Transition towards a circular economy to build societal resilience to energy shocks

This study examines how circular economy (CE) practices contribute to energy resilience by mitigating the impacts of energy shocks and supporting sustainable development. Through a systematic literature review (SLR) of recent studies, we analyze the ways in which CE strategies—such as resource recovery, renewable energy integration, and closed-loop supply chains—enhance energy security and reduce vulnerability to energy disruptions. Our research draws on academic databases, focusing on publications from 2018 to 2024, to identify key themes and practices that illustrate the transformative potential of the circular economy. Findings reveal that CE practices at macro, mezzo, and micro levels support resilience by fostering efficient resource use, reducing dependency on non-renewable energy sources, and promoting sustainable economic growth. Additionally, we highlight the roles of foreign direct investment (FDI), research and development (R&D), and supportive policies in accelerating the adoption of circular systems. The study concludes with recommendations for future research to address identified gaps, suggesting a roadmap for advancing circular economy practices as a means to enhance energy resilience and sustainability aims to reveal how wide array of factors affect transition towards more sustainable or circular economy.