ABSTRACT Recent scholarship shows growing interest in the circular economy (CE) approach, which promotes resource‐efficient, community‐friendly activities. However, scientific evidence is still needed on the synergies and trade‐offs between CE and community development (CD). Our structured evidence review addresses this gap by arguing that circular economy approaches are transformative vectors for CD. Our study reveals that CE‐CD synergies and trade‐offs exist in four key domains, where CD decisions interact with CE choices: (1) formulation of nexus goals; (2) scoping of nexus systems; (3) conceptualisation of nexus systems; (4) analyses of nexus systems. Based on the research, local sustainability success occurs in the four identified domains when there is widespread participation, greater institutional capacity and a sense of legitimacy among local communities as key players in sustainability decisions. This body of evidence needs to be compiled, connected and expanded to facilitate collaboration among all stakeholders to achieve local sustainability. The paper concludes with a framework and suggestions for enhancing understanding of the CD dimension of the CE debate.
Erdiaw‐Kwasie et al. (2026) studied this question.