Resources and the circular economy

This chapter discusses the relation between resource consumption and economic development in the context of the European economy and European Union policies. The discussion is framed by the concept of the circular economy, which has been used by the European Union (and many other countries, companies, and organizations) as a policy strategy to decouple resource consumption from economic growth. Over the last 100 years, there has been a very close link between economic growth and increased resource consumption. The achieved global prosperity has been based on a constantly growing consumption of energy resources, building materials, metals, and biomass. Global waste production is expected to increase, and most of this waste is expected to end up incinerated or dumped in landfills. To deal with this problem, the European Commission has proposed a set of policies and strategies under the umbrella concept of the “circular economy.” The first circular economy action plan was adopted by the European Union in 2015, and it was followed up by a revised plan 2020 as a part of the European Green Deal. The action plan aims to reduce resource consumption and secure vital raw materials for the European economy while, at the same time, creating sustainable economic growth and jobs. The chapter discusses the philosophy behind the plans and critically evaluates whether the implemented and proposed policies already have or will enable a decoupling of resource consumption from economic growth.