The circular economy is highlighted as a central pillar of modern economic strategy, presented as a key ally in confronting the climate crisis and in achieving sustainable development goals. A Spanish publication from the Prensa Ibérica group, with sponsorship from Banco Sabadell in Madrid, hosts a panel of experts under the banner Circular economy, opportunity or challenge? to examine the current state and the road ahead for this economic model.
Román Martín Antón, manager at Signus Corporate Relations, explains that in the circular economy resources and materials remain in the production loop for as long as possible. He emphasizes ecological design and products built from durable, repairable, and reusable materials. With consumer participation, products can stay in circulation longer, reducing waste and extending lifecycle value.
Elena Carrera Crespo, manager of Sustainability and Efficiency at Banco Sabadell, describes a shift toward transition finance that supports circularity across industries. The bank pledges assistance in identifying circular features, measuring progress, and guiding the transformation with the necessary technologies. Companies should rethink their production processes, including waste reduction through environmental design, and leverage mature technologies that offer long-term competitive advantages and potential cost savings.
Manuel Guerrero Pérez, executive director of the Circular Economy Foundation, frames the objective as a move toward a circular and sustainable model. He notes that simply recycling materials is not enough; active participation by all actors in the value chain is essential. A major challenge remains the reintegration of used raw materials back into the market.
Enrique Castelló Muñoz, head of the Madrid College of Economists Business and Entrepreneurship Forum, remarks that this paradigm shift replaces the linear extract-produce-consume-dispose model with a circular approach built on three Rs: reduce waste, recycle, and reuse. He stresses that sustainability should also be profitable, affecting social, environmental, and economic dimensions. Sustainable practices should ensure the long-term survival of a company, benefiting citizens, employees, and shareholders alike.
Federico Ramos, head of the Circular Economy Commission at the Spanish Chamber of Commerce and its director at Veolia Madrid, highlights the water sector as a long-standing example of circular thinking. Water is a natural resource with inherent circularity, a prime example of where this approach has been developed most deeply in the economy.
Partnership
In this transformation, large corporations play a pivotal role in guiding and supporting small and medium enterprises toward sustainable practices. Elena Carrera notes that the main benefits include cost savings, reduced future risks, and a growing number of organizations earning credibility with investors, customers, and suppliers through sustainable strategies.
The ongoing effort to finance and legislate circularity is essential. A banker’s perspective underscores the key role of large firms in pooling resources to scale initiatives. SMEs may need to partner with others to innovate first, then follow with scalable technologies at competitive costs.
Castelló asserts that the objective is to improve corporate commitment to society through transparent governance and responsible actions. He calls for clearer and more efficient management of European funds to leverage resources toward a modern Spanish economy, aligned with broader regulatory challenges.
legal framework
Román Martín argues for regulatory support from authorities and practical measures to reintroduce waste materials into the production chain. He believes there remains a long journey ahead to reach a fully enabling framework.
Ramos advocates for a joint approach among companies and administrations to establish a clear and stable legal framework that sustains progress. While feasible, moving toward this framework requires coordination and persistence, as some transitions are not easy.
Castelló calls for simpler, more user-friendly regulations so citizens can easily understand the products and services available. Martín Antón adds that consumer demand for service-oriented models is growing, while Castelló notes that European-level regulations must adapt to shifting consumer habits.
Carrera emphasizes that consumer demand for sustainable products drives corporate change; without it, companies may lag. Regulation can amplify responsible use of resources and the role of banks and investors in encouraging investments that accelerate circular activities. Large institutions are positioned to lead, while SMEs often need external guidance to scale technologies efficiently.
Román Martín Antón identifies innovation as a principal challenge for the circular economy. Carrera highlights the importance of adopting new technologies and delivering didactic and advisory support to companies, with special attention to SMEs to help them measure their carbon footprint and implement profitable strategies.
difficulties
Castelló stresses that new entrants to sustainability must be well informed since awareness, funding access, and compliance are frequently gaps. The evolving role of the economist now demands a forward-looking mindset, capable of capturing relevant information for future decision-making.
The Madrid College of Economists’ leadership calls for guidance to simplify compliance with European directives. This is seen as essential to shape the next generation of business leaders who will drive the 21st century economy.
Ramos notes that the absence of unsustainable practices in the long term depends on companies recognizing opportunities and stakeholders responding to them. He argues that long-term presence requires consistent effort regardless of company size or resources.
Martín Antón explains that planning and design must now include circular thinking. A pedagogical effort is needed to explain, analyze, and persuade various applications so that the transition becomes practical and understood.
Carrera believes organizations must assess environmental and social impacts and create plans to minimize externalities. On environmental issues, companies should measure carbon footprints, adopt renewable energy, and maximize resource use through waste repurposing. Guidance from experts and talent recruitment are essential levers for sustainable development in the corporate landscape.