The circular economy is a system where products and materials are kept in use for as long as possible – through reuse, repair, refurbishment and recycling – instead of being thrown away after a single use. It replaces the traditional “take-make-waste” model with a closed loop where waste becomes a resource.
This is not just an environmental concept. Nearly half of global greenhouse gas emissions come from how we make and use goods, food and materials. By keeping products and materials circulating rather than constantly extracting virgin resources and dumping waste, the circular economy tackles climate change at its source.
Ireland launched its second Circular Economy Strategy in February 2026, setting out an ambitious national plan to accelerate the transition. At the same time, a wave of EU legislation – including the Right to Repair Directive, the Ecodesign for Sustainable Products Regulation and the EU Packaging and Packaging Waste Regulation – is reshaping what businesses can sell and what consumers can expect.
This guide explains what the circular economy means, where Ireland stands, what is changing and what it means for you.
🔄 The Circular Economy in Plain English
The traditional economy works in a straight line: we extract raw materials from the earth, manufacture them into products, use those products for a while, and then throw them away. This linear model generates enormous waste, depletes natural resources and produces massive greenhouse gas emissions at every stage.
The circular economy bends that line into a circle. Instead of products ending up in landfill, they are designed from the start to last longer, be repaired when they break, be refurbished when they age and be recycled into new materials when they truly reach the end of their useful life.
Think about a smartphone. In a linear economy, you use it for two or three years, then it goes in a drawer or a bin. The rare earth metals, glass and plastics inside are lost forever. In a circular economy, that phone would be designed to be easily repaired (with available spare parts), upgraded (with modular components), and at the end of its life, fully disassembled so every material is recovered and used again.
The same principle applies to everything – clothing, furniture, buildings, food, packaging, electronics and vehicles.
🔹 The Core Principles
🌿 Design out waste – products are designed from the beginning to be durable, repairable and recyclable. Waste is a design failure, not an inevitability.
🌿 Keep products and materials in use – through repair, reuse, refurbishment, remanufacturing and sharing. The longer a product circulates, the less need there is for new extraction and manufacturing.
🌿 Regenerate natural systems – biological materials (food, natural fibres, wood) are returned to the earth through composting or anaerobic digestion, restoring soil health and capturing carbon.
🇮🇪 Ireland’s Circular Economy – Where We Stand
Ireland operates overwhelmingly within a linear economy, and the numbers make uncomfortable reading.
A 2024 Circularity Gap Report commissioned by the government found that Ireland’s circular material use rate (CMUR) stands at just 2.7%. That means over 97% of the materials flowing through the Irish economy come from virgin sources rather than recycled or recovered materials. The EU average is approximately 11.5%. Ireland is one of the least circular economies in Europe.
The waste picture reinforces this. In 2023, Ireland generated 3.13 million tonnes of municipal waste – the everyday waste from homes, offices, shops and schools. That works out at 593 kg per person, the fifth highest in the EU (the EU average is 487 kg). Total waste generation across all sectors reached 15.7 million tonnes, having grown over 20% in the past decade.
Ireland’s municipal recycling rate has been stuck at approximately 42% for an entire decade – no meaningful improvement in ten years. The EU target is 55% by 2025, and Ireland will almost certainly miss it. An additional 400,000 tonnes of recycling per year would be needed to close the gap.
Where does the waste go? In 2023, 42% of municipal waste was recycled, 43% was incinerated with energy recovery, and 13% went to landfill (down from over 80% in 2001). But here is the really striking figure: 1.2 million tonnes – 45% of all municipal waste managed – was exported to other countries for treatment. Ireland lacks the domestic infrastructure to handle its own waste.
Construction and demolition waste is the single largest waste stream, reaching 9 million tonnes in 2023 – more than half of all waste generated in Ireland.
