Circular economy

A circular economy is an economic model that aims to deliver prosperity while reducing waste, pollution, and reliance on finite resources. It is based on three key principles: eliminating waste and pollution, keeping products and materials in use for as long as possible, and regenerating natural systems.

The transformative potential of the circular economy is increasingly recognised in addressing the growing environmental, economic, and social challenges facing the world. Research suggests that scaling up circular economy approaches could generate significant economic value, reduce greenhouse gas emissions and restore biodiversity. 

However, progress remains limited, with circular activities accounting for only a small share of the global economy and implementation fragmented across countries. Furthermore, some current government approaches on circular economy risk encouraging counterproductive resource nationalism and zero-sum economic competition, creating inequalities and developing countries and increasing narrow-focussed circular economy strategies as an opportunity to assert control over critical raw materials. These challenges and trade-offs need to be addressed when approaches and policy to scale up inclusive circular economy transition globally.