Person:
Klusch, Christina

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Klusch

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Christina

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    Digital circular economy: a new perspective on digitalisation as a driver for sustainability?
    (2025) Klusch, Christina; Hielscher, Sabine; Institut für Ökologische Wirtschaftsforschung (IÖW); Umweltbundesamt; Beckert, Barbara
    The European Green Deal states that moving from a linear to a circular economy is a key strategy to reduce resource consumption by repairing, reusing, remanufacturing, and recycling materials and products. Yet, the establishment of a circular economy in the European Union (EU) is still in an early stage. This report thus outlines how digitalisation can support the implementation of a circular economy and discusses the key role that governance for circularity can play in this context. The overall aim is to formulate recommendations for priorities for action, which the German government can link to the activities of the European Commission. The recommendations are based on an analysis of the role of Germany’s Presidency of the Council of the EU regarding topics related to digitalisation and sustainability (REPORT 1), an expert workshop on digital circular economy (DCE) carried out in April 2022 and a literature review that deepened some of the workshop discussions. The analysis found that the potentials of a DCE are manifold and relate to improving products and business models along the entire circular value chain. Underlying these potentials is often the use of digital technologies for product tracking and monitoring as well as for a transparent digital data exchange. Further, it is argued that governance for circularity can be a key issue to empower stakeholders to move towards a DCE. Based on these findings, recommendations for EU and national policy makers are outlined to support the development of a systemic and coherent strategy for a DCE within the EU.