circular economy boost the EU’s global 
competitiveness. 

Global sustainability and resilience 
10a-b  Global sustainability 

10a Consumption footprint (index 
2010=100 and times the planetary 
boundaries is transgressed) 
10b GHG emissions from production 
activities (kg per capita) 

11a-b  Resilience  

11a Material import dependency (%) 
11b EU  self-sufficiency  for  raw  materials 
(%) 

Consumption footprint indicates the extent 
to which production and consumption 
systems are within planetary boundaries. 

The circular economy contributes to climate 
neutrality. 
The circular economy contributes to the 
security of supply of raw materials and 
helps to address supply risks, in particular 
for critical raw materials. 

* Indicator under development. CEAP2: circular-economy action plan 2 adopted in 2020. 

Eurostat, 
other 
European 
Commission 
services 
Eurostat 

Joint 
Research 
Centre 
based on 
PATSTAT 

Joint 
Research 
Centre and 
Eurostat 

Eurostat, 
other 
European 
Commission 
services 

4.  Applying the monitoring framework: main trends 

The 11 indicators make it possible to measure progress towards both legal/aspirational targets 
and broader policy objectives in the area of the circular economy. Some material-specific sub-
indicators  provide  important  information  to  policy  makers  that  will  enable  them  to  assess 
progress in key supply chains and materials. 

Production and consumption 

There  has  been  mixed  progress  in  shifting  to  more  circular  forms  of  production  and 
consumption  in  recent  years.  EU  production  has  become  more  resource-efficient  but  EU 
consumption of materials and generation of waste are both very high and need to decrease 
in the future.  

The  EU’s  estimated  material  footprint,  also  referred  to  as  raw  material  consumption 
(RMC),  was  13.7  tonnes  per  capita  in  2020.  Non-metallic  minerals  is  the  largest  material 
category, and changes in this category are highly determined by the level of construction (and 
activity in construction-related sectors) in different Member States. 

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Since 2000, the resource productivity of the EU economy  has increased by about 35%, 
indicating  progress  in  decoupling  economic  growth  from  resource  use.  The  increase  can  be 
explained  by  processes  that  use  materials  more  efficiently  but  also  by  the  outsourcing  of 
material-intensive production to other parts of the world.  

The  EU  spends  around  14%  of  GDP  (around  EUR  2  trillion  per  year)  on  the  purchase  of 
services and goods through public procurement. Green public procurement can therefore be 
a powerful tool to boost the circular economy and green innovation. Data for an indicator on 
green  public  procurement  will  become  available  in  2024  through  a  questionnaire  on  public 
procurement that will be completed by Member States.  

In  2020,  the  total  waste  generated  in  the EU by  all  economic  activities  and  households 
amounted to 2.15 billion tonnes, i.e. 4.8 tonnes of waste were generated per EU inhabitant 
in  2020.  Overall  waste  generation  decreased  by  almost  3%  between  2010  and  2020. 
Around two thirds (64%) of the total waste generated in the EU in 2020 was major mineral 
waste.  Major  mineral  waste  is  closely  linked  to  construction,  demolition,  mining  and 
quarrying, which are significant sectors in some Member States. In this ten-year period, there 
was limited decoupling of the quantity of waste generated (excluding major mineral waste) 
from GDP.  

EU municipal waste generation per capita,  representing 10% of all waste, increased to 530 
kg  in  2021  compared  to  503  kg  per  capita  in  2010.  Reducing  food  waste27  has  enormous 
potential to save the resources we use to produce the food we eat and is among the drivers for 
food security28. The EU generated  59 million tonnes of food waste in 2020, equivalent to  
131 kg per capita. 

The generation of packaging waste in the EU reached 178 kg per capita in 2020, up 17% 
since 2010. 19% of all EU packaging waste is plastic. Volumes of plastic packaging waste 
increased  by  25%  between  2010  and  2020,  the  greatest  increase  of  all  packaging  waste 
streams. On average, each European was responsible for 35 kg of plastic packaging waste 
in 2020. Figures for 2021 will provide insights into the effects of the COVID-19 pandemic on 
the generation of plastic packaging waste.  

