Proximity economy in Europe: Building local resilience for a sustainable future

November 2024

The proximity economy is driven by the collective intention of local actors to increase the sustainability, resilience and liveability of their communities. It has received increased attention in recent years, particularly in the wake of the COVID-19 pandemic and the growing need for sustainable, localised economic systems.

In many ways, the proximity economy debate is closely intertwined with the social economy, which was discussed in a previous blog post (Opens in a new window). Both ideas focus on community-based, sustainable and inclusive economic models. They share values such as encouraging local collaboration and place-based solutions. However, the proximity economy is an industrial ecosystem that focuses on the local production, distribution and consumption of goods and services, without necessarily having a specific societal objective beyond supporting local communities and economies.

What is the proximity economy?

The proximity economy can be defined as a human-centred ecosystem where the production, distribution and consumption of goods and services take place within short value chains, enabled by locally rooted social interactions within a geographical area of perceived proximity. It is an economic model in which businesses, local authorities and communities work together to promote local production, distribution and consumption that enhances sustainability and social cohesion.