Energy is an indispensable component of supply chains underpinning production, use, and disposal of goods and services. However, current energy consumption patterns are often unsustainable, leading to negative externalities such as pollution and greenhouse gases emissions. The circular economy paradigm has emerged as a promising solution to address the unsustainable use of resources, including energy. A cornerstone of the circular economy is minimizing waste and maximizing productivity, including energy efficiency. This study delves into the role of energy within the circular economy framework. The paper contends that transitioning to a circular economy necessitates a fundamental shift in our perception of energy use, its significance within the supply chain, and the adoption of innovative technologies and practices. Optimizing energy consumption within the supply chain can effectively reduce fossil fuel utilization and greenhouse gas emissions, lower operational costs, and enhance the efficiency of production processes. Embracing renewable energy sources can contribute to the decarbonization of energy supply and decrease the reliance on fossil fuels. Furthermore, integrating digital technologies, advanced analytics, and energy audits can play a crucial role in optimizing energy use and identifying energy-saving opportunities.