The linear economic model is reaching its limits given its negative impact on the environment that are threatening human survival. This chapter discusses the path towards an alternative economic model: the circular economy. Contrary to the linear model, that requires unlimited exploitation of natural resources, the circular economy is based on a continuous re-use of materials and products. The case for exchanging the linear model for a circular one has been made by scholars and stakeholders for several years already. David E. Pearce discussed back in 1990 the concept of a circular economy, highlighting the importance of interactions between the economy and the environment. This chapter examines the rationale for the circular economy and briefly reviews the literature on the topic. It then identifies the main factors that have to be in place in order achieve a circular economy. It illustrates each factor with existing and proposed laws and policies, notably those put forward by the European Commission in its 2015 Action Plan for a Circular Economy.