Using socio‐economic analysis and the safe‐and‐sustainable‐by‐design concept to balance costs and benefits in the circular economy

Abstract Accelerating the transition to a circular economy requires regulatory decision‐making that is based on a comprehensive examination of the risks, costs and benefits of recovering or discarding the secondary materials. This article examines the potential of socio‐economic analysis (SEA) in regulating material cycles. We conclude that the SEA set out under the REACH Regulation provides an interesting model also for decision‐making concerning secondary materials that contain any substances of concern. However, the complexity of risk regulation in a circular economy also calls for other regulatory instruments. The safe‐and‐sustainable‐by‐design (SSbD) concept could be a complementary regulatory approach in the pursuit towards a circular economy in which the environmental and economic benefits of material cycling are maximised without compromising the high‐level protection of human health and the environment from the risks of the substances of concern that are present in the material cycles.