Resource scarcity and climate change are the most quested topics in view of environmental sustainability. CO2 sequestration through bioelectrochemical systems is an attractive option for fostering bioeconomy development upon several value-added products generation. This review details the state-of-art of bioelectrochemical systems for resource recovery from CO2 along with various biocatalysts capable of utilizing CO2. Two bioprocesses (photo-electrosynthesis and chemolithoelectrosynthesis) were discussed projecting their potential for biobased economy development from CO2. Significance of adopting circular strategies for efficient resource recycling, intensifying product value, integrations/interlinking of multiple process chains for the development of circular bioeconomy were discussed. Existing constrains as well as outlook for near establishment of circular bioeconomy from CO2 is presented by weighing fore-sighted plans with current actions. Need for developing CO2-based circular bioeconomy via innovative business models by analyzing social, technical, environmental, product related aspects are also discussed providing a roadmap of gaps to pursue for attaining practicality.