Brussels: A new report from the Joint Research Centre (JRC) highlights the significant impact circular economy practices could have on reducing greenhouse gas emissions in the European Union’s heavy industries, such as plastics, steel, aluminium, cement, and concrete. Improved materials management, including reduction, reuse, and recovery measures, could help the EU industry decrease emissions by between 189 and 231 million tonnes of CO2 equivalent each year.
According to Emirates News Agency, the JRC report titled “Capturing the Potential of the Circular Economy Transition in Energy-Intensive Industries” explores how circular economy strategies could reduce the environmental footprint of key industrial sectors by 2050, while also enhancing energy and economic security. These strategies could particularly benefit the steel sector, potentially reducing emissions by 64 to 81 million tonnes of CO2 equivalent annually, and the plastics sector, where reductions of 75 to 84 million tonnes are possible.
The report indicates that circularity measures could lower EU-wide fossil fuel energy demand by nearly 4.7% compared to 2023 levels, with a similar decrease in electricity consumption. This reduction could lessen dependence on imported fossil fuels and critical materials essential for electricity generation, thereby boosting the EU’s resilience amid global energy volatility.
Aside from environmental advantages, the report suggests that circular economy strategies could improve the EU’s trade balance by approximately 4%, equivalent to 35 billion euros. This improvement is attributed to decreased imports of raw materials, including a 22% reduction in iron ore and an 11% reduction in bauxite, alongside reduced fossil fuel imports, with plastics contributing the largest share of the trade surplus.
The report offers recommendations for policymakers and industry leaders to make informed decisions about circular economy measures. These include promoting technologies that enhance the quality of recycled materials, optimizing resource use through more efficient design, and influencing market demand via Green Public Procurement instruments.
Such strategies are consistent with EU objectives to boost sustainability and competitiveness while mitigating macroeconomic risks arising from global dependencies.