This report, commissioned by Changing Markets, looks at the opportunities to reduce the environmental and health impacts of carpet and increase carpet circularity in the EU. The work takes the form of a toolkit that national governments and the EU can use to inform their decisions on the best policies to implement to encourage more circular practices in the carpet industry. Our toolkit offers options to facilitate change from both the supply and demand sides. Our report outlines two policy packages: - A fully mandatory extended producer responsibility (EPR)-led approach, designed to meet the needs of Member States with the highest circular economy ambitions; and - An alternative where EPR is not immediately possible, using additional ‘essential requirements’ to drive eco-design and mandatory take back and taxes being used to respectively facilitate and pay for the waste management aspects. The report also provides greater detail on individual policy measures and how each one might best be applied to foster a circular economy.