On 15 May 2025, Circle Economy joined leading regional networks around the globe to launch the Circular Alliance of Regions (CARe)— a global initiative uniting regional frontrunners in the circular economy. By joining forces, regions from around the world share knowledge, exchange best practices, and collaborate on accelerating the transition to a sustainable, circular society.
CARe brings together a diverse group of regional programmes, networks and alliances that are already using circular strategies to close material loops and lower environmental footprints. As a founding partner, Circle Economy will collaborate with:
Regions play a crucial role in the circular transition. They connect local ecosystems, businesses, governments, and citizens—making them powerful changemakers. Through CARe, regional pioneers can scale their efforts, learn from international peers, and jointly tackle global challenges with local solutions.
CARe aims to expand its reach and impact through a joint declaration of intent. This shared commitment will formalise the alliance and open the door for more regions to join in the coming years. The declaration will highlight common goals, guiding principles, and opportunities for joint actions.
With CARe now in motion, our next priority is to evolve into a truly impactful and cohesive network. To achieve this, we must refine our collective vision, enhance coordination, and establish robust mechanisms for sharing knowledge. These foundational steps will ensure CARe becomes a powerful catalyst for regional change worldwide. We warmly invite any region that shares our ambition to get in touch and join the alliance.
Contact Krijn Smits at krijn@circle-economy.com for more information.
Key highlights:
13 May 2025, São Paulo — Only 6.9% of the 106 billion tonnes of materials used annually by the global economy come from recycled sources—a 2.2 percentage point drop since 2015, according to a new report released today by Circle Economy in collaboration with Deloitte Global. The Circularity Gap Report 2025 (CGR®) finds that global material consumption is outpacing population growth and generating more waste than recycling systems can handle—underscoring the need for global circular economy targets, system-level transformation, and multilateral collaboration.
For the first time, CGR® analyses how materials flowing into, accumulating and flowing out of the global economy are contributing to, or hindering a circular economy—providing a comprehensive assessment of the current state and an initial set of proposed targets to help reduce material consumption and increase global circularity. Leveraging 11 circularity indicators, the analysis helps pinpoint how various levers (e.g., agricultural sustainability and infrastructure development) can be pulled to boost circularity, highlighting a vast wellspring of untapped potential.
Together with the CGR 2025, Circle Economy has launched the CGR® Dashboard —a database unlocking the millions of data points collected since the annual report’s inception, with the aim of democratising circularity data to enable policymakers, business leaders, and changemakers worldwide to make informed decisions.
While the use of recycled materials increased by 200 million tonnes from 2018 to 2021, overall material consumption rose much faster, offsetting these improvements. The report calls for reducing reliance on virgin materials by prioritising recycled content, enhancing resource efficiency throughout operations and value chains, and designing products for longevity through durable design, repairability, and modularity.
If we were to recycle all recyclable materials—without reducing consumption—global circularity could rise from 6.9% to 25%. However, doing so is unlikely in practice, as some materials remain too difficult or costly to recycle. That is why the report calls for measures that reduce overall material consumption alongside boosting recycling efforts.
The current recycling system is not only inadequate in addressing the global waste crisis but also inefficient. This represents an opportunity for business leaders across sectors to improve recycling systems and minimise waste generation through circular design principles, invest in infrastructure and technologies to improve waste collection, and explore high-value applications for waste.
Moreover, most recycled materials come from industrial and demolition waste, while household waste plays a minor role. Just 3.8% of all recycled materials originate from everyday items individual consumers use and discard.
‘'Our analysis is clear: even in the ideal world, we cannot solve the triple planetary crisis by mere recycling. The much-needed systemic change requires fundamental change. This means unlocking circular potential in stocks like buildings and infrastructure, managing biomass sustainably and stopping sending perfectly renewable materials to landfills. This change doesn’t happen outside ourselves. We all need to make different choices, be bold, and invest to implement circular solutions across value chains,’ said Ivonne Bojoh, CEO of Circle Economy.
The report calls for the establishment of global circular economy targets to lower material use and energy demand alongside increasing recycling rates. This can be achieved by promoting circular design principles, optimising the lifetime of existing products and components, and ensuring the use of recycled materials becomes the norm for businesses in all industries and regions.
