Humanity has exceeded planetary boundaries as is evident by the ongoing climate crisis. The linear economic model of ‘produce-use-dispose' has a major role in this, having driven manufacturing to operate in open-loop and even disregard for the environment. The transition to circularity is an imperative goal, yet there is a very slow uptake of circular practices and business models. ENCIRCLE aspires to accelerate this transition through technologies and solutions that optimize manufacturing towards sustainability and incentivize companies and consumers to think and act circularly. ENCIRCLE proposes a novel framework for environmental impact assessment via Digital Twins and Soft Sensors, incorporated in a virtual production line. Utilizing this virtual environment as a simulation and training space for AI, ENCIRCLE will decarbonize manufacturing, searching for sustainable production configurations and designs that reduce environmental footprint without compromising quality. This virtual space will be used for workforce training through gamification, cultivating new skills and fostering a new circular mindset. ENCIRCLE will follow a human-centered design and propose a symbiotic ecosystem of humans and AI through explainable Human-in-the-Loop methodologies. Building on the Digital Product Passport concept and product traceability via IoT and blockchain, ENCIRCLE will support circular business cases through a Digital Marketplace. On the producer’s side, a circular CRM, will enable companies to track their products and offer personalized, circular products and services. On the consumer’s side, a mobile app will empower users with sustainable consumption choices, expanding the lifespan or salvaging the remaining value of old products. ENCIRCLE will also explore the legal and ethical implications of its research, validating its research outcomes and hypotheses, through a series of demonstrators across the entire value chain.