Reports & studies

Fewer words, more action: eye on the circular economy

Since 2019, the Circle Economy Foundation has published an annual report that outlines how circular our global economy really is. The figures from the most recent Circularity Gap Report are nothing short of disappointing: although circularity is higher on the agenda than ever before, practice lags behind theory. Time for action!

  • In transition
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The Circle Economy Foundation is a cooperative headquartered in Amsterdam. Since 2017, the organisation’s over 60 experts endeavour to double the global circular economyThe circular economy is a restorative and regenerative economy. By maintaining the value of the products, materials and resources in the economy through smart product design, repurposing and/or shared use of products, it reduces the extraction of natural resources by using resources already present in the economy. in size by 2032. Like the FPS Economy with Go for Circular, Circle Economy Foundation aims to inform, inspire and propose solutions. Circle Economy claims that expanding the current 7.2% circularityCircularity describes the quantity of materials managed in a closed loop. to 17% would reduce global warming by 2 degrees, which would make the planet cleaner, protect biodiversity and climate disasters would be avoided.

More debate as circular gap grows

One of the ways to advance this goal is the Circularity Gap Report the organisation publishes on an annual basis. Because in order to make progress you have to know where you stand now. And more specifically, we need to identify the problem areas and determine how to convert them into opportunities. Let’s start with the good news. In just five years’ time, the number of discussions, debates and articles on circularity has tripled worldwide. The topic has never featured higher on the societal and political agenda. Circularity is everywhere and, believe it or not, it has become a genuine buzzword. Unfortunately, that doesn’t mean that reality has followed suit. On the contrary. In those same five years, 21% fewer secondary materials were used worldwide. Whereas our world was 9.1% circular in 2018, by 2023 this figure had dropped to a mere 7.2%. The circularity gap is growing and consumption is still on the rise.

Source: https://circularity-gap.world/2024



What will it take to make our future more circular?

Things are not looking very promising. Fortunately the report serves a second and even more crucial goal: propose solutions that can put us on the path to a more circular future. The report advocates a new economic model that creates more added value for mankind while alleviating the pressure on the planet. And that solution starts with understanding that every country is different and there is no one-size-fit-all plan. Countries can be roughly divided into shift, grow and build countries:

  • High prosperity, high consumption
    Shift countries, such as Belgium, have a high level of prosperity and are already engaged in the transition to a circular economy. However, our problem is that we consume too much compared to our natural resources and our climate footprint is too large. One of the keys to success is turning investments into circular solutions and construction projects into an interesting business model. In addition, a good mix of education and policy must ensure that sufficient expertise is available on the labour market.
  • Growing towards circularity
    Grow countries are characterised by an average level of prosperity and have a strong focus on industry and production. Making growth sustainable and safe in this economy requires the establishment of a healthy food cycle, regenerative agriculture and the protection of food producers. By removing barriers that stand in the way of circularity, fostering investment and concentrating on giving employees the proper training, grow countries can evolve into circular economies.
  • A circular foundation
    And then there are the build developing countries that have difficulty meeting their inhabitants’ basic needs. To enable the transition to a circular system it is important for these countries to boost their food system by taking climate-resilient measures, stimulating innovation in agriculture and developing their knowledge of regenerative agriculture. By promoting circular construction, organising training programmes and creating the right policy framework, such societies can build a circular foundation.

Entrepreneurs make the difference

An entrepreneur in a country in the middle of a transition towards a circular economy might think that the government in particular is faced with a significant amount of work. While this is true, the responsibility of the general population must not be underestimated. As a business leader you are in a position to make choices that make a genuine difference! Think of investments in circular building materials and raw materials, assessing your sales model with a fresh gaze, focusing on the right training of (potential) employees...

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