Circular Economy Approaches in Climate Solutions

Circular economy measures could reduce global greenhouse gas emissions by an average of 33%. That means one third of emissions could be avoided by changing how materials are designed, used and recovered. The range across studies is wide, from 2% to 99%. This is because different sectors, regions and assumptions were tested. But the overall message is consistent: material use is central to climate mitigation. Some sectors show higher potential than others. Waste management could reduce emissions by 52% on average. Construction and buildings by 48%. Transport and mobility by 28%. Industry by 26%. Agriculture by 24%. However, percentages do not tell the full story. In total tonnes of emissions, agriculture and food systems show the largest potential, up to 7.3 gigatonnes of CO2 by 2050. Construction and buildings follow, with up to 6.8 gigatonnes. Why does this matter? Around 55% of global emissions come from extracting and processing materials, including food, metals and fossil fuels. Circular economy reduces the need for new raw materials. This happens at three stages: Before use: better design and lower impact materials. During use: repair, reuse and longer product lifetimes. After use: recycling and reducing landfill. Many studies focus on recycling. Yet measures that change demand, such as smaller living spaces, dietary shifts and shared mobility, often show even higher mitigation potential. For companies, this shifts circular economy from a waste topic to a strategic climate issue. It affects product design, procurement, operations and long term transition planning. Source: European Environment Agency, Assessing the climate mitigation potential of circular economy, Briefing 19/2025, published 19 February 2026.

Recycling is only 10% of the circular economy equation. Here’s where 90% of businesses are missing out: 1. Design for Disassembly Stop designing products just to last, design them to come apart easily. Experts build things that can be disassembled, repaired, and reused. That’s how you keep materials in the game for the long haul. 2. Material Passports Imagine if every product had a “passport” tracking what it’s made of. Experts use Material Passports to know exactly how to reuse each component. This hidden gem saves time, resources, and keeps everything in circulation. 3. Product-as-a-Service Why sell a product when you can lease it? Forward-thinkers aren’t just selling products—they’re renting them out, keeping control of maintenance and recycling. Customers get what they need, and companies keep the materials. Win-win. 4. Regenerative Sourcing Circularity isn’t just about not harming the planet. It’s about making it better. Experts use regenerative sourcing, like farming methods that actually improve soil health. It’s about giving back more than you take. 5. Industrial Symbiosis In the circular economy, companies don’t work in isolation. They collaborate. One company’s waste is another’s input. Think a brewery’s waste turning into biofuel for a neighboring factory. It’s next-level efficiency. 6. Closed-Loop Supply Chains Forget the old-school supply chain. Experts create closed loops where products, parts, and materials are cycled back into production. This means zero waste, but it also means rethinking how you handle logistics. 7. Removing Toxic Materials You can’t have a true circular economy if the materials you recycle are harmful. Experts are focusing on eliminating toxic substances from their supply chains. It’s not just about recycling, it’s about making sure what gets reused is safe. 8. Local Manufacturing Circular pros aren’t thinking global, they’re thinking local. By building products closer to where they’ll be used, companies cut emissions and create regional production loops. It’s sustainability at the local level. 9. Blockchain for Transparency Circularity is about trust, and trust comes from transparency. Experts are using blockchain to track every stage of a product’s life, from raw material to recycling. Total transparency = total accountability. 10. Biofabrication The future isn’t just about reusing materials, it’s about growing them. Experts are diving into biofabrication, growing materials like fungi-based leather or algae-based plastics. It’s cutting-edge and completely circular. The circular economy is about thinking differently. It’s about building systems where everything has a second life. Are you ready to go beyond the basics?

Our Nature paper is finally out🎉🎉🎉This study proves that a circular economy approach can significantly reduce carbon emissions in critical mineral supply chains for energy transition ✅The lithium-ion battery supply chain underpins global decarbonization, yet its fragmented global production creates major carbon management challenges. ✅We developed a new LCCGE model that connects life-cycle assessment with global economic dynamics to explore decarbonization pathways. ✅The results reveal a clear “value–emission paradox” — downstream cathode production generates most of the value, while upstream mining bears most of the emissions. ✅Recycling alone can reduce global emission intensity by 16.3% by 2060, but integrated strategies that combine cross-regional cooperation with domestic circular economy policies can achieve up to 35.9% reductions. ✅This synergy delivers the largest impacts in China (42%), the U.S. (39%), and the EU (37%).