However, there are signs of progress and real political momentum behind change. The Re-turn deposit return scheme, launched in February 2024, collected over 100 million drinks containers in its first three months alone. The Circular Economy and Miscellaneous Provisions Act 2022 provides a legislative backbone. And Ireland’s repairmystuff.ie directory now lists over 1,300 registered repair businesses nationwide.
🔹 Ireland’s Circular Economy Strategy 2026-2028
Ireland’s second Whole-of-Government Circular Economy Strategy, titled “Accelerating Action,” was launched in February 2026. Its central target is to increase Ireland’s CMUR by two percentage points per year, reaching 12% by 2030 – roughly the current EU average.
The strategy targets six priority sectors:
🌿 Construction – a Circularity Roadmap in 2026 and an industry compact to accelerate circular building practices. Construction waste is Ireland’s largest waste stream at 9 million tonnes per year – more than half of all waste generated. The EPA’s National By-product criteria have already diverted 2.7 million tonnes of greenfield soil and stones from waste in 2023 alone, and end-of-waste criteria for recycled aggregates are promoting reuse in construction projects.
🌿 Bioeconomy and agriculture – a National Bioeconomy Strategy and food waste roadmap targeting a 50% reduction in food waste by 2030. Ireland generates approximately one million tonnes of food waste per year, and the average Irish household throws away around €700 worth of food annually. The EPA’s Stop Food Waste programme and Food Waste Charter are leading prevention efforts across the supply chain.
🌿 Retail – promoting sustainable consumption, reducing single-use products and supporting repair and reuse. The Re-turn deposit return scheme has already demonstrated strong public appetite for circular systems – collecting over 100 million drinks containers within its first three months of operation in 2024.
🌿 Packaging – implementing the EU Packaging and Packaging Waste Regulation, targeting a 5% reduction in packaging waste by 2030 and 90% plastic bottle collection by 2029. Ireland generated over 1.2 million tonnes of packaging waste in 2023, and plastic packaging recycling stands at just 32% – well below the 50% target.
🌿 Textiles – a National Policy Statement and Roadmap on Circular Textiles in 2026, with full separate textile collection nationwide by 2030. A quarter of Irish households acquired second-hand clothing in 2024, but the fashion industry remains one of the most wasteful globally.
🌿 Electronics – expanding repair and remanufacturing, transposing the Right to Repair Directive, and supporting Ireland’s growing repair and reuse network. Ireland surpassed all EU targets for recycling and recovery of waste electrical and electronic equipment (WEEE) in 2022 – one of the few bright spots in the waste picture.
Key initiatives include a pilot National Repair Voucher Scheme, support for local authorities to develop reuse, repair and recycling hubs, the implementation of Digital Product Passports, and a commitment to embed circular economy principles in all public procurement.
🔹 The Legal Foundation
The Circular Economy and Miscellaneous Provisions Act 2022 provides the legislative backbone for Ireland’s transition. This law underpins the shift to more sustainable production and consumption patterns. It established the Circular Economy Fund (funded through levies on certain waste streams), enabled bans on specific single-use items and created a framework for extended producer responsibility schemes.
The EPA’s Circular Economy Programme (2021-2027) works alongside the national strategy, providing evidence, grants and support for circular economy initiatives, including the National Reuse and Repair Network.
⚖️ EU Laws Driving the Circular Economy
The EU is the global leader in circular economy legislation. Several major new laws are taking effect in 2026 and beyond, and they directly impact Irish businesses and consumers.
🔹 Right to Repair Directive (From July 2026)
The EU Right to Repair Directive must be transposed into Irish law and applied from 31 July 2026. This is one of the most consumer-facing circular economy laws to date.
What it means in practice:
🌿 Manufacturers of products covered by EU ecodesign reparability requirements (including washing machines, dishwashers, fridges, electronic displays, vacuum cleaners, smartphones and tablets) must repair those products within a reasonable time and for a reasonable price – even outside the warranty period.
🌿 Manufacturers are prohibited from using hardware, software or contractual clauses that prevent or obstruct repair.
