World Less Circular

24/5/23, 15:53 What is the circular economy - and why is the world less circular?
| World Economic Forum
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C I R C U L A R EC O N O M Y
What is the circular economy, and

why does it matter that it is
shrinking?
Jun 14, 2022
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24/5/23, 15:53 What is the circular economy - and why is the world less circular? | World Economic Forum
Circular economy: Reusing products can contribute to reducing our CO2 emissions. Image: Unsplash/Josh Power
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Victoria Masterson
Senior Writer, Forum Agenda
Ian Shine
Senior Writer, Forum Agenda
This article is part of:

Centre for Nature and Climate
Listen to the article 11 min listen
This article was updated on 10 March 2023 and 27 October 2022. It was first
published on 14 June 2022.
In a circular economy, products are used again and again, which reduces our use of
precious raw materials and cuts CO2 emissions.
However, the amount of secondary materials being cycled back into the global economy
has shrunk in the past five years, a new report says.
The Circularity Gap Report highlights four key circular economy principles that we need to
The World
follow Economic
to get Forum
things back onuses necessary cookies to make our site work. We would also
track.
Circular
cookies economy
to improveinitiatives are also helping, including the Circulars Accelerator, an
the website.
innovation programme run in collaboration with the World Economic Forum.
The way we live now is using 60% more resources than the Earth can provide – and
creating too much waste, according to experts.
Switching to a circular economy is widely considered to be the way forward.
What is the circular economy?

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In a circular economy, things are made and consumed in a way that minimizes us
use of the world’s resources, cuts waste and reduces carbon emissions. Products
are kept in use for as long as possible, through repairing, recycling and redesign –
so they can be used again and again.
At the end of a product’s life, the materials used to make it are kept in the
economy and reused wherever possible, the European Parliament explains.
The circular economy could unlock $4.5 trillion of value by 2030. Image: European Parliament
Why is the circular economy important?
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The circular economy is an alternative to traditional linear economies, where weus
take resources, make things, consume them and throw them away. This way of
living uses up finite raw materials and produces vast quantities of waste.
For example, the European Union produces more than 2.5 billion tonnes of waste a
year.
Extracting and processing raw materials impacts the environment and increases
energy consumption and CO2 emissions.
A circular economy could unlock $4.5 trillion of value by 2030, a report by

Accenture estimates.

What changes could make the world more
‘circular’?
A more circular world would require system change. Consumers, businesses and
politicians all need to make changes to how goods are designed, produced, sold,
manufactured and reused. Some shifts could include:
Design: A circular economy will require designing products so they can be easily recycled
or disassembled (for repair, reuse or resource recovery). This could mean designing
consumer products with fewer raw materials or capital equipment designed for
serviceability, modularity, and refurbishment. For instance, mobile phone maker Fairphone
developed the world's first smart phone built with circularity and supply chains in mind,
creating an Android phone with a modular design that's easy to repair and purchase spare
parts for. Join us
Business models: Product-as-a-service (where a provider retains the ownership of a

product and the customer purchases access to it), sharing economy (where assets are
shared across many owners) and others show alternative approaches to business that
embed sustainability into way business is conducted.
New metrics and shared data: Better data on availability of materials used for hard to
abate industries such as construction can help slash emissions and protect biodiversity
with reuse. For instance, the Netherlands Department for Public Works together with
Rotterdam and Amsterdam, developed a national bruggenbank, or National Bridge Bank
that serves as a marketplace for soon-to-be dismounted bridges and materials to
maximise their reuse.
Better data will also be critical as there's currently no standardized set of metrics to track
progress on things such as reuse, something vital to tackling plastic pollution or
protecting vital resources. To this end, World Economic Forum’s Consumers Beyond Waste
(CBW) initiative is helping to develop a set of standardized metrics, a key step in speeding
the shift to reuse models.
Policy. Creating incentives for businesses and communities to build more circular habits is
key to triggering long-term change. France, for instance, passed a law phasing out single-
use plastic packaging by 2040 that has set other objectives reduction, reuse, and
recycling. In September 2022, the residents of Zurich voted to include the circular
economy in the canton's constitution. Additionally, the European Union recently released
the Packaging and Packaging Waste Regulation (PPWR), putting forth reuse targets across
select industry sectors.
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Is recycling part of the circular economy?