Waste management 

Much  progress  has  been  made  in  recent  years  in  managing  waste  more  sustainably. 
However,  large  differences  among  Member  States  remain  and  there  is  much  room  for 
improvement in some waste streams.  

27 https://ec.europa.eu/food/safety/food_waste/eu_actions_en.  
28 SWD (2023) 4 final. 

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EU recycling rates for municipal waste increased from 38% to 49% between 2010 and 
2021. Some countries have met or are already approaching the 2030 recycling target of 60%29 
and  one  country  has  already  met  the  2035  target  of  65%30.  Recycling  rates  for  packaging 
waste  was  stable  at  64%  in  the  EU  between  2010  and  2020.  The  EU  recycling  rate  for 
plastic packaging is significantly lower than the rate for all packaging waste, at around 38%. 

The  share  of  collected  waste  electrical  and  electronic  equipment  that  is  either  reused  or 
recycled has increased in the EU, from 81.8% in 2010 to 83.4% in 2020.  

Secondary raw materials 

The contribution of recycled materials to overall material demand is relatively low. Trade in 
secondary raw materials is increasing both within the EU and with non-EU countries. 

In 2021, recycled materials only satisfied around 11.7% of EU demand for materials, 1.4 
percentage points more than in 2011. For a large number of materials, including many critical 
raw  materials,  the  contribution  made  by  recycled  materials  to  satisfying  demand  for  raw 
materials is still small to negligible. For many speciality metals and rare-earth elements, the 
end-of-life recycling input rate is around 1%, while end-of-life recycling rates reach 16% for 
nickel and 22% for cobalt, both of which are raw materials used in batteries31.  

In  2021,  the  EU  was  overall  a  net  importer  of  recyclable  raw  materials.  However,  the 
indicator on trade in recyclable waste shows that the EU is currently a net exporter of  some 
major recyclable waste streams (including ‘iron and steel’, ‘copper, aluminium and nickel’ 
and  ‘paper  and  cardboard’)  and  a  net  importer  of  precious-metals  waste.  Trade  within  the 
EU  of  waste  plastics,  paper,  cardboard,  copper,  aluminium,  nickel  and  precious  metals 
increased considerably between 2004 and 2021, enabling businesses to reap the benefits of 
the EU’s internal market for secondary raw materials.  

Competitiveness and innovation 

The circular-economy sectors have  grown in recent  years when measured by investments, 
value added, and jobs. These sectors have also become more innovative.  

In 2021,  private investment  in  specific economic sectors relevant  to  the circular economy, 
namely reuse and recycling activities, are estimated to have been around  EUR 121.6 billion 
in  the  EU  (i.e.  0.8%  of  EU  GDP).  In  the  same  year,  there  were  4.3  million  jobs  in  these 
sectors,  an  increase  of  11%  compared  with  2015.  The  circular-economy  sectors  created 
around  EUR  299  billion  of  value  added  in  2021,  which  represents  an  increase  of  27% 
compared with 2015.  

29 Directive (EU) 2018/851. 
30 Member States’ figures are more comparable as they are based on a common method. 
31 Based on the assessment of the critical raw materials list 2023. 

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The number of EU registered patents on recycling and secondary raw materials increased by 
14% between 2000 and 2019. 

Global sustainability and resilience 

EU consumption leads to impacts which are crossing certain planetary boundaries, and the 
circular  economy  contributes  to  climate  neutrality.  The  EU  is  dependent  on  material 
imports,  in  particular  for  some  critical  raw  materials  needed  for  the  green  and  digital 
transition.  

