ERA: “Rental is the true circular model”

By ERA12 May 2020

On 10 March, the European Commission published its new Circular Economy Action Plan. The ERA has high hopes that the EU will recognise the full potential the sharing and rental business models have in helping to make the transition to a circular economy.


Rental ticks all the boxes in fulfilling circular economy principles and is therefore the perfect circular model. Rental allows for less waste through the shared use of assets, extending the lifetime of equipment and putting emphasis on proper recycling. The Circular Economy Action Plan also recognises the need for circular business models to retain value in the economy, and rental does just that.

In parallel, the importance of cutting carbon in the construction industry is increasingly being recognised, as demonstrated by the new Circular Economy Action Plan’s focus on the construction and building sector. In this context, the use of construction equipment is one of the areas where the climate impact can be minimised – which is where rental enters into play.

“Rental is a great way to minimise the carbon footprint of construction equipment and bring us closer to meeting the Paris climate goals,” said ERA Secretary General Michel Petitjean. “By sharing equipment and optimising its use, the rental industry lowers the construction sector’s overall climate impact.

“Renting helps reduce CO2 emissions by around 30%, sometimes even up to 50%, depending on how the equipment is used, by optimising equipment adequacy, transportation, utilisation rate and maintenance, as a recent major study shows.”

The ERA calls on decision makers to recognise and encourage practices that minimise the climate impact of construction equipment, particularly in view of the upcoming ‘Renovation Wave’, which will incorporate circularity principles, as well as in the context of public procurement.

For more information on the ERA or if you wish to know more about the study published last year by the ERA on the “Carbon Footprint of Construction Equipment”, please contact the ERA team at

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