Reducing global material use through circular solutions, such as reuse, repair and recycling of items, can limit global warming to 2 degrees and bring human activities back within safe planetary boundaries, according to a new report by Circle Economy, in collaboration with Deloitte.
The report was launched today (16 January) in Davos, at the World Economic Forum.
Circle Economy measures the global economy to be 7.2% circular today—dropping from 9.1% in 2018 when the impact organisation first calculated the figure.
This means that of the 100 billion tonnes of virgin materials extracted from Earth annually, only 7.2% make it back into the economy in the form of recycled materials.
Over the past six years, the global economy has extracted and used almost as many materials as over the entire 20th century, the Circularity Gap Report 2023 finds.
The linear economy has a number of detrimental effects on the environment that significantly affect peoples’ well being.
According to the study, key societal needs – such as nutrition and housing – could be fulfilled with just 70% of the materials the world economy currently consumes. Circle Economy says cutting material extraction by 30% will hugely improve environmental health across land, sea and air.
Circle Economy says the key to this reduction lies in the transition from fossil fuels to more renewable energy sources and lowering demand for high-volume minerals, such as sand and gravel, which are largely used for housing and infrastructure.
Commenting on the report, Martijn Lopes Cardozo, CEO at Circle Economy, said: “The linear economy has a number of detrimental effects on the environment that significantly affect peoples’ well being.
“Our research shows that by adopting circular economy practices, we can cut material extraction, continue to prosper, and return to living within the safe limits of this planet.”
According to the Circularity Gap Report 2023, 4 key global systems account for the majority of global emissions and waste – the built environment, food systems, mobility and transport, and manufactured goods and consumables.
Circle Economy says that 16 circular economy solutions implemented across these systems can reverse the current overshoot of five planetary boundaries, ensuring safety for land, air and water and limiting global warming to below 2 degrees.
These findings reinforce that we have reached a point where the planet cannot keep up with the human demand for material goods.
Dieuwertje Ewalts, director Circular economy and sustainability at Deloitte, commented: “These findings reinforce that we have reached a point where the planet cannot keep up with the human demand for material goods.
“Circularity offers us the opportunity to reduce planetary pressures. Involvement from business and the creation of more circular products going forward will be key in creating a positive impact for both the planet and society.”
