Europe Aims for Full Circular Economy by 2050

Economists in the Netherlands urge Europe to rebuild its economy using only recycled materials by 2050. Thomas Bauwens, an economist at Erasmus University, explains that a circular economy—reusing existing resources—is vital given scarcity and ecological concerns. The European Union has adopted circular plans, aiming to double the current 12 percent rate of material reuse to 24 percent by 2030.

Experts note technical solutions exist, but companies need incentives from governments through penalties and subsidies to fully transition. Some businesses are already shifting from production to repair services, like a washing machine manufacturer offering repair calls. However, recycling is often more expensive than using new materials, creating a dependency on imports from countries like China.

Currently, the Netherlands leads Europe with 33 percent material reuse, largely due to its practice of incorporating construction and demolition waste into new roads. Achieving full circularity requires substantial investment in the recycling industry and a shift in taxation to favor repair and reuse. The work to restructure economies continues.