The Circular Economy Principles: A Theoretical and Definitional Exploration within the European Union Framework
Abstract
Theoretical background: The concept of circular economy (CE) emerged in 1970 and gained popularity in the early 21st century, particularly in European Union (EU), China, and India. CE is a response to resource depletion and environmental degradation. As CE aims to maintain the usability of products and materials while minimizing waste, its incorporation into regulations and policies is driven by the need for sustainability and effective waste management. The study analyses main scientific papers from 1970 to 2024 to show changes in terminology, understanding, and interpretation of the main components of the idea of circularity.
Purpose of the article: This paper examines the consistency of CE research principles with the regulatory framework, assessing the conceptual aspects and scope of the CE as presented in EU documents.
Research methods: The research method was desk-based, using formal regulations and research frameworks based on the Scopus and Web of Science databases. Mainly academic studies and legal acts were evaluated.
Main findings: Over time, the scope of the CE definition changes. Among other things, a significant increase in formal and legal regulations for companies can be seen from 2020 onwards. The number of studies has also grown rapidly in recent years. While the definition of CE has not changed significantly, there have been major changes in the key areas of activity and scope. We systemize the regulatory aspects of CE by: CE definition boundaries, values, targets and reporting. The original nature of this article is to organise the knowledge on CE contained in the literature and source documents of the European Union. The study will enable the promotion of knowledge on circularity by structuring the terminology and indicating the thematic scope of CE in different documents. Given the social context, the article can be used to raise awareness of the CE among consumers, enabling them to make more informed choices when selecting products and services.Keywords
Full Text:
PDFReferences
Alvarez-Risco, A., Rosen, M.A., Del-Aguila-Arcentales, S. (2022). Closing remarks. In A. Alvarez-Risco, M.A., Rosen, & S. Del-Aguila-Arcentales (Eds.), Towards a Circular Economy. CSR, Sustainability, Ethics & Governance (pp. 347–350). Springer. https://doi.org/10.1007/978-3-030-94293-9_19
Bai, C., Dallasega, P., Orzes, G., & Sarkis, J. (2020). Industry 4.0 technologies assessment: A sustainability perspective. International Journal of Production Economics, 229. https://doi.org/10.1016/j.ijpe.2020.107776
Berg, S.V. (2000). Sustainable regulatory systems: Laws, resources, and values. Utilities Policy, 9. www.elsevier.com/locate/utilpol
Bieńkowska, J. (2023). The issues of fashion brand equity in a circular economy. Annales Universitatis Mariae Curie-Skłodowska, sectio H – Oeconomia, 57(1), 41–59. https://doi.org/10.17951/h.2023.57.1.41-59
Bögel, P., Pereverza, K., Upham, P., & Kordas, O. (2019). Linking socio-technical transition studies and organisational change management: Steps towards an integrative, multi-scale heuristic. Journal of Cleaner Production, 232, 359–368. https://doi.org/10.1016/j.jclepro.2019.05.286
Brix, J. (2020). Building capacity for sustainable innovation: A field study of the transition from exploitation to exploration and back again. Journal of Cleaner Production, 268. https://doi.org/10.1016/j.jclepro.2020.122381
Chatterjee, I., Cornelissen, J., & Wincent, J. (2021). Social entrepreneurship and values work: The role of practices in shaping values and negotiating change. Journal of Business Venturing, 36(1). https://doi.org/10.1016/j.jbusvent.2020.106064
Ciulli, F., & Kolk, A. (2019). Incumbents and business model innovation for the sharing economy: Implications for sustainability. Journal of Cleaner Production, 214, 995–1010. https://doi.org/10.1016/j.jclepro.2018.12.295
Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions. A new Circular Economy Action Plan For a cleaner and more competitive Europe. https://eur-lex.europa.eu/resource.html?uri=cellar:9903b325-6388-11ea-b735-01aa75ed71a1.0017.02/DOC_1&format=PDF
Consolidated text: European Parliament and Council Directive 94/62/EC of 20 December 1994 on packaging and packaging waste; Access current version (04/07/2018). http://data.europa.eu/eli/dir/1994/62/2015-05-26
Council Directive 1999/31/EC of 26 April 1999 on the landfill of waste; Current consolidated version: 04/07/2018. http://data.europa.eu/eli/dir/1999/31/oj
Cramer, J. (2022). Building a Circular Future. Ten Takeaways for Global Changemakers. Amsterdam Economic Board.
