How Regions and Cities Can Lead the Transition: Insights from an EPC Event

How Regions and Cities Can Lead the Transition: Insights from an EPC Event

Article written by  Cristina Sanz Rutherford, Policy and Project Officer. The European Policy Centre recently hosted the event “Circular Economy in Regions and Cities: Tackling the Challenges and Seizing the Opportunities,” bringing together key stakeholders from the European Commission, regional and city representatives, and experts from the investment sphere.

How Regions and Cities Can Lead the Transition: Insights from an EPC Event

Our project partner EURADA attended in representation of CircSyst, benefitting from the discussions on how local and regional authorities can drive the transition towards a circular economy (CE) within the current political and economic landscape.

The event began highlighting the urgent need to increase global efforts towards systemic change, given that 90% of the world economy remains linear. In this context, regions and cities play a crucial role in designing and testing circular models that can be replicated at broader levels. Aurel Ciobanu-Dordea, Director for Circular Economy at European Commission (ENV), emphasised the importance of conveying a consistent message regarding CE, and stated that while some critics argue that the Green Deal agenda is losing momentum, the EU remains committed to integrating circularity within the economic framework. In this regard, the upcoming Circular Economy Act, expected in 2026, will include significant regulatory interventions aimed at strengthening the demand for circular products and services while improving the functioning of the market. Additionally, the European Commission is collaborating with the European Investment Bank to launch an Investment Compass, which will provide a strategic overview of priority areas and technologies that are crucial for the development of CE in the EU member states.

Rhodri Asby, representing the Welsh Government, showcased how Wales has transformed itself into a circular economy nation after years of linearity, through collaboration between government, industry and communities. The Welsh model demonstrates how strong partnerships and targeted policies can yield regional leadership and tangible results, such as achieving the second-highest recycling rate globally in 2024. Meanwhile, Louise Coffineau demonstrated how Amsterdam’s adoption of doughnut economics illustrates a holistic approach, ensuring economic activities remain within planetary boundaries while meeting societal needs. Other examples include cities in France and Sweden that are pioneering innovative and successful reuse and second-hand market systems, proving that local-level initiatives can and must be scaled up to drive systemic change. 

A critical issue raised was the financial gap that hinders circular projects in cities. Jordi Pascual Torner introduced the Circularity City Centre (C3), a collaboration between the European Investment Bank and the Commission, offering free advisory services to bridge the disconnect between financiers and projects in need of investment. Additionally, speakers highlighted the necessity of creating a stronger demand for circular solutions, moving beyond supplier-focused strategies to address consumption patterns. In this line, a major concern is that overconsumption remains a key challenge, which will prevent the EU from reaching its targets unless systemic changes are implemented. 

Discussions also touched upon the balance between economic growth and circularity. While businesses often struggle to build a strong case for CE, reframing the question in terms of human wellbeing rather than profitability could unlock new perspectives. The need for regulatory clarity was also underscored, with calls for the rapid implementation of the Circular Economy Act to provide industries, such as plastics, with a clear framework to remain competitive. 

The event reinforced the notion that while regulatory measures are crucial, local and regional actors are already leading the way. However, better coordination, knowledge sharing, and financial support are needed to scale-up such initiatives and to bridge the gap between policy ambitions and implementation on the ground. For CircSyst, the discussions highlighted the importance of aligning research and stakeholder engagement with ongoing EU initiatives to ensure that our work contributes effectively to the broader CE transition. As the EU moves forward with new regulatory interventions, fostering collaboration between cities, regions, and industries will be key to accelerating circularity across Europe.