This article contains wording that promotes the subject in a subjective manner without imparting real information. Please remove or replace such wording and instead of making proclamations about a subject's importance, use facts and attribution to demonstrate that importance.(January 2020) ( Learn how and when to remove this message )
According to the United Nations Environment Programme (UNEP), "circular procurement occurs when the buyer purchases products or services that follow the principles of the circular economy, supporting the assessment of designing, making, selling, reusing and recycling products to determine how to get the maximum value from them, both in use and at the end of their life".[2]
Circular procurement may include the acquisition of goods and services designed to extend product life cycles, such as shared-use models, the refurbishment or reuse of existing assets, and products exhibiting recycled materials.[6]
Policy
Circular public procurement may contribute to the Sustainable Development Goals (SDGs) outlined by the United Nations in the 2030 Agenda for Sustainable Development.[7] Specifically, SDG 12, Responsible Consumption and Production, includes a target to promote sustainable public procurement practices in line with national policies and priorities.[8] Various countries, regions, and cities are also developing circular strategies, highlighting public procurement as a mechanism to help scale the transition to a circular economy.[8]
Circular procurement can be applied at the following levels:[10]
System Level: Focuses on contractual methods that enable circularity, such as supplier take-back agreements or product-as-a-service models.
Supplier Level: Pertains to how suppliers incorporate circularity into their systems and processes to align their products and services with circular procurement criteria.
Product Level: Concentrates on the products that public authorities procure, which suppliers might source further down the supply chain.
Objectives and Outcomes
Circular approaches to procurement aim to promote more environmentally, socially, and ethically friendly modes of production and consumption compared to conventional practices.[11]
Procurement is a significant part of supply chain management and circular procurement and is therefore central to the circular economy aims within supply chain management.[12][13] In 2014, it was estimated that circular procurement could add $1 trillion to the global economy and create approximately 100,000 jobs worldwide by 2025.[14] It has also been claimed to reduce costs and improve overall financial performance.[15]
According to a Research & Metric article published in November 2025[16], the circular economy market has expanded by 43% annually since 2020, with projections suggesting exponential growth through 2030. European markets lead adoption rates at 38%, followed by APAC regions at 27% and North America at 19%. By industry, manufacturing, consumer goods, and technology sectors demonstrate the highest circular economy implementation rates, with 64% of Fortune 500 manufacturers incorporating circular principles into core operations. Research data from 2024-2025 indicates that businesses implementing circular economy strategies experience average profit margin increases of 23% within the first three years.
Criticism
A 2024 study of circular procurement in the Chinese manufacturing sector found a relatively weak effect on environmental performance.[17]
In the construction industry, barriers to adoption can be split into hard and soft. Hard barriers include lack of circular design, reverse logistics, standards, and models, and soft barriers include lack of stakeholder engagement, trust, and resistance to change.[18]
Identified risks include vulnerability to greenwashing and insufficient impact assessment.[19][20][21]
Practical barriers may include high infrastructure costs, lack of standardized definitions or enforcement mechanisms, and limited scalability beyond pilot projects, and additional barriers include overcoming the common perception that circular practices may impede the economic or material development of a region.[22]
(PDF) The European Climate Law, REGULATION (EU) 2021/1119 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 30 June 2021.
This page is based on this Wikipedia article Text is available under the CC BY-SA 4.0 license; additional terms may apply. Images, videos and audio are available under their respective licenses.
