Provides a stark assessment of the global economy’s progress toward adopting circular practices. It highlights the urgent need to transition from the linear “take-make-waste” model to a circular economy to address material overuse, environmental degradation, and planetary boundary breaches.

Key Findings

• Decline in Circularity: Global circularity has dropped to 7.2% in 2023, down from 9.1% in 2018. This means over 90% of materials are wasted, lost, or locked in long-term use, with minimal recycling or reuse.
• Escalating Material Use: Material extraction and consumption have surged, surpassing the total used during the entire 20th century within just six years. This growth drives environmental overshoot, with five of nine planetary boundaries already breached (e.g., climate change, biodiversity loss).
• Circular Solutions: Identifies 16 transformative solutions across four key systems—food, built environment, manufactured goods, and mobility—to reduce material extraction by one-third and reverse planetary overshoot:
  • Food: Promote regenerative agriculture, reduce food waste, and prioritize local, seasonal diets.
  • Built Environment: Maximize energy efficiency, reuse materials, and adopt circular construction practices.
  • Manufactured Goods: Extend product lifespans, mainstream industrial symbiosis, and reduce fast fashion reliance.
  • Mobility: Shift to public transport, electrify vehicles, and embrace car-free lifestyles.

Recommendations

1. Adopt Circular Principles: Focus on using less for more extended, reusing materials at end-of-life, and transitioning to regenerative resources.
2. Public-Private Collaboration: Governments and businesses must work together to scale circular solutions through policy incentives and investment.
3. Differentiated Strategies: High-income countries should focus on reducing material footprints (“Shift”), middle-income nations on sustainable growth (“Grow”), and low-income regions on building essential infrastructure (“Build”).
4. Policy Support: Implement regulations like Extended Producer Responsibility (EPR) and set ambitious targets for active mobility and sustainable practices.

Warns that without urgent action to adopt circular practices, humanity faces worsening environmental crises and loses opportunities for equitable improvements in well-being. It calls for systemic change—driven by collaboration among governments, businesses, and civil society—to transform economic rules and secure a sustainable future.

Overview

1 Introduction

Outlines key global challenges that have intensified recently, including COVID-19’s impacts and increasing climate-related events. These challenges highlight the deep connections between environmental, social, and economic systems, exposing current vulnerabilities. Climate breakdown affects all continents and demands urgent collaborative action. While solutions exist, current systems often favor short-term economic gains over long-term sustainability.

Advocates for a paradigm shift, encouraging communities to leverage their resources for positive change despite limitations. This approach is key to building resilience and adaptability. The introduction establishes the circular economy as crucial for tackling these challenges. Adopting circular practices can reduce environmental impact and enhance quality of life, providing a foundation for stakeholders to implement specific solutions.

2 The Current State of the World

As the global population reaches 8 billion, material consumption has soared to unprecedented levels. The global economy consumes 100 billion tonnes of materials annually, placing enormous strain on natural resources and ecosystems. The prevailing linear “take-make-dispose” model proves unsustainable—depleting resources and generating waste with little regard for environmental impact or reuse potential.

This pattern has triggered more frequent climate-related disasters, widespread habitat loss, and severe ecosystem degradation worldwide. Shifting to a circular economy, emphasizing resource efficiency and extended material use, is crucial. This transition presents opportunities for sustainable growth while tackling environmental challenges through coordinated efforts among governments, businesses, and communities.

3 Reversing the overshoot

Addresses the critical issue of ecological overshoot—the state where humanity consumes resources faster than Earth can regenerate them. “Overshoot occurs when our demands on Earth’s ecosystems exceed the planet’s annual regenerative capacity.” This unsustainable situation threatens both environmental stability and human well-being.