I'm excited to share something that I've been working on for a little while was just published as in Harvard Business Review. While some companies in the US and the Global North pull back from #climate and #sustainability, many in the Global South face ongoing challenges caused by climate change and rising pollution loads, and are developing ingenious #CircularEconomy solutions to solve them. In Barbados, Legena Henry founded Rum and Sargassum to convert sargassum seaweed that clogs Caribbean beaches into biofuel. Betty Lu created Confetti Snacks - Marvellous Veggie Chips to upcycle surplus produce into healthy snacks in Singapore. Nigeria-based SALUBATA upcycles ocean plastic into stylish, modular sneakers. I suggest that corporations and investors need to pay more attention to #sustainable #climate and #circular #innovation from the Global South. These innovative enterprises aren't charity projects. They solve real business challenges, like resource efficiency and supply chain resilience, while operating in constrained environments. Companies like H&M, IKEA, and Unilever are already co-investing with local innovators in Africa, Asia and Latin America through ventures that deliver mutual financial and non-financial value. How can companies put these ideas into practice? 1. Broaden your innovation funnel: to seek and collaborate with entrepreneurs from under-resourced communities. 2. Map your waste streams as opportunities: to find and develop new sources of value, as International Synergies Limited does with business networks around the world. 3. Invest for shared value: to cultivate local enterprises that can also strengthen your supply chain, like Unilver Nigeria's investment in Wecyclers Corporation's network of recyclers. 4. Update your metrics: to measure real #ESG impact across financial and non-financial capital stocks. Most of our future population growth will happen in the Global South, cultivating and investing in indigenous solutions today will deliver long-term and lasting value. https://lnkd.in/gCur-djq

The race to 2030 is a sprint, and we won't hit Net Zero by only fixing the energy grid. I just finished reading this new European Environment Agency briefing that showcases how circular economy strategies could slash global emissions by an average of 33% by 2030. What levers do we have to play with? Many: 🟢 Circular design and material substitution alone can cut industry emissions by 40%. 🟢 Waste management measures like organic separation can reduce sectoral emissions by an average of 52%. 🟢 Maximizing floor space efficiency can cut global building emissions by 2.1 Gt CO2e; for example, by repurposing empty offices into apartments rather than building from scratch. 🟢 Substituting carbon-heavy steel and concrete for bio-based timber can reduce a building's embodied emissions by up to 60%. This is a tricky, but necessary discussion we need to have when talking about scaling renewables or energy efficiency. If we continue to pull raw materials from the earth only to bury them a few years later, are we actually solving the climate crisis or just delaying the inevitable? Efficiency at the doesn't matter if our industrial engine is designed to leak resources at every turn. We’ve spent decades perfecting how we make things; now we have a four-year window to perfect how we keep things in use. Read the full breakdown here: https://lnkd.in/gJhZxTC9. #NetZero2030 #CircularEconomy #ClimateAction #Sustainability #EEA

New UNEP FI resource on Circular Solutions!  Moving towards circularity is necessary if we're to meet our climate goals. Resource extraction and processing account for over 55% of global GHG emissions.  In a new resource, United Nations Environment Programme Finance Initiative (UNEP FI) highlights priorities for change in four sectors, with an emphasis on the role of banks in helping their clients adopt circular business models.  Here’s a breakdown of action areas:  Metals & minerals → scrap recovery, reuse, and longer product lifecycles     Textiles → recycled fibers, resale and repair models, extended producer responsibility, and reduced upstream raw-material extraction    Agrifood → regenerative production, nutrient recycling, and food-loss reduction    Buildings & construction → scaling reuse of materials, low-carbon cement and steel, and modular design Climate science and common sense tell us the same thing: we can’t keep extracting, processing, and creating waste at our current rate forever.  Either environmental collapse renders economies inoperable, and we all go up in flames, or the system changes and adopts circularity. I’m betting on the latter.  My team helps organizations develop circular solutions and plan for a changing world. Drop me a message to learn more.  Read the full report here: https://lnkd.in/g4uspwjQ  #CircularEconomy #ClimateTransition #SustainableFinance #UNEPFI #NetZero #TransitionFinance #ClimateStrategy #ResourceUse #CircularSolutions  

