DRIVERS OF CIRCULAR TRANSFORMATION: INSIGHTS FROM THE EUROPEAN UNION EXPERIENCE

Abstract

The article focuses on the key aspects and innovative approaches that characterise the EU's progress towards creating an effective model of a circular economy. The article substantiates that the concept of circular economy is based on a comprehensive approach to the transformation of economic processes, which includes: decarbonisation of economic growth by reducing its natural resource intensity; mitigation of climate change by reducing greenhouse gas emissions; introduction of resource-efficient production technologies.The built regression model reveals correlations and quantifies the degree of influence of various indicators on the resource productivity in the EU member states. The regression model highlights the critical importance of reducing greenhouse gas emissions and increasing the efficiency of household waste disposal to significantly improve resource productivity. The ambiguous influence of packaging recycling and organic waste recycling factors indicates the need for a deeper analysis of these aspects and the possible presence of additional hidden factors that affect the indicator under study. The results of regression model allow to justify the priority of the studied factors in the context of developing strategies for improving resource efficiency. The comparative analysis shows the complexity and depth of the transformation processes taking place in the European Union in the context of implementing the conceptual foundations of the circular economy. It is substantiated that the experience of European countries demonstrates the effectiveness of an integrated approach to household waste management, which combines the implementation of a strict regulatory framework; application of economic incentive mechanisms; development of an extensive waste management infrastructure; introduction of innovative technological solutions; and formation of a high level of environmental awareness of the population. The trends identified in the article demonstrate the potential for transforming global economic interactions and shaping new paradigms of international cooperation as part of the transition to more sustainable production and consumption models.