Unlocking societal engagement: Driving the circular economy through consumer empowerment and quality jobs

Society is the engine driving the transition to a more circular economy: it influences the demand side as consumers, the supply side as workers and entrepreneurs, and sets the course as voters. The speed of the transition depends critically on citizens’ willingness and ability to make sustainable choices, making societal attitudes pivotal to its progress.?

Yet, consumer behaviour is not evolving at the scale or speed needed. A linear mindset remains entrenched in many business cultures and investment strategies, often due to limited awareness and deep-rooted social norms.?

Today, the EU is uniquely positioned to lead this shift by fostering citizens' engagement in the circular economy. The connection between this transition and the creation of fair, inclusive jobs is more relevant than ever.??

Furthermore, the recent hearing with designate-Commissioner Jessika Roswall on 5 November underscored the importance of delivering quality outcomes for both consumers and businesses.?

In this last article, we examine the societal barriers hindering the accessibility and benefits of circularity across all sectors. Drawing on insights from our latest report "No Time to Waste: Driving the EU’s Resilience and Competitiveness through Circular Economy Transformation ", we explore both the challenges and opportunities in this transition. It identifies essential enablers and priority policy actions needed to drive progress towards a more resilient and competitive EU economy:?

1. Encourage and incentivise sustainable choices?

Current policies primarily aim to provide consumers with information – through tools like eco-labels – to allow them to make informed and sustainable decisions. However, they often fall short of making circular alternatives economically appealing, which may explain the limited consumer demand for circular products and services. This low demand is reflected in few incentives for businesses to change, exacerbating the impact of the economic and organisational barriers that businesses face in the transition to a circular economy.??

According to recent Eurobarometer data , European citizens strongly support the circular economy and action against climate change. In fact, 84% of respondents agreed that “EU environmental legislation is necessary for protecting the environment in our country”, and 59% expressed a willingness to pay more for products that are easier to repair, recyclable, or produced in an environmentally sustainable way.?

To break down this barrier, policy measures should include incentives that actively encourage sustainable consumer choices. Continuous stakeholder engagement from companies and authorities, coupled with targeted economic incentives for circular products and disincentives for linear ones, can help to shift consumer behaviour and bolster circular practices.?

Additionally, the new European Commission must ensure that the benefits from the circular transition are accessible to all.??

2. Foster circular employment opportunities for just transition?

Socio-economic aspects – such as employment, health and safety, and participation – are critical to consider in the circular economy transition.??

Firstly, the shift to a circular economy will impact labour markets, bringing both employment gains and losses as sectoral employment patterns adjust to the transition. In terms of job creation, the EU as a ‘social market economy’ with a robust tradition of labour rights offers a solid foundation for ensuring a socially just transition to a circular economy.?

To support this transition, a well-defined policy framework is essential – one that prioritises the ‘future of work’ over immediate, short-term impacts on the labour market. Within this scenario, it is vital for national and regional authorities across Member States to invest in upskilling and reskilling Europe’s workforce, helping to ensure that businesses can access the skills they need for a circular economy.??

For a deeper dive, read our report and recommendations here . If you have missed the first article in this series, check it out here .????

How can policymakers empower citizens to embrace circular practices and businesses to drive a fair and accessible circular economy transition? Share your ideas in the comments below!?