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It is widely acknowledged that policies for a more sustainable society require narratives outside the status quo. This contribution studies the EU's environmental policy narrative of a circular economy (CE), which many consider promising in this respect. The results demonstrate that the CE narrative was created to transform EU policy discourses 'from within' but eventually perpetuated the established discourse of ecological modernization. This perpetuation resulted from specific strategic practices used to create the CE narrative, which (1) concealed conflict, (2) strengthened the agency of incumbents, and (3) excluded alternative voices. The analysis uses empirical evidence from 28 interviews with key stakeholders, 84 policy documents and participant observation data at the European Union (EU) level. The results suggest that the development of narratives outside the status quo depends on strategic practices that address (future) conflicts and offer new agency to change agents as well as transition strategies to incumbents. [ABSTRACT FROM AUTHOR]