The concept of the circular economy is regenerative, contributes to competitiveness and climate neutrality and promotes a Sustainable, high-quality industry. Digital innovation, climate protection, job creation and growth within planetary boundaries promote location development as well as increasing resilience, and enable more Independence from global supply chains.

In an economic environment that needs to reorient itself globally in terms of employment and growth, the circular economy offers concepts for sustainable innovative business models, from design to utilisation, repair and reuse to recycling. Given the increasing scarcity of natural resources and corresponding national and international guidelines and regulations, it is now more important than ever to support companies in achieving more with less.

A regenerative circular economy increases the value of material resources while minimising overall resource consumption, greenhouse gas emissions, waste and pollution. Circularity is a property of a system (e.g. a city's mobility system) and not a property of an individual product or service (e.g. a car or a car-sharing service). The transition to a circular economy therefore requires product, business model and system innovations.

Recommendations and objectives for regenerative economic activity, the use of renewable energies and the creation of value-added cycles can be found in the Agenda 2030 "Transforming our World"  of the United Nations (also Sustainable Development Goals, SDGs) and in the legally binding Paris climate agreement as well as in the action plan of the EU Green Deal, the EU Industrial Strategy and the new Circular Economy Action Plan. The EU Recovery Plan, which provides the tools for building a modern, clean and healthy economy to secure the livelihoods of the next generation, also emphasises the importance of innovation for the transition to a clean, competitive and climate-neutral circular economy.

With the EU Circular Economy Action Plan (Circular Economy Action Plan), the topic was established as a central pillar of sustainable transformation in Europe in 2020. As a result, Austria has its own 2022 Circular economy strategy was adopted. The aim is to develop the economy and society towards a climate-neutral, resource-conserving and circular future by 2050.

- Target 1aReduction of the material footprint (MF) to 7 tonnes per capita per year by 2050

- Goal 1bReduction of domestic material consumption (DMC) to 14 tonnes per capita per year by 2030

- Goal 2Increase in domestic resource productivity by 50 % by 2030 (base year: 2015)

- Goal 3Increase in the circularity rate to 18 % by 2030

- Goal 4Reduction of per capita municipal waste generation by 10 % by 2030 (as an indicator for private consumption)

To realise this, the Task Force Circular Economy The Bioeconomy Strategy is an interdisciplinary committee with representatives from business, science, administration and civil society. It supports the implementation of the strategy, develops recommendations and promotes links with other topics such as the bioeconomy.

The status of implementation is regularly reviewed in Progress reports documented. The first report was published in 2024 and shows a predominantly positive trend in the key indicators. The second progress report will be published in autumn 2025.

Also in the current Government programme 2025-2029 the further development of the circular economy is firmly anchored. A concrete implementation plan, an improved monitoring system and stronger cross-departmental cooperation are planned. The circular economy thus remains a central building block for the sustainable development and competitiveness of Austria as a business location.