🌿 Spare parts must be available at reasonable prices for a defined period (typically 5-10 years after a product is discontinued).
🌿 Each EU member state must implement at least one measure to promote repair – such as repair vouchers, community repair funds or information campaigns. Ireland’s pilot National Repair Voucher Scheme falls under this requirement.
🌿 A European online platform will help consumers find local repair services and refurbished goods.
🌿 Within the legal warranty period, repair becomes the preferred remedy over replacement when repair costs are lower.
This is a fundamental shift. For decades, it has often been cheaper to replace a broken appliance than to repair it – partly because manufacturers made repair deliberately difficult or expensive. The Right to Repair Directive begins to reverse that.
🔹 Ecodesign for Sustainable Products Regulation (ESPR)
The ESPR replaces the older Ecodesign Directive and dramatically expands its scope from energy-related appliances to nearly every physical product sold in the EU. It allows the European Commission to set requirements on durability, repairability, recyclability, recycled content and environmental performance for product categories.
The ESPR also introduces Digital Product Passports (DPPs) – electronic records linked to products via QR codes or RFID tags that contain information on composition, repair instructions, environmental impact and end-of-life recycling guidance. The EU will establish a central DPP registry by July 2026, with phased rollout across product categories through to 2030.
Priority sectors for DPPs include batteries (from 2027), textiles, furniture, tyres and mattresses. Ireland will implement DPPs under its Circular Economy Strategy.
🔹 EU Packaging and Packaging Waste Regulation
This regulation sets binding targets for reducing packaging waste across the EU:
🌿 5% reduction in packaging waste by 2030 (compared to 2018)
🌿 10% reduction by 2035, 15% by 2040
🌿 90% separate collection rate for plastic bottles by 2029
🌿 Minimum recycled content requirements for plastic packaging
🌿 Restrictions on certain single-use packaging formats
For Irish consumers, this will mean changes in how products are packaged in shops and supermarkets, more reusable packaging options and clearer recycling labelling.
🔹 EU Green Transition Directive (From September 2026)
As covered in our greenwashing guide, this directive bans vague environmental claims like “eco-friendly” and “green” unless substantiated, and prohibits “carbon neutral” product labels based on offsetting. It also requires companies to provide information on product durability and repairability – directly supporting the circular economy by helping consumers choose products that last.
🏠 What the Circular Economy Means for You
The circular economy is not just a policy agenda for governments and big business. It affects everyday decisions for Irish households.
🔹 Your Right to Repair
From July 2026, if your washing machine, fridge, dishwasher, smartphone or TV breaks down – even outside the warranty period – the manufacturer must offer a repair at a reasonable price if the product is covered by ecodesign rules. Spare parts must be available. Manufacturers cannot use software locks or proprietary screws to prevent independent repair.
Ireland’s pilot Repair Voucher Scheme will provide financial support for repairs, making it easier to choose repair over replacement. Local repair and reuse hubs are being developed by local authorities across the country.
🔹 Buying Better
The combination of ecodesign requirements, Digital Product Passports and stricter greenwashing rules means that over the coming years, products on Irish shelves will increasingly be designed to last longer, be easier to repair and carry transparent information about their environmental impact. Choosing durable, repairable products over cheap disposable ones is one of the most impactful circular economy actions any consumer can take.
🔹 Food Waste
Ireland produces approximately one million tonnes of food waste per year. The Circular Economy Strategy targets a 50% reduction by 2030. At household level, the average Irish family throws away around €700 worth of food annually – and only 66% of households had access to a brown bin for organic waste as of 2022, though regulatory changes now require all waste collectors to provide one.
The EPA’s Stop Food Waste programme provides practical guidance on reducing waste, and the Food Waste Charter coordinates prevention efforts across the supply chain from farm to fork. Simple steps like meal planning, understanding date labels (best before vs use by), proper food storage and composting scraps make a measurable difference – both to your bin charges and to Ireland’s emissions.