Curtis, S.K., & Mont, O. (2020). Sharing economy business models for sustainability. Journal of Cleaner Production, 266. https://doi.org/10.1016/j.jclepro.2020.121519
Davies, I.A., Chambers, L., Maplecroft, V., & St, H. (2017). Integrating hybridity and business model theory in sustainable entrepreneurship. Journal of Cleaner Production, 177, 378–386. https://doi.org/10.1016/j.jclepro.2017.12.196
Dijkstra, H., van Beukering, P., & Brouwer, R. (2020). Business models and sustainable plastic management: A systematic review of the literature. Journal of Cleaner Production, 258. https://doi.org/10.1016/j.jclepro.2020.120967
Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 amending Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU, as regards corporate sustainability reporting.
Directive (EU) 2018/849 of the European Parliament and of the Council of 30 May 2018 amending Directives 2000/53/EC on end-of-life vehicles, 2006/66/EC on batteries and accumulators and waste batteries and accumulators, and 2012/19/EU on waste electrical and electronic equipment (Text with EEA relevance); PE/9/2018/REV/1.
Directive 2000/53/EC on end-of life vehicles; European Parliament and Council of the European Union: Brussels, Belgium, 2000. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32000L0053 Accessed 30 June 2020.
Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and repealing certain Directives (Text with EEA relevance). http://data.europa.eu/eli/dir/2008/98/2018-07-05.
Durst, S., & Zieba, M. (2020). Knowledge risks inherent in business sustainability. Journal of Cleaner Production, 251. https://doi.org/10.1016/j.jclepro.2019.119670
Ellen MacArthur Foundation. (2013). Towards the circular economy. Vol. 1: An Economic and business rationale for an accelerated transition. https://ellenmacarthurfoundation.org/towards-the-circular-economy-vol-1-an-economic-and-business-rationale-for-an-accelerated-transition
Ellen MacArthur Foundation. (2015). Towards a circular economy: Business rationale for an accelerated transition. https://www.ellenmacarthurfoundation.org/towards-a-circular-economy-business-rationale-for-an-accelerated-transition
ESRS E5. (2024). European Sustainability Reporting Standard E5 Resource Use and Circular Economy, EFRAG official document.
European Commission. (2015a). Communication of the Commission to the European Parliament, Council, European Economic and Social Committee and Committee of Regions Closing the loop – the EU Action Plan for Circular Economy (COM 2015)614 final, Brussels.
European Commission. (2015b). Closing the Loop, Circular Economy: Boosting Business Reducing Waste. http://ec.europa.eu/growth/toolsdatabases/newsroom/cf/itemdetail.cfm?item_id=8260〈=en&title=Closing-theLoop---Circular-Economy%3A-boosting-business%2C-reducing-waste
European Commission. (2015c). Roadmap: Circular Economy Strategy. DG ENV (A1, A2, A3, F1); DG GROW. http://ec.europa.eu/smartregulation/impact/planned_ia/docs/2015_env_065_env+_032_circular_economy_en.pdf
European Commission. (2020). Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, A New Circular Economy Action Plan. For a Cleaner and More Competitive Europe, COM(2020)98 final; European Commission: Belgium, Brussels. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A520 20DC0098
Frostenson, M., Helin, S., & Arbin, K. (2022). Organizational sustainability identity: Constructing oneself as sustainable. Scandinavian Journal of Management, 38(3). https://doi.org/10.1016/j.scaman.2022.101229
Gallardo-Vázquez, D., Scarpellini, S., Aranda-Usón, A., & Fernández-Bandera, C. (2024). How does the circular economy achieve social change? Assessment in terms of sustainable development goals. Humanities & Social Sciences Communications, 11(1). https://doi.org/10.1057/s41599-024-03217-9
Galvão, G.D.A., de Nadae, J., Clemente, D.H., Chinen, G., & Monteiro de Carvalho, M. (2018). Circular Economy: Overview of Barriers, Procedia – CIRP, 73, 79–85. https://doi.org/10.1016/j.procir.2018.04.011
Garretson, I.C., Mani, M., Leong, S., Lyons, K.W., & Haapala, K.R. (2017). Terminology to support manufacturing process characterization and assessment for sustainable production. Journal of Cleaner Production, 139(part A).