The EU’s consumption footprint increased by 4% between 2010 and 2021. The Commission 
now estimates that the EU has clearly transgressed the planetary boundaries for five impacts 
(particulate  matter,  ecotoxicity  in  freshwater,  climate  change,  use  of  fossil-based  resources, 
and  use  of  mineral  and  metal  resources).  Consumption  of  food  (in  particular  animal-based 
products)  is  emerging  as  one  of  the  main  drivers  of  impacts  generated  by  the  average  EU 
citizen32. 

EU GHG emissions from production activities decreased by around 25% in 2008-2021. 

In  2021,  the  EU’s  material  import  dependency  was  22.9%,  a  slight  increase  from  2000. 
The  EU’s  economy  is  almost  self-sufficient  in  the  supply  of  non-metallic  minerals  (such  as 
those  destined  for  construction),  while  for  metal  ores  and  fossil-energy  materials  the  EU  is 
highly dependent on imports from the rest of the world (with dependencies of 52% and more 
than 71%, respectively).  

The indicator on self-sufficiency in the supply of raw materials shows that, for critical raw 
materials,  the  EU  relies  on  imports  to  a  large  extent.  For  example,  for  refined  rare  earth 
elements and refined magnesium, the EU imports 100% of its consumption from China. This 
highlights  the need  for secure access  and diversification of supply. Many of these materials 
are needed to achieve the EU’s objective of a sustainable, low-carbon, resource-efficient and 
competitive economy, for instance cobalt for batteries used in electric vehicles, and silicon for 
solar panels.  

5.  Conclusions 

The circular economy action plan for a cleaner and more competitive Europe emphasises that 
the  EU  needs  to  accelerate  the  transition  towards  a  regenerative  growth  model,  advance 
towards  keeping  its  resource  consumption  within  planetary  boundaries,  strive  to  reduce  its 
consumption  footprint,  double  its  circular  material  use  rate,  significantly  reduce  total  waste 
generation and halve the amount of residual (non-recycled) municipal waste in this decade. 

The adoption of the  revised EU  circular economy  monitoring framework is  timely  as  under 
the European Green Deal the Commission has launched a number of legislative initiatives to 

32 https://eplca.jrc.ec.europa.eu/ConsumptionFootprintPlatform.html. 
https://publications.jrc.ec.europa.eu/repository/handle/JRC128571  

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accelerate  the  circular  economy  transition,  such  as  the  regulations  on  batteries33,  Ecodesign 
for sustainable products34, packaging and packaging waste35, waste shipments36, and critical 
raw materials37. Member States are also implementing recent amendments to EU law, such as 
the  revision  of  the  EU  rules  on  waste  adopted  in  201838,  and  have  been  developing  many 
national  and  regional  approached  to  promote  the  circular  economy.  Several  EU  funding 
programmes  are  available  to  support  the  transition  to  a  circular  economy,  such  as 
NextGenerationEU  and  the  reforms  and  investments  under  the  Recovery  and  Resilience 
Facility; the European Cohesion Policy Funds; Horizon Europe; and the LIFE programme. 

The revised monitoring framework makes it possible to keep track of the progress made in the 
transition  towards  a  resource-efficient,  climate-neutral  and  resilient  circular  economy  in  the 
context of sustainable development.  It will provide a key tool to assess policies put in place 
and to guide future actions, including in the context of specific assessments, such as the early 
warning reports to identify Member States at risk of not meeting the EU targets on recycling 
and  landfilling  of  waste39.  It  offers  a  sound  basis  for  discussion  at  the  annual  circular 
economy stakeholder conferences40, as well as for measuring national performance, including 
in the context of the Environmental Implementation Review41. 

33 COM(2020) 798 final. 
34 COM(2022) 142 final. 
35 COM(2022) 677 final. 
36 COM(2021) 709 final.   
37 COM(2023)160 final.  
38 Directive (EU) 2018/851. 
39 https://environment.ec.europa.eu/topics/waste-and-recycling/implementation-waste-framework-directive_en  
40 Press release on the Circular economy stakeholders conference 2023. 
41 https://environment.ec.europa.eu/law-and-governance/environmental-implementation-review_en#overview . 

9