Circular economy policy has largely been designed and evaluated as though its effects were spatially neutral, despite growing evidence that circular activity depends on agglomeration conditions that are unevenly distributed across regions. The present perspective develops a conceptual framework linking circular economy policy to the geography of agglomeration economies. Drawing on research on agglomeration economies and regional development, the paper argues that regions differ substantially in their capacity to transform circular obligations into productive outcomes. The analysis contributes to emerging debates on the geography of the green transition and highlights the importance of place-sensitive approaches to circular economy policy.