The research presented in this article aimed to analyze the impact of circular economy initiatives on the European Union environmental goods and services sector. Data from the Eurostat databases were used to conduct the research. Validation of the five research hypotheses involved the formulation of two regression equations: the first one focused on innovation and recycling performance indicators, and the second equation focused on circular-economy indicators. Both models were estimated using country fixed-effects regression with Driscoll–Kraay standard errors to ensure robust inference. The regression model was selected based on the Hausman test and F-test, but tests for autocorrelation, heteroscedasticity, and multicollinearity were also performed. The main findings, as the results suggest, refer to the central role of private investment in circular sectors and resource productivity, both exerting positive and significant effects on the environmental goods and services sector (EGSS). The material footprint also shows a positive effect, but in contrast, the circular material use rate does not display a significant impact, indicating that increases in the share of recycled materials do not automatically translate into greater economic value.

The research presented in this article aimed to analyze the impact of circular economy initiatives on the European Union environmental goods and services sector. Data from the Eurostat databases were used to conduct the research. Validation of the five re-search hypotheses involved the formulation of two regression equations: the first one focused on innovation and recycling performance indicators, the second equation fo-cused on circular-economy indicators. Both models were estimated using country fixed-effects regression with Driscoll–Kraay standard errors to ensure robust inference. The regression model was selected based on the Hausman and F-test, but tests for au-tocorrelation, heteroscedasticity and multicollinearity were performed. The main findings, as the results suggest, refer to the central role of private investment in circu-lar sectors and of resource productivity, both exerting positive and significant effects on the EGSS. The material footprint also shows a positive effect but in contrast, the circular material use rate does not display a significant impact, indicating that in-creases in the share of recycled materials do not automatically translate into greater economic value.

The energy sector’s transition to a circular economy (CE) is critical for achieving global decarbonization and resource security. The primary objective of this systematic literature review is to examine the co-evolution of circular business models (CBMs) and green financing mechanisms across the energy value chain. To achieve this, we synthesized 93 high-impact studies published between 2015 and 2024, which were retrieved from the Web of Science and Scopus databases. Using the 10R hierarchy as an analytical framework, this study identifies a strategic shift from low-order recycling to high-value circularity, such as rethink, repurpose, and remanufacture. We analyze the role of the EU Taxonomy, green bonds, and equity crowdfunding in de-risking circular investments, while highlighting the “transparency paradox” in second-life markets and the “efficiency-waste trade-off” in rapid technological turnovers. Our findings reveal that while digital catalysts like blockchain and AI optimize resource flows, their scaling is hindered by a lack of empirical validation and fragmented regulations. The review concludes by proposing a “regulatory-technical nexus” for future research, emphasizing the need for circular digital twins and standardized decommissioning protocols to bridge the gap between theoretical optimization and operational reality in the renewable energy sector.