This thesis examines the European Union’s strategic pursuit of a green transition and circular economy. The research evaluates how the EU's efforts to reduce its carbon footprint through the circular economy contribute to resource efficiency, innovation, and regional cohesion. The primary objective was to analyze the challenges and opportunities arising from the EU's transition to a circular economy. The findings indicate that while many EU Member States have made significant strides, particularly in areas such as recycling and renewable energy, disparities remain in the adoption of circular practices across the Union. Countries like Germany and the Netherlands lead in recycling rates, whereas others, such as Romania and Cyprus, lag behind due to infrastructure and policy limitations. A critical aspect of this thesis was to assess the impact of EU policies like the European Green Deal and the Circular Economy Action Plan. This thesis demonstrates that while the EU's green transition and circular economy policies have generated positive outcomes, a cohesive and coordinated approach across all Member States is necessary to fully realize the benefits of this shift toward sustainability.