The Circular Economy

Benefits to businesses

Longer-established companies are beginning to incorporate circular practices as well. The benefits include: 

• Minimising risk from resource scarcity
• Improving profits through costs-savings on virgin-material requirements and reducing the cost of waste-management
• Deriving more value from materials and resources
• Reducing obsolecence of equipment and materials
• Developing new markets and customers
• Improving customer interaction and loyalty
• Increasing security and price stability of your supply chain
• Attracting, retaining, and engaging employees
• Minimising risk and maximising return to investors
• Staying ahead of new regulations

Economic benefits 

"The circular economy also represents a major business opportunity for the EU. Circular economy sectors already generate around €316 billion in gross value added annually and invest approximately €131 billion and employ 4.3 million people, with strong growth potential towards 2030." 

(Whole of Government Circular Economy Strategy 2026 - 2028)

Policy

Ireland's Circular Economy Strategy 2026-2028

Published in early 2026, the Circular Economy Strategy 2026-2028 positions circularity as central to Ireland's economic competitiveness, environmental sustainability, and social wellbeing—moving Ireland from a linear "take–make–waste" model to a regenerative, closed-loop system where materials are kept in use for as long as possible. Its core objectives are to raise Ireland’s circular material use rate (CMUR), support economic expansion while improving resource productivity and reducing dependency on virgin raw materials, enhance competitiveness and innovation, enhance social equity, empower people to make sustainable, cost-effective lifestyle choices and actively support local authorities in developing coordinated, community-level circular initiatives. Digitalisation is established as an enabler of the circular economy by businesses adopting digital tools such as digital product passports, traceability and resource optimisation systems

Circularity Gap Report Ireland

Published in September 2024, the Department of the Environment, Climate and Communications commissioned a Circularity Gap Report Ireland to enable a better understanding of the levers for change in moving to a circular economy and the benefits that these levers could bring. The Circularity Gap Report aimed to provide the required evidence base and technical analysis for the second Whole of Government Circular Economy Strategy, which will aim to drive the circular economy transition and revamp production and consumption patterns.

Ireland's Circular Economy Strategy 2022-2023

In December 2021, the Irish Government launched Ireland’s first Whole of Government Circular Economy Strategy. It explains the concept of the circular economy, and describes what initiatives are already happening, what opportunities are available and how the Irish Government will drive the changes required.

Ireland's Circular Economy Programme

The Environmental Protection Agency (EPA) in December 2021 launched its new Circular Economy Programme (2021 to 2027). This will support the Government’s circular economy policy agenda. It's vision is for an Ireland where everyone uses less resources and prevents waste to achieve sustainable economic growth.

The Clean Industrial Deal

The Clean Industrial Deal is a strategic plan launched by the European Commission on 25 February 2025 that outlines concrete actions to turn decarbonisation into a driver of growth for European industries. Among the element of the Deal is circularity, which aims to reduce waste and extend the life of materials by promoting recycling, reuse, and sustainable production. Maximising EU’s limited resources and reducing overdependencies on third-country suppliers for raw materials is crucial for a competitive and resilient market.   

The European Green Deal

Circularity is central to the European Green Deal, which sets out a roadmap for a transition to a new economy, where climate and environmental challenges are turned into opportunities. The Green Deal aims not only to help deliver on its environmental aspirations but to ensure that resources are kept within the local economy for as long as possible. The EU's Second Circular Economy Action Plan - For a Cleaner and More Competitive Europe -  launched in March 2020 as part of the European Green Deal. It recognises the need to accelerate this transition to the entire mainstream economy. 

Not for Profit

Ellen MacArthur Foundation

The Ellen MacArthur Foundation is a UK-based charity that works to accelerate the transition to a circular economy. It develops and promotes the idea of a circular economy, and works with business, academia, policymakers, and institutions to mobilise systems solutions at scale, globally. It also provides case studies, guidance and tools on creating circularity. 

Business in the Community NI

Business in the Community NI, the network for responsible business, has an online Circular Economy Hub with guides to explain the concept and actions businesses can take to integrate it into their organisation to capitalise from the economic opportunities which this approach can provide.