Private circular economy investment by EU country

Private investment in circular economy sectors is unevenly distributed across EU Member States, with a small number of countries accounting for a large share of total EU investment. Investment at country level represents rather varied shares of the Gross Domestic Product (GDP) and shows different trajectories over time.

Private investment in circular economy sectors is highly concentrated across EU Member States. In 2023, the three countries with the highest investment levels accounted for more than 56% of total EU investment, with Germany alone representing over 30%, followed by France and the Netherlands. Including Italy and Belgium, this share increases to almost 70% of total private circular economy investment in the EU. This indicates that the total amount of circular investment is not evenly distributed but largely concentrated in a limited number of economies, as can be seen in the % share of EU total (2023) section of the graph.

Across all Member States, investment levels remain low relative to the Gross Domestic Product (GDP) of each country, with values generally below 1%, in line with the EU average. However, the range across countries is notable, varying from 0.1% to 1.3% of GDP in 2023. Differences in investment growth rates across Member States further highlight this uneven development. Some Member States show very high growth rates (e.g., Lithuania and Germany), while others exhibit more moderate increases and, in some cases (Greece and Cyprus), even declines.

This uneven distribution has implications for the circular transition. High concentration, combined with divergent growth trajectories, may limit the diffusion of circular business models and slow down progress at EU level, particularly if investment remains focused on a narrow set of countries and sectors. Addressing these disparities will be important to ensure a more balanced and inclusive transition (EEA, 2026a).

Understanding the distribution of investment across Member States is essential for assessing their progress on the circular economy transition. The investment patterns reflect underlying economic structures, such as the presence of industrial clusters or established recycling industries. It may also signal uneven access to finance, differences in policy support, or varying levels of maturity in circular business models (EEA, 2026b; ETC, 2026).

EU policy frameworks, including the Circular Economy Action Plan, emphasise the need for a systemic transition across all Member States. Ensuring a more balanced distribution of investment is therefore important for achieving EU-wide circularity objectives and avoiding regional disparities in economic opportunities and environmental benefits.

Definition

Private investment in circular economy sectors refers to gross investment in tangible goods by enterprises operating in sectors associated with circular activities, including recycling, repair and reuse, and rental and leasing (Eurostat, 2025).

Methodology

· The figures depict the following metrics for each country:

o Share of EU total (%), calculated as the percentage of total private investment in circular economy in a country compared to total private investment in circular economy across the EU27.

o Share of country’s Gross Domestic Products (GDP) (%), calculated as the percentage of total private investment in circular economy in a country compared to the country’s GDP.

o Percentage change, calculated as the change in private investment in circular economy in a country between 2005 and 2023.

· The indicator refers also to the concentration ratio (C3), defined as the combined share of total EU private circular economy investment by the three Member States that account for the largest circular investment amounts. Country shares are calculated based on total investment in circular economy sectors.

· The underpinning data from Eurostat is based on a sector classification approach that identifies circular economy activities using the Statistical Classification of Economic Activities in the European Community (NACE codes). Relevant activities are mapped to statistical classifications and compiled using data from structural business statistics, national accounts, PRODCOM and labour force surveys. Investment is measured as gross investment in tangible goods within these sectors. The list of activities is available at https://ec.europa.eu/eurostat/cache/metadata/Annexes/cei_cie011_esmsip2_an_3.xlsx. The Eurostat metadata information is accessible at https://ec.europa.eu/eurostat/cache/metadata/en/cei_cie011_esmsip2.htm.

Metadata

Data sources: Eurostat (2025), cei_cie012, Private investment and gross added value related to circular economy sectors, accessed April 2026 via the following data query https://ec.europa.eu/eurostat/databrowser/view/cei_cie012__custom_21604913/default/table. Metadata accessible at https://ec.europa.eu/eurostat/cache/metadata/en/cei_cie011_esmsip2.htm

Unit: Percentage of total circular economy investment in the EU, percentage of GDP and percentage change between 2005 and 2023.

Temporal coverage: 2023

Geographic coverage: EU 27

Literature

· EEA (2026a). Scaling circular business models in Europe, https://www.eea.europa.eu/en/analysis/publications/scaling-circular-business-models , accessed 15 April 2026.

· EEA (2026b). Unlocking the circular economy: Investment needs, barriers and enabling conditions, https://www.eea.europa.eu/en/analysis/publications/unlocking-the-circular-economy-investment-needs-barriers-and-enabling-conditions, accessed 21 April 2026.

· ETC (2026). Financing circular economy ambitions in Europe: Trends and gaps. European Topic Centre on Sustainability transitions and European Topic Centre on Circular Economy and Resource Use, Eionet, https://www.eionet.europa.eu/etcs/etc-st/products/etc-st-report-2025-5-financing-circular-economy-ambitions-in-europe-trends-and-gaps, accessed 21 April 2026.

Private circular economy investment by EU country

References and footnotes