Circular Economy as a Catalyst for Sustainable Development in the Danube Basin

Excessive resource consumption, pollution, and climate changes led to a cascade of environmental, economic, and social consequences that have fundamentally altered the balance of life on earth. The overexploitation of fossil fuels and industrial, agricultural and general household waste strained both natural resources and national economies, forcing nations to confront the urgent need for sustainable energy transitions, circular economies, and cooperative policies to mitigate further damage and ensure a liveable future for generations to come. However, despite the growing popularity of the topic, the global circularity is in decline, indicating that more needs to be done to close the "circularity gap".

While a new European Union initiative - the Circular Economy Act- is expected to be adopted in 2026 aimed at doubling EU's circularity rate by 2030 and enhance economic security and competitiveness, numerous initiatives are being financed across the continent supporting the development of advanced circular economy technologies.

Recognising the tremendous importance of the circular economy for the Danube-basin region, the Danube Region Programme (DRP) has committed to funding the development and scaling up of circular economy policies, processes, and interventions across sectors with high resource consumption and significant potential for circularity (e.g. electronics and ICT, batteries and vehicles, packaging, plastics, textiles, construction and buildings, food and nutrients).

Consequently, five successful projects are under implementation. While TEX-DAN and Green-Tex projects focus on the textile sector and PLAN-C addresses the plastics and machine industry, DECIDE and CI-Hub projects have a more general approach creating circular economy business models and a circular transition accelerator support services hubs.

Aiming to advance circular economy business models aligned with the EU’s Sustainable Development Goals (SDGs), DECIDE (EUSDR flagship project in 2024) supports SMEs, start-ups, and economic development organisations in adopting circular practices. The project provides practical tools and methodologies to stimulate innovative business approaches, promoting cross-border knowledge sharing and hands-on guidance through pilot initiatives. Through focused training programmes and concrete policy recommendations, DECIDE fosters sustainable growth and empowers businesses across the Danube Region to become leaders in circular economy innovation.

Driven by the mission to accelerate the shift toward a circular plastics economy across the Danube Region, the PLAN-C (EUSDR flagship project in 2024) unites key players from the plastics and machinery sectors to spark innovation and sustainability. By fostering cross-border collaboration and design thinking, PLAN-C develops circular products and technologies, creates real-life prototypes for reuse, recycling, and remanufacturing, and delivers hands-on guidelines and digital tools to support circular business models. Engaging over 140 companies and aligning with national smart specialization strategies, the project is paving the way for a smarter, more sustainable plastics and machine industry

The core mission of the TEX-DAN (EUSDR flagship project in 2025) is to advance circular textile management in the Danube Region by upgrading local, regional, and national policies that foster circularity. To turn this vision into action, the project plans to pilot innovative technological solutions across four key segments of the textile and fashion value chain: bio-based clothing, circular design, circular production processes, and recycling. Through its efforts, TEX-DAN is helping to redefine how textiles are designed, produced, and reused—bringing the Danube Region one step closer to a truly circular and sustainable textile economy.

The Green-Tex project also works towards a circular future in textiles by helping the textile and garment industry become more resilient, competitive, and sustainable in the face of global shifts toward a circular, regenerative economy. As the sector transitions away from traditional linear models, Green-Tex steps in, proposing to test new circular solutions across the entire value chain—from fashion design and production to usage and textile waste collection. To encourage responsible consumer behaviour, Green-Tex plans to introduce digital tools for efficient textile waste collection, create interactive online map of collection points and organise public awareness campaigns. Finally, the Green-Tex learning and innovation platform will be the repository of all project outcomes and innovations.

The CI Hub project is creating an innovation hub that serves as a catalyst for driving circular transition based on circular user experience model combined with industry 4.0 novel technologies that supports circular transition across seven different sectors (electronics, food and beverages, pharmaceutical and chemical, metal, plastics and rubber, machinery and equipment, building materials and furniture). The Innovation Hub for Circular Transition will put at the disposal of stakeholders green transition tools and services, an ecosystem of experts and an e-commerce platform.

Taken together, these initiatives demonstrate that the transition towards a circular, climate-resilient economy in the Danube Region is no longer an abstract ambition but a tangible and accelerating reality. By supporting innovation across multiple value chains, empowering businesses with practical tools, and fostering strong transnational collaboration, the DRP is helping to close the circularity gap and strengthen regional resilience. Continued commitment, cooperation and innovation is essential in shaping a truly circular and sustainable Europe and these initiatives signal a momentous step towards a future in which resources are valued, waste is minimised, and economic growth is decoupled from environmental degradation.