Governments have an opportunity to help shape conditions for circularity through smart policies and multilateral collaboration. By setting a clear vision and supporting circular initiatives, they can create favourable conditions for circularity. This includes shifting tax burdens from labour to material use, reorienting subsidies from linear activities, and funding circular projects.
David Rakowski, partner, Deloitte UK, global leader for Circularity, said: “Business leaders who look beyond compliance to proactively embrace a circularity mindset can help their organisations unlock new value and market opportunities, reduce costs, and build long-term supply chain resilience. This year’s CGR offers leaders actionable insights to help them decide where to focus their circular efforts, make meaningful progress toward their sustainability goals, and build a resilient global economy that honours our planet's limits.”
Strong regional and international collaboration—across both the private and public sectors—will be key in successfully tackling resource use and reduction.
During the Dutch Week of the Circular Economy, 48 companies and umbrella organisations, including Circle Economy, joined forces to launch the Dutch Association for the Circular Economy (NVCE). Backed by more than 1,700 companies, the NVCE aims to position circularity as a key solution to geopolitical, economic, and social challenges.
The NVCE unites organisations involved in reuse, recycling, lifespan extension, and the sharing economy. Currently, circular businesses in the Netherlands face significant barriers, such as double VAT on reused products and high costs for secondary materials. The NVCE seeks to bring these challenges to the attention of the national government and advocate for policies that make circular business models the norm.
By putting circular entrepreneurship on the political agenda, making targeted policy recommendations, and acting as a key discussion partner in legislative matters, the NVCE ensures fair opportunities for entrepreneurs while reducing the Netherlands’ reliance on scarce raw materials.
'We are going to have to help each other!' said State Secretary for Public Transport and the Environment, Chris Jansen, during his visit to the NVCE formation meeting at the Port of Rotterdam.
Steven van Eijck, Special Government Representative for the Circular Economy, added: 'Bringing together circular frontrunners is essential, and that’s exactly what the NVCE does.'
‘Circle Economy is a global organisation, yet we remain dedicated to our home country. In our early days, we guided both national and local governments in the Netherlands in designing their first circular economy strategies. We know that collaboration is key to accelerating the much-needed transition. That’s why we are proud to join the NVCE, and believe we can achieve even more together’, said Ivonne Bojoh, CEO of Circle Economy.
About the NVCE: A strong voice for the circular economy
The Dutch Association for the Circular Economy (NVCE) represents 48 entrepreneurs and umbrella organisations, collectively supporting over 1,700 companies leading the transition to a circular economy. The NVCE works towards a future where raw materials are used efficiently, waste is minimised, and reuse and recycling become standard practice. By consolidating practical experiences and making targeted recommendations to policymakers, the NVCE builds influence in national politics and helps establish circular entrepreneurship as the norm. This effort strengthens the Netherlands’ economic resilience and reduces its reliance on scarce raw materials.
Meet the founding members of NVCE: www.nvce.nl
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Ivonne Bojoh, CEO of Circle Economy, shares her insights on circular economy’s benefits for businesses
The world faces a triple crisis—climate change, biodiversity loss, and pollution. The circular economy is one of the most effective solutions to address these issues. Our
Circularity Gap Report 2021 shows that 70% of global emissions are tied to material use and handling. By applying circular economy strategies, we can cut excessive material consumption and thereby reduce carbon emissions. Moreover, the Circularity Gap Report 2023 highlighted that embracing circularity can help reverse the overshoot of five planetary boundaries, including those related to water and soil health. Time and again, our analysis demonstrates that a circular economy offers a holistic, effective approach to tackling multiple global crises simultaneously.
Beyond its environmental benefits, the circular economy is simply a smarter, cleaner, and more efficient system. At the dawn of the 20th century, oil overtook coal because it was a more efficient and less polluting energy source. Today, we have found an even better alternative—renewable energy—which is poised to render oil obsolete. However, unlike the past, we no longer have the luxury of time to let this transition unfold gradually. To combat the pressing crises we face, we must accelerate both the energy and circular transitions.
The Netherlands has been a pioneer in embracing circularity. We worked with many local governments leading the transformation, from Amsterdam to Groningen, and are currently working on the Circularity Gap Report Friesland, together with Circulair Friesland. We take pride in guiding the City of Amsterdam on its circular economy journey, which earned it a spot as a finalist for the prestigious Earthshot Prize in 2022. Beyond visionary policymakers, entrepreneurs across these cities and regions are also driving the shift toward the circular economy.
