This chapter discusses the transformative role of a circular economy in decoupling material production and consumption from resource use. It outlines strategies and tools for achieving a circular economy as well as potential pitfalls and risks of subversion. A circular economy refers to a continuous positive development cycle that preserves and enhances natural capital. The circular economy should be ‘restorative by intention’, where environmental impact is decoupled from economic growth. It is important to realize that while a lot of sustainable business initiatives are targeted toward recycling or ‘working with’ waste, the big Cradle to Cradle or circular revolution deals with the design stage. At the European Union policy level, the circular economy is advertised as a ‘new engine of growth’, offering no reflection on the difficulty of combining continuous economic growth with a general aim of sustainability.