The United Nations Environment Programme Finance Initiative (UNEP FI) has published a report looking to assist signatories to the Principles for Responsible Banking and net-zero committed financial institutions in integrating circular solutions in the textile sector. This aligns with their climate transition plans to achieve net zero emissions or climate mitigation targets, though a reduction of their financed emissions and through transition finance strategies. Moving to circular textile business models not only offers significant potential to decarbonise the textile sector, it could also generate USD 700 billion in economic value by 2030. This includes scaling sustainable production practices for raw materials, mainstreaming fibre-to-fibre recycling, and addressing overconsumption driven by fast fashion. The paper explores specific areas of action in internal policies and processes, client engagement, portfolio composition and financial flows, and advocacy and partnerships. It sits alongside the “Circular Economy as an Enabler for Responsible Banking” series of resource, which help banks operationalise the interlinkages between the circular economy and climate, nature, pollution and healthy and inclusive economies. It provides actions for banks to move from setting sustainability targets to implementation, emphasising the integration of circular economy principles in their lending and investment decisions for high impact sectors. https://lnkd.in/euqUfJX3 #circularity #circulartextiles #sustainablefashion #principlesforresponsiblebanking #UNEPFI

#CircularEconomy and #Construction 🏗️ (Central Asia) The concept of the circular economy (CE) is gaining attention worldwide as a way to promote sustainable development and reduce resource consumption. The CE is an economic system that aims to reduce the use of natural resources and to minimize waste and emissions by keeping materials in use for as long as possible. While the concept of the CE is gaining traction globally, its implementation in C̳e̳n̳t̳r̳a̳l̳ ̳A̳s̳i̳a̳ is still in its early stages. In fact, Central Asian countries score low on almost all CE-related indicators. Critical issues across the region include low resource productivity and low recycling rates in the face of resource scarcity. 🐾𝗦𝗶𝗴𝗻𝗶𝗳𝗶𝗰𝗮𝗻𝘁 𝗖𝗮𝗿𝗯𝗼𝗻 𝗙𝗼𝗼𝘁𝗽𝗿𝗶𝗻𝘁: The construction value chain in Central Asia, impacted by Soviet-era buildings, has a large carbon footprint but also presents improvement opportunities. 🌍 𝗖𝗹𝗶𝗺𝗮𝘁𝗲 𝗡𝗲𝘂𝘁𝗿𝗮𝗹𝗶𝘁𝘆: Addressing circularity in the construction sector is essential for achieving a balance between emitting and removing greenhouse gases, resulting in zero net emissions. 📜 𝗥𝗲𝗴𝘂𝗹𝗮𝘁𝗼𝗿𝘆 𝗖𝗘 𝗜𝗻𝘁𝗲𝗴𝗿𝗮𝘁𝗶𝗼𝗻: Integrating Circular Economy (CE) principles into national and local construction regulations is crucial. ✅ This could include: 1) Landfill restrictions and taxes 2) Waste management audits 3) CE standarization system 4) Construction and demolition waste (CDW) management protocol 5) Market-based incentives 🤝 𝗖𝗼𝗹𝗹𝗮𝗯𝗼𝗿𝗮𝘁𝗶𝗼𝗻 & 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁: Building strong alliances with municipalities, government, private sector, NGOs, and civil society is essential. These partnerships create a cohesive network that promotes circular practices, aligns economic incentives, and supports sustainable development across sectors. 🔄𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 𝗲𝗰𝗼-𝘀𝘆𝘀𝘁𝗲𝗺𝘀 : Mapping stakeholders across the construction value chain (material production, construction, building operation, renovation/demolition) is essential for drafting a CE Action Plan (CEAP). 𝗖𝗼𝗻𝗰𝗿𝗲𝘁𝗲 𝗔𝗰𝘁𝗶𝗼𝗻𝘀: Actions are needed at various stages: ↩️ Upstream: Material extraction, building design, material input ↪️ Downstream: Energy renovation, market development for recycled materials 🅻🅸🅽🅺:  https://lnkd.in/gBHV3ue4 #CircularEconomy #Circularity #Upstream #Downstream #Incentives #RawMaterials #Construction #CDW #ecodesign #Design #Recycling #CarbonFootprint #EconomiaCircular #Circularidad #Sostenibilidad #ODS #SDG #Ecodiseño #Diseño #Planificación #EstrategiaCircular #MateriasPrimasSecundarias #SecondaryRawMaterials #Innovation #Innovación #Asia #LatinAmerica #LAC #Aliances #ClimateChange #CarbonNeutrality #CarbonoNeutro #CarbonoCero

