CIRCOMOD hosted Circular Talks – Machinery Manufacturing Emerges as a Key Enabler of Europe’s Circular Economy Transition

Brussels, 17 June 2026 – How can machinery manufacturing contribute to Europe’s circular economy ambitions and climate goals? This question was at the heart of the latest EU Circular Talk, organised under the European Circular Economy Stakeholder Platform (ECESP) and drawing on the latest findings from the Horizon Europe-funded CIRCOMOD project.

The online event brought together policymakers, researchers, industry representatives and circular economy practitioners to explore an often-overlooked dimension of the circular transition: the role of machinery and equipment in reducing resource consumption, lowering greenhouse gas emissions, and enabling circular business models across the wider economy.

The workshop showcased new insights from the CIRCOMOD project, a four-year Horizon Europe initiative that has developed advanced modelling tools to better understand how circular economy strategies contribute to climate change mitigation. By linking material flow analysis, economic models and climate scenarios, CIRCOMOD provides policymakers with a stronger evidence base for assessing the climate benefits and economic implications of circular economy measures.

Policy momentum for circular machinery

Sebastian Edmaier, Policy Officer at the European Commission’s Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs (DG GROW), provided an overview of the evolving European policy landscape.

While existing machinery legislation focuses primarily on safety and the functioning of the Single Market, a growing body of EU legislation is increasingly shaping circularity outcomes. Edmaier highlighted the Ecodesign for Sustainable Products Regulation, the Critical Raw Materials Act, repairability legislation and corporate sustainability reporting requirements as important components of the emerging framework.

Looking ahead, he pointed to two upcoming initiatives with particular relevance for machinery manufacturers: the proposed Circular Economy Act and the European Product Act. These initiatives are expected to facilitate circular business models, improve access to secondary raw materials, strengthen digital product information systems and create clearer rules for remanufactured and refurbished products.

New evidence on machinery and climate impacts

Professor Edgar Hertwich of the Norwegian University of Science and Technology (NTNU) and the International Institute for Applied Systems Analysis (IIASA) presented new research demonstrating the economic and environmental significance of the machinery sector.

Machinery and equipment manufacturing accounts for a substantial share of Europe’s industrial value creation and exports, while also being responsible for significant greenhouse gas emissions associated with material use. Hertwich noted that machinery production alone contributes approximately 2.5 gigatonnes of CO₂-equivalent emissions globally each year through its material requirements.

His presentation highlighted the importance of understanding machinery not only as a manufacturing sector but also as a critical enabler of production across services, manufacturing, construction and infrastructure. Better data and more robust modelling are needed to identify where circular strategies can deliver the greatest climate benefits, he argued.

Building on this perspective, Alejandro Arias Castillo of Pforzheim University presented results from a meta-analysis of 86 life-cycle assessment studies covering 39 industrial machinery technologies. The analysis revealed that while operational energy use remains the dominant source of emissions for many machines, manufacturing impacts become increasingly important in low-utilisation and electrified technologies.

The research identified several machinery archetypes and linked them to specific circular economy strategies, including lifetime extension, increased utilisation, modular upgrades, repair, refurbishment and high-quality recycling.

Industry demonstrates practical solutions

The event also showcased concrete examples of circularity already being implemented in industry.

Professor Tobias Viere of Pforzheim University presented several industrial success stories illustrating how circular strategies can generate both environmental and economic benefits. Examples included lightweight redesign and material substitution in automotive manufacturing equipment, as well as large-scale internal reuse of industrial machinery within Bosch facilities.

A particularly compelling case was presented by Dominic Schultze of Herrenknecht, the global manufacturer of tunnel boring machines. Through its “REBUILD” programme, the company remanufactures major components from returned machines and incorporates them into new projects.

Because tunnel boring machines are highly specialised and can weigh several thousand tonnes, remanufacturing offers significant opportunities to preserve material value. According to company data presented during the workshop, remanufactured components achieve carbon footprint reductions of more than 70% compared with newly manufactured alternatives while maintaining equivalent performance standards.

Key challenges and opportunities

The interactive discussion that followed focused on several recurring themes.

Participants identified regulatory challenges related to waste classification, the availability of high-quality secondary materials, and the need for stronger trust in remanufactured products. Several speakers highlighted the potential of digital product passports to improve transparency regarding product composition, material flows and component quality.

Another important theme was the growing relevance of manufacturing impacts as machinery becomes increasingly electrified and energy systems continue to decarbonise. While operational emissions decline, the environmental footprint associated with producing machinery and equipment becomes proportionally more important, reinforcing the value of circular design, reuse and remanufacturing strategies.

The discussion also underscored the need for better data and measurement systems to support evidence-based policymaking and enable more effective circular business models.

Looking ahead

The workshop demonstrated that machinery manufacturing is far more than a supporting sector in the circular economy transition. It is both a significant source of resource use and emissions and a critical enabler of circularity across the wider economy.

As Europe develops new policy instruments to strengthen circularity, machinery manufacturers have a unique opportunity to contribute through innovative business models, product design, remanufacturing, repair and resource-efficient production.

The CIRCOMOD project’s latest findings provide further evidence that circular economy strategies can play an important role in achieving Europe’s climate objectives while enhancing industrial competitiveness and resilience. As policymakers and industry continue to explore pathways towards climate neutrality, machinery manufacturing is emerging as an increasingly important part of the solution.

The event proceedings reports is available here 

The video recording of the event is available at  https://www.youtube.com/watch?v=mxntK2F7KmI