The global economy, as highlighted in the Circle Economy Foundation’s “Circularity Gap Report 2024,” is currently only 7.2 per cent circular, indicating untapped economic potential in this transformative shift

In the imperative shift from fossil fuels to renewables, equal attention is being directed towards embracing circularity as a key sustainability strategy. Sustainable material management is becoming pivotal, offering a means to reduce reliance on delicate supply chains and alleviate pressure on the environment. The Circle Economy Foundation’s “Circularity Gap Report 2024” underscores that the global economy is merely 7.2 per cent circular, revealing substantial untapped economic potential in this transformative endeavour.

Atte Jääskeläinen, President of the Finnish Innovation Fund Sitra, anticipates a significant investment trend in circular solutions. Recognizing the pivotal role of regulations, he emphasizes their influence in steering investments towards circular practices, essential for societies’ sustainable development and countering the overconsumption of natural resources. This year’s focus on the circular economy aligns with decisions made at the UN’s COP28 in Dubai, acknowledging circular approaches as vital for achieving sustainable consumption and production.

Janez Potočnik, Co-chair of the UN’s International Resource Panel, highlights the importance of circular approaches in mitigating resource use growth. The impending IRP report, “Global Resources Outlook 2024,” accentuates the urgency of adopting a circular economy. The report reveals a concerning trend, with new material usage growing at over 2.3 per cent annually. Without immediate action, material resource extraction could surge by nearly 60 percent by 2060, escalating from 100 to 160 billion tonnes.

Ivonne Bojoh, CEO of the Circle Economy Foundation, underscores the potential for more thoughtful, circular solutions, particularly in sectors like agrifood, mobility, and consumables post-COP28 decisions. Recognizing the need for comprehensive change, Bojoh emphasizes the importance of reforming finance and labor policies to address the root causes of climate change and social inequity.