Geissdoerfer, M., Savaget, P., Bocken, N.M.P., & Hultink, E.J. (2017). The circular economy – a new sustainability paradigm? Journal of Cleaner Production, 143, 757–768.
Glover, J.L., Champion, D., Daniels, K.J., & Dainty, A.J.D. (2014). An Institutional Theory perspective on sustainable practices across the dairy supply chain. International Journal of Production Economics, 152, 102–111. https://doi.org/10.1016/j.ijpe.2013.12.027
Gregori, P., & Holzmann, P. (2020). Digital sustainable entrepreneurship: A business model perspective on embedding digital technologies for social and environmental value creation. Journal of Cleaner Production, 272. https://doi.org/10.1016/j.jclepro.2020.122817
Hart, J., Adams, K., Giesekam, J., Tingley, T.T., & Pomponi, F. (2019). Barriers and drivers in a circular economy: the case of the built environment. Procedia – CIRP, 80. https://doi.org/10.1016/j.procir.2018.12.015
Hartley, K., Roosendaal, J., & Kirchherr, J. (2022). Barriers to the circular economy: The case of the Dutch technical and interior textiles industries. Journal of Industrial Ecology, 26, 477–490.
Hess, D.J. (2014). Sustainability transitions: A political coalition perspective. Research Policy, 43(2), 278–283. https://doi.org/10.1016/j.respol.2013.10.008
Heyes, G., Sharmina, M., Mendoza, J.M.F., Gallego-Schmid, A., & Azapagic, A. (2018). Developing and implementing circular economy business models in service-oriented technology companies. Journal of Cleaner Production, 177, 621–632. https://doi.org/10.1016/j.jclepro.2017.12.168
Hina, M., Chauhan, Ch., Kaur, P., Kraus, S., & Dhir, A. (2022). Drivers and barriers of circular economy business models: Where we are now, and where we are heading. Journal of Cleaner Production, 333, 130049.
Kirchherr, J., Reike, D., &Hekkert, M. (2017). Conceptualizing the circular economy: An analysis of 114 definitions. Resources, Conservation & Recycling, 127, 221–232.
Le Tellier, M., Berrah, L., Stutz, B., Audy, J.-F., & Barnabé, S. (2019). Towards sustainable business parks: A literature review and a systemic model. Journal of Cleaner Production, 216, 129–138. https://doi.org/10.1016/j.jclepro.2019.01.145
Luzzini, D., Brandon-Jones, E., Brandon-Jones, A., & Spina, G. (2015). From sustainability commitment to performance: The role of intra- and inter-firm collaborative capabilities in the upstream supply chain. International Journal of Production Economics, 165, 51–63. https://doi.org/10.1016/j.ijpe.2015.03.004
Mellor, S., Hao, L., & Zhang, D. (2014). Additive manufacturing: A framework for implementation. International Journal of Production Economics, 149, 194–201. https://doi.org/10.1016/j.ijpe.2013.07.008
Piwowar-Sulej, K. (2021). Human resources development as an element of sustainable HRM – with the focus on production engineers. Journal of Cleaner Production, 278. https://doi.org/10.1016/j.jclepro.2020.124008
Potting, J., Hekkert M., Worrell E., & Hanemaaijer A. (2017). Circular economy: Measuring innovation in the product chain. https://www.pbl.nl/sites/default/files/downloads/pbl-2016-circular-economy-measuring-innovation-in-product-chains-2544.pdf
Prieto-Sandoval, V., Jaca, C., & Ormazabal, M. (2018). Towards a consensus on the circular economy, Journal of Cleaner Production, 179, 605–615.