Recycling involves converting waste materials into new materials and objects.
This process itself uses energy and creates emissions, so can still contribute to
global warming.
In an ideal circular economy, products are redesigned so they last through several
life cycles – rather than being immediately recycled.
This can include refurbishing and redistributing products.
Circle Economy Join us

@circleeconomy · Follow
“The Circularity Gap Report has provided valuable insights

on how we are progressing circular transformation to
achieve our wider growth and sustainability goals”, —
Kristin Hughes (@WEF).
Read the report: circularity-gap.world/2023

#CGR2023
4:53 AM · Feb 22, 2023
16 Reply Share
Read more on Twitter
What is the state of global circularity?
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According to The Circularity Gap Report, published February 2023, the amount of
secondary materials being cycled back into the global economy has shrunk from
9.1% of total material inputs in 2018 to 7.2% in 2023.
"This isn’t simply because we’re failing to cycle more," it says. "It’s also due to
increasing virgin extraction and the fact that we are putting more and more
materials into stocks like roads, homes and durable goods."
Total material extraction has more than tripled since 1970 and almost doubled
since 2000, putting it at 100 billion tonnes per year, the report says. It estimates
that a circular economy could cut global material extraction by a third – and it is
sorely needed, with the world having breached five of nine "planetary boundaries"
that measure environmental health.
The waste of raw materials won't just disrupt lifestyles (It's estimated that 6 of
the key elements for mobile phones will run out in the next century). It can slow
our progress towards other, bigger goals. (Many materials lost to landfills as e-
waste today will be key to the energy transition.)
Continuing on this path could lead to "total breakdown of Earth’s life support
systems, which are already at a breaking point", the report says.
Global material extraction has more than tripled since 1970. Image: The Circularity Gap Report
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How can innovation fuel the circular

economy?
There are a growing number of circular economy initiatives and technologies
already under way.
Examples include the Circulars Accelerator, a six-month programme run by

UpLink, the World Economic Forum’s innovation crowdsourcing platform, to help
circular economy innovators scale their ideas. In 2022, 17 start-ups are taking part
in the programme.
They include Aquacycl, an American company that generates electricity from

untreatable waste water; Done Properly, a company in Chile developing
sustainable food ingredients and Green Mining, a company in Brazil that recycles
consumer packaging.
Innovation is key to progress. Research from Forum initiative Scale360° and

ScaleUpNation found that startups that look to build ideas that scale while
tackling system change can have an outsized impact on entire industries,
accelerating work toward the United Nations Sustainable Development Goals,
triggering change that would not be possible through classic commercial
strategies.
Join us
The four key circular economy principles. Image: The Circularity Gap Report
The Circularity Gap Report says there are four key circular economy principles that
we need to follow to achieve a 33% reduction in material extraction and
consumption – use less, use longer, use again and make clean. It calls for
increased public-private collaboration to make this vision a reality, and points out
the ultimate reason why things need to change: "By upgrading to a model that
maximizes the value that we extract from our precious materials, we can better
ensure the well-being of present and future generations, while respecting the
boundaries of our planet."
DISCOVER
What is the World Economic Forum doing about the

circular economy?
Show more
Have you read?
Here's how we can double the size of the circular economy in ten years
Join us
Why the circular economy is the business opportunity of our time
5 reasons to shift from a ‘throw-it-away’ consumption model to a ‘circular

economy’
21 circular economy solutions: changing how we eat, live and travel for a more
sustainable world
The Circulars Accelerator 2023: Meet the 16 startups accelerating the

transition to a circular economy
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24/5/23, 15:53 What is the circular economy - and why is the world less circular?

| World Economic Forum

What is the circular economy, and

This website uses cookies

Accept all cookies

This article is part of:

Listen to the article 11 min listen

Switching to a circular economy is widely considered to be the way forward.

What is the circular economy?

This website uses cookies

Why is the circular economy important?

A circular economy could unlock $4.5 trillion of value by 2030, a report by

This website uses cookies

Business models: Product-as-a-service (where a provider retains the ownership of a

This website uses cookies

Is recycling part of the circular economy?

This can include refurbishing and redistributing products.

This website uses cookies

Circle Economy Join us

“The Circularity Gap Report has provided valuable insights

Read the report: circularity-gap.world/2023

This website uses cookies

4:53 AM · Feb 22, 2023

Read more on Twitter

What is the state of global circularity?

This website uses cookies

How can innovation fuel the circular

Examples include the Circulars Accelerator, a six-month programme run by

They include Aquacycl, an American company that generates electricity from

Innovation is key to progress. Research from Forum initiative Scale360° and

What is the World Economic Forum doing about the

Have you read?

5 reasons to shift from a ‘throw-it-away’ consumption model to a ‘circular

The Circulars Accelerator 2023: Meet the 16 startups accelerating the

Don't miss any update on this topic

License and Republishing

Circular Economy Economic Progress UpLink Climate Change

Climate and Nature

This website uses cookies

THE BIG PICTURE

This website uses cookies

Get involved with our crowdsourced digital platform to deliver

The Agenda Weekly Join us

A weekly update of the most important issues

More on Circular Economy SEE ALL

This website uses cookies

Recycling increased by 152% at these London flats - here's how

The enormous opportunity of e-waste recycling

8 ways the circular economy will transform how business is done

Leadership and Governance

Subscribe to our press releases

Young Global Leaders

Schwab Foundation for Social Entrepreneurship

Centre for the Fourth Industrial Revolution

PARTNERS & MEMBERS

Privacy Policy & Terms of Service

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