Emphasizes that transitioning to a circular economy is vital for reversing ecological overshoot. It shows how circular practices can dramatically reduce resource extraction and waste, helping restore equilibrium between human activities and Earth’s regenerative capacity. The section outlines key strategies and solutions to achieve this transition, including:

1. Reduction: Encouraging decreased overall consumption and waste generation by promoting more sustainable lifestyles and consumption patterns. This involves rethinking how products are designed, used, and disposed of, focusing on minimizing resource use.
2. Regeneration: Fostering practices that restore and regenerate natural systems. This includes investing in renewable resources, enhancing biodiversity, and implementing sustainable agricultural practices that improve soil health and ecosystem resilience.
3. Redistribution: Addressing inequalities in resource distribution and consumption. Advocates for policies that ensure fair access to resources and opportunities for all, particularly marginalized communities disproportionately affected by environmental degradation.

Explores how innovation and technology drive circular transitions. Modern business models—like product-as-a-service and sharing economies—promise to reduce waste and improve resource efficiency. The section also highlights how collaboration between governments, businesses, and civil society creates ideal conditions for thriving circular practices.

4 Different countries, different circular solutions

Examines how different countries can transition to a circular economy through diverse approaches and strategies. It recognizes that each nation has unique economic, social, and environmental contexts and emphasizes that circular solutions must be tailored to specific national circumstances and needs.

1. Tailored Pathways: Highlights that there is no one-size-fits-all solution for achieving circularity. Instead, countries must develop customized pathways, considering their specific resource endowments, industrial structures, and socio-economic conditions. This tailored approach allows for more effective implementation of circular practices that resonate with local realities.
2. Case Studies: Provides examples of countries successfully implementing circular economy initiatives. These case studies illustrate a range of strategies, from waste management reforms and sustainable production practices to innovative business models that promote resource efficiency. Aims to inspire other nations to adopt similar practices by showcasing these examples.
3. Sector-Specific Solutions: Emphasizes the need for sector-specific circular solutions, recognizing that different industries have distinct challenges and opportunities. For instance, the construction sector may focus on material reuse and recycling, while the fashion industry might prioritize sustainable design and production processes. By addressing the unique needs of each sector, countries can enhance their circular economy efforts.
4. Collaboration and Knowledge Sharing: Underscores the importance of collaboration among governments, businesses, and civil society in driving the circular transition. Sharing knowledge, best practices, and lessons learned can help countries accelerate their progress towards circularity. International cooperation and partnerships are also essential for scaling up successful initiatives.
5. Policy Frameworks: Discusses the role of supportive policy frameworks in enabling circular practices. Governments are encouraged to create regulations and incentives that promote circularity, such as extended producer responsibility, eco-design standards, and financial support for circular initiatives. These policies help create a conducive environment for businesses and communities to embrace circular solutions.

5 Take action

Provides concrete recommendations for stakeholders—businesses, cities, and governments—to accelerate their transition to a circular economy. It emphasizes urgent action and offers a clear roadmap for implementing circular practices. “Take Action” rallies stakeholders to embrace the circular economy as a sustainable path. Following these recommendations enables stakeholders to build a more resilient and equitable future while reducing the environmental impact of current consumption patterns.

1. Urgency of Action: Stresses the need for immediate and decisive action to address the environmental challenges of linear economic practices. It calls on stakeholders to recognize their critical role in driving the transition to circularity.
2. Business Engagement: Businesses should implement circular models focused on efficiency and sustainability through product redesign, take-back programs, and service-based revenue streams. This approach boosts competitiveness while meeting growing sustainability demands.
3. City-Level Initiatives: Cities are key drivers of the circular economy. Local governments must implement sustainable policies, including better waste management, support for circular businesses, and community involvement. Cities can test innovative solutions before implementing them widely.
4. Policy Frameworks: The section emphasizes creating policy environments that support circularity. Governments should implement regulations, incentives, and funding to encourage circular practices, including waste reduction targets, eco-design promotion, and circular technology R&D support.
5. Collaboration and Partnerships: The report emphasizes stakeholder collaboration between businesses, governments, NGOs, and communities. Partnerships facilitate knowledge sharing and collective action, while multi-stakeholder dialogues help identify and solve shared challenges.
6. Monitoring and Evaluation: To ensure progress toward circularity, the report recommends establishing metrics and indicators to track the effectiveness of circular initiatives. Regular monitoring and evaluation can help stakeholders assess their impact, identify areas for improvement, and celebrate successes.