What is the circular economy?

In the face of climate breakdown that is fuelled by our current linear 'take-make-waste' economy, we need a fundamental shift in the way we produce and consume resources.

The circular economy aims to achieve inclusive economic, social and environmental prosperity within the boundaries of our planet, by making efficient use of our resources. In a circular economy, materials and products are used to their fullest potential and are continuously reused in a system that is waste-free, nature is regenerated and resource extraction minimised. Circularity is an emerging concept that provides new business strategies and economic policies to create value again and again.

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What is a circular city?

Cities are responsible for more than 70% of GHG emissions and two-thirds of waste generated. While they are driving many of our environmental problems, they can also be the solution. Globally, more than 80% of GDP is generated within cities. The huge influence of cities makes them an ideal hotbed to drive the change towards a livable and resilient circular future.

A circular city is one that promotes a just transition from a linear to a circular economy across the urban space, through multiple city functions and departments and in collaboration with residents, businesses and the research community.

In practice, this means shifting away from the linear economy's 'take-make-waste' model and moving to an economic system where the value and utility of infrastructure, products, components, materials and nutrients is maintained for as long as possible. In a circular city, material loops are closed, meaning that existing materials are repeatedly cycled instead of becoming waste; resource extraction is also minimised.

Through this transition, cities throughout the world-from Prague to Changchun, Accra to Amsterdam-are pursuing the circular economy through the diversity of policy levers, to seek to improve resource access, lower emissions, protect and enhance biodiversity, and reduce social inequities in line with the Sustainable Development Goals.