The report by Summa Equity (Summa) estimates that, with the right investment, the valuation of circular markets could exceed €1.5 trillion by 2040.
The report, “Investing in a circular and waste-free Europe,” examines the current state of the sector in Europe. Summa says it highlights areas in which it claims the EU is performing poorly, such as material production and disposal.
The analysis estimates that €230 billion in investment is needed in physical assets and infrastructure by 2040 to enable the transition to a circular European economy. The report identified the need for a new asset base for the circular economy, which includes equipment, processing plants and supporting infrastructure.
The report was launched in conjunction with the Harvard Business School event “A trillion-dollar opportunity hiding in plain sight – the Circular Revolution”.
The circular economy provides Europe with a remarkable opportunity – the chance to build a revitalised, future-proof economy.
According to the analysis, progress is being made in several areas. It cites the EU setting targets for waste reduction and recycling in key sectors, carbon prices are rising rapidly and companies embracing circularity as part of their climate and sustainability strategies.
The report finds that “an enormous recasting of European markets for materials, waste and physical products” is due by 2030. It states that this could lead to circular business models generating around €265 billion in revenue in 2030, representing 15% of the physical consumer goods market, and €450 billion by 2040. As well as revenue, the report says greenhouse gas emissions could be cut by 650 Mt CO2e.
Summa Equity Partner Bertrand Camus, commented: “The circular economy provides Europe with a remarkable opportunity – the chance to build a revitalised, future-proof economy, which will enhance the continent’s ability to reduce emissions and usher in a new era of industrial prosperity.
“As evidenced by the research, investment is required, but such outlays come with significant upsides and opportunity. Time is of the essence, and we must move fast.”
