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The Circularity Gap Report

Circle Economy Foundation | Source Download

Despite the growing recognition of the circular economy, global circularity has declined, with the share of secondary materials dropping from 9.1% in 2018 to 7.2% in 2023. The global economy continues to extract and consume vast quantities of virgin materials, exacerbating environmental degradation and pushing six of the nine planetary boundaries beyond safe limits. Key global systems, like the food system, exert significant pressure on Earth's systems, contributing to the overshoot of six planetary boundaries. The food system, which employs 50% of the global workforce, is a major contributor to climate change, land use, freshwater loss, and biodiversity decline. Transformative circular solutions are essential to address these challenges while still fulfilling human needs.

Key Issues

  • Material Consumption: The continued increase in material extraction threatens global sustainability. High-income nations, in particular, consume more than their fair share, exacerbating inequalities and environmental harm.
  • Circular Economy Solutions: Although theoretical frameworks exist, translating these into actionable policies remains a challenge. Effective circular solutions could reduce material extraction by one-third and help reverse environmental damage.

Policy Recommendations

  • Level the Playing Field: Implement policies that incentivize circular practices and penalize harmful activities. This includes adjusting fiscal policies to reflect true costs and promoting sustainable industrial processes.
  • Invest in Circular Skills: Build a skilled workforce capable of driving the circular transition. This requires education, vocational training, and the creation of decent, meaningful jobs.
  • Global Collaboration: Foster international cooperation to ensure that circular economy principles are adopted globally, with tailored approaches for different economic contexts. Urgent, coordinated action is needed to shift from linear to circular economies, ensuring a sustainable future within the planet's limits.
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