Unpacking Policy Determinants for Circular Business Models: An Updated Comprehensive Review and an Actionable Analytical Framework

The transition from linear to circular systems remains slow and fragmented, despite the increasing recognition of circular economy (CE) as a strategic pathway to sustainability. This review identifies and categorizes the main policy levers supporting the adoption of Circular Business Models (CBM) in an analytical framework comprising eight determinants: policy agenda, governance, regulation, standardization, economic incentives, information, cooperation, and digitalization. Based on a semi-systematic review of 95 scientific and grey literature sources, the study reveals persistent gaps in policy coherence, governance coordination, and support for high-circularity strategies. The proposed framework offers a practical tool for policymakers to assess existing policy landscapes, identify gaps, and design integrated policy mixes tailored to specific contexts. It also provides a foundation for future empirical research and benchmarking across jurisdictions. By highlighting the interplay between top-down and bottom-up initiatives, the study underscores the need for inclusive, stable, and digitally enabled policy environments to accelerate the circular transition.