How Can the Circular Economy Help Mitigate Climate Change?
In the global push to combat climate change, much attention has been paid to reducing fossil fuel consumption and transitioning to renewable energy. While these steps are critical, an often-overlooked factor contributes significantly to greenhouse gas emissions: the materials we extract, use, and discard daily. Addressing this hidden driver through circular economy strategies could offer a robust, underutilized solution in the fight to prevent climate breakdown.
The Climate Cost of Material Use
A report by the Ellen MacArthur Foundation reveals that 70% of global greenhouse gas emissions stem from the extraction, processing, and disposal of materials. Yet, much of the climate discourse focuses solely on energy. According to Dr. Janez Potočnik, Co-Chair of the International Resource Panel, this approach misses a crucial factor:
“Reimagining how we use resources is key to addressing climate change. We can’t ignore the emissions generated by the global material economy.”
Moving toward a circular economy is essential not just for reducing waste, but for directly cutting emissions. For example, using recycled materials in manufacturing can cut emissions by up to 60%, and extending product lifecycles could prevent the production of millions of tonnes of new materials each year.
Quantifying the Circular Economy’s Climate Impact
Circle Economy’s analysis suggests that circular economy strategies could reduce global emissions by 39%. To put this into perspective, closing the circularity gap could save over 22 billion tonnes of CO2 annually, nearly equivalent to eliminating the combined emissions of the U.S. and the European Union. This data highlights that adopting circular principles is not just a complementary solution—it’s a critical pathway for meeting the goals of the Paris Agreement.
Real-World Solutions: Circular Economy in Action
Countries like the Netherlands are leading by example, implementing circular policies in construction and urban planning that are reducing emissions significantly. In Amsterdam, a circular housing project reduced the carbon footprint of building materials by 50%, while also reducing waste and energy use. These case studies demonstrate the scalable, real-world impact of circular economy strategies when applied effectively.
Where We Stand
Despite global efforts to reduce emissions, progress toward a circular economy has stalled. According to the Circularity Gap Report, our world is only 8.6% circular. In fact, two years earlier, it was 9.1%. Meanwhile, humanity has passed two alarming milestones:
- We consume over 100 billion tonnes of materials each year.
- The planet is already 1 degree warmer than pre-industrial levels.
These trends are stark reminders that we risk pushing past the climate tipping points without swift action. The challenge is to close the circularity gap by addressing material consumption in critical sectors like transportation, housing, and food.
Circle Economy’s analysis suggests that implementing circular economy strategies could reduce global emissions by 39%, underscoring its untapped potential.
Challenges on the Path to Circularity
While the potential for a circular economy is immense, several challenges stand in the way:
- Policy frameworks: Governments need to create clear incentives for businesses to adopt circular models while penalizing linear, waste-heavy practices.
- Business model innovation: Companies must shift from selling products designed for obsolescence to creating long-lasting, repairable goods.
- Consumer behavior: A shift in consumer attitudes—from ownership to sharing and from disposability to durability—is crucial. Encouraging people to value sustainability over convenience requires strong public awareness campaigns.
- Technological advancement: We need more investment in recycling technology, advanced materials science, and digital platforms that make circularity efficient and scalable.
Moving Forward: A Collaborative, Global Effort
The transition to a circular economy must be a collaborative global effort, crossing national, societal, and sectoral boundaries. Local policies should align with global goals, creating a seamless framework that supports circular outcomes at every level.
Economist Kate Raworth captures the essence of this transition:
“The circular economy isn’t just about doing less harm—it’s about actively doing good. It’s a regenerative approach that helps us live within the planet’s boundaries while meeting humanity’s needs.”
Conclusion
As the climate crisis deepens, the case for a circular economy becomes more compelling. With global material consumption hitting 100 billion tonnes annually, the urgency to shift toward circularity has never been clearer.
Every small step—whether it’s a government incentivizing circular practices, a business adopting sustainable models, or an individual choosing durability over disposability—moves us closer to a future where we meet humanity’s needs within the planet’s limits.
By embracing the circular economy, we can cut emissions, reduce resource depletion, and create a more sustainable, resilient global economy for future generations. The challenge is significant, but the rewards—for our planet, our people, and our future—are immeasurable.