The Netherlands boasts a high circularity rate and a robust policy framework that supports circular innovation. The Circularity Gap Report Netherlands measured the country’s circularity at 24% in 2020. Initiatives like the Dutch National Circular Economy Programme and strong public-private partnerships have provided a strong basis for circular innovation.
However, like many affluent nations, the Netherlands grapples with unsustainable consumption habits—buying and wasting more than necessary. Our recent reports have shed light on these challenges. For example, used clothing exports from the Netherlands totalled more than €193 million in 2022. This is the highest export value in the five years, indicating a strong overconsumption trend. An average Dutch consumer now buys 46 new clothing items and disposes of 40 (!) each year. These striking numbers underscore the need for both the country and its residents to intensify their efforts toward sustainable and circular consumption.
There's a common misconception that sustainability comes at a cost. In reality, circular strategies drive efficiency, reduce costs, and open new revenue streams. For instance, models like product-as-a-service (PaaS) and resale schemes allow businesses to tap into new markets and foster stronger connections with clients.
At Circle Economy, we analyse material flows to identify business opportunities, expose inefficiencies, and provide actionable insights, forming a solid basis for informed decision-making. Beyond optimising operations, we emphasise the importance of resilience and future-proofing. With evolving legislation and true pricing on the horizon, along with the undeniable impacts of our current linear economy, resource-intensive businesses have both an opportunity and an imperative to change.
Swapfiets is a prime example of a successful international business built on the PaaS model. Starting as a Dutch enterprise, Swapfiets now offers its circular services in eight countries. They have redefined mobility by shifting ownership to service and maintenance models, thus extending the lifecycle of their products and ensuring that resources are used optimally.
Additionally, Decathlon, traditionally a linear retail giant, has recently adopted circular business models like resale, tapping into new markets and catering to customers interested in trying new sports without the commitment of purchasing new and expensive equipment.
IKEA has also taken steps toward circularity with its buy-back program, offering second-hand furniture alongside new products. These initiatives illustrate how businesses can successfully integrate circular models, proving that sustainability and profitability can go hand in hand.
It's essential to reshape the narrative and view the circular economy as a powerful risk mitigation tool. Challenges like raw material shortages, supply disruptions, and geopolitical risks can be effectively mitigated through circular strategies—by shortening supply chains, doing more with less and sourcing (recycled) materials locally.
So, the circular economy is not merely about ticking compliance boxes; it's about ensuring a company's long-term viability and resilience. When companies start to see investment in sustainability as a driver of competitive advantage, the shift from mere compliance to proactiveness becomes inevitable.
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Circle Economy is proud to announce the appointment of four sustainability leaders to our Supervisory Board. Each new member brings a unique perspective and a shared commitment to accelerating the transition to a circular economy. Their expertise and experience will be instrumental in advancing our mission to double global circularity by 2032.
’We are honoured to have been approached by so many distinguished experts who are keen to join our Supervisory Board. Selecting just four of them to complement our existing non-executive Board was a challenging task. Gordana, Marcus, Nancy, and Sisse bring a wealth of perspectives and experiences, and I am excited to collaborate with them as we continue to support global transformation towards 17% global circularity.’ — Ivonne Bojoh, CEO of Circle Economy
Meet the new Supervisory Board members!
Dr. Gordana Kierans
Dr. Gordana Kierans has dedicated her career to empowering changemakers, CEOs, and government officials to embrace the circular transition. With an extensive consulting and coaching background across diverse cultural and economic contexts, Dr. Kierans brings a much-needed global perspective to our Board.
Prof. Nancy Bocken
Professor Nancy Bocken is a renowned academic and entrepreneur specialising in sustainable business and circular economy practices. She teaches at Maastricht University and co-founded HOMIE, a sustainable business venture. As a strategic sustainability advisor to various organisations, she bridges the gap between cutting-edge research and real-world application.
Sisse Norman Canguilhem
With 18 years of leadership in international policy, sustainability, and corporate affairs, Sisse Norman Canguilhem brings unmatched expertise in advancing global sustainable policies. A former Deputy Director of the Danish Ministry of Foreign Affairs, she contributed to Denmark's international climate policy both bilaterally and at multilateral level at COP, the World Economic Forum and other high-profile events.
