This report explores the concept of the Circular Economy, which aims to achieve sustainable and efficient resource use in the global economy. While there is growing momentum around this concept, transitioning to a new economic system will require new regulations and business models. The European Commission's Circular Economy Package is a first step, but achieving large-scale industrial transformation will require continuous support and well-designed policy interventions. The report identifies key areas that can drive necessary changes and analyzes their impact on circularity. It also presents policy recommendations based on discussions among executives, representatives of organizations, and researchers involved in the Task Force formed by CEPS.