Circle Economy

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Circle Economy

Circle Economy
Formation	2011
Founder	Robert-Jan van Ogtrop
Type	Nonprofit
Location	Amsterdam
Region served	Global
Key people	Robert-Jan van Ogtrop
Website	www.circle-economy.com

Circle Economy is an Amsterdam-based non-profit impact organisation focused on accelerating the transition to a circular economy. Founded in 2011 by Dutch businessman Robert-Jan van Ogtrop, Circle Economy operates globally to promote sustainable economic practices through practical, scalable solutions. With the ultimate goal of doubling global circularity by 2032, it consults with and trains stakeholders from businesses, organisations, cities, and nations to adopt a circular economy.

History

Circle Economy was founded by Dutch businessman Robert-Jan van Ogtrop, who was ‘convinced we needed to make a major shift in world business toward the circular economy.’ The organisation helps public and private sector decision-makers develop and implement circular economy strategies and business models, launching digital tools like Ganbatte—an online platform providing key data insights for circularity for more than 6,000 cities worldwide—and Circularity Games, an e-learning training platform. Since its launch, the organisation has grown, with a business consultancy spin-off founded in 2023. Circle Economy Consulting has partnered with Deloitte to help businesses adopt and accelerate the circular economy transition.

Research

Circle Economy’s Circularity Gap Reporting Initiative tracks the circular state of local, regional, and national economies, as well as the globe, through the release of Circularity Gap Reports.

Global Circularity Gap Reports

First launched at the World Economic Forum in Davos in 2018, the Circularity Gap Report measures the portion of virgin materials extracted from the Earth each year that are cycled back into the economy. According to The Independent, the Circularity Gap Report by Circle Economy states that only about a tenth of the nearly 93 billion tonnes of materials used annually, including minerals, metals, fossil fuels, and biomass, are currently reused. Its yearly analysis has found that global circularity—first measured at 9.1% in 2018—has dropped to 7.2% as of 2023, finding that raw material consumption has nearly quadrupled in the last half-century, surpassing 100 billion tonnes annually. It also calculates that nearly two-thirds of global greenhouse gas emissions are linked to material extraction, processing and use. The 2020 edition indicates that, on average, each person on Earth uses more than 13 tonnes of materials annually, highlighting some nations’ progress towards a circular economy—including measures designed to boost renewable energy and minimise waste and pollution.

The 2021 edition further explored the material-climate link, finding that a shift to a circular economy could reduce global annual emissions by 39%—enough to avoid climate breakdown—while cutting material use by 28%, underscored by other societal and economic benefits. It highlights how the over-exploitation of natural resources within a linear take-make-waste system contributes to the climate crisis.

Other Circularity Gap Reports

In addition to measuring global circularity, Circle Economy works with cities, regions and nations to carry out a similar analysis and pinpoint avenues for change, also measuring these entities’ material and carbon footprints.

Circle Economy collaborated with the City of Montreal to calculate its Circularity Metric and inform its circular economy roadmap, providing data used to document the City’s transition. It found that currently, only 3% of resources are reused, sparking the City’s target of doubling this rate by 2030 and reaching 17% by 2050. The 17% goal was inspired by Circle Economy’s 2020 Circularity Gap Report, which found that doubling global circularity from 8.6% to 17% could limit global warming to below two degrees, aligning with Montreal’s long-term climate goals.

The Circularity Gap Report Quebec, commissioned by RECYC-QUÉBEC and carried out by Circle Economy, revealed a Circularity Metric of 3.5%, reflecting minimal material recirculation, highlighting the need for systemic change to reduce waste and improve economic resilience. According to Benoit Charette, Quebecois Minister of the Environment and the Fight against Climate Change, the report provides ‘a clear picture of the situation’, allowing the Provincial Government to work towards its intended sustainability goals.

Circle Economy’s work in Latin America and the Caribbean found that less than 1% of materials are recirculated in the region’s economy, highlighting smarter food production, energy-efficient housing, reduced car use and more sustainable manufacturing as key areas of reform. Implementing circular economy strategies could reduce material use and carbon footprint by about 30% each while generating over 8.8 million new formal jobs. The report emphasises the importance of rigorous data collection on waste generation and material use, as well as the value of circular economy principles.

