It aims to go further than traditional policies focused on eco-efficiency, resource efficiency, and recycling. A report from the World Economic Forum undertaken by McKinsey estimates the potential materials cost savings across an EU medium-lived complex products industry to be €300 billion to €560 billion per year. In the fast-moving consumer products industry, global materials cost savings are estimated to be as much as €625 billion per year. Additional benefits are projected for increased innovation, job creation, lower capital intensity, and mitigation of risk from commodity price volatility and supply disruption.
In December 2015, the European Commission adopted an Action Plan and legislative package to support the transition toward a circular economy, including long-term targets to reduce landfilling, increase recycling and reuse. The Action Plan is intended to support the circular economy at each step of the life cycle.