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Global Circularity Report Highlights

Jul 8, 2025

Summary

  • The seventh edition of the Global Circularity Gap Report was launched in partnership between Circle Economy Foundation and Deloitte, featuring insights, trends, and action-oriented guidance for accelerating global circularity.
  • The event included a detailed walk-through of the 2024 report, a panel discussion with leaders from Ikea and the World Bank, and highlighted the importance of policy, finance, and skills as enablers for a circular economy.
  • Key themes included the need for systemic change, practical implementation strategies tailored to different country profiles, and building collaborative partnerships across sectors.
  • Circle Economy Consulting announced a new partnership with Deloitte, with further details provided in a press release.

Action Items

  • Today – Circle Economy Foundation: Publish press release announcing new partnership between Circle Economy Consulting and Deloitte.
  • Ongoing – Matthew Fraser/Circle Economy Foundation: Encourage attendees and stakeholders to download and review the full 2024 Circularity Gap Report.
  • Ongoing – Hege Sæbjørnsen/Ikea: Continue cross-functional co-creation of repair schemes and develop relevant learning offerings for all business functions.
  • Ongoing – World Bank/Andrea Lanzi: Further collaboration on circularity-enabling policy guidance and support to client countries, particularly in the construction and waste sectors.
  • Ongoing – All Attendees: Share successful and unsuccessful circularity initiatives to enable collective learning and avoid repeated mistakes.

Launch of the 2024 Circularity Gap Report

  • The event marked the release of the 7th Circularity Gap Report, with a focus on moving from theory to action through practical strategies and roadmaps.
  • Adjustments from previous years included a streamlined one-hour program, a simplified technical setup, and a more interactive panel.

Report Highlights & Key Insights

  • Global circularity has declined from 9.1% to 7.2% over five years, despite increased dialogue and recognition of circular economy principles.
  • Material consumption has sharply increased, equaling the entire 20th century’s usage in just five years, underscoring urgency.
  • Three major enablers were identified: policy (level playing field and incentives), jobs & skills (education and just transition), and finance (true pricing and investment redirection).
  • Roadmaps and enablers were detailed for three distinct country profiles:
    • Shift countries (high-income): Focus on reducing overconsumption; showcased EU’s right to repair legislation.
    • Grow countries (middle-income): Leverage regenerative food systems; cited the CocoAction Brazil partnership as a successful case.
    • Build countries (low-income): Integrate circularity in infrastructure; highlighted Rwanda’s national action plan embedding circular principles.
  • The report emphasizes shifting the development paradigm, aligning economic incentives, international cooperation, and ensuring a just socio-economic transition.

Panel Discussion: Industry & Public Sector Perspectives

Ikea’s Circular Journey (Hege Sæbjørnsen)

  • Ikea’s strategy integrates climate, nature, sustainable living, circularity, and social fairness.
  • Circularity is pursued as a business transformation, not just sustainability compliance, driven by systemic change across the entire value chain.
  • Initiatives include designing for durability, scaling repair/reuse, policymaker engagement, and consumer education.
  • Emphasized the clear business case: cost of inaction, evolving legislation, and changing consumer preferences.

World Bank’s Role & Challenges (Andrea Lanzi)

  • The World Bank’s mandate has evolved from reconstruction to poverty reduction and now includes environmental sustainability and circularity.
  • The institution sees rising demand from member states for support in circularity, especially in waste, recycling, and energy efficiency.
  • Adoption of circularity varies by country context, requiring tailored policy, economic incentives, and cross-sector partnerships.
  • Highlighted the importance of public-private partnerships, especially via sectoral agreements and industrial symbiosis.

Enablers Deep Dive

  • Built Environment: High-income countries repurpose existing infrastructure; developing countries focus on circular principles in new construction.
  • Economics: The need for landfill taxes, life-cycle costing, and reforming fiscal systems (e.g., VAT/subsidies) to favor circularity.
  • Skills & Education: Upskilling across the workforce is essential; companies should provide job-relevant learning for all functions, emphasizing actionable knowledge and an inspiring vision.
  • Partnerships: Collaboration between governments, industry leaders, and financial institutions is vital to scale successful circular initiatives.

Audience Q&A

  • Prioritizing Circular Initiatives: Begin where the organization’s largest impact lies, balance ambition with practicality, and consider market-specific opportunities.
  • Maintaining Momentum Amid Political and Economic Turbulence: Focus messaging on resilience, cost-effectiveness, and meeting real human needs, alongside environmental benefits.
  • Public-Private Collaboration: The Netherlands’ sectoral pacts and China’s secondary materials markets were cited as leading examples.

Decisions

  • Announced new Circle Economy Consulting–Deloitte partnership — to enhance advisory services and accelerate practical implementation of circular economy strategies for businesses and governments.

Open Questions / Follow-Ups

  • Details regarding the scope, objectives, and early activities of the Circle Economy Consulting–Deloitte partnership (to be clarified in the press release).
  • Ongoing need for more granular, sector-specific data to inform prioritization and action planning for individual organizations.