Dr. Marcus Gover
As an accomplished sustainability leader, Marcus Gover offers over two decades of board-level experience in both commercial and non-profit sectors. His expertise spans climate action, food systems, clothing, and plastic pollution. Now a consultant and non-executive director, Marcus brings exceptional strategic, commercial, and technical leadership to Circle Economy.
‘With the addition of four new Supervisory Board members, we aim to infuse our work with renewed energy. Their diverse international and interdisciplinary expertise will help ensure that the circular economy gains recognition at all levels —from academia to business to government. A heartfelt thank you and a warm welcome to these exceptional individuals joining our team!’ — Robert-Jan van Ogtrop, Founder of Circle Economy & Chairman of the Supervisory Board
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28th of November 2024, Amsterdam—The global textile industry, including fashion and home textiles, consumes 3.25 billion tonnes of resources each year to produce increasingly short-lived items. Only 0.3% of these materials come from recycled sources, primarily plastic bottles. The use of recycled textiles in production remains minimal, while oil-derived synthetic fibres like polyester are gaining ground, now accounting for 70% of the materials used to make our clothes.
These are the main findings from the newly released Circularity Gap Report Textiles by impact organisation Circle Economy and the H&M Foundation. The report calls for urgent action to diminish the industry’s environmental impact by embracing circular economy principles such as reuse, recycling, and slow fashion.
One of the primary barriers to circular textiles is the overproduction of cheap, low-quality, primarily synthetic garments, with mass-market brands now releasing up to 24 collections per year. The textile industry has become one of the biggest consumers of resources, leading to environmental damage worldwide. The report estimates that the sector contributes nearly 3.5% of global greenhouse gas (GHG) emissions linked to climate change, 5% to nutrient overload that disrupts marine and freshwater ecosystems, and accounts for 3.5% of water scarcity.
Two countries—China and the United States—play a significant role in these environmental impacts, with China being the largest textile producer and the US the largest consumer. Remarkably, the environmental impact per person in the US is five to eight times higher than the global average, driven by heavy textile consumption.
Hilde van Duijn, Managing Director of Circle Economy Foundation said that ‘The textile and fashion industry can considerably reduce its environmental footprint through circular practices. However, this transition will impact the livelihoods of the 140 million workers employed in textile supply chains. Ensuring a just transition for these workers should be a top priority for both governments and businesses.’
Embracing circular economy solutions across the textile value chain can help mitigate climate change and water scarcity, preserve biodiversity and human health and reduce air pollution, among other positive impacts. The report outlines strategies to triple the textile industry’s circularity and reduce its environmental impacts by up to 50%.
These strategies include boosting garment durability through the smart use of synthetic fibres while ramping up textile recycling. Producing natural fibres sustainably is crucial, as traditional farming methods for materials like cotton and wool can exacerbate environmental damage through excessive water, land, pesticide, and energy use. Ultimately, it finds that a circular textile industry is impossible without a dramatic cut in consumption. The average European today consumes a staggering 26 kilograms of textiles each year, and discards 12 kilograms. Embracing slow fashion, which favours quality over quantity, and supporting businesses in adopting rental or sharing models is key to reducing overproduction, while more efficient manufacturing methods can drastically reduce pre-consumer waste.
Christiane Dolva, Head of Innovation, Research & Demonstration at the H&M Foundation said that ‘We supported this report to provide the textile industry with actionable insights. The report highlights the most impactful circularity efforts. While not a complete solution, the circular economy is a powerful tool for driving meaningful change. We hope these insights will support industry-wide transformation, benefiting both people and the planet.’
Circle Economy has launched a Data Explorer for the Japanese city of Gamagori. Developed in collaboration with Harch Inc. and the city itself. This digital tool provides a visual overview and key insights into circular jobs in the city, along with recommendations to increase the circularity of its economy.
In late 2021, Gamagori committed to advancing the circular economy in order to enhance the well-being of its residents. To support this effort, Circle Economy mapped the city’s circular jobs, providing a starting point for creating more employment opportunities that will drive the circular transition forward.
