Green Entrepreneurship and the Circular Economy in the European Union: Innovative Models for the Agri-Food Sector

Abstract

This article investigates how green entrepreneurship and the circular economy are reshaping the European agri-food sector in the post-pandemic period (2020–2025) and distils lessons relevant to the Republic of Moldova. The study pursues two aims: (i) to map innovative models that reduce waste, close resource loops, and decarbonize agri-food value chains; and (ii) to assess the policy and market conditions that enable their scaling. Methodologically, we conduct a structured review of recent peer-reviewed literature and EU policy documents (European Green Deal, Circular Economy Action Plan, Farm to Fork Strategy, and the 2023–2027 CAP), complemented by comparative analysis and a synthesis of Member-State case studies. Findings indicate that the EU has established a robust strategic and financing architecture that incentivizes viable circular models—such as biogas from agricultural residues, valorization of secondary biomass streams, alternative proteins, food-waste reduction, and organic farming—yet implementation remains uneven across countries. Key constraints include high upfront investment needs, regulatory uncertainty, infrastructure deficits, and skills gaps. Enablers include dedicated green finance, green public procurement, extended producer-responsibility schemes, coordinated multi-level governance, and local innovation ecosystems (incubators and agri-bio consortia). We conclude that green entrepreneurship in agri-food generates economic, social, and environmental co-benefits; however, scaling depends on predictable policies, market-creation instruments, and circular infrastructure. For Moldova, we recommend full legal alignment with the EU acquis, targeted financial tools for green SMEs, investments in waste management and rural renewable energy (e.g., anaerobic digestion), public procurement with circularity criteria, workforce education and vocational training, and demonstration pilots to accelerate the uptake of circular practices. JEL: Q01; Q18; Q57; L26; O13