Global efforts to harmonize the sustainable development goals (SDGs) focus on understanding the nexus between carbon dioxide emissions (CO2) and the circular economy (CE). This study aims to capture variations in carbon emission performance behavior across different European countries, considering their economic performance, population density, material footprint, and circularity rate. The analysis utilizes panel data for 14 EU countries during the period between 2000 and 2020, specifically in relation to their performance within the SDG13 Framework. Empirical analysis employs Ordinary Least Squares, Fixed Effects and Fully Modified Least Squares techniques. The findings suggest that countries with a higher efficiency in utilizing materials within a circular economy framework and higher population density tend to exhibit lower levels of climate change mitigation. Conversely, an increased material footprint corresponds to higher CO2 emissions. This aligns with the circular economy’s emphasis on minimizing resource extraction through promoting reuse, recycling, and remanufacturing. A comprehensive understanding of the CO2-CE nexus is essential for formulating effective policies aligning circularity performance with the SDG13 framework.