The main goal of this paper is to identify barriers and opportunities for creating the circular business models in the EU C&DW sector. Having in mind this fact, author of the paper describes market, social, governance and regulatory failures which may limit opportunities for achieving market success in the EU C&DW sector. The presentation will take into account current economic situation of the sector which is under the pressure of both global economic challenges and the EU policy aiming at popularization of the circular economy approach. As a result, different recommendations that may determine the final shape of the business models will be identified, including key resources that have to be used for successful commercialization of the different circular C&DW solutions.