The Circularity Gap Report Switzerland, produced in partnership with Deloitte Switzerland, found that only 6.9% of materials used in Switzerland come from secondary sources. The manufacturing industry is the most resource-intensive sector, consuming nearly 40% of raw materials and contributing to over a third of greenhouse gas emissions. The report identifies five key areas for boosting circularity, including manufacturing, transportation and mobility, the built environment, the food system, and lifestyle. Implementing these changes could nearly double Switzerland's circularity rate to 12.1%, reduce resource consumption by 33%, and decrease greenhouse gas emissions by 43%.

The Circularity Gap Report United Kingdom, launched in partnership with Deloitte UK, found that the country consumes 15.3 tonnes of materials per capita annually, only 7.5% of which are recirculated in the nation’s economy. The analysis indicates that adopting circular initiatives—like boosting reuse and recycling—could cut the UK’s carbon footprint by 43%. It also highlighted the uneven distribution of material extraction across the UK, with Scotland and Northern Ireland contributing significantly more than the national average—despite consumption being highest in England.

The Circularity Gap Report Poland, launched in collaboration with Innowo and Natural State, found that only one-tenth of the materials flowing through the Polish economy come from secondary sources. Using 517.9 million tonnes of virgin materials per year, or 13.8 tonnes per capita, the Polish economy consumes more than the global average—with coal consumption posing a particular problem, in addition to the material-intensive agriculture and construction sectors.

Other research

Jobs in the circular economy

Circle Economy’s Circular Jobs Initiative, which is centred on the people, skills and roles needed to drive the circular transition, has developed and launched the Circular Jobs Monitor in collaboration with the UN Environment Programme: an online tool that provides policymakers, economists and labour organisations with the data needed to link the circular economy and labour market. It aims to facilitate the roll-out of evidence-based circular initiatives, including educational programmes, to increase circularity in the labour market.

The Circular Jobs Initiative has also carried out a wide range of research, centring on the social core of the circular economy through the lens of job creation. According to one report, cities that introduced circular economy policies enjoyed a number of benefits, including increased job creation. Another report, launched in 2023 in collaboration with the International Labour Organisation and World Bank, provides an overview of the existing evidence base of jobs in the circular economy, emphasising the need for better data and inclusive policies to ensure a just circular transition. Another 2023 report, centred on the circular transition in the Global South, found that the vast majority of research on the socioeconomic benefits of transitioning to a circular economy has historically been centred on Global North countries. It highlights that the research that does exist on circular jobs in the Global South primarily revolves around how many jobs can be created, instead of the quality of these jobs—especially given the number of informal workers in these regions.

Cities

The Dutch capital Amsterdam is wholly embracing the circular economy and adopting Kate Raworth’s ‘doughnut economics’ model to meet social needs within ecological limits. Circle Economy helped the City build its short-term roadmap, integrating the model into city planning and promoting holistic strategies that encompass social and environmental goals, including housing and climate challenges.

Textiles

Circle Economy collaborated with the British Fashion Council on a report outlining strategies for circular fashion ecosystems through workshops, knowledge sharing, and infrastructure development in cities like London and Leeds. Key actions include enhancing product reuse, reducing new clothing production, and improving sorting and material recovery methods.

The 2022 Sorting for Circularity Europe project, conducted by Circle Economy in collaboration with Fashion for Good, found that over a 16-month analysis period, nearly 500,000 tonnes of low-value, post-consumer textiles are readily available for fibre-to-fibre recycling in six European countries.

Finance

The Circularity Exchange Network, rolled out during the World Circular Economy Forum 2023 in Helsinki, convened Multilateral Development Banks (MDBs) including the African Development Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank, IDB Invest, and World Bank to deepen their cooperation. The initiative was initiated by Circle Economy and the Dutch Ministry of Infrastructure & Water Management and also includes another circular economy organisation, the Ellen MacArthur Foundation, in addition to the UN Environment Programme and World Economic Forum.

Circle Economy’s Coalition Circular Accounting—a collaboration with the Netherlands Institute of Chartered Accountants (NBA), ABN AMRO, Rabobank, KPMG, Alfa Accountants and Advisors, Allen & Overy, Impact Economy Foundation, Invest-NL, Sustainable Finance Lab and scientists affiliated with Nyenrode Business University and Avans University of Applied Sciences—also advocates for a circular financial system. The organisation has emphasised the pivotal role of financial accounting and reporting in advancing the circular economy, advocating for transparency in demonstrating progress towards circular goals, reducing material consumption by 50% by 2030, and achieving full circularity by 2050. The Coalition’s approach aims to redefine value and risk, promoting sustainable business practices.

References

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