Próchniak, J. (2025). Sustainable organizations – the state of research based on bibliometric analysis. Zeszyty Naukowe Politechniki Śląskiej. Organizacja i Zarządzanie, 216, 455–473.
Rizos, V., Tuokko, K., & Behrens, A. (2017). The circular economy: A review of definitions, processes and impacts. CEPS Papers 12440. Centre for European Policy Studies.
Santa-Maria, T., Vermeulen, W.J.V., & Baumgartner, R. J. (2022). How do incumbent firms innovate their business models for the circular economy? Identifying micro-foundations of dynamic capabilities. Business Strategy and the Environment, 31(4), 1308–1333. https://doi.org/10.1002/bse.2956
Shevchenko, T., Saidani, M., Ranjbari, M., Kronenberg, J., Danko, Y., & Laitala, K. (2023). Consumer behavior in the circular economy: Developing a product-centric framework. Journal of Cleaner Production, 384, 135568. https://doi.org/10.1016/J.JCLEPRO.2022.135568
Stål, H.I., & Corvellec, H. (2018). A decoupling perspective on circular business model implementation: Illustrations from Swedish apparel. Journal of Cleaner Production, 171, 630–643. https://doi.org/10.1016/j.jclepro.2017.09.249
Tecchio, P., McAlister, C., Mathieux, F., & Ardente, F. (2017). In search of standards to support circularity in product policies: A systematic approach. Journal of Cleaner Production, 168, 1533–1546. https://doi.org/10.1016/j.jclepro.2017.05.198
Tura, N., Hanski, J., Ahola, T., Ståhle, M., Piiparinen, S., & Valkokari, P. (2019). Unlocking circular business: A framework of barriers and drivers. Journal of Cleaner Production, 212, 90–98. https://doi.org/10.1016/j.jclepro.2018.11.202
UNEP. (2011). Decoupling natural resource use and environmental impacts from economic growth. https://www.resourcepanel.org/reports/decoupling-natural-resource-use-and-environmental-impacts-economic-growth
Viciunaite, V., & Alfnes, F. (2020). Informing sustainable business models with a consumer preference perspective. Journal of Cleaner Production, 242. https://doi.org/10.1016/j.jclepro.2019.118417
Weissbrod, I., & Bocken, N.M.P. (2017). Developing sustainable business experimentation capability – a case study. Journal of Cleaner Production, 142, 2663–2676. https://doi.org/10.1016/j.jclepro.2016.11.009
Witjes, S., & Lozano, R. (2016). Towards a more Circular Economy: Proposing a framework linking sustainable public procurement and sustainable business models. Resources, Conservation and Recycling, 112, 37–44.
Zhao, X., Yi, C., Zhan, Y., & Guo, M. (2022). Business environment distance and innovation performance of EMNEs: The mediating effect of R&D internationalization. Journal of Innovation and Knowledge, 7(4). https://doi.org/10.1016/j.jik.2022.100241
DOI: http://dx.doi.org/10.17951/h.2025.59.2.183-200
Date of publication: 2025-09-02 13:03:34
Date of submission: 2024-10-20 22:14:19
Statistics
Indicators
Refbacks
- There are currently no refbacks.
Copyright (c) 2025 Katarzyna Osiecka-Brzeska, Joanna Próchniak, Joanna Czerepko

This work is licensed under a Creative Commons Attribution 4.0 International License.