🔹 Clothing and Textiles
The textile industry is one of the most resource-intensive and polluting sectors globally. Ireland’s strategy includes full nationwide separate textile collection by 2030, and the EU is introducing extended producer responsibility for textiles – meaning brands will bear financial responsibility for the end-of-life management of the clothing they sell.
A quarter of Irish households acquired second-hand clothing in 2024, with women significantly more likely than men to buy second-hand. Buying fewer, higher-quality garments, using repair services (check repairmystuff.ie for local options), shopping second-hand and donating rather than binning unwanted clothes are all circular actions.
🔹 Your Home
Retrofitting your home is itself a circular economy action – extending the useful life of your existing building rather than demolishing and rebuilding. Using reclaimed or recycled building materials where possible, choosing durable insulation and fixtures, and ensuring construction waste is properly separated and recycled all contribute to a more circular construction sector.
The SEAI grants available for insulation, heat pumps and solar panels support this transition by making it financially viable to upgrade rather than replace.
🏢 What Irish Businesses Need to Know
The circular economy creates both obligations and opportunities for Irish businesses.
🔹 Obligations
🌿 Manufacturers selling in the EU must comply with the Right to Repair Directive from July 2026 – providing repairs, spare parts and repair information for covered product categories.
🌿 Products will progressively require Digital Product Passports containing sustainability and lifecycle data. Batteries are first (2027), followed by textiles, furniture, tyres and other categories through to 2030.
🌿 Packaging must comply with EU reduction, recyclability and recycled content requirements.
🌿 Environmental claims about products must comply with the Green Transition Directive from September 2026 – no more vague “sustainable” or “eco-friendly” labels without substantiation.
🌿 Large companies reporting under the CSRD must increasingly disclose circular economy metrics alongside Scope 1, 2 and 3 emissions.
🔹 Opportunities
🌿 Repair and remanufacturing services – the Right to Repair creates demand for repair businesses, spare parts suppliers and refurbishment services. Ireland’s National Reuse and Repair Network is expanding, and repair hubs are being established.
🌿 Circular business models – product-as-a-service models (leasing rather than selling), take-back schemes, and refurbished goods markets are all growth areas.
🌿 Reduced material costs – businesses that design out waste, use recycled inputs and recover materials from their own waste streams can reduce raw material costs and supply chain vulnerability.
🌿 Public procurement advantage – the Irish government has committed to embedding circular economy principles in public procurement. Businesses that can demonstrate circularity will have a competitive edge in government tenders.
🌿 Green enterprise support – the Circular Economy Fund and EPA grant programmes provide funding for circular economy innovation and pilot projects.
🌍 The Bigger Picture – Why It Matters for Climate
The circular economy is not just about waste management. It is fundamentally about reducing the emissions embedded in the things we produce and consume.
Extracting raw materials, manufacturing products, transporting them around the world and disposing of them at end of life all generate greenhouse gases. By keeping materials in circulation and reducing the demand for virgin extraction and manufacturing, the circular economy cuts emissions across the entire value chain.
This is why Ireland’s Circular Economy Strategy sits alongside the Climate Action Plan, the net zero by 2050 target and the renewable energy transition as part of a coherent approach to decarbonisation. Energy efficiency and renewable energy address how we power things. The circular economy addresses what we make and how we use it.
❓ Frequently Asked Questions
🔹 What is the circular economy?
A system where products and materials are kept in use for as long as possible through reuse, repair, refurbishment, remanufacturing and recycling. It replaces the traditional “take-make-waste” model with a closed loop where waste is minimised and materials are recovered. The goal is to reduce resource extraction, cut emissions and create economic value from what would otherwise be waste.
🔹 How circular is Ireland’s economy?
Not very. Ireland’s circular material use rate is just 2.7% – meaning over 97% of materials come from virgin sources. The EU average is approximately 11.5%. Ireland generates 593 kg of municipal waste per person per year (fifth highest in the EU), the recycling rate has been stuck at 42% for a decade despite a 55% target, and 1.2 million tonnes of waste is exported annually because Ireland lacks the infrastructure to treat it domestically. The government’s target is to reach 12% CMUR by 2030.