The analysis found that 611 out of 35,918 jobs (1.7%) in Gamagori contribute to the circular economy, either directly or indirectly. About 1.1% of jobs are considered direct circular jobs, meaning they operate directly within the circular economy, such as roles in circular design, repair, renewable energy generation, and waste and resource management. Approximately 0.6% of jobs in Gamagori are indirect circular jobs, which provide crucial support for direct circular jobs—for example, by supplying spare parts for repairs.
The service sector accounts for the highest number of circular jobs, while utilities, despite being the smallest in terms of employment, show the highest proportion of circular jobs at 15.4%, primarily in water and waste management. Sectors such as medical care and welfare, transportation and postal services, accommodation and food services, construction, and manufacturing—though large employers—currently have low percentages of circular jobs but hold significant potential for growth.
To advance the circular economy, Gamagori could invest in education and reskilling programmes to help workers transition from linear to circular roles. The city could also incentivise job creation in high-potential sectors like manufacturing and services through measures such as tax deductions and wage subsidies. Additionally, the relatively low percentage of indirect circular jobs provides an opportunity to reshape city services to better promote the circular economy. Engaging sectors like finance, insurance and research could be key in developing and implementing new business models in the circular economy.
The Gamagori Data Explorer is a pilot project with the potential to expand to other cities across Japan and beyond.
Click here to access the Data Explorer and subscribe for updates on this product.
We are pleased to announce the release of ‘Circularity and Informality: Redefining Narratives’—a knowledge product resulting from a partnership between Ashoka, IKEA Social Entrepreneurship, and the United Nations Development Programme (UNDP) Accelerator Labs Network, with support from Circle Economy.
This white paper is designed to enhance understanding of the informal sector’s role within the circular economy—a group of actors that are often overlooked. Additionally, it aims to foster dialogue on how to empower informal workers and their collaborators, particularly social entrepreneurs, in advancing circular practices. It is based on the insights we recorded from a series of learning circles—generative conversations that involve genuine inquiry and sharing, leading to expanded understanding and shared meaning. They brought together social entrepreneurs, Ashoka Fellows, UNDP Labbers, and other stakeholders.
As the circular economy develops globally, the circles’ participants underscored the need to use it as a force to foster positive social change, including safeguarding and empowering informal workers. The participants also acknowledged the tensions and dilemmas that arise as we scale circular solutions in traditionally informal settings.
The white paper’s key findings include:
1. ‘Informality’ is a label imposed on workers, who regard their work as simply a way of life and means of livelihood rather than part of an ‘informal’ economy.
2. The stigma attached to informal labour can mean the significant economic and circular contributions these workers make are not properly recognised. It is important to respect the significance and identity of these workers.
3. Informal settings are rich with grassroots circular economy knowledge and ingenuity but often overshadowed by dominant views shaped by technology and theoretical frameworks.
4. Formalising informal employment in the circular economy can empower workers but it can also worsen their situation if not approached carefully. Therefore, there is an urgent need for nuanced and context-specific approaches when considering the formalisation or integration of the informal sector.
The partners view the white paper as a contribution to the rich discussions about informality in the circular economy and the dynamics within ecosystems of actors that need to be better understood as circular solutions are scaled. We invite all interested parties to engage actively in discussions on this topic. In addition to sparking conversations, our findings intend to inspire concrete actions to drive real change.
Learn more and download the white paper here.
About Ashoka
Ashoka is a global network of over 3800 social entrepreneurs in more than 95 countries, working towards an “Everyone a Changemaker” world. They identify and support social entrepreneurs who drive transformative solutions to societal and environmental issues, fostering a more inclusive and sustainable future.
About IKEA Social Entrepreneurship
IKEA Social Entrepreneurship is committed to creating a positive impact for people, society, and the planet through innovative solutions and partnerships. By supporting social entrepreneurs, they aim to address social and environmental challenges and drive positive change.
About UNDP Accelerator Labs
The United Nations Development Programme (UNDP) Accelerator Labs is the world’s largest and fastest learning network on wicked sustainable development challenges, containing 90 Labs and covering 114 countries worldwide.
About Circle Economy
Circle Economy is a global impact organisation with an international team of passionate experts based in Amsterdam. We empower industries, cities and nations with practical and scalable solutions to put the circular economy into action. Our vision is an economic system that ensures the planet and all people can thrive. To avoid climate breakdown, our goal is to double global circularity by 2032.
