The rapid expansion of renewable energy in recent years marks significant progress in the fight against climate change. However, experts warn that additional measures are required to meet global emission reduction targets. According to the Emissions Gap Report 2022, global annual greenhouse gas (GHG) emissions must decrease by 45% within the next eight years—compared to projections under current policies—to limit global warming to 1.5°C above pre-industrial levels1. Could a circular economy help bridge this gap? This article explores the role of circular economy principles in reducing global GHG emissions and addressing climate change challenges.
What is a Circular Economy?
A circular economy is an economic system designed to extend the life cycle of products and materials through practices such as sharing, leasing, maintaining, reusing, repairing, refurbishing, and recycling. It provides an alternative to the traditional linear economy, which follows a “take-make-use-waste” model—extracting raw materials, processing them into products, using them, and ultimately discarding them.
The four primary circular economy strategies include:
- Reducing material inputs – Implementing practices such as material-efficient product design, dematerialization, and material substitution to minimize resource consumption.
- Extending product and component lifespans – Enhancing durability, upgrading, sharing, reusing, repairing, reselling, refurbishing, remanufacturing, and repurposing.
- Reintegrating materials into the economy – Recycling and recovering materials to reduce waste.
- Regenerating natural systems – Restoring and maintaining ecosystems, particularly for biomass-based resources2.
Why is a Circular Economy Essential for Combating Climate Change?
- Modern clean energy technologies such as solar panels and wind turbines require more critical minerals than traditional fossil fuel-based systems3. A circular economy approach is crucial for ensuring the sustainable deployment of these technologies at scale.
- The Ellen MacArthur Foundation highlights that current climate mitigation efforts have primarily focused on renewable energy and energy efficiency. However, according to the foundation, these measures only address 55% of global GHG emissions, which stem from energy supply, buildings, and transportation, and the remaining 45% originates from the production of goods and land management4. Transitioning to a circular economy is essential to mitigating these emissions.
How Can Circular Economy Practices Reduce Global GHG Emissions?
Circular economy strategies contribute to decarbonization in several key areas:
- Reducing emissions from material production – Minimizing resource extraction and material processing lowers associated emissions.
- Lowering operational energy consumption – Enhancing energy efficiency in buildings and transportation through resource-efficient practices.
- Mitigating emissions from waste management – Improving waste prevention, reuse, and recycling efforts to decrease landfill emissions2.
Leveraging the Circular Economy to Meet Climate Targets
The transition to a circular economy extends beyond waste reduction; it is a strategic approach to reducing greenhouse gas (GHG) emissions. By optimizing resource efficiency, extending product lifespans, and reintegrating materials into production cycles, businesses can significantly lower global GHG emissions while strengthening economic resilience. As the urgency to combat climate change grows, embracing circular economy principles will be essential for closing the emissions gap and securing a sustainable future.
References
- United Nations Environment Programme, “Emissions Gap Report 2022: The Closing Window — Climate crisis calls for rapid transformation of societies.,” Nairobi, 2022. Accessed: Oct. 01, 2023. [Online]. Available: https://www.unep.org/resources/emissions-gap-report-2022 ↩︎
- K. Wang et al., “Circular economy as a climate strategy: current knowledge and calls-to-action,” Nov. 2022. Accessed: Oct. 01, 2023. [Online]. Available: https://pacecircular.org/Circular-Economy-as-a-Climate-Strategy ↩︎
- International Energy Agency, “The Role of Critical Minerals in Clean Energy Transitions,” May 2021. Accessed: Oct. 01, 2023. [Online]. Available: https://www.iea.org/reports/the-role-of-critical-minerals-in-clean-energy-transitions ↩︎
- The Ellen MacArthur Foundation, “Completing the picture: How the circular economy tackles climate change,” 2021. Accessed: Sep. 01, 2023. [Online]. Available: https://www.ellenmacarthurfoundation.org/completing-the-picture ↩︎