🔹 What is Ireland’s Circular Economy Strategy?
The Whole-of-Government Circular Economy Strategy 2026-2028, launched in February 2026, targets six priority sectors (construction, bioeconomy, retail, packaging, textiles and electronics) and aims to increase Ireland’s circular material use rate by two percentage points per year. It includes a pilot National Repair Voucher Scheme, support for repair hubs, implementation of Digital Product Passports and food waste reduction targets.
🔹 What is the Right to Repair?
An EU directive taking effect from 31 July 2026 that requires manufacturers of covered products (including washing machines, fridges, smartphones, tablets and TVs) to offer repairs at a reasonable price, even outside the warranty period. Manufacturers must make spare parts available and cannot use hardware, software or contractual methods to prevent repair.
🔹 What is a Digital Product Passport?
An electronic record linked to a product (via a QR code or tag) containing information about its composition, environmental impact, repair instructions and end-of-life recycling guidance. Required under the EU Ecodesign for Sustainable Products Regulation, with phased rollout from 2026. The aim is to give consumers, regulators and recyclers the information they need to keep products and materials in use.
🔹 How does the circular economy help with climate change?
Nearly half of global greenhouse gas emissions come from how we make and use goods. By reducing demand for virgin materials, extending product lifetimes, and recovering materials through recycling and remanufacturing, the circular economy cuts emissions across the entire production and consumption cycle. It complements renewable energy and energy efficiency by tackling emissions at the material level.
🔹 What can I do as a consumer?
Choose durable, repairable products over cheap disposable ones. Use repair services when things break – visit repairmystuff.ie to find over 1,300 registered repairers across Ireland, and repair vouchers may be available from 2026. Buy second-hand where possible (a quarter of Irish households already buy second-hand clothing). Reduce food waste – the average Irish family wastes €700 of food per year. Separate textiles for recycling rather than putting them in the general bin. Use the Re-turn scheme for drinks containers. And when buying new, look for products with credible environmental certifications and information about repairability and recyclability.
🔹 What is extended producer responsibility?
A policy principle where the producer (manufacturer or brand) bears financial responsibility for the entire lifecycle of their product, including collection, recycling and disposal at end of life. Ireland already has EPR schemes for packaging, waste electrical equipment (WEEE) and batteries. The EU is extending EPR to textiles, requiring brands to fund the collection and processing of clothing waste.
🔹 How does this affect Irish businesses?
Businesses selling products in the EU face new obligations around repairability (Right to Repair Directive from July 2026), product information (Digital Product Passports), packaging reduction, and environmental claims (Green Transition Directive from September 2026). However, the circular economy also creates opportunities in repair services, refurbishment, recycled materials and circular business models.
🔹 Where can I find repair services in Ireland?
Visit repairmystuff.ie – the national online repair directory managed by Monaghan County Council on behalf of the EPA, listing over 1,300 registered repair businesses across the country. The EPA’s National Reuse and Repair Network connects consumers with additional local services. Local authorities are developing reuse, repair and recycling hubs in towns and cities nationwide. The pilot National Repair Voucher Scheme announced in 2026 will provide financial support for repairs. And from July 2026, a European online platform for finding local repair services will also be available under the Right to Repair Directive.
📚 Related Guides
🌿 Climate Change Ireland
🌿 Carbon Tax
🌿 Biodiversity
🌿 Extreme Weather & the Economy
🌿 Net Zero
🌿 Greenwashing
🌿 Scope 1, 2 & 3 Emissions
🌿 Climate Glossary
👉 All guides and calculators
Climate Jargon Buster is an independent resource providing plain-English information on climate, energy and sustainability topics for an Irish audience. This article is correct as of March 2026. For official circular economy information, visit gov.ie. For the EPA’s circular economy programme, visit epa.ie.