Circular Economy
A circular economy is an economic system that aims to eliminate waste and keep materials in use for as long as possible through reuse, repair, remanufacturing, and recycling. ESPR is the EU's primary legislative instrument for transitioning products to a circular economy model.
Full Definition
The circular economy is the conceptual framework underlying ESPR. In contrast to the traditional linear economy (take-make-dispose), a circular economy keeps materials and products in use for as long as possible, recovering and regenerating materials at the end of each service life. The EU Circular Economy Action Plan (2020) identified ESPR as the key legislative instrument for making products more circular.
ESPR implements circular economy principles through ecodesign requirements that mandate: minimum durability and reliability standards (products must last longer); repairability requirements (products must be repairable by consumers and independent repair shops); recyclability requirements (products must be designed for disassembly and recycling); recycled content requirements (products must contain minimum percentages of recycled materials); and the Digital Product Passport (which provides the information needed to repair, remanufacture, and recycle products efficiently).
The circular economy transition is particularly relevant for electronics, textiles, and batteries — three of the highest-priority product categories under ESPR. These sectors are characterised by short product lifetimes, complex material compositions, and significant environmental impact at end of life. ESPR's ecodesign requirements aim to extend product lifetimes, increase repair rates, and improve recycling yields for these sectors.
Related Terms
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Register Your Digital Product Passport →Circular Economy Principles and ESPR
The circular economy is an economic model that aims to eliminate waste and keep products, materials, and resources in use for as long as possible. The circular economy contrasts with the linear economy (take-make-dispose), which generates large volumes of waste and depletes natural resources. The EU's Circular Economy Action Plan (2020) identifies five priority sectors for circular economy action: electronics and ICT, batteries and vehicles, packaging, plastics, and textiles. ESPR is the primary legislative instrument for implementing the circular economy in the product design phase — by requiring manufacturers to design products that are more durable, repairable, recyclable, and made from recycled materials, ESPR aims to reduce the environmental impact of products across their entire lifecycle.
Circular Economy Metrics in ESPR DPPs
The ESPR DPP will contain several metrics that measure a product's circularity: recycled content percentage (the proportion of the product's materials that were produced from recycled sources), recyclability rate (the proportion of the product's materials that can be recycled at end of life), repairability score (a standardised measure of how easy the product is to repair), and disassembly index (a measure of how easily the product can be disassembled for repair or recycling). These metrics will enable consumers, businesses, and policymakers to compare the circularity of different products and to make purchasing decisions that support the circular economy.
The EU's Circular Economy Action Plan (CEAP), adopted in March 2020, provides the policy framework for the transition to a circular economy. ESPR is one of the key legislative instruments for implementing the CEAP — it addresses the product design phase of the circular economy by requiring manufacturers to design products that are more durable, repairable, and recyclable. The CEAP also includes other instruments that complement ESPR: the Sustainable Products Regulation (which extends ESPR principles to non-physical products), the Ecodesign for Sustainable Products Regulation (ESPR itself), the Right to Repair Directive, the Packaging and Packaging Waste Regulation, and the Textile Strategy for a Sustainable and Circular Economy. Together, these instruments create a comprehensive regulatory framework for the circular economy.