This chapter examines the evolution and implementation of circular economy policies and regulations at the European level, with a particular focus on the construction sector. It highlights the shift from conventional linear approaches to more sustainable and circular practices, driven by key EU initiatives, including the Circular Economy Action Plan, the European Green Deal, and the Renovation Wave. The chapter outlines various policy instruments, including directives, communications, and frameworks, that have been developed to promote waste reduction, energy efficiency, and life cycle thinking within the built environment. Additionally, it addresses tools such as Level(s), Green Public Procurement, and the proposed Construction Product Regulation, which aim to support the integration of circular principles. Significant challenges are discussed, including market fragmentation, regulatory complexity, and the need for occupational transformation. Ultimately, the chapter emphasises the need for harmonised EU strategies to promote innovation, improve resource efficiency, and facilitate the green transition in the construction industry.