Located at the heart of Spain, the Community of Madrid is the country’s capital region and a major European hub for business, innovation, and international connectivity. With a population of over 6.9 million people and a highly diversified economy, Madrid combines global reach with a strong local ecosystem that supports sustainable growth and technological development.

The region is strengthening its position as one of Europe’s leading innovation hubs, supported by sustained investment in research, digitalisation, and talent. Recognised as a “Strong Innovator” in the European Commission’s 2025 Regional Innovation Scoreboard, Madrid leads Spain in R&D investment and stands out for its competitive and forward-looking ecosystem.

In this context, the circular economy has become a strategic priority. Madrid is promoting initiatives focused on resource efficiency, waste reduction, ecodesign, and responsible consumption, with applications across key sectors such as construction, energy, mobility, and textiles. These efforts are contributing to more sustainable production models while fostering innovation and new business opportunities.

A major step forward has been the approval of Law 1/2024 on Circular Economy, aligning regional policies with national and European frameworks. This regulatory push is complemented by the launch of the Circular Economy Strategy of the Community of Madrid, which sets out a clear roadmap to accelerate the transition towards a more sustainable and resource-efficient economy. More information here.

Excellence in science, technology, and knowledge transfer

Madrid’s innovation capacity is reinforced by a strong academic and research ecosystem, with a large number of universities and a diverse network of pioneering research centres. These institutions drive excellence in science, technology, and knowledge transfer across strategic fields such as energy, materials, water, and digital technologies. The framework leading and supporting research and funding from 2026 through 2029 is the VII Plan Regional de Investigación Científica e Innovación Tecnológica (VII PRICIT). With a budget of $752 million, it features a 34% increase in funding to support scientific excellence, talent retention, and institutional technology transfer. By attracting international talent and fostering close collaboration with industry, they play a key role in developing innovative solutions and scaling sustainable technologies, strengthening Madrid’s position as a leading hub for research and innovation in Europe.

In recent years, a growing number of initiatives have emerged across the region to promote circular practices. From recycling and reuse projects to sustainable product design and collaborative consumption models, Madrid is fostering a culture of innovation that encourages both citizens and businesses to rethink how resources are used and managed.

Additionally, new programmes and funding opportunities are supporting the development of circular solutions, particularly in areas such as ecodesign, sustainable fashion, and green technologies. These actions are helping to strengthen local value chains while generating new economic opportunities and employment.

Public administrations and businesses alike are adapting to this new framework, integrating circular practices and developing innovative solutions. Through collaboration and targeted initiatives, Madrid continues to advance towards a more resilient, competitive, and sustainable future.

Expand info:  https://www.comunidad.madrid/servicios/urbanismo-medio-ambiente/experiencias-economia-circular