The True Path to Clean Energy: Closing the Loop with Waste-to-Energy The circular economy isn't just a buzzword—it's our roadmap to a genuinely sustainable future. But here's what many are missing: true clean energy can only be achieved when we transform waste back into usable energy. Every day, millions of tons of waste are generated globally. Traditional approaches either bury it, burn it, or hope it degrades naturally. But what if we could harness that waste as a resource? What if every discarded material became fuel for tomorrow's energy needs? This is where pyrolysis technology becomes game-changing. Through high-temperature material transformation, we break down large waste hydrocarbon molecules into smaller, energy-rich hydrocarbons. It's not just waste management—it's waste regeneration. Think about it: organic waste, plastics, biomass, even tires—all can be converted into clean-burning fuels, reducing landfill burden while simultaneously creating the energy we desperately need. This isn't just recycling; it's true circular economics in action. Of all the waste-to-energy technologies available today, pyrolysis stands out as the most versatile and efficient method for closing this loop. It operates in an oxygen-free environment, minimizing harmful emissions while maximizing energy recovery. The result? Clean energy that literally rises from what we once considered waste. The future isn't just about generating clean energy—it's about creating it from the very materials we've discarded. When waste becomes fuel, we don't just solve two problems; we create one powerful solution. This is our future. This is the true green circular economy. #greenenergy #greenhydrogen #greenelectricity #nexcleanenergy #netzeroenergy #donturner #CircularEconomy #WasteToEnergy #Pyrolysis #CleanEnergy #Sustainability #GreenTechnology #RenewableEnergy #Innovation #wastetoenergy #waste2energy

♻️ Why hasn’t the circular economy scaled despite all the efforts in advancing awareness, innovation, and policy-making? Put simply, because the incentives have not been put in place. Circularity is fundamentally an ecosystem challenge that can only be resolved through collaboration not just across supply chains but also between the private, public, and non-profit sectors, as well as the science and business communities. 🚫 Unfortunately, the system is still not working, as evidenced by waste piling up in landfills, land and biodiversity losses, and a changing climate. 🛠️ So how do we fix it? - By fundamentally transforming global waste management - By unburdening the public sector from having to handle waste services - By empowering the science community to valorize circular solutions - By putting a price on waste and simultaneously rewarding verified environmental contributions - By encouraging the private sector (primarily small and medium businesses) to enter the market to offer reuse, repair, remanufacturing and recycling services - By encouraging non-participants to join in And how will we create these incentives for collaboration? 🧩With Circularity Credits. Here’s how they work (on Carrot): 🔁 Every time products or materials are certifiably reused or recycled, a digital certificate (i.e., credit) is issued containing the supply chain tracking information and participants involved in recovering the resource or product. 💸 When that credit is sold, the proceeds are automatically and transparently distributed across the entire chain of contributors — from the recycler down to the waste generator. The result: ✅ Reuse and recycling can become cheaper than landfilling (for the waste generator) while encouraging others to join in. ✅ Service providers obtain additional capital to expand their businesses ✅ Circular systems become financially viable and scalable anywhere in the world. The takeaway: Circularity credits are about to become the fundamental bond between stakeholders in the circular economy and the most effective lever we can use to accelerate the transition. They're simple, impactful and actionable today! #CircularEconomy #CircularityCredits #Recycling