Climate change has been addressed from climatic, economic and social aspects in Northern Europe as well as worldwide, and evaluation of measures that might prevent consequences of climate change on global economic processes is required. Therefore, the paper evaluates circular economy as a successful strategy to mitigate climate change. Literature review and desk research were used to estimate climate change impact on the economy of Northern European countries and their social processes with special focus on passenger vehicles. The results confirmed relations between human behaviour and global warming, which is a threat for the entire humanity. In addition, the study reveals that circular economy car sharing strategy applied to the European Union countries (excluding Bulgaria, Cyprus, and Malta) has a potential to cut emissions by 358.6 MtCO2 eq. and save 7.64 billion EUR annually. The authors suggest promoting the transition to shared, instead of owned vehicle ownership model. Therefore, the study shows that circular economy consists of features that may mitigate some negative consequences of climate change and, in addition, demonstrates potential to provide a basis for sustainable development.